Home > Uncategorized > Insourcing at Foxconn and a high increase of public debt in Germany

Insourcing at Foxconn and a high increase of public debt in Germany

Update: a little bit of arithmetic shows that the increase of German government debt mentioned below was larger than the combined increase of government debt in Portugal, Greece, Spain and Italy. Of this 233 billion German increase, about 160 billions must have been used to bail out the German banks bonuses, which, considering the fact that cutting 2.000,– a year of a million Greek pensions (which are not too high to begin with) yields a budget cut of 2 billion, means that the EU/ECB/IMF is literally starving Greek and Portuguese octogenarians to guarantee high incomes of German banksters.

from Merijn Knibbe

Some data from around the web

1. What does Foxconn, a company with about a million employees, a bad reputation when it comes to respecting these employees and which produces about 40% of all hich tech electronical gadgets, among others the the Amazon Kindle, iPad, iPhone, PlayStation 3, Wii and Xbox 360, think about ‘outsourcing’? “Bogus”, according to its website:

(The) Foxconnian Business Model:
the proprietary one-stop shopping vertical integrated eCMMS model to revolutionize the conventional inefficient electronics outsourcing model

Foxconn’s Product:
Speed, Quality, Engineering Services, Flexibility and Monetary Cost Saving.

Foxconn’s eCMMS:
eCMMS stands for e-enabled Components, Modules, Moves and Services. eCMMS is the vertical integrated one stop shopping business model by integrating mechanical, electrical and optical capabilities altogether. It covers solutions ranging from moulding, tooling, mechanical parts, components, modules, system assembly, design, manufacturing, maintenence, logistics … etc. Through the eCMMS model, Foxconn’s Southern China campus is not only the world’s largest 3C manufacturing base, but also the shortest supply chain at the same time.

Hmmm.

2. Household debt in Italy is in fact quite low, but the country is in the news for having high (public) debts. And Germany still has this AAA-rating and is supposed to be prudent, when it comes to government finances. Alas, it had to bail out some, ehmmm, so called private companies in the financial sector, last year. Which meant that German public debt increased with more than 6%, (2011, third quarter compared with 2010, third quarter), while Italian public debt increased with only 0,6%… Which made Germany one of the European countries with the highest increase of public debt, last year (up to the third quarter), according to the latest  Eurostat data. Only Portugal, Greece, Ireland and the UK did worse.

By the way: the headline of the Eurostat press release:

Third quarter 2011 compared with second quarter 2011 : Euro area government debt down to 87.4% of GDP

Hmmm.

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