General Electric Co is taking steps to shift some U.S. manufacturing work overseas now that the U.S. Export-Import Bank will be shuttered at least until September…
GE Vice Chairman John Rice said the conglomerate is bidding on over $10 billion worth of projects that require support from an export credit agency (ECA) like Ex-Im.
With Ex-Im unable to extend new loans or guarantees thanks to an effort by congressional Republicans to shut it down, GE is arranging with ECAs in other countries to finance the deals involved, with much of the production going to GE plants in those foreign locations. The prospective government partners include Canada, the United Kingdom, France, Germany, China and Hungary, he said…
Ex-Im has been unable to consider any new financing requests since Congress allowed the bank’s charter to expire on June 30.
Rice’s comments come as the U.S. Congress starts a five-week summer recess with no clear path to revive Ex-Im in the months ahead. A group of conservative Republicans, who say the 81-year-old trade bank is a nest of “crony capitalism” that doles out government welfare to GE, Boeing Co and other wealthy corporations, want to keep it closed for good…
Rice, who is based in Hong Kong, said GE is not moving to shift work and jobs overseas “just to make a point” to Congress, but to win contracts that require export credit agency support. “We’re doing this because if we don’t, we can’t submit a valid tender,” he said.
In one such power-sector bid, for example, GE would do final assembly work on its aero-derivative gas turbine power generation units at GE plants in Hungary or China instead of a factory in Houston. It already has capacity in place, and export credit agencies willing to support the work, he said.
“Next year, if we win this bid, work that would have been in Houston will be someplace else,” Rice said.
In practice, shutting down the Ex-Im Bank handicaps small-biz as much or more than any other. Such questions devolve from commercial regulations and cause problems just like this one.
I expect Tea Party idjits will ignore the result they cause as often as ever. And if we’re really lucky, Luddites who panic over commerce taking place in a real world which now stretches well beyond the boundaries of the industrial landscape pre-World War 2 will join their peers on the Right.
After more than a half-century of political activism on behalf of the working class I was born into I’m still frustrated by sectarians who can turn an ordinary question of guaranteeing a loan – into religious fears over the purity of their bodily fluids.
Coal is having a hard time lately. U.S. power plants are switching to natural gas, environmental restrictions are kicking in, and the industry is being derided as the world’s No. 1 climate criminal. Prices have crashed, sure, but for a real sense of coal’s diminishing prospects, check out what’s happening in the bond market.
Bonds are where coal companies turn to raise money for such things as new mines and environmental cleanups. But investors are increasingly reluctant to lend to them. Coal bond prices tumbled 17 percent in the second quarter, according to an analysis by Bloomberg Intelligence. It’s the fourth consecutive quarter of price declines and the worst performance of any industry group by a long shot.
Bonds fluctuate less than stocks, because the payoff is fixed and pretty much guaranteed as long as the borrower remains solvent. A 17 percent decline is huge, and it happened at a time when other energy bonds—oil and gas—were rising. Three of America’s biggest coal producers had the worst-performing bonds for the quarter:
Alpha Natural Resources: -70 percent
Peabody: -40 percent
Arch: -30 percent
The map shows coal plants in 2010 that may be headed for retirement. Blue circles represent plants that will be shuttered by 2020, while yellow will convert to gas, and red have undetermined futures.
About 17 percent of U.S. coal-fired power generation will disappear over the next few years, according to an analysis by Bloomberg New Energy Finance (BNEF). Obstacles include age, the abundance of cheap natural gas, and new EPA rules to cut pollution…
Even China, the world’s biggest consumer of coal, wants to be rid of it…While China’s electricity demand will soar in the coming decades, its coal use will remain relatively flat, peaking by 2030 and then declining, according to BNEF. The pollution is too thick and the alternatives too cheap for coal to flourish…
But even setting aside the environmental and health issues, renewables are on a trajectory to outcompete fossil fuels, starting with coal. Between now and 2040, two-thirds of the money spent on adding new electricity capacity worldwide will be spent on renewables, according to BNEF…
Pigs like the Koch Bros and their bed-buddies ExxonMobil et al are putting their last hopes into the Republican Party. Unlike their peers in archaic monarchies like Saudi Arabia, they have to confront minimal papier mache democracies like the United States. Conservatives like Republicans or Blue Dog Democrats needn’t involve themselves with science to decide policy. Their only decision is whether they require a new wheelbarrow to carry away the dollar$ on offer from the barons of fossil fuel – or the old one is adequate.
It only remains for the crowd in charge of the Democrat Party to decide if they will listen to reason, evidence-based science and concern for future generations of our species. For some that’s still a difficult questions.
It’s hard to believe that this collection of colorfully striped mountains is real. Sure, some amount of photo manipulation may have awoken the rich hues, but even the un-retouched images paint a pretty picture. Located in China’s Zhangye Danxia Landform Geological Park, these “rainbow mountains” are yet another wondrous example of what Mother Nature can create. The formations’ stripes are most vivid after a rainstorm or as the sun enters or leaves the sky.
With enough time, anything is possible–even this 400-square-kilometer section of striped mountains. 24 million years ago, red sandstone and mineral deposits formed layers that compressed and underwent metamorphism, speckling the Chinese landscape with a “layer cake” of blues, reds and yellows. Erosion worked against the formation, carving cliffs, valleys and natural pillars into the earth, adding the array of textures and patterns that now characterize the region’s mountains
The company that owns KFC is trying to dispel rumors that it genetically modified its meat and manufactured an eight-legged, six-winged chicken to serve to customers.
Yum Brands, which owns China’s largest fried-chicken chain, said in a statement Monday that it has sued three companies there that have been spreading false rumors on social media — among them that the restaurant delivered maggot-infested food and created a deformed chicken. It wants $242,000 and an apology from all three defendants…
KFC, which has more than 4,600 restaurants in China, has been fighting for its reputation for years. In 2012, Chinese media outlets reported that a KFC supplier had been using growth hormones and antibiotics to grow larger chickens…The accusations spurred fears about the country’s food safety. Then last year, KFC, along with McDonald’s and Pizza Hut, had to apologize to customers after a supplier was caught on video violating safety regulations — picking up meat from the factory floor and tossing it into mixers and touching meat on the assembly line with bare hands. There were also complaints that the meat was expired.
“When I saw that, I said, ‘Uh-oh, here’s six to nine months of problems,’” Yum chief executive David Novak told investors at the time…
KFC’s China CEO Qu Cuirong said in a statement that it is difficult for companies to guard against falsehoods, because it’s hard to get evidence, the Associated Press reported. “But the stepped-up efforts by the government in recent years to purify the online environment, as well as some judicial interpretations, have offered us confidence and weapons,” she said.
Even though physical, scientific evidence is easy to produce – especially when accusers have nothing to offer other than “what-ifs” and “maybes” – you still run the risk of know-nothings simply picking up and running with the headlines from low-lifes pretending to be investigative journalists.
We all know a few folks who will believe those headlines because it fits their view of the world around them.
Narendra Modi @narendramodi May 15
It’s selfie time! Thanks Premier Li.
China will expand its bans on coal burning to include suburban areas as well as city centers in efforts to tackle air pollution…
Detailing its clean coal action plan 2015-2020, the National Energy Administration (NEA) said it would promote centralized heating and power supply by natural gas and renewables, replacing scattered heat and power engines fueled by low quality coal.
The world’s biggest coal consumer will ban sale and burning of high-ash and high-sulphur coal in the worst affected regions including city clusters surrounding Beijing.
If you’ve been around as long as I have – and your memory still works – you recall the two-pronged solution to air pollution and smog has been this simple for decades.
After World War 2 the worst smog in the world belonged to London. Just like Beijing, the problem not only was coal-fired electricity generation; but, coal-fired home heating and cooking. It took a couple of decades; but, the last mile solution of getting natural gas to homes took care of the worst of it.
In Beijing and other polluted Chinese cities renewable energy sources are phasing out the portion of pollution coming from soft coal-fired electricity and, now, the government has dropped the other shoe and will end reliance on coal for home fires.
Under the action plan, coal-fired industrial boilers will all shift to burn natural gas or clean coal by 2020 in the Beijing-Tianjin-Hebei city clusters, Pearl River delta and Yangtze River delta area…
Natural gas will serve as the first level of carbon reduction as wind power and solar power continue the most dramatic expansion in the world.
The Solar Impulse 2, the world’s largest solar-powered aircraft attempting to fly around the world, has just made its sixth stop in the Chinese city of Nanjing.
It arrived in Nanjing on Tuesday night after a 17-hour flight. Previously, it had been stranded in China’s Chongqing Municipality for 21 days due to bad weather.
The Solar Impulse 2 will stay in Nanjing for another two weeks, after which it will begin its 5-day non-stop flight across the Pacific Ocean to Hawaii.
Kicking off its journey on March 8th in Abu Dhabi, the plane stopped at Muscat, Ahmedabad, Varanasi, Mandalay and Chongqing, and has been flying a total distance of 6,000 km for 75 hours. It will then fly across the U.S. and the Atlantic Ocean, pass Southern Europe and North Africa, and then head back to Abu Dhabi, finishing its round-the-world journey.
Just keeping up with one of the more inspiring flights in recent decades.
The Obama administration’s vain attempt to prevent allies from joining China’s Asian Infrastructure Investment Bank is feeding a growing perception that U.S. influence in Asia is declining and America is losing its 70-year grip on global economic institutions…
The administration’s campaign against China’s new investment bank stands in contrast to its push for greater regional leadership to battle Islamic extremists, remedy climate change and address other global issues. And while administration officials argue that domestic economic realities limit America’s ability to police the world, they’re trying to resist the reality of China’s growing economic clout, said a U.S. official who requested anonymity to speak frankly.
The U.S. “knows only too well that China is rising and that it wants to reshape the global order, and it is trying to prevent this from happening.” said Tom Miller, senior Asia analyst at Gavekal Dragonomics…
That’s leaving the U.S. increasingly isolated.
Although the administration has refused to join the $100 billion AIIB and urged others to follow suit, allies such as Australia, the U.K., South Korea, Germany and France are among the more than 40 countries that have joined the new bank, which will fund infrastructure in Asia and be fully established by year’s end…
“The most damaging part of this at the moment is the reaction of the allies; it’s a real snubbing,” said Mathew Burrows, a former U.S. intelligence analyst who’s now director of the Strategic Foresight Initiative at the Atlantic Council, a Washington policy group. “I think we fumbled badly, but I’m not convinced that there was any way to get the Chinese to back down on this institution.”
RTFA for lots more fact and forecasting – though it tag ends with shortsighted foolishness from a White House flunky.
The body of the article takes you all the way back to the end of World war 2 and US assumption of the mantle of Imperial Superpower. For all the factors involved in the end of the Cold War – our military-industrial complex presumed nothing else in the world was changing. And that was a critical financial mistake. For the fact remains that bodies like the IMF so long dominated by American political capital can’t even get minimal reforms past Congressional reactionaries – with or without Obama’s leadership. And probably would have been too late, anyway.
The rest of the world has already noted the change even if our tame media won’t say so without permission.
Solar Impulse, the fuel-free aeroplane, has completed the fifth leg of its round-the-world flight.
The vehicle, with Bertrand Piccard at the controls, touched down in Chongqing in China just after 17:30 GMT.
It had left Mandalay in Myanmar (Burma) some 20 hours previously.
The intention had been to make the briefest of stops in Chongqing before pushing on to Nanjing in the east of the country, but that strategy has been abandoned because of weather concerns.
The team will now lay over in southwest China until a good window opens up on the east coast…
Getting to the city of Nanjing would set up Solar Impulse to make its first big ocean crossing – a five-day, five-night flight to Hawaii…
The team will use the time in Chongqing to promote renewable energy as part of its “future is clean” campaign…
It is almost three weeks since the venture got under way from Abu Dhabi.
The project expects the circumnavigation of the globe to be completed in a total of 12 legs, with a return to the Emirate in a few months’ time…
No solar-powered plane has ever flown around the world.
Humans always want to fly. Doing it without pumping carbon into the atmosphere makes it all the better.
The White House has issued a pointed statement declaring it hopes and expects the UK will use its influence to ensure that high standards of governance are upheld in a new Chinese-led investment bank that Britain is to join.
In a rare public breach in the special relationship, the White House signalled its unease at Britain’s decision to become a founder member of the Asian Infrastructure Investment Bank (AIIB) by raising concerns about whether the new body would meet the standards of the World Bank.
Obama is so pissed off you can see his face turn red from here.
The $50 billion bank, which is designed to provide infrastructure funds to the Asia-Pacific region, is viewed with great suspicion by Washington officials, who see it as a rival to the World Bank. They believe Beijing will use the bank to extend its soft power in the region…
George Osborne – who has discussed the decision to become a founder member of the investment bank with his US counterpart, Jack Lew – has been the driving force behind developing closer economic ties between Britain and China. The chancellor has led the way in encouraging Chinese investment in the next generation of civil nuclear power plants in the UK and he ensured that the City of London would become the base for the first clearing house for the yuan outside Asia.
The US administration made clear in no uncertain terms its displeasure about Osborne’s decision to join the AIIB. A US official told the Financial Times: “We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power…”
“…I think [the US] should have been more willing to engage in discussion with China and others about the institution. There’s a big infrastructure gap in Asia, existing institutions are not filling it and China has the wherewithal to contribute on the right terms,” said Matthew Goodman, senior adviser for Asian economics at the Center for Strategic and International Studies.
Some surmised that the US was responsible when Australia backed away from signing up to the bank at the Asia-Pacific Economic Cooperation summit in Beijing last autumn, after widespread speculation a deal was on the cards.
“The US did reach out to Australia, Koreans and others to consult about questions and concerns, and that’s been interpreted as leaning on allies not to join the bank,” said Goodman.
Uncle Sugar expected obedience and got it.
If you’ve spent time studying the interrelationship between the World Bank, the IMF, any number of subsidiary forms dedicated to “keeping folks in their place” – you know this is a real slap in the face to the policied of Imperial America. It’s directly counter to Obama’s version of the stock American policy of negotiating by shoving large chunks of military in your face, threatening to cut you off from access to foreign exchange and liquidity.
China now invests more abroad than foreign money invests inside China. For all the blather – well, lies – about the United States seeking commercial engagement with state or private investors from China, the White House blocks as many deals for phony reasons as do numbnut Congressional Republicans. Companies and jobs grown in the US through Chinese investment are policy only for election-speak. China ends up with three-quarters of their overseas investment going into Europe because they simply aren’t jerked around the way they are when trying to invest in the United States.
The United States talks about carrots and sticks but only relies on varying sizes of sticks. China has lots of carrots.