...what is your price?
Soap box warning...
Yesterday it was announced that Anheuser-Busch, brewer of Budweiser beer agreed to sell it's interests to the Belgium based brewing company InBev for $52 billion, ending a 150 year history of the Saint Louis, MO based American owned legacy. NPR devoted almost 3 minutes of air play to the story by Adam Allington and printed an excerpt on their site (linked above). Once approved by both organizations shareholders the merger would create the largest brewing company in the world, with an expected production of 12 billion gallons of beer annually. That's a lot of beer! I don't even like Bud, but the company brewed 75% of the domestic beer sold in 2007 with $16.9 billion in revenues the same year with an 8.74% profit margin.
Many of the proud Anheuser-Busch workers may have their heads hanging low now because the American based company with many generations of steeped history will soon be owned by foreign interests. The trend towards global ownership appears with increasing regularity and is gaining more ground as it seems American owned interests are being bought up by Japanese, Chinese and European organizations. Is this a good thing for the American economy? Will this trend allow the continual sell off of all that is American? Will "American Made" be a thing of the past? Does the global economy dictate that this trend continue for American economic success in the future? What is "Made in America" anymore and does it really matter? Are we willing to sell off our American heritage for a short term $70.00 per share profit? Anheuser-Busch will!
"There is a price for everything!"
What is your price for happiness and success?
What American owned railroad or American owned model railroad builder/kit company will be next in line for an international sale?
Ryan BoudreauxThe Piedmont Division Modeling The Southern Railway, Norfolk & Western & Norfolk Southern in HO during the merger eraCajun Chef Ryan
Ford own Volvo. Will you guys give us back all those European companies that are owned by American companies? Or will you get rid of those factories in China, Belgium, Indonesia, India.... and so on that you own?
The world is a joint economy now. The beer will stay the same, maybe that Belgium company is owned by Americans to some degree already since the global stock market is that way. Either way this is the way things are and I think it's absolutely great that it is. More co-ownership, more intermingled economy!
Magnus
P.s Just so nobody gets upset. I better make my self clear, some parts of this post is a joke, the other part isn't. I like our world economy.
Hello SS,
Here is the big picture.
InBev buys Anheuser-Busch for 52 Billion dollars, and ownership is transferred from American to Belgium interests. The current Anheuser-Busch stock holders now have 52 Billion dollars to buy what they want. Hopefully, it is in American companies. A break even situation. American investors could even buy a majority of InBev stock, and have control of the largest beer maker in the world, even if it is based in Belgium.
Another example of the big picture is the comparison of garden tractors. Kubota is owned by a company in the far east. John Deere is American owned. Yet when there is a comparison between tractors with approximately the same specs, the Kubota is made in the US, and the John Deere is made in the far east.
My Mitsubishi is from a Japenese company. But the car was built in Indiana, and sold in Canada.
Canadian National and Canadian Pacific own lines throughout the US. Yet the largest investor in CN is Bill Gates. So Is Canadian National Canadian, or, at least partly, American?
It's a big world, getting closer all the time.
WHO owns the company gets the profits.
WHO brings home the paychecks is where the most money is, as wages are usually the largest expense for a company.
Welcome to the new World.
Blaine
Blaine's
Commit random acts of kindness and senseless beauty.
Lillen wrote: The world is a joint economy now. The beer will stay the same, maybe that Belgium company is owned by Americans to some degree already since the global stock market is that way. Either way this is the way things are and I think it's absolutely great that it is. More co-ownership, more intermingled economy!
Yes, there is a lot to say for a true world-wide economy. For example, the Saudis own a big stake in the USofA these days, so it's in their interest that our economy do well. This helps keep oil flowing. The Chinese, who not too long ago were in a mutual rant-fest with us, are now actually dependent on us, because we buy so much of what they produce, including the vast American market for model railroading equipment. Back up to the prototype, a very large fraction of American rail traffic is carrying containers of goods from the Far East.
But, it's not all necessarily roses. Our in-town supermarket (Stop & Shop) is owned by a Danish company, and they have pushed their prices so high that we only go there for "convenience" items and the few things that the locally-owned market in the next town doesn't carry. (C'mon, guys. Why don't you have any Dove Bar miniatures?) They are trying to maintain their profit margin in the face of a declining dollar vs. the Euro, so they have to raise prices to the point of losing market share.
It takes an iron man to play with a toy iron horse.
You are correct Magnus, the world "is" one big economy now. This is not necessarely a bad thing, only in the beginning stages. Why? Because the U.S., Canada and Australia were the only nations to come out of WW2 unscathed as far as damage and economy was concerned. Therefore, the entire world was the marketplace for the U.S. Now, we have China and India and other smaller nations all moving away from farming economy to industrialization. Can we blame them for wanting a better life? For having what we have worked for? Absolutely not!!! But it does create a big problem as I mentioned, in the early stages of growth. China and India and other growing countries have much lower salary rates for their workers. This is changing, it is growing also, but we will not see equity with the rest of the world in our lifetimes. What were American workers making in factories in 1910? Right, $10 a week if you were lucky, and there were kids in sweatshops too, so lets not look down at other nations that have to deal with that issue now in their growth stages.
Americans have had it good for a long time, and our standard of living has risen since WW2 to the highest in the modern world, but this is changing and not for the better. We eat too much and too much of the wrong foods, so we get fat and type 2 Diabetes is even now a problem with kids under 20. We still have people who cannot or will not , give up smoking, so we get cancer and other ailments. All this overloads the medical industry in the country and our rates keep going through the roof and people ask WHY? Welllll, the reasons are right in front of our noses if we only take the time to look and figure it out.
Americans and other nations also, need to make some radical changes at the grass root level, and do for ourselves what we have lost in years of plenty. And the government is NOT the answer, they are lost themselves and most are self serving. The consequences of status quo are not good.
Well, of course I'm sorry to hear of an American brewer being bought out by 'foreign' interests, but if there IS a bright side to this, at least it was by the Belgians, who produce some of the best beer in the world (along with the Germans, Danes, Canadians and Czechs). So if Bud is going to be owned by the Belgians, perhaps the Belgians will introduce some of THEIR brewing techniques to Anheuser-Busch, and Bud will stop tasting like sandpaper dipped in Hops.
Just the opinion of a beer aficionado, you understand.
Tom
Tom View my layout photos! http://s299.photobucket.com/albums/mm310/TWhite-014/Rio%20Grande%20Yuba%20River%20Sub One can NEVER have too many Articulateds!
Yep, that sucks about Bud. I'd be worried about my job if I worked there. Those buy outs rarely go well for the American worker. The current Bushe son that runs it has been doing TV ads about American pride in an American product since talks of the buy out started.(guess that was all BS) I wonder if the old man is spinning in his grave??
Lillen-Chrysler is owned by German Daimler. (unless they've recently sold it)
Blaine's Trains-I'm curious where your getting your info about John Deere being made in the Far East?? All their lawn and garden tractors are made in the USA. Their site says the rest of their stuff is made in the USA and Canada. John Ratzenberger just did one of his "Made in America" shows from their Wisconsin plant showing how their big farm field equipment was made.
LOL Tom! Like I said in the original post, I never drink Bud beer. But maybe it is a blessing in disguise for improving their flavor of sand paper water! Maybe switch to 600 grit for smoother texture! LOL
Hey Dick, actually the Bud Clydesdale horses are from Scotland, so maybe the Belgians are going to start cross breeding them now! LOL
Yup Blaine! The global economy is changing things all up, and thanks for the CN info!
Strumpet Beer and Ale - Owned, brewed, bottle and consumed entirely in Moose Bay, with a few kegs occasionally making their way to the Beer Barn, wherever that is...
My suspicion is that the new owners will get the idea that Budweiser brews too many very similar beers - Bud, Bud Light, Busch, Busch Light, Michelob, Michelob Light and a few others like Bud Ice. In other readings on this subject, it was mentioned that a lot of the growth in the American beer market is in micro-brews, while the light, American-style lager is pretty much saturated.
Suppose this change of management took some of the beer-making capacity and started making a more flavorful, darker beer, but maintained the original economies of scale? Do you think there's room in the market for a lower-cost alternative to Sam Adams? Well, there would be room in my beer fridge for some, I'll tell you that.
Ice down those reefers, ladies and gentlemen. The Golden Age, with a foamy head on top, could be just down the tracks.
loathar wrote:Lillen-Chrysler is owned by German Daimler. (unless they've recently sold it)
Daimler AG actualy sold of Chrysler almost a year ago (well 10 month).
/stefan
No worries, I remember when the Japanese were buying up everything back in the late 80's. Everyone thought we were doomed. We weren't them , and we aren't now. The USA will come back strong as we always do. The main thing we need to focus on is getting through this election year, times are always bad during election years (albiet alot worse this time around). Try and limit your exposure to "doom and gloom" TV news, internet sites, and e-mails telling you the latest outrage against our country. Times are tough but this is NOTHING compared to what our parents went through back in the 30's.
Vote smart, the USA has an uncanny ability to hurt ourselves economically with bad legislation. Common sense needs to return and we need to give a good swift kick in the *** to lobbyists.
Special interests, lobbyists, the tree huggers, and outside sources have done the damage, and we allowed it because we feel the need to be "PC".
rant over
GS
"The true sign of intelligence is not knowledge but imagination."-Albert Einstein
http://gearedsteam.blogspot.com/
Gromitt wrote: loathar wrote:Lillen-Chrysler is owned by German Daimler. (unless they've recently sold it) Daimler AG actualy sold of Chrysler almost a year ago (well 10 month). /stefan
I thought I remembered Daimler saying they wanted to sell it. Do you know who bought it?
twhite wrote: Well, of course I'm sorry to hear of an American brewer being bought out by 'foreign' interests, but if there IS a bright side to this, at least it was by the Belgians, who produce some of the best beer in the world (along with the Germans, Danes, Canadians and Czechs). So if Bud is going to be owned by the Belgians, perhaps the Belgians will introduce some of THEIR brewing techniques to Anheuser-Busch, and Bud will stop tasting like sandpaper dipped in Hops. Just the opinion of a beer aficionado, you understand. Tom
Gotta agree with you there. Rice doesn't belong in beer. My session beer of choice is Bitburger. I like to hit the microbrews every now and then (we have plenty in Colorado). I don't think that AB has a single beer that is "good". I usually only hit the Belgian brew during the holidays, but they sure can brew a good beer. You gotta love some of those 8+ beers!!!
I bought Anheuser-Busch stock a few years ago at about $50 a share, and it is being bought for $70. Wow, a 40% gain. So, let's assume I made $2,000 on a $5,000 investment.
Now let's see. The feds get 15% ($300) in taxes. The State of California gets 9.3% ($186). So, I had a nominal gain of $2,000 less $486 in taxes for a net gain of $1,514. Oh, and the dollar is worth 15% less to me, so I lost $750 to inflation (15% times the $5,000 investment). So my real "take home" profit was $764. Now we're talking about a 15% total return (about 4% annually).
Not too bad, but while the nominal tax rate was 24.3%, the real rate of taxation was about 48%. And we need to raise capital gains taxes on someone's retirement income? Not until monetary gains are adjusted for inflation effects! And it is even worse with an insured savings deposits that don't hardly keep up with inflation. There the tax rate is over 100% since taxes are paid on imaginary income. No wonder people in the USA aren't saving enough money.
Mark
When in Prague, Czech Republic several years ago, the beer was good and inexpensive. In fact, bottled beer was cheaper than bottled water. Undoubtedly, the taxes on beer in the USA are higher than in the Czech Republic, and the Czechs, I presume, drink more beer than bottled water!
csmith9474 wrote: twhite wrote: Well, of course I'm sorry to hear of an American brewer being bought out by 'foreign' interests, but if there IS a bright side to this, at least it was by the Belgians, who produce some of the best beer in the world (along with the Germans, Danes, Canadians and Czechs). So if Bud is going to be owned by the Belgians, perhaps the Belgians will introduce some of THEIR brewing techniques to Anheuser-Busch, and Bud will stop tasting like sandpaper dipped in Hops. Just the opinion of a beer aficionado, you understand. Tom Gotta agree with you there. Rice doesn't belong in beer. My session beer of choice is Bitburger. I like to hit the microbrews every now and then (we have plenty in Colorado). I don't think that AB has a single beer that is "good". I usually only hit the Belgian brew during the holidays, but they sure can brew a good beer. You gotta love some of those 8+ beers!!!
loathar wrote: Gromitt wrote: loathar wrote:Lillen-Chrysler is owned by German Daimler. (unless they've recently sold it) Daimler AG actualy sold of Chrysler almost a year ago (well 10 month). /stefan I thought I remembered Daimler saying they wanted to sell it. Do you know who bought it?
Something called Cerberus Capital Management according to Wikipedia, based in New York, so Chrysler is American again, good luck with it
It reminds me of something I heard about last year, GM wanted help from Renault to get GM's finaces on track again, and one of the options Renault had was to buy(!!) GM (Renault had the money to do that) but they didn't want to.
/Stefan
Smitty: I'm with you, my friend. I've found some really fine California microbrews that for me, taste like beer is SUPPOSED to taste. Right now, Gordon Biersch, which is brewed in San Jose, has my undivded loyalty--it's one of the best Pilsner's I've ever tasted this side of Prague. Funny thing, though the beer aisle in my supermarket is packed with Bud, Coors, etc., the ones that are moving off of the shelves and ALWAYS having to be re-stocked are the microbrews. So it's not just me.
Dinner Heaven: A good steak, fresh salad and a nice, crisp micro-brew Pilsner. WOW!
I feel ya Mark! With inflation, the eroding value of the dollar, and taxes it is a wonder there is or will be anything left for any of us in or near retirement age!
To try to get this thread sort of back on topic, at what point will the price of a new loco, piece of rolling stock, or plastic structure be too much for your pocket book?
Mr. Budweiser emigrated from what is now Czech Republic (occupied mostly by Germanic people); so whether you like Bud or not, its roots are European/Germanic.
Do you realize that the vast majority of the world's famous breweries were founded by Germanic people? They immigrated to many parts of the world and founded Dos Equis, Tsing Tao, Budweiser, and so on and so forth.
Think German! Drink lots of beer and eat lots of sausage.
Mark (about 40% Germanic)
twhite wrote: Smitty: I'm with you, my friend. I've found some really fine California microbrews that for me, taste like beer is SUPPOSED to taste. Right now, Gordon Biersch, which is brewed in San Jose, has my undivded loyalty--it's one of the best Pilsner's I've ever tasted this side of Prague. Funny thing, though the beer aisle in my supermarket is packed with Bud, Coors, etc., the ones that are moving off of the shelves and ALWAYS having to be re-stocked are the microbrews. So it's not just me. Dinner Heaven: A good steak, fresh salad and a nice, crisp micro-brew Pilsner. WOW!Tom
Tom,
If you ever come around here, I can tell you I just stocked my garage fridge with Penn Pilsner. Price keeps going up on it, but I've stuck with it. I like it better on tap. I gotta agree on micro-Pilsners.
But, last month in Wisconsin I ran across a microbrew called Spotted Cow. Pretty good, but for now I'll stick with Penn Pilsner.
I could be persuaded if something better came along.
Chip
Building the Rock Ridge Railroad with the slowest construction crew west of the Pecos.
Since I actually like beer, I've never really been a fan of the AB family of beers... and can tell the post-AB Rolling Rock (not nearly as good) from the real thing brewed in Latrobe, PA.
But it is sort of sad that such an American icon (regardless of its roots; save for the Native Americans we're all descended from immigrants!) is no longer owned by Americans. And more so that this seems to have been driven more by corporate greed than by fiscal necessity.
I brew my own. And if you look in my beer fridge, the ones that aren't home brewed are either American micro-brews or European imports. Corporate American brews (Miller, AB, Coors, etc.) rarely make it to my fridge unless they're specialty brews.
The trouble with big American beers is that they attempt to appeal to everyone, so they tend to be heavy on the carbonation and sweet but very light on flavor. On the flip side, though, I'm not thrilled by the uber-hoppy trend in microbrews which tend to be far too bitter for me. Sam Adams boasts about how much hops they use; I wonder if a little less hoppiness might make Sammy smoother and less "busy." I can handle the heaviness, but the over-hoppy bitterness in many microbrews leaves me with drymouth. I shouldn't be thirsty after a cold beer!
Yeungling is a fine example of what American lager should be. Smooth, rich in flavor, but not too bitter. It's also less carbonated than many big beers. But, I'm nervous about Yeungling because they've expanded dramatically beyond Pennsylvania; they're even brewing in Tampa, FL. With multiple breweries comes taste control issues. Also I hope they don't intend to tamper with the recipe to appeal to a broader audience.
Oh, yeah, trains... Trains carry beer. I drink beer somtimes when I play with trains.
There. On topic!
Modeling the Rio Grande Southern First District circa 1938-1946 in HOn3.
Well, there it is! Mark, we have come full circle in the world of beers! Heck, even Adolph Coors was from Prussia!
Speaking of Coors, we toured the brewery in Golden, CO back in April and they take in about 200 car loads of grain, hops and barley a week. Looking through the glass from the brew house you can see a line of boxcars full below....
Here is an image of one of the Coors switchers represented on a wall in the brewery:
So, now I wonder how much rail traffic the AB breweries generate in a week!
Thanks for helping to keep this thread train related Dave!
SilverSpike wrote: I feel ya Mark! With inflation, the eroding value of the dollar, and taxes it is a wonder there is or will be anything left for any of us in or near retirement age!To try to get this thread sort of back on topic, at what point will the price of a new loco, piece of rolling stock, or plastic structure be too much for your pocket book?
Ok, I'll throw my in.
Hmmm... I am considered "middle class" as far as salary goes. I believe that range is somewhere between $60 and 90$ thousand dollars per year.
Train Engine. I will not pay more than $200 per unit ($120 is my average)
Rolling Stock.I will not pay more than $24 per unit ($18 is my average)
Plastic Structure. I will not pay more than $50 per unit. ($30 is my average)
So there you have it from "middle class" America.
Oh, yea. Never did like AB..pfffft rice beer, yuk. I drink the following in no particular order:
1) Rolling Rock
2) Blue Moon
3) Sam Adams Cherry
4) Killians Red
And did you know that Blue Moon and Killians Red are both brewed by Coor's now? Yup! We tasted them too in the tasting lounge after the tour at the brewery! Three free beers per tour!
Regardless of whether it's beer, model train manufacturing, or model train retailing...........The excessive taxes are constraining economic activity.
GARRY
HEARTLAND DIVISION, CB&Q RR
EVERYWHERE LOST; WE HUSTLE OUR CABOOSE FOR YOU
If Company X buys Company Y and sends a nice check to every Company Y stockholder, what's to prevent those Company Y stockholders from using the money to buy Company X stocks.
So Company X is headquartered in Belgium. That just means that you'll have to buy through a stockbroker in Brussels if Chuck Schwab can't handle it.
Back when I was gainfully employed by a profit-making enterprise, one of the investment options I could choose for my retirement account was a fund made up of nothing but 'offshore' investments. I imagine the situation is unchanged today.
Closer to home, Coors has a really unique way of spotting those reefers for loading. Each one stands on the platform-side track of a two-track transfer table. The other track is a thoroughfare. When a car is loaded, the transfer table moves it into line with the thoroughfare, a switcher pulls it and replaces it with an empty - which is then moved back over to the platform. All done without having to disturb any other car. That would be a fun installation for an along-the-fascia cutaway model (with the rest of the facility 'virtual' in the aisleway.)
Chuck (modeling Central Japan in September, 1964)