“What’s Geithner Thinking?” Treasury Grants China Direct Access to Buy U.S. Bonds

In an unprecedented move, in June 2011 the U.S. Treasury Department granted the Chinese government direct-bidder status to purchase U.S. Treasuries direct from the U.S. government,reports Reuters. All other central banks must purchase U.S. Treasuries through primary dealers on Wall Street, which then place bids on their behalf at Treasury auctions.

The People’s Bank of China holds roughly $1.2 trillion in U.S. debt, more than any other entity, and it is now the first foreign government with direct computer access to the U.S. government Treasury auction process. China, however, must sell U.S. Treasuries on the open market.

“It’s a big deal because the Chinese are getting very special treatment,” says Gordon Chang, Forbes columnist and author of the Coming Collapse of China, in an email to The Daily Ticker.

This special treatment does have the potential to save the Chinese government money, but not in transaction and commission costs because primary dealers are prohibited from charging its bidding customers fees. However, China could getting a better deal by keeping its purchases from Wall Street secret.

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Counterfeit Chinese Parts Slipping Into U.S. Military Aircraft: Report

Counterfeit Chinese Parts Slipping Into U.S. Military Aircraft: Report (ABC News)

Counterfeit electronic parts from China are “flooding” into critical U.S. military systems, including special operations helicopters andsurveillance planes, and are putting the nation’s troops at risk, according to a new U.S. Senate committee report.

A year-long investigation conducted by the Senate Armed Services Committee found more than one million suspected counterfeit parts made their way into the Department of Defense’s supply chainand were bound for use by “critical” military systems, according to the 70-plus-page document released Monday. In addition to Navy helicopters and surveillance planes, the parts were slated to be put into the Air Force’s newest cargo planes.

“The failure of a single electronic part can leave a soldier, sailor, airman, or Marine vulnerable at the worst possible time,” the report says. “Unfortunately, a flood of counterfeit electronic parts has made it a lot harder to prevent that from happening.”

Chinese companies were identified as the “primary source” of the counterfeit goods and the Chinese government was criticized for its alleged disinterest in cracking down on counterfeiting there. The report said that Chinese companies take discarded electronic parts from all over the world, remove any identifying marks, wash and refurbish them, and then resell them as brand-new – a practice that poses a “significant risk” to the performance of U.S. military systems.

But the committee also pointed a finger at the Pentagon and U.S.-based defense contractors that rely on “hundreds of unvetted independent distributors.”

According to the document, the investigation “revealed failures by defense contractors and [the Department of Defense] to report counterfeit parts and gaps in DoD’s knowledge of the scope and impact of such parts on defense systems.”

“Our committee’s report makes it abundantly clear that vulnerabilities throughout the defense supply chain allow counterfeit electronic parts to infiltrate critical U.S. military systems, risking our security and the lives of the men and women who protect it,” said Senate Armed Services Committee ranking member Sen. John McCain (R.-Arizona). “As directed by last year’s Defense Authorization bill, the Department of Defense and its contractors must attack this problem more aggressively, particularly since counterfeiters are becoming better at shielding their dangerous fakes from detection.”

DOWNLOAD: Inquiry Into Counterfeit Electronic Parts in the DoD Supply Chain (WARNING: Large PDF)

A spokesperson for the Department of Defense did not immediately respond to requests for comment on this report, but another spokesperson told CNN the Pentagon was aware of the report and officials “looked forward to reviewing it.”

“The Department takes very seriously the issue about counterfeit parts,” Col. Melinda Morgan said. “We are working aggressively to address this issue…”

Months after the Senate committee launched its investigation, the Pentagon said in November it was moving to protect against counterfeit parts by modifying policies and improving its internal process as well as working more closely with private companies in the industry.

Then, Defense spokesperson George Little noted that “there has been no loss of life or catastrophic mission failure as a result of these parts entering the supply chain.”

Representatives for the Chinese government at its embassy in Washington, D.C., and consulate in New York, New York did not immediately respond to request for comment on this report.

U.S. Imposes Anti-Dumping Duties On Chinese Solar Imports

Employees assemble photovoltaic panels at Suntech Power Holdings Co.’s factory in Wuxi, Jiangsu Province, China, in 2011.

The U.S. Commerce Department imposed tariffs of 31 percent to 250 percent on Chinese solar-product imports, siding with companies including SolarWorld AG (SWV) in the U.S. that said the items were sold below the cost of production.

The fees, announced today in an e-mailed statement, add to duties as high as 4.73 percent imposed earlier for getting unfair subsidies from China’s government. SolarWorld had asked for levies of more than 100 percent. Aaron Chew, a New York- based analyst at Maxim Group LLC, said before the decision that tariffs higher than 10 percent would be considered a victory for the U.S. companies.

“Commerce today put importers and purchasers on notice about the consequences of importing illegally subsidized and dumped products from China,” Gordon Brinser, the SolarWorld unit’s president, said in a statement.

The Commerce Department said a final determination on the tariffs would be made in early October. U.S. customs agents will collect a deposit or bond on solar cells made in China in the 90 days before today’s decision.

SolarWorld said its Hillsboro, Oregon-based U.S. unit can’t compete with Chinese exporters, including Suntech Power Holdings Co. (STP), the world’s largest solar-panel maker, and Trina Solar Ltd. (TSL) unless tariffs are imposed. Suntech was told to pay 31.22 percent, Trina’s levies were set at 31.14 percent and others were told to pay duties ranging from 31.18 percent to 249.96 percent.

Shares Rise

U.S.-based solar-product companies rose in New York trading after the announcement. First Solar Inc. (FSLR) climbed 94 cents, or 6.7 percent, to $14.92, and SunPower Corp. (SPWR)added 51 cents, or 10 percent, to $5.59.

Opponents of the punitive tariffs, such as the Washington- based Coalition for Affordable Solar Energy, which includes Westinghouse Solar Inc. (WEST) and more than 100 other companies, claim the levies would cost U.S. jobs.

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Startup America Rocks….Our Bus @ The Kentucky Derby

Startup America headed by Priceline.com CTO and co-founder Scott Case, had an idea on Monday morning the week of Derby: “Let’s take some start-ups to the Kentucky Derby.”

( Hey!  Kinda sounds like our U.S. Jobs Project – American Made Chic Summer Tour kick off idea.)

Inc. Magazine reported on it and no- “it wasn’t completely random”.  In fact we at the U.S. Jobs Project like to think of it as grassroots – Guerrilla Marketing!  Nobody gets anyones attention by staying at home, marketing is an active, energetic process. Obviously, Mr. Case gets that and then some.

A little background on Scott Case:  Timothy “Scott” Case (not related to Steve Case) is a technologist, entrepreneur and inventor and was founding CTO of Priceline, the “Name Your Own Price” company that was one of only a handful of startups in U.S. history to reach a billion dollars in annual sales in less than 24 months. As Chief Technology Officer, he was responsible for building the technology that enabled Priceline’s hyper-growth. Most recently, Scott was named CEO and board member of the Startup America Partnership, where he’ll invest his energy to drive American entrepreneurship to create jobs and sustain our nation’s global leadership.

So, as you can see Mr. Case knows a little about hyper-growth, Startup’s and great ideas.

Full Article here

High hopes for jobs and TV’s ‘Made in the USA’

By Hal Weitzman in Chicago Financial Times
Much of Element Electronics’ factory in Canton, a suburb west of Detroit, is empty. But on a single production line, about 45 workers are assembling the first televisions made in the US by an American company in decades.

So far, it is a small operation, but Element’s attempt to bring TV manufacturing back from Asia to the heart of America’s rust belt is a powerful example of reshoring, the trend of jobs once outsourced to low-cost emerging economies being brought back to the US.

Reshoring is causing great excitement in the US. Companies such as General Electric and Caterpillar have been touted as high-profile examples of the trend. Since 2009 GE has announced plans to create 11,000 manufacturing jobs.

In an election year, reshoring has also become a potent political symbol, a counterweight to those who say the US is in decline or that current economic policies are not working.

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Procter & Gamble P&G to Relocate Beauty HQ to Singapore Asia

Procter & Gamble Co will move its skin care, cosmetics and personal-care headquarters from Ohio to Singapore and the president of the group will leave rather than move.

The relocation, which is expected to take two years, comes as P&G wants to run the business out of Asia where it sees the biggest growth opportunity. It was announced less than three months after P&G unveiled a restructuring plan aimed at saving $10 billion and helping the world’s largest household products maker expand faster in emerging markets.

Cincinnati-based P&G’s brands include CoverGirl makeup, Olay and SK-II skin-care products and Secret deodorant.

Virginia Drosos, 49, chose to retire rather than uproot her family, which includes two teenagers, according to a P&G spokesman. Drosos has been with P&G since 1987.

Deb Henretta, group president of P&G’s Asia and global specialty channel, will take over as group president of global skin care, cosmetics and personal care.

Henretta, 51, joined P&G in 1985.

Henretta’s current position will be filled by Hatsunori Kiriyama, P&G’s vice president of Japan, marking the first time P&G has had an Asian leader as president of Asia. He will be responsible for all of Asia except Greater China, which will continue to be run by Shannan Stevenson.

Kiriyama will take over as president of Asia July 1, Henretta will take on her new role on Aug. 1, and Drosos will retire on Sept. 1, P&G said.

 

Fed clears China’s first US bank takeover

The United States opened its banking market to China’s biggest bank ICBC, for the first time clearing a takeover of a US bank by a Chinese state-controlled company.

Just days after high-level US-China economic talks in Beijing, the Federal Reserve approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia.

The transaction will make ICBC the first Chinese state-controlled bank to acquire retail bank branches in the United States.

ICBC has been the most aggressive of China’s “big four” banks in expanding abroad.

Outside China, it operates subsidiary banks in Asian countries and has branches in a number of countries including Germany, Japan and Singapore.

According to the Fed, the bank has total assets of roughly $2.5 trillion.

ICBC will buy up to 80 percent of the US unit of the Hong Kong-based Bank of East Asia, which operates 13 branches in New York and California.

As part of the deal, ICBC and two state-backed financial firms — China’s sovereign wealth fund, the China Investment Corporation (CIC), and Central Huijin Investment — will be recognized as bank holding companies, regulated as commercial US banks.

The Fed said the takeover may not occur before May 15, or later than three months from Wednesday.

The broad expansion of China’s footprint in the US market comes amid a series of financial reforms in China that could begin to open the lucrative market to US firms.

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The American Made Chic Award

Celebrating Excellence, Innovation & Sustainability in America – The American Made Chic Award

Boca Raton, FL —(DATE)  American Made Chic is now accepting nominees from American companies and individuals for The American Made Chic Award.  The award is a custom masterpiece created by R.S. Owens & Company in Chicago, IL that was featured on John Ratzenbergers’ series Made in America.

R.S. Owens & Company has been producing elegant awards and gifts for many of the world’s most prestigious and celebrated awards, including the most illustrious of all, the Oscar®, given by the Academy of Motion Picture Arts and Sciences.  Also produced by R.S. Owens & Company are the television industry’s Emmy, The MTV Video Music Award, and the Clio for excellence in advertising, the Academy of Country Music Awards, The Spike TV Video Game Award, the Rock and Roll Hall of Fame Award and now the American Made Chic Award.

As the American Made Chic team travels across the country and present a company or individual in each of their assigned destinations an award for the desire to strive for excellence in community, economy or new product development.

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JOBS ACT TO BOOST STARTUP FIRMS

Miami Herald

KEN THOMAS

WASHINGTON — President Barack Obama signed bipartisan jobs legislation Thursday that will help small businesses and make it easier for startups to raise capital.

“When their ideas take root, we get inventions that can change the way we live,” Obama said in the Rose Garden, flanked by lawmakers and entrepreneurs. “And when their businesses take off, more people become employed.”

Some Democrats, however, raised concerns that the so-called JOBS Act, or Jumpstart Our Business Start-ups, softened investment protections enacted after the dot.com excesses and Wall Street meltdowns and the changes could lead to fraud and abuse.

Speaking to an invited audience that included entrepreneurs — including South Floridians Albert Santalo, founder, president and CEO of CareCloud; and Zalmi Duchman, founder and CEO of The Fresh Diet — Obama indicated that he’s aware of those concerns and has directed top officials to “keep a close eye” on how it goes into effect.

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U.S. Trade Ambassador: L.A. Apparel and Textile Companies Key to Boosting Exports

The Obama administration wants the Los Angeles apparel and textile industry to help the country double its exports by the end of 2014. Deputy U.S. Trade Representative Demetrios Marantis made his first trip to Los Angeles as a member of the Obama administration, visiting key apparel and textile factories on April 2 and then holding a round table with about 30 apparel and textile executives to urge them to take advantage of the various free-trade agreements negotiated by the U.S. government.

“The whole point of my being here is to talk to the industry about how to take advantage of the ‘Made in USA’ label and how do we use our trade agreements to help the industry export,” said Marantis, who was named Deputy U.S. Trade Representative in 2009. He has been active in negotiating the Trans-Pacific Partnership, a regional trade agreement between the United States and eight other countries—Vietnam, Brunei, Malaysia, Australia, Chile, New Zealand, Peru and Singapore.

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