The Endless Pit

Remember when George Bush went against Congress and gave the auto companies money despite the fact that support was lacking. Does it come as any surprise that we are now facing the situation where they need more? This is rapidly becoming an endless pit for us to throw money down.

Initially the companies received $17 billion. Now, they are asking for another $20 billion although it is believed this number will be a lot higher. Here is an article which details the events going on there.

This is ridiculous. The idea of bailing out these companies is a matter of false pride and cowering to the unions. This is not in the best interest of America. Failing is what is needed. To sustain a losing idea is just pissing money away.

Here is the bottom line: nobody wants the cars that these companies are making. They seem to be pushing their agenda based upon electric cars. Guess what. Sales of hybrids are at a non existent level. Yet the government wants to keep pushing this agenda. Once again the government proves how stupid they really are.

There ought to be an immediate stop to any assistance for the automobile manufacturers. If they cannot make it on their own, let them declare bankruptcy and work it out there. That is why the bankruptcy court was created. Reorganization is what is needed.

The argument that we need these companies is a farce. America would survive if we did not have General Motors. Truthfully, there would still be cars made in the United States. Instead of them being built in Detroit, we would see them in plants located in the South. Nevertheless, this is not part of the liberal, pro-union agenda.

Once again, we see the leadership not doing what is best for America. They have their own agenda.

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History Repeating Itself

We have reverted back to the 1700s. They say those who fail to learn from history are doomed to repeat it. I believe we are witnessing the beginnings of a struggle which was fought over 200 years ago. Unfortunately, the political leaders in Washington are no different then the King of England during that period. It seems many are feeling what the colonists felt.

There was a group of brave protesters in St. Louis who staged a revision of the Boston Tea Party. (Read article)

Taxation is not the immediate cause of unrest. It is spending. However, if anyone thinks that Obama is going to pay for all this mess without taxing the middle class, they are insane. Already we are getting estimates that his tax on energy is going to raise the average electric bill by 6% while a gallon of gas will go up 12-15 cents. This is on top of the increases at the state and local levels. People are going to pissed when the new taxes hit.

People are also outraged at the fact that their voices are not heard. The politicians do what they want without consequences. Take the bailout of the auto manufacturers as an example. The polls showed the majority of Americans were against it. Yet, even after Congress voted against it, Bush went ahead anyway. Ditto for the stimulus. Contrary to what the politicians say, polls showed the majority of Americans were also against that bill. Again, it went ahead. Now, we have a $3.5 trillion budget which will saddle future generations with debt. What are the chances this passes?

Once again we are at the point where the people are being screwed. It is sad there is not the national outrage against those in power. The people in the government are destroying this country and everyone is standing by allowing them. This will certainly come back to bite them in the ass.

I applaud the people in St. Louis today. Good for them. Hopefully we will see more of it in the future.

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An Addiction

Have you ever seen an alcoholic at an open bar? He (or she) is like a kid in a candy store. It is like a license to steal. Drink all you can for free. It is an alcoholics nirvana.

I bring up this analogy because it provides a visual for our current political leadership (the last set of leaders falls into this category also). This morning, I read that our fearless government executives in Washington are proposing another $410 billion in spending. This is coming on the heels of the $800 billion stimulus and the trillions which the banks are getting. We have certainly entered the twilight zone.

This is a royal screwing of the American people. Forget about what the money is used for, at this point none of it matters anymore. When we are dealing with numbers so big, it is impossible to monitor it all anyway. The TARP money is an example of that.

What I find interesting is how immune we suddenly became to the numbers being thrown around. There was a time when a billion dollars meant something. Do you truly understand how much a billion dollars really is? Yet, today we talk in terms of hundreds of billions of dollars. This is a sum we will never be able to pay back.

There is a simple truth which most people fail to understand: money is a drug to politicians. They cannot get enough of it. Their entire power is based upon the money they control. When they control more money, they control the people through the use of handouts. Look at the expansion in the welfare system. The joke of a stimulus package put in stipulations that states received more money for putting more people on the dole. This gives the states incentive to make more people dependent. Hence, more power for those with the money (Washington). It is ridiculous.

Where will this all end up? I am not certain. I hope there is a peaceful resolution to all this. However, my instincts tell me this is not likely. The economic fundamentals simply do not compute. We cannot spend like this and hope that everything will be okay. We are already going to be confronted with massive inflation when recovery does hit. To counter this, the Fed will raise interest rates, which will stunt growth due to lack of lending. Thus, our recovery will be slowed (or stunted) because of the choices the politicians made now.

I believe we are going to see a major revolution in this country. There will come a day when the people who are being handed the tab for all this crap are going to say "enough". The amount of working taxpayers is decreasing. Each time the government removes an independent from the tax rolls while putting them in the dependent category, we see a shift in the amount of people contributing. This means that fewer will have to give a larger portion. At some point, people say "no more". It is time those morons in Washington paid attention. But, alas, they wont.

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$17 Billion Paid Off

Are we totally insane? It seems the bill is coming to the surface. General Motors is claiming that it can need as much as $30 billion in 2011. We are now to the point where this is all asinine.

It is bad enough that Obama signed into law that farce of a bill designed to stimulate the economy. The only thing that is going to be stimulated are some of the pocketbooks of those who supported those who are presently on power. Now, he is going to have to decide whether to give these morons in Detroit additional money. My hope is that he tells them to go fly a kite. However, my hunch is that he will help them out.

Those of you who are regular readers of this blog know that I detested the "end around" that Bush pulled on Congress back in December. The predictions that came from most economists was that the bailout was not going to solve anything. And, it did not. Instead, 60 days (or so) later, they are back at the door with their hand out looking for more money. It is atrocious.

What needs to happen is for GM, and perhaps Chrysler, to enter into Chapter 11 and get reorganized. Many in management need to be removed in favor of others who can steer the company right. The crushing contracts with the unions and the dealers need to be renegotiated in bankruptcy court so that these companies can compete in the open market with the foreign imports.

Simply put, if Donald Trump can enter bankruptcy for a third time, General Motors can try it at least once. Enough of wasting taxpayer money on bull crap. We expect better from our leaders President Obama,

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Bailout or Bankruptcy

Do you remember what I called "the end around" that George Bush pulled on Congress in December when he bailed out the automobile manuafacturers to the tune of $17 billion?"  Well, it seems the money didnt not fix anything at all.  Now, General Motors is giving the Obama administration an ultimatum: give us money or we will file bankruptcy.

To me, this seems like an easy one for Obama.  After the rough couple of weeks he had, he needs a soft one.  His decision ought to be left the company file bankruptcy and work it out there.  The government need not mess with this situation.  Jobs in that industry were already lost due to the slowdown over the past few years.  Some more might be lost but in the long run, more will be created.

The automobile manufacturers have nobody to blame but themselves for the mess they face.  A systemic failure is not possible like with the banking industry.  Someone will built cars for us.  It might be Ford, Chrysler, or Toyota.  There are plants in this country, just some are located outside of Detroit.  Unions are partially responsible for their plight.  Yet, management missed the total shift in consumer demand.  Let them float downstream together.

Is this what Obama is going to do?  Of course not.  He is on his knees beholden to the unions.  He already signed 4 executive orders which were extremely union friendly.  Now, he is going to give them billions more to prevent the unions from losing their power.  Dont worry.  When you blast through almost $800 billion without a single person in Congress reading the bill, what is another few billion.  

If Obama goes this route, it will be just another sign of what a terrible administration this is going to be.  He is showing that he is a pansy when it comes to leadership and intent on creating a nanny state where all Americans are weak.  Dependence upon the corrupt government, that is Obama's goal.  

He must be stopped.

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GM Bailout Success-NOT!!!

A GM exec said that the failing automaker might need more than the billion of dollars Bush already gave to them. (Read article here) What a shocker that is? Is anyone surprised? Here is another government bailout program that set the taxpayers back billions of dollars only to find out it did not work. This is our government at work.

Everyone who reads this knows how I feel about the "end around" Bush pulled on the American people. Congress, to their credit, rejected this insane idea, one that is soundly rejected by the American people. Of course, to a lame duck President who faces no re-election, what does he care what America thinks?

The reason why the government fails repeatedly is because they have one answer to any problem: throw money at it. Unfortunately, as history proves, money is not the answer. Regardless of the amount, money will not fixed a broken system. Until the fundamental issues are resolved, money only multiplies the size of the problem.

Take the educational arena. The federal government has spent close to $2 trillion in Title 1 money to educate our children. Yet every study when compared to the rest of the developed world shows how we lag behind. In short, we have a bunch of morons coming out of the school system. We spend the most money yet get the least return. That is our government for you.

The TARP money is another example of government incompetance at work. Congress agreed to $700 billion that was to be used to bailout the financial institutions. Yet, they have no idea where the money was spent. First, as we see, there was no easing in the credit markets since banks still arent lending. Then, Bush takes some of that money and gives it to the automakers. What a farce.

The bottom line is that GM and Chrysler (nobody is sure of Ford) are broken companies. They are buried by poor union contracts which have huge legacy costs. Of course, notice how Gettelfinger, the Union head, says there are unfair concessions in the agreement that need to be removed. While I dont blame the union for getting all they could, after all, management agreed to all of it, I do believe it is a major reason for their inability to be competetive. Also, management totally missed the shift in the industry away from gas guzzlers to more fuel efficient vehicles. Money will not alter that reality.

GM is a failed company at the moment. According to the tenets of American capitalism, companies like that either change their business model or go under. It is that simple. The fact that the government stepped in proves only one thing: they only prolonged the inevitable. A failed company is not fixed by giving them a lot of money. This entity, once a pillar of Americana, is now ready for the scrapheap. Unfortunately, the political leaders feel the taxpayers cannot survive without it.

Thanks President Bush for costing us another $15 billion. Our kids appreciate that.

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Bailouts: It Keeps Getting Better

The Treasury with Paulson at the helm is at it again. It was bad enough that the Socialist-in-Charge Bush gave billions to the automobile industry out of the $700 billion initially slated for the financial industry. Now, according to a report on Bloomberg, the Treasury can "provide funds to any company they deem important to making or financing cars".

Whoa. Hold on here gunslinger. Did I read that properly? Of course I did. This is "Bailout U.S.A." headed by those who want to be Santa Claus. We are now at the point where I think Starbucks is going to be able to make a point of being bailed out. After all, cars cannot be made, shipped, or sold unless there is plenty off coffee available. Without coffee, the entire industry will collapse, taking the economy along with it.

For weeks pundits were asking "where does this all end?". I am at the same point. Is it too early for us to proclaim the capitalistic system dead? Nowhere in my study of capitalism did I ever encounter the principle where the government decides who survives and who fails. Perhaps I was absent that day in school.

If you are getting tired of my sarcasm here, good!!! This gives you an inkling of the anger and frustration that I feel each time I read this garbage that the government is doing. Do they morons realize this is our money they are playing with? The US taxpayer is on the hook for every dime that is spent. While the executives of companies are having their parties or the Union is supporting their golf course, we are stuck paying a huge bill to fund this insanity. Again, where will it all stop.

The initial $700 billion was sold to Congress as a way to save the nation's financial system. Now, the money is going elsewhere. A few weeks back I wrote that Paulson should be tried and hung on the White House lawn. Since that time, the list expanded. Bush needs to go up there with him since he deems the US Treasury his own piggy bank. All the members of Congress who voted for this bailout are at fault since they put no stipulations in there to protect the taxpayer. This includes John McCain and the Socialist-Elect Barack Obama. String them up also. Every single one of these people are failing at their task to be good stewards of the American people's money. It is time we start to get serious with the corruption.

Benedict Arnold is known through history for being a traitor to the United States. Sadly, what he did pales in comparison to the damage the above mentioned "leaders" are presently doing. It is to the point where "treason" is not too strong a word.

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Bush The Savior

George Bush went ahead and gave the money to the automobile makers. He was determined to save the industry believing that the economy could not stand the collapse of this industry. It is the government's job to ensure the solvency of these companies.

My opinion is that Bush is a misguided fool on this matter. He is just delaying the inevitable. The United States auto makers are going to fail unless a radical shift in business practices is undertaken. Now, there is not much incentive for the management to change anything. At the same time, the unions will resist making any concessions of pay. In the end, we will be in the same situation again.

Bush was lamenting this week on his legacy. This is a dangerous thing to be doing when there is a major crisis on the table. Naturally, Bush does not want to be known as the President that let the automakers fold. This certainly went into his decision. Bush secured his legacy at the expense of America.

One of the contingencies of the deal is that a workable model needs to be in place by the end of March. If not, all the money given needs returning. That makes total sense. These companies come to the government because they do not have the funds to get through the next 30 days but they will be able to return billions at the end of the first quarter. Does Bush think they are going to put it in the bank and earn 1% interest. Of course not; they will blow through that money like water. They will be broke in the next 90 days.

So what is Bush's legacy? That he achieved a state of socialism within a 120 days period, thus wiping out 230 years of democracy. The fact that he went against the wishes of the elected officials in Congress shows that Bush is a rogue dictator. Everyone who resisted this argument by the left should now be convinced that Bush cared little for the legalities of our society. He made a decision that might help his legacy but will screw the American people. Thanks George, you putz.

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King George?

Congress decided to pass on the bailout of the Big Three and the UAW the other day. This is a testament to how our system works. We elect our representatives into Congress to represent our interest. According to many polls, it appears that the majority of the American people favor letting the automobile manufacturers go into bankruptcy. Simply, they are against the bailout and the decision of Congress reflects this idea.

Enter George Bush. He decides that Congress is wrong and these companies need the taxpayer money. Together with Paulson (our #1 prospect to hang), they determined that some of the money approved for the financial institutions should go to Detroit. Where does the President get off thinking this is acceptable? Is this anywhere remotely close to what is Constitutional? Of course not.

Consider what is going on here. This is remarkably similar to the events of the mid 1700s. Have you every heard the phrase "taxation without representation"? I believe we are witnessing the same thing. The morons in Washington feel they can spend taxpayer money at their whim; all without consequence. Now, Bush has moved the Presidency closer to a monarchy. He decides what is best for the country.

Maybe Dennis Kucinich was right when he proposed impeaching Bush. Or should we call him King George?

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The Automaker Bailout II

These nimrods are going to try for the money in the first part of December. Sadly, much of this situation could be avoided if only the union would be flexible. Of course, those greedy bastards will never agree to anything that reduces their power (just like the corrupt people in Congress). Before the government authorizes one cent to the Big Three, they ought to require they set up all plants like this.

Watch this video to get the skinny on what is possible.

Unfortunately, you will never see this happen in the United States. The three headed terror of Pelosi, Reid, and Obama are drooling over the idea of strengthening the unions. I can only presume they are intent on bankrupting the entire industry. Unions show all that is wrong with this country. Talk about a group that advocates no personal responsibility.

Consider the areas that the unions have the most influence: automobile manufacturing, airlines, and government. And what areas are the most screwed up: automobile manufacturing, airlines, and government. This shows they are at the core of much of the failure in this country.

Well, the only thing I can say about the UAW is that they will not have to renegotiate their contracts with these idiots in charge. However, when the manufacturers are out of business, they will be getting a paycheck of a big fat ZERO. I, for one, will applaud that day.

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The Automaker Bailout

The discussion is really heating up about this topic. Congress is going to take it up on Monday. Should we or shouldn't we give them the money? It seems there are many people who are undecided about this matter. Here are a number of reasons why bailing the automakers out does not make sense.

1. Management is inept:

They were the ones who totally misread the desires of the buying public. It is true the historic economic crash was not foreseen by anyone. However, the Big Three were getting their clocks cleaned by the Japanese for years. This economy is just the final nail.

They hung their future on big cars. It is identical from the events of the 1970s. The Japanese, meanwhile, moved towards more fuel efficient cars. Toyota is on it's 2nd or 3rd generation Hybrid. The American automakers simply stuck to an old model which no longer works.

Billions of dollars in bailout money will not make management any smarter.

2. The Unions are destructive:

There was a time when unions were necessary. Now, they are a destructive force. The Big Three has been bent over a barrel for years by the UAW. This resulted in outrageous contracts which inevitably will bankrupt a country.

GM is paying billions into retirees pension funds and for medical coverage. It is estimated that $1,200 in each car is simply the money GM pays for medical. This puts them at a big disadvantage. The Japanese built plants in southern states where labor is much cheaper. They enjoy a competitive advantage which the Big Three cannot overcome.

Billions of dollars to the automakers will not make the Union any less greedy. Bet the ranch thei will want their fair share.

3. The 3 million jobs tied to the auto industry will be lost anyway:

It is estimated that 3 million people are employed by industries directly tied to the automobile industry. The idea of bailing these companies out is to save these jobs. Sadly, they will be lost anyway. Billions of dollars given this year will be followed by billions more in the future. They will not turn profitable simply with loans for billions.

People dislike hearing this, but these jobs will be lost. A bailout only delays the inevitable. Instead of realizing this in 2009, the unemployment jump will occur in 2010 or 2011. Communities will be wrecked because of this regardless of what the government does.

4. The Feds know nothing about business:

The proposals suggested include some type of government "ownership" in exchange for the money. Since when did the Feds become adept at picking winners. How do members of Congress believe that they will fare better in the automobile business when the Post Office lost $40 billion. Perhaps they ought to look at their own business model to see where it is broken.

I do not want the government deciding which companies survive and which ones are allowed to go under. This is heresy. Government is there to oversee, not to manage. Get them out of the private sector altogether. Perhaps when the Feds show some ability to budget, manage, and oversee their own affairs effectively, then we can trust them with running a business.

5. It puts a stop to the madness:

Everyone and their brother is knocking at the Treasury's door. Handout nation is in full swing. Initially, the $700 billion bailout was going to be limited to financial institutions. Now, the automakers seem to qualify. Many are suggesting we take some of the money from that package and give it to the automakers. The Big Three do not qualify. Once again the government mislead us.

This insanity has to stop. We need to put a cork in the government money drain. Passing on this bailout will tell the business community that you are responsible for you owned destiny. You succeed or fail based upon your abilities. That is called capitalism.

One final note, I find it interesting that the Democrats suddenly took an interest in the big corporations. Listening to their rhetoric during the campaign, you would believe they think that big business is the anti-Christ. Obama assaulted McCain over tax cuts for the greedy oil companies. Now, the big corporations are not so evil when there are millions of jobs at stake. Perhaps business does some good after all.

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The Handout Nation

What is the difference between a "handout" and a "bailout"? In effect they are the same. The only difference is the economic class which the terms are applied. Who gets bailouts? Corporations and perhaps homeowners. Those who own something get a bailout. Handouts go to those who are desolate. The ones who have absolutely nothing get a handout from the government.

I mentioned in past articles that the government is broke. We have no more money other than what we borrow from other countries. The $700 billion bailout package of the financial institutions was done with loaned money. We are going in debt to save those who are going under. This begs to question "who will save us"?

My question is "where will it all stop". Already, the automobile manufacturers are hitting up the Treasury for $50-$75 billion. Who is next? Bet the ranch the airlines are already circling the wagons. American Express is now a bank, thus entitling it to Fed funds. With Starbucks taking a 90% hit on it's profit, surely they will be entitled to assistance. After all, we cannot do without $5 cups of coffee.

This is getting absurd. We were told at the time of the first bailout that the financial institutions were necessary, kind of like a utility. Our country cannot operate without credit. Okay, I buy that one. But can we do without the cars from the American manufacturers. Since they are building stuff that nobody wants, I would think so.

It is time to tell Washington enough. The loss of the automobile manufacturers will cost us roughly 3 million jobs. Well guess what? We are going to lose them anyway. These companies are operating under an old, worn out system. The union is going to strong arm for their share. They are partially responsible for the mess the companies are in.

The United States is a nation of handouts. Nowhere is anyone mentioning personal responsibility in all these messes. Management at the car companies misread the market while the unions forced contracts that were destructive to the overall health of the industry. Both sides were at fault and the taxpayer need not bail them out.

We preach that the revolution is coming. Socialism is already among us. Do you want to live like they do in France? Who here wants the government dictating everything that one is involved in? Certainly no self respecting American. The age of returning to the vision of our forefathers is here. Begin to arm yourself with the knowledge necessary to combat the enemy. And, remember, the enemy is most likely your next door neighbor. That person is most likely buying the bull crap the media is promoting. This is a process that takes you down with it.

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America Is A Socialistic Nation

I read a blog this morning where the writer mentioned that America turned into a socialistic nation. This is a point that I will not debate because I feel it true. What struck me is this individual felt that it was a good thing and that we should just "deal with it". This is the point that I differ from this individual. Sitting back while happily accepting the shift to a failed system is not what I do.

Anyone who learned a bit of history knows that we became the richest country in the world in a few short centuries. We eclipsed all of Europe and Asia, nations that were around for thousands of years. The reason is because of the values of hard work, independence, and free market systems. Socialism contains none of these aspects. Under that system, the government provides all for the people. It might work in a country with 15 million people. However, when there are 300 million people to take care of, this is a recipe for disaster.

In my view, socialism deters personal responsibility. Since the government is the provider of all, it is the one responsible. Personal decisions are greatly reduced. We are seeing this here. The existing welfare state models this. For the check received each month, people are told where to live, what is appropriate food, and how much one can earn. The personal profit motive is removed.

Why do I detest this system so much? The reason I do is because I value freedom above all else. My belief is the government is inept at running things. Regardless of the people who are in office, the system is rigged for inefficiency and failure.

The recent bailout of the banks epitomizes how the government operates. We saw it fail to oversee the events occurring on Wall Street. This led to a crisis which costs the taxpayers billions of dollars. The fact that it happened with a Republican President shows how socialistic everything is. They are the party who promotes free enterprise, at least in theory. Sadly, the ones stuck paying for this mess are those hard working individuals who make the economy go. Do you think the welfare recipients are going to kick something in? Certainly not.

There is no accountability in government. An individual serves a particular term(s) only to ride off into the sunset. The wreckage left behind is not a concern to them. Often, they believe they did a terrific job. Do you think Jimmy Carter believes his Presidency was a disaster? Did Ronald Reagan think that his supply side policies would come back to haunt us 20 years later? I doubt it highly.

As for me, I am refusing to accept the recent swing towards socialism. This country was founded by people who took a stand against tyranny. We are witnessing the same thing today. However, this version is made up of King George, Queen Nancy, and Prince Harry. These are three of the most powerful people in Washington and the blame lays at their feet.

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