Al-Jazeerah: Cross-Cultural Understanding
Opinion Editorials, December 2008
Shares, Stocks, Currencies Continue to Fall, Gold Continues to Rise, Exactly as Capitalists Planned
By Hassan El-Najjar
ccun.org, December 26, 2008
During the Bush Era, 2001-2008, capitalists in the US and around the world were able to loot the middle and working classes in eight years more than they could do in 200 years.
First, military and security industries made about $5 trillion from the security and military spending since 2001. Second, oil companies made fortunes from high oil prices, which climaxed at $140 per barrel to go back to where it was before the Bush Era, i.e. less than $40 per barrel.
Third, large stock holders of the largely inflated stock market companies sold their holdings when the prices were highest.
Then came bankers, who blackmailed US Congress and governments in other capitalist countries of a bailout or a financial collapse. These were followed by US automakers who threatened laying off 700,000 workers if they are not bailed out, then automakers in other countries followed the same tactic.
Last but not least were gold horders who have been selling their commodity to the looters and the losers in the US and all over the world. Thus, as shares, stocks, and currencies have been falling, gold prices have been rising.
When a crime is committed, police investigators usually ask a simple question, which guides them to the perpetrators: Who is the beneficiery?
In this case, these are the wealthy capitalists who had large holdings of shares, and stocks of oil, military and security industries, financial institutions, and auto industry . They have looted the middle and working classes in the US and around the world of their savings and investments. Moreover, they looted future generations of Americans through forcing them to pay the unprecedented US national debt of $10.7 trillion so far.
I hope that the future generations will know that some of us knew what was going on but could not do anything to stop it except for this educational effort.
Middle and working classes in the US and other capitalist societies are insulated against seeing the true picture by the capitalist media, which disinform and distract them from the real issues affecting their present and future.
God help Americans and people of the world!
Chinese shares fall to three-week low after lower-than-expected rate cut
BEIJING, Dec. 23 (Xinhua) --
Chinese equities hit a three-week low on Tuesday after smaller-than-expected interest rate cuts disappointed investors.
The benchmark Shanghai Composite Index gave up 4.55 percent, or 90.53 points, to 1,897.23. The Shenzhen Component Index fell 342.21 points, or 4.69 percent, to 6,952.91.
Combined turnover was 108.1 billion yuan (15.8 billion U.S. dollars), up from 97.68 billion yuan the previous day. Losses outnumbered gains by 840 to 32 in Shanghai and 718 to 38 in Shenzhen.
The People's Bank of China, the central bank, on Monday cut interest rates for the fifth time in three months in the government's latest move to stimulate the economy.
The benchmark one-year yuan lending rate fell by 0.27 percentage points to 5.31 percent, effective Tuesday. The one-year yuan deposit rate also fell by 0.27 percentage points to 2.25 percent.
The cuts had been expected but the magnitude was below expectations and too small to buoy confidence, said Guangfa Securities analyst Wan Bing.
Banking shares fell across the board, since the rate cut will narrow lenders' interest-rate spreads and further squeeze their profit margins, said Zhang Xi, an analyst with Galaxy Securities.
The Industrial and Commercial Bank of China, the country's biggest lender, slipped 2.65 percent to 3.68 yuan. Bank of China shed 1.6 percent to 3.08 yuan. Bank of Communications fell 4.28 percent to 4.7 yuan.
China Vanke, the country's largest real estate developer, lost 4.9 percent to 6.98 yuan. Shares of the Poly Real Estate Group Co. fell 6.42 percent to 16.03 yuan. China Life was down 4.77 percent to 19.35 yuan.
Editor: Deng Shasha
U.S. stocks fall amid disappointing corporate earnings
Wall Street pulled back on Monday on a series of disappointing corporate earning report and outlooks as well as a gloomy holiday sales for retailers.
Toyota Motor Corp. projected its first-ever operating loss since 1938, bringing its nine-year growth in global vehicle sales to a halt. The revived concern over slumping auto demand in U.S. market sent General Motors down 21.6 percent and Ford down 12.2 percent.
Energy shares lost heavily on Monday as crude oil lost nearly 6percent and closed below 40 U.S. dollars a barrel on the New York Mercantile Exchange. A record production cut by OPEC seems inadequate to lift the market sentiment, which remains bearish as the deepening recession is slashing world oil demand.
Caterpillar Inc., the world's largest maker of mining and construction equipment, decided to cut executive pay by up to 50 percent in 2009 due to weakening demand.
Walgreen Co., the largest U.S. drugstore chain, lost ground as the company reported that its fiscal first- quarter earnings trailed estimates. Meanwhile, Monsanto tumbled as Goldman Sachs said the recession will drive down earnings at the world's largest producer of seeds.
The Dow Jones fell 59.42 to 8,519.69. Broader indexes also moved lower. The Standard & Poor's 500 index dipped 16.25 to 871.63; and the Nasdaq slid 31.97 to 1,532.35.
New York gold futures rise as dollar falls
CHICAGO, Dec. 22 (Xinhua) --
Gold futures in New York rose Monday as dollar declined.
Gold futures for February delivery rose 9.80 U.S. dollars, or 1.2 percent, to 847.20 dollars an ounce on the New York Mercantile Exchange.
February gold traded firmer, halting a two-day slide, as dollar index dropped more than 1 percent.
Gains in gold have been limited by a sharp break in oil prices and a slide in equity markets on Wall Street, which reminded some traders that current economic conditions remain weak.
Under the current economic situation, investors prefer the more traditionally safe investments of government bonds and gold to the stock market. It is believed that gold has more potential to advance than other investments.
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Opinions expressed in various sections are the sole responsibility of their authors and they may not represent ccun.org.