Powell’s nomination to serve fresh Fed term advances in Senate

June 10, 2014 by  
Filed under Economy

(Reuters) – The nomination of Federal Reserve Governor Jerome Powell to serve a fresh term at the U.S. central bank cleared a procedural hurdle in the Senate on Tuesday, paving the way for a final confirming vote later this week.

Full Article

Seattle’s New Minimum Wage Hike Already Causing Havoc? Price Hikes

June 9, 2014 by  
Filed under Economy

When does “Progressive” legislation become… REGRESSIVE? (Negative effect on the poor?) We have already outlined what some of the problems will be, though as a “Lively Experiment”, we are watching and “hoping” for the best.

Eagle Rising

The city of Seattle recently decided to raise the minimum wage within the city to $15 an hour. This move led to cheers from the left and consternation from the right. Fortunately, Seattle is a pretty “progressive” city so the voters there will have to lie in the bed of their own making… while we conservatives on the outside can learn from their mistake.

There is already evidence that the move to raise the minimum wage is doing exactly what conservatives (and Libertarians) predicted it would do – drive up prices. Here it is…

receipt

 

Northwest Watchdog called Masterpark to verify the authenticity of the receipt. Kevin, the attendant on duty Wednesday afternoon, confirmed the charge is real. To deal with the higher wage, enacted on Jan. 1, Masterpark is charging customers an additional 99 cents per parking day, a surcharge that comes on top of all other taxes and fees. 

It’s not hard to understand, it simply takes some honest logical thought.

minimum wage

 

If you raise the minimum wage on businesses, that means the cost to operate rises, in some cases dramatically. If you are a business owner who is used to operating at a certain level of income, what would you be more likely to do: a) accept the new much lower level of income or b) find a way to counter the new higher cost of operating so that you can continue to make something close to what you were making before?

A profitable businessman will choose to try and remain profitable (choice b).

How will he accomplish this? He will either cut employee hours, cut employees, or raise prices… or some combination of those choices.

 The Masterpark receipt shows that they have started by raising prices. The next step may very well be to cut employees or employee hours and mechanize. A parking garage does not necessarily need employees to operate – they could simply go with a computer that dispenses tickets and takes payment. I would bet that Masterpark will use this new rise in the minimum wage to both raise prices and cut employees.

In a sick and twisted socialist way this move to raise the minimum wage could actually help companies like Masterpark make more money, while making low income workers poorer. How? Materpark fires workers and replaces them with machines, but keeps the price increase that the new minimum wage gives them cover to pass on to their customers. In essence making the customer pay for new higher wages that Masterpark doesn’t actually pay…

Do you see what happens when you don’t think before you act, liberals? You make things worse
Read more HERE

Seattle City Council unanimously passes $15 minimum wage

June 3, 2014 by  
Filed under Economy

If I am in business in Seattle what choice will I have? Close? Move? Charge more to customers? Fire 1/2 my staff and make people work 2X harder?

Better solution? How bout min wage jobs ride tax free for everything. This would get a worker past 15.00 hr.

 

SEATTLE (AP / KOMO) – The Seattle City Council unanimously passed an ordinance Monday that gradually increases the minimum wage in the city to $15, which would make it the highest in the nation.

The issue has dominated politics in the liberal municipality for months, and a boisterous crowd of mostly labor activists packed the Council chambers for the vote. Mayor Ed Murray, who was elected last year, had promised in his campaign to raise the minimum wage to $15 an hour. A newly-elected socialist City Council member had pushed the idea as well.

“We did it. Workers did this,” said Kshama Sawant, the socialist City Councilmember “We need to continue to build an even more powerful movement.”

Councilmember Tom Rasmussen said “Seattle wants to stop the race to the bottom in wages” and address the “widening gap between the rich and the poor.”

The measure, which would take effect on April 1, 2015, includes a phase-in of the wage increase over several years, with a slower process for small businesses. The plan gives businesses with more than 500 employees nationally at least three years to phase in the increase. Those providing health insurance will have four years to complete the move. Smaller organizations will be given seven years.

The International Franchise Association, a Washington, D.C.-based business group that represents franchise owners, said it plans to sue to stop the ordinance.

“The City Council’s action today is unfair, discriminatory and a deliberate attempt to achieve a political agenda at the expense of small franchise business owners,” the group said in a statement.

The ordinance came from recommendations made by an advisory group of labor, business and nonprofit representatives convened by Murray. After more than four months of discussion, the group presented its plan last month. Last week the Council delayed implementation by a few months and approved a sub-minimum wage for teenagers, a provision opposed by labor representatives.

Although some local businesses have come out in support of the measure, a group of restaurant owners oppose it, saying it would force them to scuttle expansion plans, decrease hiring and possibly cut service hours.

Nick Musser, executive chef and general manager of the Icon Grill in downtown Seattle, doesn’t think the wage credit for tips should phase out after seven years and finds the differentiation between large and big companies irrelevant.

“The reality is that the larger companies are going to ratchet up their wages and we’re going to have to play at that level anyway,” said Musser, whose restaurant employs between 50 and 60 people, depending on the time of year. Most of them are paid minimum wage.

Ubah Aden, 40, a Seattle home health worker who says she now earns $10.95 an hour, is looking forward to the way a higher wage will help her support her three children. But she also likes the idea of Seattle setting an example for the rest of the nation.

“If this passes, then it will pave the way for other cities and states. I really think so” Aden said.

She said she and her three kids are living with her brother because she can’t afford an apartment of her own even though she works full time. “This will make changes to myself and also a lot of other people in my shoes.”

San Francisco currently has the nation’s highest hourly minimum wage at $10.74.

The current minimum wage in Washington state is $9.32 an hour.

Earlier this year Minnesota raised the state’s guaranteed wage by more than $3, to $9.50, by 2016. California, Connecticut and Maryland also have passed laws increasing their respective wages to $10 or more in coming years.

Iranian billionaire ‘secretly executed’ over biggest bank fraud in country’s history

May 26, 2014 by  
Filed under Economy

A billionaire businessman that was responsible for the biggest bank fraud Iran has ever seen has been executed, Iranian state media has said.

Mahafarid Amir-Khosravi, also known as Mansour Aria, was hanged at Tehran’s Evin prison on Saturday after being convicted of a scam that was said to have cost Iranian banks nearly £1.5 bn.

Alongside Khosravi, 39 defendants were convicted for fraud, with four others being sentenced to death.

According to Khosravi’s lawyers, the execution had taken place in secret and without their knowledge.

Full Article

Former Federal Reserve Employee Is Charged With Felony For Threatening To Kill Boss

May 12, 2014 by  
Filed under Economy

The Federal Reserve System is a direct cause of the systematic devaluation of the average citizen’s money and exacerbates the income gap by funneling freshly printed money to the big banks. This allows the rich to get richer by investing the funny money before it loses purchasing power. (Result? Total Monopoly, while the world is plunged into un-payable debt!)

The whole thing really ticks me off, but after reading an article about the psychotic behavior of a former Federal Reserve employee, I would be reluctant to criticize the Fed in the presence of an employee of the world’s most powerful banking cartel. Zero Hedge has some stellar coverage about a former San Francisco Fed employee, and current employee at the Federal Housing Finance Agency (FHFA), that threatened to kill his boss and then take his own life.

Richard Hornsby, Chief Operating Officer of the FHFA, was arrested and charged with a felony for threatening to kill Edward J. DeMarco. Mr. DeMarco was Hornsby’s superior at FHFA and retired from the agency as planned on April 30th of this year.

Retirement is supposed to be a happy time as one begins the transition into the more relaxed part of life. Unfortunately, DeMarco’s retirement was chaotic. He had to be escorted to a secure location after Hornsby threatened his life on Aril 28th. The death threat was supposedly the result of poor job performance rating given to Mr. Hornsby by Mr. DeMarco.

Before starting at the FHFA in November 2011 Hornsby, fifty-eight-years-old, worked for twenty six years at the Federal Reserve Bank of San Francisco. Zero Hedge reports on Hornsby’s role at the San Fran Fed:

Hornsby served at the Federal Reserve Bank of San Francisco for 26 years, holding a variety of senior level management and banking supervision positions. Most recently, Hornsby was group VP and division head for the Reserve Bank’s Financial Planning and Control and Corporate Administration Divisions. In this position, he oversaw many of the Bank’s support functions in nine states. Prior to that, he served as group VP in charge of the Bank’s Portland Branch having responsibility for director relations, branch administration and business continuity. Hornsby also directed the Bank’s business development and customer support functions bankwide. He also served as a key member of the senior management team of the Federal Reserve’s National Support Function Office which provides electronic access to the Reserve’s financial services clients nationwide. In addition to his senior management positions, he was a Supervising Examiner in the Division of Banking Supervision and Regulation for 10 years, having regulatory responsibility for bank holding companies, banks and non-bank subsidiaries.

Continue Reading on lionsofliberty.com

Widow’s House Sold By State … for Unpaid $6.30 Fine? Yep

April 29, 2014 by  
Filed under Economy

OR… International bankers (the Kings), Earls and Barons (CEOs), Knights (gatekeepers, and social climbers), Peasants (wage earners)

 

Eileen Battisti owned a house in Beaver, PA. Her husband, who took care of their taxes, died in 2004. Since then, Eileen has been trying to keep up with her finances alone. It has been very difficult, and she has no one to help her apparently.

So she fell behind on her property taxes, to the tune of $235. After a few notices, she finally scraped together the funds and paid it off. Well, almost. She says she didn’t know about $6.30 in interest. The state sent a few other notices allegedly, but Eileen didn’t get the notices or she didn’t act on them fast enough.

One way or the other, the state decided to auction off her home. She owned it outright, and it was worth $280,000. The house was sold for $116,000. The state says most of that money will go to Eileen if her appeals are unsuccesful. I’m sure they will just get their $6.30 and give her the rest. Yeah. Sure they will. There are also attorney’s fees, closing costs, real estate commissions, and the rest, right? Surely it’s only fair the State get some of the sale price to cover those costs.

Disgusting. That’s what this is. Just plain disgusting. Property tax is inherently wicked. Widows and aged people, who own their homes because of hard work and faithfulness, should not ever have to pay a cent in property tax. The situation is abhorrent.

Many older couples, widows, and widowers are on a fixed income—either a pension or Social Security. They can’t afford when property values rise and their property taxes rise with them. So they either sell their homes (lame), go into reverse mortgage (very lame), or have their homes taken from them by the State (absolutely despicable).

You don’t own your house. You pay property tax every year, right? And if you don’t pay it, the government seizes your property. That’s kind of what the bank does when you don’t pay your mortgage. Because the bank technically has legal ownership of your house until your mortgage is paid off.

But you won’t ever pay off your mortgage with the State. It will always have final say over your property. Over everything, really. You want to fish the King’s fish or hunt the King’s deer? Or drive the King’s roads? You must pay for permission. And if you are caught without a license from the King, you will be punished. If you do anything wrong, you pay a fine to the King. Because any offense to the King’s laws is a personal affront to the King. No matter who you’ve hurt, the King is the main offendee.

We’re not free. We’re vassals of the State. We’re worse than vassals or serfs, actually. Because the State has made no covenant to do right by us. They take. They kill. They rob. They fine. They do what they want with what you’ve worked to earn. And there’s really nothing you can do about it.
Read more at Last Resistance

52 Year-Old French Banker Jumps To Her Death In Paris (After Questioning Her Superiors)

April 25, 2014 by  
Filed under Economy

 

There have been 13 senior financial services executives deaths around the world this year, but the most notable thing about the sad suicide of the 14th, a 52-year-old banker at France’s Bred-Banque-Populaire, is she is the first female. As Le Parisien reports, Lydia (no surname given) jumped from the bank’s Paris headquarter’s 14th floor shortly before 10am. FranceTV added that sources said “she questioned her superiors before jumping out the window,” but the bank denies it noting that she had been in therpapy for several years.

 

FranceTV and Le Parisien reports,

An employee of the Bred-Banque Populaire has committed suicide, Tuesday, April 22 in the morning at the headquarters of the bank. On her arrival at headquarters, quai de la Rapee, in the 12th arrondissement of Paris…

 

The incident occurred shortly before 10 am, 200 meters from the Ministry of Finance.

 

 

According to our sources, she questioned his superiors before jumping out the window, that formally denies the direction of the Bank.

 

“There is absolutely no evidence for designating his relationships with his hierarchy as responsible or letter or message ” insists the direction of the communication FranceTV info.

 

It also speaks of a “very painful moment for the company” .

 

 

In an email to all employees consulted by FranceTV info, the management of the bank confirms the “death by suicide” and said “severely affected.” It shows have established a psychological unit.

 

 

“For the moment, nothing puts the company in question, says the majority union SUNI-Bred/UNSA. The employee got along very well with her new team, her superior is very nice.

 

“According to a close,” Lydia lived alone, in a difficult environment.

 

The human resources department states that this inhabitant of Ivry was in therapy for several years. Each describes a “secretive” but “very well known and popular” woman, but “never spoke of it.”

This is the 14th financial services exective death in recent months…

1 – William Broeksmit, 58-year-old former senior executive at Deutsche Bank AG, was found dead in his home after an apparent suicide in South Kensington in central London, on January 26th.

2 – Karl Slym, 51 year old Tata Motors managing director Karl Slym, was found dead on the fourth floor of the Shangri-La hotel in Bangkok on January 27th.

3 – Gabriel Magee, a 39-year-old JP Morgan employee, died after falling from the roof of the JP Morgan European headquarters in London on January 27th.

4 – Mike Dueker, 50-year-old chief economist of a US investment bank was found dead close to the Tacoma Narrows Bridge in Washington State.

5 – Richard Talley, the 57 year old founder of American Title Services in Centennial, Colorado, was found dead earlier this month after apparently shooting himself with a nail gun.

6 – Tim Dickenson, a U.K.-based communications director at Swiss Re AG, also died last month, however the circumstances surrounding his death are still unknown.

7 – Ryan Henry Crane, a 37 year old executive at JP Morgan died in an alleged suicide just a few weeks ago.  No details have been released about his death aside from this small obituary announcement at the Stamford Daily Voice.

8 – Li Junjie, 33-year-old banker in Hong Kong jumped from the JP Morgan HQ in Hong Kong this week.

9 – James Stuart Jr, Former National Bank of Commerce CEO, found dead in Scottsdale, Ariz., the morning of Feb. 19. A family spokesman did not say whatcaused the death

10 – Edmund (Eddie) Reilly, 47, a trader at Midtown’s Vertical Group, commited suicide by jumping in front of LIRR train

11 – Kenneth Bellando, 28, a trader at Levy Capital, formerly investment banking analyst at JPMorgan, jumped to his death from his 6th floor East Side apartment.

12 – Jan Peter Schmittmann, 57, the former CEO of Dutch bank ABN Amro found dead at home near Amsterdam with wife and daughter.

13 – Li Jianhua, 49, the director of China’s Banking Regulatory Commission died of a sudden heart attack

14 – Lydia _____, 52 – jumped to her suicide from the 14th floor of Bred-Banque Populaire in Paris

 

Food Chain CEOs Want Subsidies for Their Salaries, Not for Raising Workers’ Wages

April 22, 2014 by  
Filed under Economy

We are anti subsidy for any corporation / and only for people under emergency.

 

Sarah Anderson
RINF Alternative News

You might say the chieftains of America’s largest restaurant corporations want it every which way and then some.

Having read the polls supporting a minimum wage hike, they’re skittish about trashing the idea personally. So they pay their DC lobby machine to do their dirty work. And it’s not enough for them to shove the costs of their low-wage model onto Joe Schmo taxpayer. These CEOs are also making the rest of us pay for their own fat paychecks.

How’s that again? Yes, ordinary taxpayers are not only covering the cost of billions of dollars in public assistance for restaurant workers who earn poverty wages. We’re also subsidizing the pay of our nation’s notoriously overpaid CEOs.

Here’s how it works: Under the current tax code, corporations can deduct no more than $1 million for executive pay from their federal income taxes. But there’s a giant loophole that allows unlimited deductions for “performance pay.” So, no surprise, what the big corporations tend to do is put about $1 million of their executive pay packages toward salary and call the rest “performance pay.” That way the more they shovel into their CEO’s pockets, the less they pay Uncle Sam. And the rest of us foot the bill.

new report I co-authored at the Institute for Policy Studies explains how the 20 largest corporate members of the National Restaurant Association have benefited from this loophole. These corporations aren’t necessarily bigger exploiters than those in other sectors. But they deserve extra scrutiny because of the high social costs of their low-wage model—and because they’re fighting so hard to preserve it.

Nearly all of the big restaurant corporations are members of the National Restaurant Association, which is leading the charge against minimum wage increases.

1. Starbucks

In 2012 and 2013, Starbucks CEO Howard Schultz took in $1.5 million per year in salary, which is subject to the $1 million deductibility cap. But that was just the foam on top of a triple venti.

Now we get to the serious money. Schultz cashed in stock options worth $230 million over this two-year period. For good measure, the board tossed him $2 million-plus incentive bonuses each year. Both of these types of compensation fall into the “performance pay” loophole.

So how much does Starbucks get to subtract from its tax bill for the cost of this one guy’s “performance pay”? $82 million.

That’s a lotta lattes.

Like several other big restaurant CEOs, Schultz has taken a soft line on the minimum wage. That is, when asked about it personally. Meanwhile, Starbucks remains a member in good standing of the National Restaurant Association, which is deploying dozens of lobbyists to block a wage increase.

2. Yum! Brands

Next time you’re shelling out for a Gordita Supreme at Taco Bell, keep in mind that you’re also contributing to a grande-sized paycheck for the CEO of the chain’s parent company, Yum! Brands.

Yum! CEO David Novak took $67 million in “performance pay” over the years 2012 and 2013, which lowered the firm’s federal tax bill by about $23 million.

Low-level workers at Taco Bell and Yum!’s other chains (Pizza Hut and KFC) earn less than $8 per hour on average. Since that’s not a living wage anywhere in the United States, it’s no surprise that many Yum! workers must rely on Medicaid or other taxpayer-funded anti-poverty programs to make ends meet. The National Employment Law Project estimates that Yum! employees receive nearly $650 million in public assistance annually.

In addition to the firm’s membership in the NRA, Yum! has also been active with the American Legislative Exchange Council. In 2011, a Yum! official co-led an ALEC task force focused on blocking paid sick leave benefits. Rather than giving sick employees a break, it seems they’d rather have them sneezing on your Gordita.

3. Chipotle

Chipotle has invested heavily in developing a progressive customer base by projecting the image of a “sustainable” fast food alternative. So it’s not surprising that the firm’s top brass have shied away from speaking out personally against the popular push to raise the minimum wage.

Co-CEO Monty Moran has commented that average wages at Chipotle are already $9 and so the effect of raising the minimum to $10 would be “not too significant.” Like other image-conscious CEOs, Moran appears to prefer to have his Washington lobby shop, the NRA, handle the dirty work on this issue.

Moran is probably also reluctant to draw attention to his own paycheck. The company has an extremely top-heavy pay structure in part because it has two CEOs. In 2012, Moran cashed $55 million in stock options and his co-CEO, Steve Ells, cashed in $47 million. In 2013, both men received more than $20 million in vested performance stock and Ells exercised another $42 million in options. Altogether, their 2012-2013 “performance pay” generated a CEO pay subsidy for Chipotle of $69 million.

4. Dunkin’ Brands

At the helm of Dunkin’ Donuts and Baskin Robbins, CEO Nigel Travis cashed in on more than $20 million in stock options in both 2012 and 2013, generating a performance pay tax subsidy for the company of more than $15 million. For comparison’s sake, that $15 million would be enough to cover the cost of one public assistance program on which many fast food workers rely, the Supplemental Nutrition Assistance Program, for 9,608 households for a year.

Like the CEOs of Starbucks and Chipotle, Travis has taken a soft line on the minimum wage when speaking out personally. In one recent interview, he said, “We believe the minimum wage will go up. So there’s no point fighting that.” Maybe there’s no point for Travis. He’s got the NRA to do that job.

5. McDonald’s

In his first six months as CEO in 2012, CEO Donald Thompson took in more than $10 million in “performance pay,” which translates into a $3.5 million subsidy for the company. Last year, Thompson’s haul was more modest because he opted not to cash in any of his hundreds of thousands of exercisable “in-the-money” stock options.

Faced with a wave of worker protest actions, he may have decided to hold off on a big payout until the spotlight on the fast food giant is not quite so bright. On top of growing demands for living wages, the company has also faced a spate of wage theft charges. In 2013, the company settled a New York case for $500,000 and workers in two additional states recently filed similar suits. Due to the company’s notoriously low wages, McDonald’s workers rely on an estimated $1.2 billion in public assistance per year, according to the National Employment Law Project.

6. Darden

Among full-service restaurant chains, Darden has enjoyed the largest CEO pay subsidy. The owner of Olive Garden, Red Lobster, LongHorn Steakhouse, Bahama Breeze, and Capital Grille, Darden is the world’s largest full-service restaurant company. In 2012 and 2013, CEO Clarence Otis received nearly $9 million in fully deductible “performance pay,” which works out to a more than $3 million taxpayer subsidy for the company.

Darden pays at least 20 percent of its U.S. employees only the federal minimum wage for tipped workers, which has remained at $2.13 an hour for more than 20 years. Together with the NRA, they’re lobbying hard to keep it that way.

The NRA will be among the targets of a demonstration organized by several grassroots organizations on April 28 under the theme of “kicking corporate cash out of Congress.”

Restaurant Opportunities Centers United, which has built a network of thousands of restaurant workers and high-road employers to improve industry standards, is partnering with the National Domestic Workers Alliance and National People’s Action to urge elected officials to put the interests of regular people first. The following day, members of the NRA will converge in Washington for a major lobby push against increasing the minimum wage.

It’s time the big restaurant CEOs were called out on their paycheck hypocrisy. For too long they’ve been sticking taxpayers with the bill for their bad pay practices —at both the bottom and the top ends of the corporate ladder.

Read MORE here

Sarah Anderson directs the Global Economy Project at the Institute for Policy Studies and is a co-author of the Institute’s 20th anniversary Executive Excess report, “Bailed Out, Booted, and Busted.”

EXTRORTION DAY 2014 – Where is that “law” Again?

April 15, 2014 by  
Filed under Economy

Because it IS Extortion to extract money or TRIBUTES, from individuals or groups; using FORCE as the penalty for non compliance!

Steve Miller, former Director of the Internal Revenue Service (IRS), admitted at a Congressional hearing that the taxes collected by the IRS are not mandatory — but voluntary.

When questioned at the House Ways and Means Committee (WMC) hearing last week, Miller told House Representative Devin Nunes that “America’s tax system is ‘voluntary'”. When Nunes remarked for clarification that the US tax code is a “voluntary system”, Miller said, “Agreed.”

House Representative Xavier Becerra commented that the ruse of the IRS is kept as a public confidence in the system scheme to keep Americans paying money to the IRS.

Miller confirmed this is so.

The shuffle at the IRS has landed Danny Werfel as the new acting director.

Dear We The People: MOST CITIZENS ARE NOT REQUIRED TO FILE AN INCOME TAX RETURN THE 16TH (“INCOME TAX”) AMENDMENT TO THE CONSTITUTION IS A FRAUD IF YOU FILE, YOU WAIVE YOUR 5th AMENDMENT RIGHTS

These are the major points expressed in a Remonstrance, that was hand delivered to leaders of the three branches of the federal government on April 13, 2000, by a group of citizen-delegates representing all 50 states. These grievances concern alleged illegal operations of the federal income tax system and the IRS.

The Remonstrance was signed by thousands of citizens, and was delivered as part of an event sponsored by We The People Foundation for Constitutional Education, a not-for-profit corporation dedicated to research and education in matters of taxation & governance.

THE MAIN PROPOSITIONS OF THE REMONSTRANCE ARE:

1) The 16th amendment to the U.S. Constitution (the “income tax amendment”) was fraudulently and illegally proclaimed to be ratified in 1913. Exhaustive legal research from both state and national archives documented conclusively that the amendment did not even come close to being legally approved by the required number of states.

The Courts have refused to hear this issue.

“[Defendant] Stahl’s claim that ratification of the 16th Amendment was fraudulently certified constitutes a political question because we could not undertake independent resolution of this issue without expressing lack of respect due coordinate branches of government….”

U.S. v Stahl (1986), 792 F2d 1438

2) Filing a federal income tax return is, in fact, voluntary, because there is no statute or regulation that requires the vast majority of U.S. citizens to file and pay income taxes — or to have taxes withheld from the money they earn.

Neither the IRS nor the Congress can cite an authorizing law or regulation.

3) Citizens cannot “voluntarily” file a federal income tax return without surrendering their 5th amendment right not to bear witness against themselves.

You can be criminally prosecuted for your “voluntary” return.

Former gun-carrying, IRS Criminal Investigation Division (CID) Special Agent exposes how the IRS is robbing you! He quits his $80,000/yr. Job because the IRS failed to show him that filing & paying Income Tax is mandatory. He will tell his story and his latest efforts for restoring honesty in government.

Buffett’s BH Hedgefund owned “Fruit of the Loom” to close Jamestown plant, lay off all 600 workers (Moves to Honduras)

April 8, 2014 by  
Filed under Economy

Tax Breaks, No Pesky environmentalists to cry about polluted water, and Slave Labor! — Kindly old man – (ahem) – Monopolist WARren Buffett has billion$ upon billion$, and is always rolled out as “The Nice, Sensible Plutocrat”. In order to add a few more millimeters onto his massive mountain of money, Buffett is shutting down his Kentucky underwear factory and moving it to Honduras, gutting the community that has manufactured Made In The USA tighty whities for decades.

In a sane universe, Americans would a.) rally ’round and stop buying ANY Fruit Of The Loom or Berkshire Hathaway products, and b.) roll decrepit Warren Buffett up in a carpet after tarring and feathering him; and ship his greedy, old, carpet bagging bones off to spend the rest of his days in Honduras… Which BTW has the highest homicide rate in the world.

VOTE WITH YOUR MONEY! GO COMMANDO!

JAMESTOWN — Clothing company Fruit of the Loom announced Thursday that it will permanently close its plant in Jamestown and lay off all 600 employees by the end of the year.

The Jamestown plant is the last Fruit of the Loom plant in a state where the company had once been a manufacturing titan second only to General Electric (JP Morgan).

State Rep. Jeff Hoover, R-Jamestown, confirmed the plant manager called him Thursday afternoon with the news.

“Terrible sad day for people in Russell County,” Hoover said. There was no warning of the plant closing, he said.

Layoffs will begin in June.

The company, owned by Warren Buffett’s Berkshire Hathaway but headquartered in Bowling Green, said the move is “part of the company’s ongoing efforts to align its global supply chain” and will allow the company to better use its existing investments to provide products cheaper and faster.

The company said it is moving the plant’s textile operations to Honduras to save money.

The company plans to close the plant in phases from June 8 through Dec. 31.

“This decision is in no way a reflection on the dedication and efforts of the employees in our Jamestown facility, but is a result of a competitive global business environment,” Tony Pelaski, executive vice president and chief operating officer, said in a news release.

“It is very devastating,” Hoover said. “Some of the worst news we could possibly hear as a community, not just the 600 jobs but the effect it has on city government, the county government, the school system and local business.”

Hoover said the city of Jamestown gets more than $200,000 a year from occupational tax from plant employees.

He said Fruit of the Loom pays the city $1.6 million a year for the wastewater treatment plant, which was upgraded a few years ago at the request of Fruit of the Loom. “I don’t know how they make the bond payment once Fruit of the Loom leaves,” Hoover said. (So the City will default and lose ownership of land and resources?)

State Sen. Sara Beth Gregory said in a statement: “The Fruit of the Loom closure in Jamestown is devastating news not just for Russell County but for the entire region. My prayers are with the families who are impacted by the loss of 600 jobs.”

Russell County Judge-Executive Gary Robertson said he first heard of the pending layoffs on Thursday afternoon. He said that not only was Fruit of the Loom a big employer for Russell County, but for surrounding counties in the Lake Cumberland region as well.

We have about 2,000 manufacturing jobs in Russell County, and this is going to be about a third of them,” he said. “It’s going to be devastating to our local economy. Everybody’s going to be involved. We in the county will lose revenues. … We’ve got a lot of local banks where people who work there have house payments and car payments. It’s going to affect everybody in our county and in counties around us.”

Lisa Gosser, president of the Russell County chamber of commerce and an employee of the Lake Cumberland development district, said that Fruit of the Loom is the county’s biggest employer, so its loss is harsh on the community.

“We’re doing everything we can to be proactive,” she said, pointing to several automotive-related plants that are now operating in the county.

Fruit of the Loom, which has a history dating to 1851, opened its first Kentucky plant in Frankfort in 1932 with about 100 employees. Other plants followed in 1941 in Bowling Green and in 1947 in Campbellsville. The Frankfort operation was moved to a new, larger building in 1965, and the Jamestown plant opened in 1981, designed to be expanded.

The Frankfort plant, which closed in 2000, employed 280 workers.

The Jamestown plant reached peak employment of 3,247 in 1990.

In 1998, the company closed its 812-worker plant in Campbellsville, devastating the economy of the south-central Kentucky town; the company offered jobs at the Jamestown factory to 100 of the laid-off workers in Campbellsville.

At one time, Fruit of the Loom had more than 11,000 manufacturing and corporate employees at its plants in Jamestown, Frankfort, Campbellsville, Franklin, Greensburg, Princeton and Bowling Green and at its Bowling Green corporate headquarters.

Kentucky once had a major apparel-manufacturing sector before jobs withered away as companies moved production to places with cheaper labor.

Fruit of the Loom’s Jamestown plant lasted longer than most in part because of a pipeline to send salt-laden, treated waste from the factory’s bleaching and dyeing operations into nearby Lake Cumberland.

The pipeline caused protest and years of litigation, pitting concerns that the waste would damage the lake and the tourism industry against fears that what was then the area’s largest employer would close or cut back without it.

The pipeline finally won state approval in 1993.

With the plant closing, only the corporate headquarters and a distribution center, also in Bowling Green, are left in Kentucky, according to company spokesman John Shivel. Both “shall remain,” Shivel said.

The 1987 Kentucky Directory of Manufacturers listed Fruit of the Loom as the second-largest manufacturing employer in Kentucky, behind General Electric.

Read more here: Kentucky.com

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