One of the more pathetic stories today is how the private jet setters in Congress scored points off of the gnomes running Detroit into the ground, coming to Congress on private jets to beg for US taxpayer bail out money. The hot attacks by our very corrupt Congress, screeching at the corruptors from Detroit, daring to show up in private jets, is very ironic.
For Congress LOVES private jets. So do our Presidential candidates and our rulers and nearly everyone connected with the collapse of the US economy and our deepening debts. As usual, the media won’t report this correctly. They want to orchestrate American viewers into hating the heads of dying industries, not examining the true nature of what is going on here. There are fleets and fleets of private jets and all of these are indications of corruption, venality and selling the US down the economic river and into the Red Ink Sea of debt.
CLICK HERE LARGE PRINT EDITION: JET SETTERS IN CONGRESS ATTACK AUTO JET JOCKEYS « Culture of Life News 2
This story is very hot, of course. Right on the heels of AIG demanding an endless bail out that might reach a trillion dollars, then going off to party, Detroit car presidents came to Congress to demand the same party rights. One of the owners of autos going under is the überhöllehund itself, Money Matters: Cerebus, The Hell Hound Hedge Fund.
So, the dogs of Hell are going to take over more and more parts of the auto industry? General Motors isn’t about building good cars, it is about the stupid, noxious carry-trade/loans for Americans business that is killing our industrial base and destroying our country’s future.
As usual, reading older Culture of Life News stories pays off. I went to Cerebus’ home web page and clicked on their menu only to find that there was absolutely nothing there at all! This is classic ‘Cave of Wealth and Death’ stuff. A gaping hole where information should be. So on top of this, one of the jet-setters demanding pay outs is the former head of Home Depot. He nearly bankrupted that organization and had to be given a golden parachute to go elsewhere.
So he bailed out over Detroit. Where he now operates in the name of the biggest hell hounds on earth. Here are several classic Cerebus cartoons I drew in the past:
Money Matters: Vultures Feed Off Of Bull Market Carcass
Money Matters: Cerberus Plots To Eliminate Health Care
Money Matters: Cerberus and Japan Conspire To Fatally Weaken The Yen
EZ READING MONEY MATTERS: Funny Money: Fed Throws Treasuries To Hell Hounds
The nature of US corporate entities going to us for help is messed up by the fact that these organizations are increasingly run by and for foreign powers or offshore accounts that are set up to evade both taxes and regulation. So this kind of complicates rescue operations when US infrastructure is in danger.
Letting the US auto workers go off the cliff may be satisfying for anti-unionists and Americans who are angry about poor service or other issues. But it will fatally wound the US itself. So what is Congress going to do?
Nationalize our auto industry, of course. Only this won’t happen due to the US clinging to a bizarre mix of anti-socialism for workers and total socialism for hell hounds and finance gnomes. And this is very simple: the gnomes own Congress. The hell hounds hang out in the halls of Congress. Congress, itself, is the main problem here. It is now hopelessly corrupt.
There are 24 daily nonstop flights from Detroit to the Washington area. Richard Wagoner, Alan Mulally and Robert Nardelliprobably should have taken one of them. Instead, the chief executives of the Big Three automakers opted to fly their company jets to the capital for their hearings this week before the Senate and House — an ill-timed display of corporate excess for a trio of executives begging for an additional $25 billion from the public trough this week.
“There’s a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hands,” Rep. Gary L. Ackerman (D-N.Y.) advised the pampered executives at a hearing yesterday. “It’s almost like seeing a guy show up at the soup kitchen in high-hat and tuxedo. . . . I mean, couldn’t you all have downgraded to first class or jet-pooled or something to get here?”It was a display of stone-cold tone-deafness by the automaker chiefs. In their telling, they have no responsibility for the auto industry’s current mess. Threatening the nation with economic Armageddon if they are not given government aid, they spent much of the session declaring what a fine job they’ve been doing in Detroit.
The Congress critters happily played this little theatrical game with the gang that funds their own fleet of private jets. Everyone knew that the stupefied American public would eat this up. So the actual owners and users of private jets sat silent and let the ‘reformers’ hammer the rich executives. But I have a long and deep memory and lots of old cartoons. So let’s go back slightly in time to nearly two years ago:
February 10, 2007: Money Matters: Daily Kos Wants Democrats To Live Like Billionaires
America is going bankrupt. The GOP spent us into a very deep chasm. The Democrats were supposed to fix this but they won’t, either. The Pelosi plane flap shows the depths of the debt depravity in Congress in full bloom.
This was posted at Daily Kos by the Pied Piper, Kos himself:
And if you want to know why the “Pelosi wants a luxury plane” fake scandal is total bullshit, read here.
But neither Costello nor Blitzer provided independent evidence of Pelosi’s request. By contrast, several other media reports on the controversy have stated that there is no evidence Pelosi ever asked for a specific plane and noted that her staff has explicitly denied she ever made such a request. Indeed, Pelosi herself has repeatedly explained she merely wants an aircraft that can travel nonstop to California.
The CNN report repeated the ongoing GOP allegations that Pelosi requested access to “not only a military plane that could fly coast to coast without refueling, but one of the most luxurious planes in the Air Force’s fleet — the C-40 — which boasts a private bed, an entertainment center, and a crew of 16.” (Costello appears to have been referring to the C-32, a military version of the Boeing 757, which Republicans have specifically claimed Pelosi requested. According to the Air Force, the C-32 usually requires a crew of 16, while the C-40 usually requires 10 crew members.)
This story makes me want to tear my hair out. I happen to remember all the way back to President Carter’s days. He made a big show of flying not only commercial planes but carrying his own luggage. This was after we supposedly recoiled from the Nixon Imperial Presidency!
HAHAHA. There it is, in a nutshell: even the pathetic people being conned by Kos are not upset about private jets. Not even when they are being funded by us, the taxpayers, directly! So where is all this outrage coming from, anyway? The truth is, Congress wants to fly private jets and rule from above and the rich want them to do this, too. Birds of a feather fly private jets together.
And they fly to Bilderberger meetings. They fly to foreign nations to solicit funds, make deals and betray the US public. They fly to OPEC nations to beg for money and offer up our own youth and our own tax dollar-funded loans to fight on behalf of everyone but the US people. We are mercenaries led by a bunch of criminals who think nothing of using the entire US government and financial systems to feather their own nests and to leech off of us.
BOTH PARTIES ARE DOING THIS. The exceptions are on the far right wing, the Ron Paul part, of the GOP and the far left wing, Kucinich part of Congress. Honesty, at least, is found in the extremes. But the ‘middle’ is mush.
I still remember when Jimmy Carter ran for President. He didn’t use a single private jet to move about the place. He actually carried his own luggage. He still does this.
Here to There: Jimmy Carter Aloft: The New Yorker
Unlike Bill Clinton, a serial moocher of private jets, Jimmy Carter flies commercial. He shambles through airports, towing a wheelie bag. He and his retinue of Secret Service men bypass security, board the plane before the other passengers, and procure the first few rows. Prior to departure, he takes a window seat, in order to insulate himself from his fellow-travellers as they step onto the plane and glance at him with tight smiles that seem to indicate pride not only in their sudden proximity to an ex-President but also in their ability to refrain from making a fuss. Then, after the plane’s door has shut, he stands up and walks aft, shaking hands, posing for pictures, learning all the children’s names. “It saves me a lot of headaches,” he explained last week. “It saves me from having them come up to see me during the flight.” (It’s hard, but fun, to imagine Keith Richards doing this.) Carter returns to his row and takes an aisle seat—“Rosalynn likes the window”—and the plane leaves the gate.
This was the last of the ‘old fashioned’ Presidents like Eisenhower who lived normal lives in normal houses doing normal things. Not living in palaces, flying private jets and mooching with the international very rich.
California GOP Files FEC Complaint Over Obama Visit to Grandmother | The Trail | washingtonpost.com
“Obama for America violated federal law by converting its campaign funds to Senator Obama’s personal use,” the release stated. “Senator Obama recently traveled to Hawaii to visit his sick grandmother. This was the right thing for any grandson to do — at his own expense — but it was not travel that his campaign may fund.”
This last election saw the top two contenders flying merrily about in private jets. Back in 2000, the very wealthy McCain made a sport of appearing populist by driving about in his ‘Straight Talk’ bus. This time around, he and Palin flew about in private jets. Call these, the ‘Crooked Talk’ jets. The true populists in this goofy election really did go around, using public transport. Both were hated by their own parties who prayed that no one would vote for them.
I don’t blame Obama for wanting to fly his private jet to see his dying grandmother who he obviously loves very much. But the fact remains, this has corrupted the election process still further. We now have jumped over another hurdle. And this has no end. All Presidents want to collect money while mooching about the entire planet on private jets.
Many Dealings of Bill Clinton Under Review – NYTimes.com
Mr. Clinton delivered those remarks at an international economic symposium in Kuwait City sponsored by the National Bank of Kuwait, which said the former president would “share with a select audience his perspective on the issues likely to shape the future prospects of the region.”
It is precisely that kind of paid speech, which Mr. Clinton delivered 54 times last year for a total of $10.1 million in fees, that has complicated the vetting process that Mrs. Clinton is undergoing by the Obama transition team. “Whatever happens or doesn’t happen is between Obama and her,” Mr. Clinton said.
That may be, but Mr. Clinton’s postpresidential life as a globe-trotting philanthropist, business consultant and speech-giver poses the highest hurdle for Mrs. Clinton to overcome if President-elect Barack Obama chooses to nominate her as secretary of state, according to aides of the Clintons and Mr. Obama….
Associates of the Clintons said that Mr. Clinton was likely to have to make significant concessions and that he was inclined to do so. Among other things, they said, he would probably have to agree not to take money for speeches from foreign businesses that have a stake in the actions of the American government. Another obvious issue, Democratic lawyers said, would be whether Mr. Clinton’s foundation should accept money from foreign governments, businesses or individuals for the foundation’s philanthropic activities and if it should disclose those donors publicly….
Since the former president established the William J. Clinton Foundation in 1998, it has raised more than $500 million, a sum that allowed him to build his steel-and-glass presidential library in Little Rock, Ark., and create the Clinton Global Initiative, which has done good deeds all over the world, including working to eradicate AIDS in Africa. Much of that money has been raised from foreign sources.
Poor Joe the Bummer Plumber wants to imitate Clinton. He wants to be famous, run a charity and fly in private jets around the country and the world, lecturing us all on economic matters. A total mooch. And no mooch is more trailer-trash moochy than the Big Dog, hangdog Clinton. He will happily wag his tail for anyone. He loves tail [couldn't resist this].
This all began with Ronnie Reagan: going overseas to get bribes directly from foreign powers and foreign rivals and even potential dire enemies. Selling the Presidency to the highest bidders who are not us voters. I was totally outraged when Reagan went to Japan in 1989.
May 10, 1989: Japan Bids Welcome (in 7 Figures) to Reagan – New York Times
Upset about recent strains in relations with the United States, Japan is making lavish plans to welcome former President Ronald Reagan to Tokyo later this year for 10 days of speeches, ceremonies and visits with business and political leaders.
Upset about recent strains in relations with the United States, Japan is making lavish plans to welcome former President Ronald Reagan to Tokyo later this year for 10 days of speeches, ceremonies and visits with business and political leaders.
But plans for Mr. Reagan’s visit have also been clouded by the turbulent and uncertain Japanese political situation here and by reports that a bidding war had erupted over the right to serve as the former President’s official sponsor. One person involved in the arrangements said the bidding had broken into the millions of dollars.
The size of the final bid was unclear, as was the size of Mr. Reagan’s final negotiated fee. But Charles Z. Wick, former director of the United States Information Agency and a longtime Reagan associate, said Mr. Reagan would receive ”an attractive honorarium.” He declined to give details. Mr. Wick has served as Mr. Reagan’s emissary in arranging for the visit, which is to begin around Oct. 19.
The bribe the Japanese negotiated was $2.5 million for one speech. The speech, of course, was a cover for the handover of the loot. As usual, the Japanese wanted to pay the least amount and haggled bitterly over the terms of this betrayal of the US public. They then decided to corrupt Bush Sr. earlier on rather than wait until he was out of office. At this time, the Chinese were just ecstatic about this bribery.
For I predicted Reagan would collect a huge fee from the Japanese back in 1985. I told the Chinese to watch for this news and like a clock, it happened nearly instantly upon Reagan retiring. This was noticed by everyone seeking power over Presidents. They all exploited this most artfully which is why that desperado former President, Clinton, is so wildly popular overseas.
Reagan dared only one bribery speech. Now, all our former rulers and their staff go about the planet, happily collecting huge fees. THIS IS WHY ALL TRADE NEGOTIATIONS END UP MAKING THINGS WORSE FOR US AT HOME! This is not accidental. This is deliberate. We are seeing crummy negotiations led by a bunch of ‘free trade’ free booters working on behalf of all our rivals! They are NOT negotiating on behalf of Americans. Not even slightly.
Japan Bids Welcome (in 7 Figures) to Reagan – New York Times
A person involved in the negotiations said Mr. Wick had been concerned that the bidding over the sponsorship of the visit might implicate Mr. Reagan in Japan’s spreading influence-peddling scandal, which led Prime Minister Noboru Takeshita to announce his resignation last month.
The scandal has involved illicit payments to Japanese politicians by major Japanese business corporations, and Mr. Wick was said to have been worried that Mr. Reagan could be seen as tainted if he accepted money indiscriminately from Japanese businesses.
Also involved in the scandal allegations has been former Prime Minister Yasuhiro Nakasone, who had earlier been expected to play a major role in the visit. An aide to Mr. Nakasone said this week that because the former Prime Minister is enmeshed in scandal allegations, it was unclear how much Mr. Nakasone would be able to see Mr. Reagan.
Back in 1989, I demanded Congress haul Reagan before them and put him under oath and begin proceedings leading to arresting him for treason. ’But he is POPULAR!’ they told me. And he was popular because our media was not out hounding him over this. I was happy the NYT ran an article about all this. But there was no media feeding frenzy.
This was also due to Congress, seeing vast acres of loot opening before them, wanted him to get away with this obvious and open treason. They licked their chops and went to dinner. And the trade condition of the US began to deteriorate even faster. As time has passed, with everyone conspiring to tap into foreign bribes, it is worsening rapidly to the point, the US is now going bankrupt, we are about to lose control of our last major industries and foreign powers dictate our foreign affairs and order our military around so they work for aliens and not to protect the US itself.
On our dime, of course. So all the downside burdens fall on us. While they get richer and richer. Congress is filthy rich. Anyone walking into the White House ends up filthy rich afterwards. Look at Clinton: nearly bankrupt due to the Monica mess. Worth over $100 million less than 8 years later.
China Digital Times » Chinese Automakers May Buy GM and Chrysler?
With the U.S. auto industry in the midst of a crisis, Chinese media reports are saying that Chinese companies may buy up two giants, Chrysler and GM.
And China is buying up everything in sight. Even as their own economy flounders. This is because they have money and they have money because they have a TRADE SURPLUS. And the US better figure out why we have no trade surplus. This is of highest importance. We can’t let this continue any longer.
We must remove from office, anyone using a private jet, for starters. That will tag most of the most corrupt members. This includes multimillionaires like McCain as well. We are run by the rich and the rich are running us into the ground. Their allegiance is to foreign powers, not the US Constitution and the American People.
FEEL FREE TO EMAIL ME AT emeinel@fairpoint.net







72 Comments
November 20, 2008 at 4:24 pm
It is not a surprise that politicians can be purchased. It is sometimes a surprise at how cheap it is to buy them wholesale.
November 20, 2008 at 4:53 pm
Yes, just give them a few rides in a private jet and they are hooked for life.
November 20, 2008 at 4:56 pm
who gives a flip about the jet setters….i told my brother-in-law (ex air-force), the only planes that are going to be left are the small ones. Hey that would be good for the pilots.
The big planes are a huge waste just like the big SUV’s.
The factories should remain in possession of those who reside in the territories where the factories are located. You know.
Peace,
Ken
November 20, 2008 at 5:00 pm
And I agree – it is best to work locally. I just did this today when I prepared a comment on NCDENR’s proposal to exempt combustion-related pollutant emissions from the NC Air Toxics rule. They did this using a model named “HEM-Screen”. This HEM-Screen model has nothing to do with the NC Air Toxics rule modeling. A most inappropriate model if I must say so.
OK, I said I wasn’t going to post again, but I suppose I lied. Oh well, whats done is done.
Peace,
Ken
* I support “Direct Action”
* I advocate “Mutual Aid”
November 20, 2008 at 5:49 pm
It’s perfectly OK for you to post here, Buffalo Ken.
November 20, 2008 at 5:54 pm
Thank-you Elaine. :crooked grin:
November 20, 2008 at 6:08 pm
Senators Reach Bipartisan Deal to Aid U.S. Automakers (Update1)
Nov. 20 (Bloomberg) — “A group of U.S. senators has reached a bipartisan agreement on aiding U.S. automakers, said an aide to Democratic Senator Carl Levin of Michigan.”
The contraitors are throwing the taxpayer lifesavers to their good buddies; the other conamerarapists. We are all on the Titantic. The taxpaying 3rd class passengers life boats have been sold . The DC morons think the conmen are the golden geese. Not until the end will they realize that the golden goose that laid the golden eggs were the little people who once had good paying jobs to pay taxes.
Power corrupts. Absolute power corrupts absolutely.
November 20, 2008 at 6:27 pm
Senators Reach Bipartisan Deal to Aid U.S. Automakers (Bloomberg)
“A group of U.S. senators reached a bipartisan agreement on aiding U.S. automakers as Congress was running out of time this week to help the cash-starved companies.”
Yes. Save Cerberus.
Full article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMQyrbRKIWxE&refer=home
November 20, 2008 at 6:30 pm
Bailout Watch 226: House Reaches Compromise on Bailout Bill (TTAC)
“MSNBC is reporting that auto-state senators’ aides say they’ve reached a compromise to throw money at “speed emergency loans” to Chrysler, Ford and GM. And speed is the drug of choice here. After The Big 2.8’s CEO shot themselves in their collective feet in front of a Senate committee charged with rubber-stamping the $25b deal, Republicans and Democrats knocked some heads together.”
Earth to God (or whatever supreme being gives a crap). Stop the planet. I want off for I fear Derivative Beasties and being swallowed whole.
Full article:
http://www.thetruthaboutcars.com/bailout-watch-226-the-final-nail-in-the-coffin/
November 20, 2008 at 6:35 pm
This is where the $25B is coming from:
http://www.lgprogram.energy.gov/
Then after that’s spent in about 6 months or less, Owe-bama can take over and shower them with taxpayer’s money. If any are left after they lose their jobs by the millions and can no longer afford their own homes, cars and food.
November 20, 2008 at 6:36 pm
U.S. bank shares plummet (Reuters)
(Reuters) – Shares of U.S. banks fell on Thursday. Highlights:
* Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 25.5 percent to $4.77
* Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 10.6 percent to $11.68
* JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 18.5 percent to $23.21
* S&P financials index .GSPF falls as much as 8.5 percent
* Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 11.1 percent to $49.00
* Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) shares fall as much as 12.2 percent to $9.00
November 20, 2008 at 6:39 pm
But the DOW that was down this morning, despite the banks performing badly, shot upwards on news that the ‘Walking Dead Three’ will get loans from the Dept. of Energy, until they’ll need more in a few short months.
The DOW, right now, is up 3 points to 8,000 even.
November 20, 2008 at 6:44 pm
U.S. Stocks Gyrate as Auto-Industry Rescue Offsets Jobless Rise (Bloomberg)
“U.S. stocks swung between gains and losses as prospects that lawmakers will agree on a plan to rescue the auto industry offset a jump in jobless claims.”
Becasue giving money to the auto industry is far more important that the rest of the real economy NOT working.
Yeah, why care that everyone else is losing their jobs by the millions. They get to keep theirs – for now. After all, with fewer people employed in the “outside world”, who will buy their product?
Hey! Wasn’t that the problem in the first place even when people had a job?!
Full article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aruDKYx8Y96E&refer=home
November 20, 2008 at 6:48 pm
U.S. Economy: Jobless Claims Approach Highest Level Since 1982 (Bloomberg)
Aww, screw ‘em. The auto industry got a freebie. That’ll make everything better! Wippee.
We can put the umemployed to work washing and polishing the thousands of cars that will pile up in empty lots arund the country as inventory swell from the lack of buyers….since there so many that are unemployed.
Full article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=anVS4Mooik1I&refer=home
November 20, 2008 at 7:03 pm
It’s getting so bad out there that it is funny at this stage.
This qualifies:
Obama considering the Mother of failed sub-prime lenders for Secretary of Commerce position (No Quarter)
“If you are surprised by this appointment consideration, please know that I am not. And if you don’t know who Penny Pritzker is, you can count on me to refresh your memory.”
Full article:
http://www.noquarterusa.net/blog/2008/11/20/obama-considering-the-mother-of-failed-sub-prime-lenders-for-secretary-of-commerce-position/
November 20, 2008 at 7:18 pm
None of this is “funny”. I have no glee.
But most of it is obvious and many have been saying so for so long. But it is so easy to be comfortable and conveneint and then basically clueless.
Well, inconvenience seems to be on the way for many and the best part is that it will be indiscriminate for the most part for those who don’t possess much. For the possessor’s it is going to be hell.
Peace,
Ken
November 20, 2008 at 7:20 pm
Don’t you think. Cause (or “because” if you prefer) those who hold onto so much will only lose their grip.
Peace,
Ken
November 20, 2008 at 7:39 pm
Asset stripping
(Compiled from previous comments)
The only relevant question regarding the question of “bailout” for Big Auto is the factor of asset stripping. If a USA Big Auto bankruptcy would result in an asset stripping of the auto productive system, then it must be stopped at any cost.
What we could seriously use in that event is seizure by eminent domain of the USA auto system. GM has made a vast array of bad choices. Time for government to step in and seize this asset before it all gets sent down the Mississippi River to China.
I know, this sounds like communism. To hell with the ideology here. This is about national survival. Either you survive… or not.
There are obvious solutions to the problem of ownership of the auto production assets (physical plants, with associated human skills assets). The government should sell or give these assets to the local communities in which they are located. Any local community would certainly have an interest in causing it’s own industries to be profitable. The communities should not be allowed to sell their industries either. If you don’t like your industry, you could always move to some other community.
There is no reason at all why the auto companies must continue to produce products that are undesirable. The decision to do that was made by “capitalists” who could care less about the viability of their businesses. All they care about is lining their pockets, grasping for power, perks, stock options (which should be outlawed). If they have to make money by selling SUVs that make monster profits for the oil consortium that they also own, they will do that. If they can get golden parachutes by simply selling of their productive systems to China, they will do that. Real creation of needed products is of no concern to them. Communism is not the alternative: Communist rulers, with their power and privileges and giant dachas are identical to capitalist rulers. These “systems” are indistinguishable, they are both communitalism. Community industry, or coindustrialism is the system in which local communities permanently own (or sell or swap to other local communities) the various productive systems.
Coindustrial communities could always adopt new productive facilities. There would be smaller private businesses, like plumbing companies, pizza shops, etc. within them. And if people became dissatisfied working for a coindustrial firm, they could always move on somewhere else. Totally unlike the radically inefficient and abuse-prone facilities of communitalism, these large productive facilities would depend upon the communities that owned them, and those communities would depend upon them. There would be no oil cartel input, no ability to sell the productive machinery to China, or anyone (except other US communities. There would at last be genuine accountability.
When the big auto companies go under, we are going to have our Iceland Experience! The government should just seize the auto companies by eminent domain, and wait for Bush to go back to Connecticut. Then stipulate that only only the communities (or towns and cities) that physically harbor the productive assets and productive workers can own and control the companies. This would have the additional benefit of providing local incentives to maintain high ecological and aesthetic standards. Would that be so hard?
The “fall” of USSR will look like peaches and cream on a Sunday afternoon compared with the coming US retro-technological deconomy! We must keep a few machine tool operations in the USA!
November 20, 2008 at 9:06 pm
Bernanke laid our his crime plan back in 2002 here in this speech. Love the DRAGON story-telling.
(S)HE WHO CONTROLS THE STORY, CONTROLS THE WORLD.
1. Massive creation of Debt
2. Tame Dragon of inflation by sterilizing cash in Japan (China/SA) Reserves to hide impact of Debt.
3. Drop interest rates to zero to increase value of Debt owned. (US ZIRP is Here)
4. Restrict credit to collapse physical economy and create Debt defaults. (Credit Crunch)
5. Crash stock market. (See DOW)
6. Repossess all physical assets of the economy by calling in all debt. (Lehman pulled)
7. Purchase the rest of the physical assets in the open market at cheap post-crash prices using sterilized cash hoarded off shore. (Watch GE, GM, X, US Trophies)
8. Reopen credit and oil flows and watch investments EXPLODE in value. ($4 Trillion TARP money placed on bank reserve balance sheets and expanded to $40 trillion in loans via fractional reserve lending.)
===
If investors do not cooperate with step 7, then of course the simple alternative is:
7. Bomb all aging infrastructure and populations.
8. Rebuild infrastructure in desired location and watch investments EXPLODE in value.
But this is very messy. Much easier to steal everything in broad daylight.
I think we are at step 5.5 right now.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm
“during the 1980s and 1990s most industrial-country central banks were able to cage, if not entirely tame, the inflation dragon…
With inflation rates now quite low in the United States, however, some have expressed concern that we may soon face a new problem–the danger of deflation, or falling prices. That this concern is not purely hypothetical is brought home to us whenever we read newspaper reports about Japan, where what seems to be a relatively moderate deflation–a decline in consumer prices of about 1 percent per year–has been associated with years of painfully slow growth, rising joblessness, and apparently intractable financial problems in the banking and corporate sectors. While it is difficult to sort out cause from effect, the consensus view is that deflation has been an important negative factor in the Japanese slump.
So, is deflation a threat to the economic health of the United States? Not to leave you in suspense, I believe that the chance of significant deflation in the United States in the foreseeable future is extremely small, for two principal reasons. The first is the resilience and structural stability of the U.S. economy itself. Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow. Flexible and efficient markets for labor and capital, an entrepreneurial tradition, and a general willingness to tolerate and even embrace technological and economic change all contribute to this resiliency. A particularly important protective factor in the current environment is the strength of our financial system: Despite the adverse shocks of the past year, our banking system remains healthy and well-regulated, and firm and household balance sheets are for the most part in good shape.”
November 20, 2008 at 9:40 pm
This guy F****** NAILS the plan to get us out of the planned ‘depression’. (Step
This explains why the criminals are loading up on Debt to buy physical companies, resources and assets. Their debt load could be reduced 90%. If they are one of the favored criminals, they will be able to squeeze through the depression without repossession.
So if the USD to SDR exchange rate is 1:1 right now, your $1billion USD loan will cost $1billion SDR. But after a 10 to 1 devaluation of the USD, you will be able to pay back your $1B USD loan with only $100M SDR.
Then they will be able to earn the new criminal SDR’s with their free trade crime partners.
Of course, the stupid peasants will not be able to get access to SDR’s and only have power to earn devalued USD, but the explosion of reflation will mean that their $150,000 pay will zoom up to $300,000 and they will feel rich! Easy to pay off the $1M house loan now.
So peasants will free twice as rich or half as debt poor to prevent them from revolting, and they will not mind that the criminals have made 10 times their money.
But of course the poor and old on fixed government incomes will only get a 10 or 20% ‘raise’ in their payments and it will be cat food time. Or hunting squirrel for food.
http://www.moneyandmarkets.com/more-on-the-new-monetary-system-6-28166
“Note the 12 countries that either came completely off the gold standard or devalued their currencies by 1933 (via raising the price of gold): All of them came out of the Depression almost immediately.
Australia and New Zealand came out of the slump first, barely one year after the Depression started.
The U.S. came out of the Depression much later, largely because it stubbornly defended the gold standard by keeping and even raising interest rates during the Depression (to prevent loss of gold reserves).
Meanwhile, of the five countries that unbendingly clung to the gold standard, refusing to devalue their currencies until much later, as late as 1936 — they all stayed in the Great Depression much longer, an average of 2.33 years longer.”
November 20, 2008 at 10:27 pm
Blues. Give it up. Really.
You can’t strip assets when there are none there to strip.
It’s an utopian idea you keep selling, but it is one that is untenable.
If you actually research what it is you are saying you’d be shocked to learn that there is not much in the way of anyone wanting those “assets”. Again. There are no “assets”. They are in the hole! If there were assests, there would a lineup out the door, so to speak. Even at under 3 bucks a share, you’re not seeing that. Simply due to the fact that, as I have stated, there are NO assets.
Lets state the obvious as well, while I’m at it. They also produce a product that no one wants. Sales have been deplorable.
When big auto companies go under, you don’t have an Icelandic economic experience. Dumping money into something that hasn’t made any money as well as their finance companies (GMAC – 5 quarters of losses) creating more debt creates an Icleandic experience.
November 20, 2008 at 10:30 pm
GK…….impressive research. Thank you. These people may be immoral but they are not complete idiots. I just can’t decide if that is reassuring or not!
November 20, 2008 at 10:47 pm
This ‘gotta save GM, Ford and Chrysler’ mantra that is being tossed around is becoming rather loathesome.
Should they fail, there will be others that will step in. Asian? Most likely. You may not agree with it, but if it’s to keep the jobs that you so desire, then you’ll have to suck it up. So will the workers. The main point is that ALL automakers are suffering right now. Sales of even Toyota and Honda are down. It is to with the economy and lack of credit being granted. It just so happens that the ‘Walking Dead Three’ have lost their market appeal years ago as the product that was being created by them was shoddy, defective and generally just crap.
I’m not going to get into the management/union rhetoric. We all know about that. But it contributed greatly to the problems that trickled right down to the product.
A comapny such as GM had many years in which to correct itself to be viable.
November 20, 2008 at 11:02 pm
Continued…..computer problem….sorry….
So where are we now? Some have adopted the mentality that the auto companies are too big to fail. We need them to survive. It’s that shortsighted vision that relates to the problems of today. Just keep on keepin’ on – no matter what. It’s the same of GM, Ford and Chrysler’s management. Change nothing, just keep the status quo and toe the line.
We cannot keep these unsustainable entities going. They have been sucking tax dollars since the 1970’s and they keep haveing these problems. Well, the problems are at their door again and the public that is entranced with the Big Three can’t seem to get over that it is time to put them out to pasture.
The US government can give them tens and hundreds of billions to save them. And they have, if you add up the money loaned to them over 30 years. Where has it gotten them? To this same point.
The world is changing rapidly. All because of incessant greed and backroom dealings. There would be no better time to cut off these drunken uncles that keep coming back for money for booze and smokes and let them file for bankruptcy.
If their product isn’t wanted or viable and they’ve lost market share, well, that is the way of capitalism. Time to go away and stop being a burden on the taxpayer.
There are far too many people out of work already that would not want to see what money they have left go to save these floundering fish when they are having a hard time themselves just keeping a roof over their head and food on their tables.
But, the ‘gotta keep the auto companies alive’ crowd always can’t seem to see the problems ahead of their badly though out suggestions while never aking themselves the bigger question: “Who will buy the product when there are more unemployed today than there was since 1982?”
November 20, 2008 at 11:04 pm
I’ve been in the physical side of industry all my creeping life!
Have you ever had to MAKE anything? Well I have. I know about tools.
Really, Blunt Force, what do you know about tools? Not so very much?
I’m not playing softball on this one.
November 20, 2008 at 11:09 pm
Blues…you’re losing the battle and you know it.
You’ve just demoted yourself by lowering this to a personal attack. I suggest that you go to GM, with your tools, and make something that people want and can use.
Play ball!
November 20, 2008 at 11:21 pm
Well, I’ve made many a thing that people needed. And I will continue. Demotions are not anything new to me.
If I were you, I would keep an eye on my linguistics site.
I do not play any games.
Plus, I want the industry to stay right here, in the USA. I’m a tad nationalistic, in that sense.
What do you want?
November 20, 2008 at 11:24 pm
Another editorial that may be read and simply ignored by “some people” with regard to the truth as to what these harbingers of debt hath wrought upon themselves. But hey, let’s keep them opening making stuff that few want.
But then again. Ignorance is bliss.
Editorial: General Motors Death Watch 217: Let The Run Begin (TTAC)
“Even if Detroit gets the $25 billion to stay afloat, it’s just money that enables management to keep making all the same mistakes as before, rewarded for their own incompetence. But it’s not the end. Based on their current cash burns, all of these companies will use nearly the exact amount of cash as their respective share of the loans by the end of the first quarter of 2009. By then, GM will have more than $53b in debt and no turnaround in sight. Chrysler will be back at the starting line, with no new products and no hope. Ford probably won’t even tap into the line but will need the funding later.”
Full article:
http://www.thetruthaboutcars.com/editorial-general-motors-death-watch-217-let-the-run-begin/
November 20, 2008 at 11:25 pm
Blues said:
“Well, I’ve made many a thing that people needed. And I will continue.”
Demotions are not anything new to me.
November 20, 2008 at 11:33 pm
So? The point please? I think we still have some cards to play. You want to argue with that too?
I am not one to concede early.
November 21, 2008 at 12:02 am
Blues said:
“Well, I’ve made many a thing that people needed. And I will continue.”
-Good. Now make it profitable and then if you run into hard times….then you can have a loan.
“Demotions are not anything new to me.”
-Must be your “charming” demeanor
“If I were you, I would keep an eye on my linguistics site”
-I’ll pass, thanks.
“I do not play any games”
-Well, perhaps you should. You’d be a lot happier.
“Plus, I want the industry to stay right here, in the USA. I’m a tad nationalistic, in that sense.”
-That’s fine and well. But the only thing “nationalistic” about the ‘Walking Dead Three’ is their location. There have been many vehicles supposedly “made in the USA”, but the parts were made internationally. Assembly was performed in the US. That’s all. Lots of cross-badging goes on. Check the parts lists of most apparently ‘made in the USA’ vehicles. Few, if any, are made in the USA. Again, the only thing US about most of the Big Three’s vehicles is the location of assembly.
Start to understand where all the parts are made and then one begins an understanding that there is very little American about the vehicles themslves any more. That’s decades old news.
“What do you want?”
-Is it not apparent? Cut ‘em loose. They’ve cost far too much over the years and haven’t been marketable or viable. The numbers do not lie and will most certanly back up what I am saying. Check them out for yourself. They are really very easy to find.
And don’t get mad at me. I didn’t screw these companies up. It was a collective from worker to union to management and back down again.
The people of North America are tired of paying for this mess. If they can’t make it on their own any longer, then allow another that is already in the market that has a better product and where that product is wanted to do so, but you can’t have taxpayer money to do keep making the same mistakes over and over again.
What Is an American Car? (Cato @ Liberty)
“The not-so-big three are certainly are no less global than, say, Honda. General Motors gets 44% of its revenue from other countries and Ford gets 53%, according to Forbes (April 21). A German company, Daimler-Benz, still owns a fifth of Chrysler, and a group of affluent private investors owns the rest.
An “American” brand tells you little about where all the parts in a car are made. I was once at a dinner with Lee Iaccoca where I teased him about my Dodge Stealth, made in Japan by Mitsubishi. Similarly, today’s Chevy Aveo is imported from Daewoo in South Korea. Yet Hyundai has a plant in Alabama.”
Full article:
http://www.cato-at-liberty.org/2008/11/18/what-is-an-american-car/
November 21, 2008 at 12:17 am
Blues said:
“I am not one to concede early.”
From what? Your obvious and obligatory need to be both ignorant and obtuse of the facts with regard to reality and ailing car companies that the public overwhemingly does not want to see these guys recieve a bailout – again. And again. And again.
Enough. If you choose to present a narrow-minded view, despite all that is presented to you, then that is not different than arguing that something is black when clearly, it is white.
Did you know that Chrysler is a private company and does not want to disclose it’s finances to the public? Still wish to bail them out for sovereignty’s sake? I can go on and on with facts. You wish to argue on things you seem to know very little of.
For a guy with a linguistics site, you sure do read very little.
November 21, 2008 at 12:17 am
-I’ll pass, thanks.
You’ve gotta be kidding!
Since when will you turn away something for nothing?
I know I’m gonna be seeing your log-ins. You would be totally crazy to miss this show!
November 21, 2008 at 12:22 am
Well, Blues, it been fun. Gotta run.
November 21, 2008 at 12:31 am
Just this one night? Do I come that cheap?
November 21, 2008 at 2:08 am
Letting the Japanese run our auto industries: hey, suicide may be fun for them but it ain’t my cup of tea!
About cars: I own GM products as well as Ford and even Chrysler! I don’t hate American cars. I have had bad foreign cars. The reason Asian cars are selling better than American isn’t due to better whatever…it is due to CURRENCY EXCHANGE RATES coupled with the concept of Japan never, ever buying US products, only US commodities.
Period.
So, killing our own native industries because of cynicism is stupid. I say, NATIONALIZE the banks AND the auto industry, etc. Then sell it all off again once it is working again AFTER RAISING TARIFFS AND BARRIERS.
Simple stuff. Very simple. This is pure nationalism and in a crisis facing bankruptcy, no nation should refuse these sorts of solutions. Or they can go belly up. Iceland is very small, smaller than Lefrak City in Queens, NY!
The US is one of the biggest nations on earth.
November 21, 2008 at 3:12 am
HAHAHHAHA
Love the cartoons!
Elaine said
I don’t blame Obama for wanting to fly his private jet to see his dying grandmother who he obviously loves very much. But the fact remains, this has corrupted the election process still further. We now have jumped over another hurdle. And this has no end. All Presidents want to collect money while mooching about the entire planet on private jets.
puhleeeaze!
He was in Hawaii fighting a court order on his birth certificate!
Anyhow it was during Reagans term that the US tool industry went to Japan. Bailing out the big three? Its already happened. Whats with the Democrats? I guess when push comes to shove THEY are truly the pahty of big biz! hehe (taxes crush small biz!). Elaine dont go “Republican” on me ok? hehhe
Any one know a good dog food stock?
November 21, 2008 at 3:28 am
ya’ i got the blues on this one im a sooper tech and machining electronics and tools requires quite a few supliers and credit lines. it aint as magic as kissing ass is but i think more people kiss ass for money if ya’ blow up gm those are megahighway relationships from iron mines to eeprom software developers if you think you can kiss ass a new car from materiel to supercharger like its nothing blah’ maybe they are done
http://www.cahrecords.com
vote your paycheck
November 21, 2008 at 3:34 am
http://www.seektress.com/bailvote.htm
Names of Congressmen who voted Yea on tarp and were re-elected.
NAH I looked at your link but dont understand it are you selling music cds?
November 21, 2008 at 3:42 am
nah metal everyday thats the rule
November 21, 2008 at 3:43 am
http://gooohc.sslcert35.com/Learn.aspx
found this, tell me what YOU think?
November 21, 2008 at 3:55 am
Someone had suggested that it would be cheaper for Congress to buy 60% of the Detroit 3’s stock and give it to the workers to create an employee ownership situation than to bail them out. I was wondering why the UAW hadn’t allotted a portion of dues to gradually do the same thing.
November 21, 2008 at 8:21 am
Boy Friend Drama is not even American and he wants us to give away our heavy manufacturing industry. The reason Detroit is bad is that Gettlefinger sits on the board of directors. The unions have been co-opted. The unions should have prevented the Bob Nardellis and Wagoners of the world from plundering the company. Production workers do not have much motivation when they see engineering departments being bled so that the CEO can make 20 million. Who would?
Blues knows what he is saying on this one. And Boy Friend Drama should go smoke a margarita or whatever he is doing out of country.
November 21, 2008 at 11:02 am
Blunt, blues, calvino:
Hey, guys, make love, not war! This stuff is emotive, but let’s not get too personal. This is how blogs descend into mindless skirmishing (see HousePriceCrash in the UK).
And, please, don’t shoot this messenger
However, a little seasoning for the pot:
“Japanese car giant Honda added to the economic gloom today, announcing it is to shut its UK factory in Swindon for two months in February and March next year in response to falling sales.”
http://tinyurl.com/5gugpf
November 21, 2008 at 11:09 am
nah:
Most of the time I have no idea what you’re saying, but I love your style. Nice.
Makes me want to dig out Hunter S. Thompson (”Fear and Loathing in Las Vegas).
All the best
November 21, 2008 at 12:03 pm
From The Economist:
http://tinyurl.com/6lk7yk
“The German makers, who build the biggest, fastest cars, and are therefore having to spend most to reduce their emissions, are in favour of … a subsidy. But the French and Italians, who specialise in producing economical cars, say they are quite capable of complying with the new [CO2 emissions] rules without any help from the taxpayer—and do not see why the Germans should benefit from their own profligacy. They would prefer Europe-wide “scrapping” incentives to encourage sales of new cars.”
Great. “Scrapping incentives”. So those of us who carefully maintain our vehicles (1992 1.9L Peugeot diesel, 130,000 miles; good for 200,000; current annual mileage, about 5000, max.) are going to be hounded into scrapping them and replacing them with a newly-created machine. I can’t be bothered to argue the eco case for keeping low annual mileage, low tech machines going.
The basic problem, as with most ‘things’ in our automated, computerised, techno-world is the ease with which we can over-produce. This is the fundamental problem with the motor industry. That, and the long term prognosis for oil.
Oh, and the processes which make things cheap to make and the level of technology built into almost everything – including my new bread-maker – makes almost everything economically unrepairable. So we throw away a 99% good product because 1% failed. Then they stuff a carbon tax on us because everything has to be replaced with new stuff. (Don’t even get me started on global warming.)
Those whom the gods will destroy they first make mad.
November 21, 2008 at 12:06 pm
What I also meant to point out, from the Economist article, is just how conflicted this whole auto issue is, with countries as well as manufacturers all piling in.
November 21, 2008 at 12:18 pm
Japan has this ‘automatic scrap’ rule for years and years. Car ownership is also collapsing due to the lower 2/3rds of the population has been shoved deeper and deeper into poverty and denied even the smallest loans from that sub-1% lending nation.
The young and the elderly can no longer own cars. They can’t buy older cars like people do here in the US. So they are descending back down that ladder of the 20th century. People can go backwards.
The US can support its own auto industries. Allowing imports to flood our markets is insane.
November 21, 2008 at 12:46 pm
“So they are descending back down that ladder of the 20th century. People can go backwards.”
Backwards is the new forwards.
November 21, 2008 at 1:50 pm
The pirates are now pulling gold from out of the teeth of the captive U.S. economy hostage:
BRIEF-JP Morgan: Fed will cut funds rate to zeroJP Morgan now looks for the Federal Open Market Committee to slash the rate to zero by January. Economist Michael Feroli said in a research note:
* “We now look for a 50 bps cut in the target fed funds rate at the Dec 16 meeting, followed by an additional 50 bps cut at the January 28 meeting.”
* “The Fed then continues to conduct a zero interest-rate policy (ZIRP) for the remainder of 2009.”
* “Deflation becomes more likely in an environment where labor market slack is building, and ongoing financial tightening is delaying the prospect that slack begins to get worked down.”
* “Taking the target rate to 0 percent would not be costless for the Fed. One concern that has been voiced in the past relates to the effect on money market mutual funds. We do not think this cost is enough to constrain the Fed.”
* “We don’t believe going to ZIRP implies that the Fed cannot do more.”
November 21, 2008 at 1:52 pm
Is TARP Really a TRAP?
November 21, 2008 at 2:34 pm
The ancient greeks and the romans too were against luxury. They felt that it created disharmony between peers and hubris.
Cerberus
Where is our Hercules?
November 21, 2008 at 2:44 pm
More a ZIRP (Quantitative easing has begun):
November 21, 2008 at 2:48 pm
The japanese aren’t practising free trade with US or any one else. Why would the US not protect itself?
GM creates items of value and therefore adds to the real economy not the pretend money economy. It must be saved..
GMs performance must be seen in the context of the flooding of the US with japanese cars. These cars are massively protected by money manipulation so of course gm can never get strong enough to compete.
An asset may not be worth much but by changing the way it is used or the environment it works it can be come very valuable. ie house restorations being an example.
If I was the Us gov I wouldn’t provide protection for japanese cargo ships.
November 21, 2008 at 2:58 pm
The New Libertyrover!!
We are faced with an extreme emergency. We need a new plan very fast! The bankster gnomes are poised to sell off the auto production facilities of Michigan to China so they can retire to Lichtenstein!
Disaster Capitalism Now In Play!
We seize the US auto industries from the mad gnomes via eminent domain. We won’t have to pay for years because the settlements will be tied up for three decades in the newly packed supreme court.
We put Ralph Nader and Michael Moore in charge of a massive workout.
Then we decide what to do when things are functioning again.
My preference would be to transfer these assets to local communities where the facilities and workers are located, for the consideration of a lien on certain future taxes.
Asset stripping
(, Co-posted on Wild Wild Left. Compiled from previous comments)
The only relevant question regarding the question of “bailout” for Big Auto is the factor of asset stripping. If a USA Big Auto bankruptcy would result in an asset stripping of the auto productive system, then it must be stopped at any cost.
What we could seriously use in that event is seizure by eminent domain of the USA auto system. GM has made a vast array of bad choices. Time for government to step in and seize this asset before it all gets sent down the Mississippi River to China.
I know, this sounds like communism. To hell with the ideology here. This is about national survival. Either you survive… or not.
There are obvious solutions to the problem of ownership of the auto production assets (physical plants, with associated human skills assets). The government should sell or give these assets to the local communities in which they are located. Any local community would certainly have an interest in causing its own industries to be profitable. The communities should not be allowed to sell their industries either. If you dont like your industry, you could always move to some other community.
There is no reason at all why the auto companies must continue to produce products that are undesirable. The decision to do that was made by “capitalists” who could care less about the viability of their businesses. All they care about is lining their pockets, grasping for power, perks, stock options (which should be outlawed). If they have to make money by selling SUVs that make monster profits for the oil consortium that they also own, they will do that. If they can get golden parachutes by simply selling of their productive systems to China, they will do that. Real creation of needed products is of no concern to them. Communism is not the alternative: Communist rulers, with their power and privileges and giant dachas are identical to capitalist rulers. These “systems” are indistinguishable, they are both communitalism. Community industry, or coindustrialism is the system in which local communities permanently own (or sell or swap to other local communities) the various productive systems.
Coindustrial communities could always adopt new productive facilities. There would be smaller private businesses, like plumbing companies, pizza shops, etc. within them. And if people became dissatisfied working for a coindustrial firm, they could always move on somewhere else. Totally unlike the radically inefficient and abuse-prone facilities of communitalism, these large productive facilities would depend upon the communities that owned them, and those communities would depend upon them. There would be no oil cartel input, no ability to sell the productive machinery to China, or anyone (except other US communities). There would at last be genuine accountability.
When the big auto companies go under, we are going to have our Iceland Experience! The government should just seize the auto companies by eminent domain, and wait for Bush to go back to Connecticut. Then stipulate that only only the communities (or towns and cities) that physically harbor the productive assets and productive workers can own and control the companies. This would have the additional benefit of providing local incentives to maintain high ecological and aesthetic standards. Would that be so hard?
The “fall” of USSR will look like peaches and cream on a Sunday afternoon compared with the coming US retro-technological deconomy! We must keep a few machine tool operations in the USA!
The only other blog I post on regularly is My Left Wing. Its proprietor, Diane G, lives in Michigan, and has worked in the auto industry. Here is what she thinks:
So. You want to be an Automaker?
November 21, 2008 at 2:59 pm
RobG,
We can dedicate this one to Benny and Paulie:
November 21, 2008 at 3:01 pm
(Try that link again.)
So. You want to be an Automaker?
November 21, 2008 at 3:08 pm
This post looked much much better at My Left Wing. Either WordPress needs a different dialect of HTML, or certain code types are not enabled here. See:
Announcing! The New LIBERTYROVER !!! NO! To Automobile Industry Asset Stripping !
November 21, 2008 at 3:10 pm
What Is An “American” Car
Not much.
http://www.cato-at-liberty.org/2008/11/18/what-is-an-american-car/
November 21, 2008 at 3:20 pm
…and hasn’t been “American” for many years. What’s that Tom Petty song? Oh yeah, “Running Down A Dream”.
Some must keep telling themselves that what they have is “American” when it was sold off years ago. China already is “the bank”. If those that are that passionate about it, the action should have been taken long ago, by them, to stop it. Too late now. Go on and on about your non-American, American cars. Those days are done.
Oh, and what “heavy manufacturing” is there in the US anymore? Lots of stories on this site that prove just that concern:
http://www.steel.org//AM/Template.cfm?Section=Home
November 21, 2008 at 3:22 pm
The “American” car is about as “American” as the merchandise in Walmart.
November 21, 2008 at 3:27 pm
U.S. Mass Layoffs Drop in October After Prior Month’s Seven-Year High (CEP)
“The survey reported 635 mass layoffs in the manufacturing sector, resulting in 87,403 initial claims. In the previous month, there were 503 mass layoffs in the manufacturing sector, resulting in 81,414 claims.”
Full article:
http://www.economicnews.ca/cepnews/wire/article/169824
November 21, 2008 at 3:31 pm
We Don’t Make Anything Anymore (Cafe Hayek – FEB, 2006)
“Manufacturing employment as a proportion of total employment has been falling steadily since 1950. Even the level of manufacturing employment, the absolute number of workers in manufacturing has fallen dramatically from its peak in 1980
Over the last five years, manufacturing employment has fallen even more dramatically, from about 17 million to under 15 million workers. But manufacturing output is rising.”
Full article:
http://cafehayek.typepad.com/hayek/2006/02/we_dont_make_an.html
November 21, 2008 at 3:46 pm
Unemployed?: You’re not alone, state unemployment rate increases for October (WTOL – Ohio)
“Employment in goods-producing industries decreased 6,100 to 981,200. Losses in durable goods (-3,200) and nondurable goods (-800) reduced manufacturing employment 4,000. Construction lost 2,000 jobs, while natural resources and mining slipped 100.”
Full article:
http://www.wtol.com/Global/story.asp?S=9391738
November 21, 2008 at 3:57 pm
The numbers from most analyst are forecasting
an ugly 2009. Corporation guidence for the next
4 quarters dont exist. The comex is going to implode
come Dec. 2008, with many contracts being cashed
out. The latest numbers from the big 3 and Japanese
auto makers looks dismal at best. We know that
a Business Plan is suggested by the Hill concerning
prliminary numbers from the big 3. I am wondering
how the big 3 are supposed to meet those projected
targets with tight credit markets and job layoffs continuing on a daily basis. Now its J.P. Morgans turn
with 3,000. Who’s next?
November 21, 2008 at 4:05 pm
Calvino lashes out. Then again, Calvino lashes out quite often on this blog.
“Boy Friend Drama is not even American and he wants us to give away our heavy manufacturing industry.”
Oh, we have to be American to contribute opinions? I’m sorry. I didn’t see that rule. Oh, and you poked fun at a pseudonym. What are ya, 12? Come now.
Your “Heavy Manufacturing” has been in decline for many, many years. It’s not a question of me wanting to give it away. You, as an “American” already allowed that to happen. You wanted cheaper products and more of them. Well, you got them. Along with the true priced paid to the economy which is now service based. Look around you, Calv. Your home is filled with everything that ISN’T made in the US. Hypocrisy stings.
“The reason Detroit is bad is that Gettlefinger sits on the board of directors. The unions have been co-opted. The unions should have prevented the Bob Nardellis and Wagoners of the world from plundering the company. Production workers do not have much motivation when they see engineering departments being bled so that the CEO can make 20 million. Who would?”
Hey. Agreed. But the fingerpointing at this juncture is moot. The shakeouts of these comanies should have taken place possibly 20 years ago.
“Blues knows what he is saying on this one.”
Hardly. He’s hanging on to ‘what was’. That was then, this is now. No point sqwuaking about the fact that the US Empire is dying long after it got cancer.
“And Boy Friend Drama should go smoke a margarita or whatever he is doing out of country.”
And that matters to you….because? If you must know, it’s called “business” and it’s none of yours. Just how does one smoke a beverage? Besides, I hate Tequila.
November 21, 2008 at 4:06 pm
1980: the year we saw a our first multi-billion dollar trade deficit in manufactured goods. That year, we needed tariffs and barriers to stop this.
Instead, the exact opposite happened! We saw a treasonous Reagan, in the pay of the Japanese, open our borders and all presidents since, work ONLY for foreign nations. So our trade deficit got worse and worse as we lost manufacturing jobs and our debts mounted.
November 21, 2008 at 4:11 pm
Gettelfinger warns of possible failure (Detroit Free Press)
“Congress and the White House must “provide an emergency bridge loan to the domestic companies to, at the very least, enable these companies to continue operations until the Obama administration can put in place a long-term plan to move the industry forward,” Gettelfinger said at a Detroit news conference.”
I’m thinking Gettelfinger is more worried about losing the union dues, more than anything.
Full article:
http://www.freep.com/article/20081121/BUSINESS01/811210410/1210/BUSINESS
November 21, 2008 at 4:26 pm
Elaine: thanks for posting the ‘Cerbrus Hell Hole’ cartoon. It’s got to be my favorite cartoon of yours. Doesn’t that hellhound look cute in his apron? Enjoy the cookies kids. HaHa
November 21, 2008 at 4:33 pm
Just to sum up this “discussion”…..
IMO, there will be very little auto manufacturing by any auto maker in the very forseeable future. It matters not if it’s Honda, GM or Toyota.
The economies of the world, due to open borders of trade and Globalist desires, will see those economies coming to a screeching halt very soon in the form of a severe global recession if not a full-blown depression.
We can fight and bicker all we want about handing out money to companies that are abysmal in their business practices, but when reality sets in, we see that their products were never really desirable and basic marketing principles ruled the day.
Give them the money or don’t give them the money. It’s a topic, and the action, or lack thereof, that will shoot them and us in the foot anyway. Either way, the hole will be dug deeper seeing a severe recession or economic depression reach us all that much sooner.
With or without the hand-out of billions to the auto sector, I say auto manufacturing will wither on this continent or any other due to economic conditions and the same, simple and plain old fact of the matter that is considerably overlooked which will sound the death knell for any and all auto companies which is Peak Oil (and you can add to that Obama’s upcoming Carbon Tax. Research that one. It’ll make you nuts).
Throw all the billions thay want at the auto manufacturers and keep filling empty lots to the bursting point with shiny vehicles that no one wants or can afford due to the million of unemployed and tightening of credit. Without oil, how the hell are you going to power them anyway?
I give it 4 years. Max.
Let’s agree to disagree then. You have yours and I mine. I hope I’m proven wrong. But I fear I will not be.
November 21, 2008 at 4:52 pm
Future cars will be made out of wood, and powered by recyclable sodium and water.
November 21, 2008 at 4:52 pm
RobG:
Your quote, “Taking the target rate to 0 percent would not be costless for the Fed.”
I don’t understand the details, but various commentators are saying that it is, de facto, nearly that now. (Something about the Fed paying interest, I think)
Looks like the Barbaric Relic is taking note (over $790/ounce as I type, in spite of a strengthening dollar). A weekly close above $780 would be nice. Have da Boyz lost control? I was expecting another drop before taking off. If it doesn’t, things are worse than are thought.