So Ironic---Big Three auto CEOs flew private jets to ask for taxpayer money - Page 12

PJB: Who Killed Detroit?

By Patrick J. Buchanan

What killed Detroit was Washington, the government of the United States, politicians, journalists and muckrakers who have long harbored a deep animus against the manufacturing class that ran the smokestack industries that won World War II.

How did Big Government do in the U.S. auto industry?

Washington imposed a minimum wage higher than the average wage in war-devastated Germany and Japan. The Feds ordered that U.S. plants be made the healthiest and safest worksites in the world, creating OSHA to see to it. It enacted civil rights laws to ensure the labor force reflected our diversity. Environmental laws came next, to ensure U.S. factories became the most pollution-free on earth.

It then clamped fuel efficiency standards on the entire U.S. car fleet.   Next, Washington imposed a corporate tax rate of 35 percent, raking off another 15% of autoworkers’ wages in Social Security payroll taxes

State governments imposed income and sales taxes, and local governments property taxes to subsidize services and schools.   The United Auto Workers struck repeatedly to win the highest wages and most generous benefits on earth — vacations, holidays, work breaks, health care, pensions — for workers and their families, and retirees.

Now there is nothing wrong with making U.S. plants the cleanest and safest on earth or having U.S. autoworkers the highest-paid wage earners.  That is the dream, what we all wanted for America.

And under the 14th Amendment, GM, Ford and Chrysler had to obey the same U.S. laws and pay at the same tax rates. Outside the United States, however, there was and is no equality of standards or taxes.

Thus when America was thrust into the Global Economy, GM and Ford had to compete with cars made overseas in factories in postwar Japan and Germany, then Korea, where health and safety standards were much lower, wages were a fraction of those paid U.S. workers, and taxes were and are often forgiven on exports to the United States.

All three nations built “export-driven” economies.  The Beetle and early Japanese imports were made in factories where wages were far beneath U.S. wages and working conditions would have gotten U.S. auto executives sent to prison.   The competition was manifestly unfair, like forcing Secretariat to carry 100 pounds in his saddlebags in the Derby.

Japan, China and South Korea do not believe in free trade as we understand it. To us, they are our “trading partners.” To them, the relationship is not like that of Evans & Novak or Fred Astaire and Ginger Rogers. It is not even like the Redskins and Cowboys. For the Cowboys only want to defeat the Redskins. They do not want to put their franchise out of business and end the competition — as the Japanese did to our TV industry by dumping Sonys here until they killed it.

While we think the Global Economy is about what is best for the consumer, they think about what is best for the nation.  Like Alexander Hamilton, they understand that manufacturing is the key to national power. And they manipulate currencies, grant tax rebates to their exporters and thieve our technology to win. Last year, as trade expert Bill Hawkins writes, South Korea exported 700,000 cars to us, while importing 5,000 cars from us.

That’s Asia’s idea of free trade.  How has this Global Economy profited or prospered America?

In the 1950s, we made all our Own toys, clothes, shoes, bikes, furniture, motorcycles, cars, cameras, telephones, TVs, etc. You name it. We made it.    Are we better off now that these things are made by foreig

Worst of financial crisis yet to come: IMF chief economist
Nov 22, 2008

The IMF's chief economist has warned that the global financial crisis is set to worsen and that the situation will not improve until 2010, a report said Saturday.

Olivier Blanchard also warned that the institution does not have the funds to solve every economic problem.

"The worst is yet to come," Blanchard said in an interview with the Finanz und Wirtschaft newspaper, adding that "a lot of time is needed before the situation becomes normal."

He said economic growth would not kick in until 2010 and it will take another year before the global financial situation became normal again.

The International Monetary Fund on Friday promised to help Latvia deal with its economic crisis after it assisted Iceland, Hungary, Ukraine, Serbia and Pakistan.

But Blanchard said the IMF was not able to solve all financial issues, in particular problems of liquidity.

Withdrawals of capital leading to problems of liquidity "can be so significant that the IMF alone cannot counter them," he said, adding that massive withdrawals of investments from emerging countries could represent "hundreds of billions of dollars.

"We do not have this money. We never had it," he said.

The IMF had spent a fifth of its 250 billion dollar (200 billion euro) fund in the last two weeks, Blanchard added.

He also urged central banks around the world to cut interest rates, after the Swiss National Bank made a surprise one percentage point rate cut Thursday.

The central banks "should lower interest rates to as close to zero as possible," he said.

Ex-AIG CEO gives $2.2B in stock to wife

Maurice "Hank" Greenberg, who last month relinquished his posts as chairman and Chief Executive of American International Group Inc. ( AIG) amid intense regulatory scrutiny, reported Tuesday a gift of 41.4 million company shares to his wife, Corinne P. Greenberg.'

(WhatReallyHappened) News Website...youll recall that AIG was awarded $150 Billion recently by Congress & Spent some of this Bailout lavishly on manicures, massages & Facials at a Resort.  US Tax Dollars at work. Notice old Hank just resigned prior to, to set up the 'Fall guy' CEO.

So Wall Street Zionist, Bolshevik, Insurance Kingpins get $150 Billion with the stroke of a pen & under Threat of Martial Law,  but allowing US manufacturers to Sink,  is fine?  Be careful what you wish for people..

but allowing US manufacturers to Sink,  is fine?  Be careful what you wish for people.

What would you suggest? Don't you agree that a bail-out without ensuring fundamental changes in the way Detroit operates will merely mean that we are throwing good money after bad? There has to be substantial restructuring - whether it occurs now or after they file for Chapter 11.

Even if they go into Chapter 11, it does not mean that we will not have an auto industry. It merely means that we will have a revamped one.

I agree with  much of what Pat Buchanan writes - both Republican and Democratic administrations have done a terrible job when it comes to demanding that our trading partners practice FAIR trade. But isn't much of the problem that the American consumer wants products at prices which we just cannot produce here given our labor costs? 

Chisum, don't lose sight of one thing: the market anticipates downturns as well as recoveries and is usually a good six months ahead of when we usually see the changes. Most experts see the economy in recession through 2009 and any recovery will occur only in 2010 - but the market will bottom well before the recovery commences.

KTF...

US Corporate Taxes at 35%.  Thats the Highest In the World.  

Japanese/Korean/German Makers are given favorable tax status by comparison.

And Affirmative Action-required by Law, so we have substandard subcontractors & employees.

Im not for throwing good money after bad, but to JAIL or HANG The Wall Street Criminals, Fed Reserve Officials, and use some of the $700 Billion, and give to the Big 3, give them a favorable tax rate and demand Union concessions, throw out the Communist Marxists that infiltrated the Unions decades ago.

US cars get 50+ MPG in Europe but due to our laws here, cannot be brought to market.

The Big Three automakers were the founding members of the Michigan Minority Business Development Council (MMBDC) that was instrumental in pushing minority quotas in both hiring and subcontracting to the other top 1,000 corporations here in America.

GM blew seven billion cash during last quarter alone and I agree that 25 billion is never going to do the trick, Poppa. They may fly private jets but you’d have to wonder how smart these execs really are! Either that, or maybe they just want a foot in the door for openers …

It is beginning to look surreal: now there are plans of a Citicorp rescue: Fed preferred equity plus over 300 billion of loan guarantees! Didn’t Bush only days ago extol the joys of unbridled capitalism? What happened to free markets and enterprise?

IMF thinks worse to come and hasn’t unlimited funds, Ugly? - welcome to the club! “The central banks ‘should lower interest rates to as close to zero as possible, he said.” Something lost in translation? Just for the record: for some reason someone seemed to suggest that my previous ‘irresistibly hilarious’ remark specifically targeted you – rubbish! – wasn’t aimed at anyone particular at all.

KFT: “Most experts see the economy in recession through 2009 and any recovery will occur only in 2010 - but the market will bottom well before the recovery commences.”

There are so many immeasurable variables and unknowns, including the influence of lower oil prices on consumer confidence and that of rescue packages and future stimulatory measures, that no one can possibly predict how it may unfold, KFT, not to mention that brokerage firms and their ‘expert’ analysts grind own axes. Consumer prices actually fell in October; can’t offhand imagine it spreading, but Japan suffered deflationary paralysis for well over a decade. Markets will certainly bottom at some time.

In connection with Dreman and not running with the herd this may interest you, KFT. There exists a philosophical construct which postulates that the greater the number of people of a particular mindset/psyche/syndrome/belief (markets, mass movements, and political ideologies etc), one for which there isn’t any real factual underpinning that is, the more likely that it is false. I wish I could recall the exact reasoning: something to do with the higher the intelligence, the fewer the number – the herd can only keep growing at the expense of an ever lower average intelligence. Once every Joe and his dog climb aboard a booming market … time to get out! 










 


 



 

"Either that, or maybe they just want a foot in the door for openers …"
 

I have to wonder why we didn't hear very much about the automaker's desperate situation BEFORE the original bailout package was passed.  It couldn't be that they simply want their piece of the pie could it?  After all, the rank and file members must be getting tired of paying for those corporate jets and multi-million dollar pay packages, and someone has to, so why not the taxpayers.  When are we going to stop responding out of fear to the blackmail that is going on?  The banks are not going to fail nor are the automakers if we don't bail them out or, if they do, there will soon be replacements for them.  Replacements that might actually be viable companies.  What a concept!

CITI Gets a Bailout,  Auto makers G et the Middle Finger.    Zionists look after Zionists..its called nepotism & favoritism. And they Laugh at you, cause theres not a Damn thing you can do about it.  The last thing 'they' do, before the crash, is steal  & Loot from the Treasury.

Fed Pledges Top $7.4 Trillion to Ease Frozen Credit
 

By Mark Pittman and Bob Ivry

Nov. 24 (Bloomberg) -- The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.

The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight.