Posts Tagged ‘bailouts’

So who may b asking the really tough questions of President Obama about the costs of the Healthcare Bill?

The Red Chinese. No ,Really! Look Here:

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions.

Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.

And again I have that curious feeling I woke up in a parallel world; where the Communist Chinese are more worried about American fiscal solvency than the President of the United States is.

Can I get a hearty “Oh, Crap!” on that?


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And understandably, the Swedish are highly peed off at the U.S. right now.

What was all that campaign rhetoric about ‘building new international coalitions based on trust and respect” again?

The Swedish government said on Wednesday it would not intervene to take over Saab. Enterprise Minister Maud Olofsson slammed Saab’s US owner General Motors for “abandoning” the struggling Swedish car maker.


General Motors has warned that the unit would go under without official help.

Her comment came after GM late Tuesday presented a massive restructuring plan to the US Treasury and said its troubled Saab unit could file for bankruptcy protection “as early as this month” without support from the Swedish government.

The company said last year it planned to try to find a buyer for the brand.

So, they lied about that; alternately, they were too incompetent to find such a buyer. Take your pick.

SwedishChefSmall“They’re basically saying they think the Swedish government should take over Saab, but if we do that we’re talking about an incredible amount of money,” Olofsson said

The hilarious part of this is that Sweden already has Nationalized Health Care; and THEY think it’s “too much money” ??? Heh.

“I’m disappointed in General Motors, because they’re abandoning Saab and are pushing the responsibility over to Swedish tax payers, and I think that is irresponsible,” she said.

While Sweden’s centre-right government has refused to take over Saab it has nonetheless said it will act as a guarantor for a European Investment Bank (EIB) loan of five billion kronor (450 million euros, 566 million dollars) to help keep car maker afloat.

According to the unions, some 15,000 jobs in Sweden would be at risk if the unit were to disappear, since its suppliers would also be hard-hit.

And that last line is misleading. I’s not that 15,000 jobs in Sweden would be at risk; It’s that 15,000 jobs in Sweden ARE at risk, and will probably soon disappear. For Sweden’s economy that would be catastrophic.

And what do you think the EU will do if one of their economic partner’s economies is hit hard by Saab’s collapse?

Watching closely.


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Well, this is what happens when amateurs try to put together business deals. And by “Business Deals” I mean the wholesale multi-million dollar dismemberment of multi-national corporations.

And by “amateurs” I mean complete imbeciles who have never had an actual jobs outside of government,” Like happened here with Penske, and apparently is happening now again with Opel:

we-hope-gm-hasnt-hit-the-mother-of-all-icebergs_100182263_sGeneral Motors Co., looking to finalize the sale of its Opel unit to Magna International Inc. as soon as midweek, may need to revisit the bidding process that led to the sale of its German unit after the European Union raised fresh concerns about that process, according to people familiar with the matter.

GM Chief Executive Frederick “Fritz” Henderson had hoped to sign the Magna deal last week, but regulatory issues have postponed the move.  His plan for Opel—which met strong scrutiny from GM’s new board—was thrown into question late last week after the EU’s competition commissioner, Neelie Kroes, sent a letter to German Economics Minister Karl-Theodor zu Guttenberg saying GM “should have the opportunity to reconsider the bidding process.”

Mrs. Kroes pointed to “significant indications” that Germany had made €4.5 billion ($6.72 billion) in state aid for Opel contingent on Magna winning the bid, therefore violating EU state aid and market rules. EU rules restrict how governments can dole out aid, to prevent states from giving an unfair boost to one company over another in Europe’s common market. As competition commissioner, Mrs. Kroes must sign off on state-aid deals.

In short, according to international law, competitive bidding means one country can’t favor their won contries industries if the bids are to be competitive. Chancellor Merkel specified that Magna Industries — a German Company — had to win the contract. That’s illegal — yet the Obama Administration had no problem with that.

merkel-angelaBerlin also opposed the idea of GM keeping and revamping Opel itself, one option GM’s board also considered. Under the preliminary agreement that GM reached with Magna last month, the Canadian auto-parts maker and its partners would acquire a 55% stake in Opel and its U.K.-based sister company Vauxhall. Opel employees would hold 10%, while GM would retain the remaining 35%.

“Employees” being the code-word for “Unions” here — just like it worked in the U.S. GM bankruptcy, too.

If GM were to consider another plan for Opel, German Chancellor Angela Merkel could then find herself in the awkward position of financing an outcome that slashed far more Opel jobs in Germany and shuttered some of its plants. Ms. Merkel and her conservative allies are eager to preserve the Magna deal ahead of critical regional elections next May in North Rhine-Westphalia.

GM’s go-it-alone Plan B would likely include thousands of more job cuts, and at least one plant closure or sale in Germany, say people familiar with the matter.

Makes you wonder what else was in the GM/Chrysler bankruptcies we haven’t even seen yet.

Imbeciles. no, no , worse than imbeciles — criminals.


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we-hope-gm-hasnt-hit-the-mother-of-all-icebergs_100182263_sI’m sure you’re quite familiar with the story; GM (and Chrysler) goes hat in hand to the Federal government — Federal government nationalizes GM, fires CEO, restructures company, offers “Cash for Clunkers” to get people to buy cars from new Government Motors monstrosity . . .

However, somewhere along the way, the idiots restructuring GM an Chrysler — most of whom have never actually worked outside of government in their lives — forgot about the NUMMI plant in California where GM and Toyota make cars (and trucks) together.


And apparently, the Unions thought Toyota would just play along with the madness:

FREMONT, Calif. — Toyota Motor Corp. officially confirmed Thursday that it will relocate production of the Tacoma pickup from a plant in Northern California to its state-of-the-art manufacturing facility in San Antonio by next summer.

As part of the plan to shift Tacoma production to San Antonio, Toyota will stop making vehicles at the New United Motor Manufacturing Inc. plant — its first manufacturing facility in the United States, which started in 1984 as a 50-50 business deal with General Motors — in March 2010.

Toyota’s decision to end its 25-year relationship with the NUMMI plant, which also produces the Corolla, came nearly two months after GM said it was pulling out of the joint venture.

This is my theory, which I have no proof for, but seems reasonable:

  1. The idiots restructuring GM forgot about NUMMI, or
  2. They thought pulling out of NUMMI would force Toyota to have to deal with the United Auto Workers at the plant, and
  3. They allowed the plant to “wither on the vine” to let the UAW get a stronger hand with Toyota.

Except it doesn’t work that way in Japan. Japanese Unions are not formed around a trade; they are formed around the individual plants, where they work in harmony with management for fair representation of the workers.

Japanese management finds the American Union thug-ocracy to be rude and insubordinate, and has no use for it.  So given the choice between shuttering a rude plant California and dealing with a jobs-friendly San Antonio . . .

toyotaplant san antonio“This is really a big shot in the arm, especially when you consider that the jobs multiplier is five, and I think that is conservative. By next year, we’ll be running pretty darn strong. We’re already doing well relative to other parts of the country,” Wolff said.

“San Antonio is emerging as an economic powerhouse. This demonstrates the talent of the work force and the low cost of doing business in San Antonio, as well as a high level of public and private cooperation,” Mayor Julián Castro said.

But in California, the move amounts to a supreme body blow to a state already reeling from financial and economic woes.

Thousands of production workers, each of whom earn about $65,000 annually at the West Coast’s lone auto plant, stand to lose their jobs and a network of more than 1,100 California-based suppliers that employ tens of thousands of workers will be affected. California officials estimate those suppliers employ about 18,800 workers who add a total of $904 million annually to the state’s payroll.

uawMan, you’d think California would want to keep those jobs, wouldn’t you? Maybe the Unions are doing something?

The workers were told more information would come at a later date and that union management is negotiating the next phase of discussions.

Oh yeah — I’m suuuuuure they are . . . Doesn’t sound like there’s anything to negotiate anymore.

San Antonio and Texas leaders also took notice as they started readying an incentives package weeks ago.

On Thursday, city and county officials said it includes a 10-year abatements on property taxes as well as state sales tax rebates on capital investments and new machinery to retool the plant, which could cost $100 million.

Additionally, Toyota could receive a $2,500 credit for every new hire from a “designated disadvantaged zone.”

In other words, Money talks and B.S. walks. Pop Quiz: Which one is Texas?

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From @LadyImpactOhio

These is an urgent message via telephone conversation with @midlifechick, who is otherwise occupied at the moment. She asked me to post this info ASAP.

congress-flag@midlifechick just returned from TownHall meeting with her US Rep. John Carter (R-TX). Representative Carter informed the crowd that talk has been bandied about Congress to appropriate EVERY state’s pension plans into the bankrupt Social Security System.

She is absolutely 100% sure that she understood him correctly. If this is allowed to happen, and I am going to stress again that at this point it is just an idea that has been submitted; the US will absolutely, 100% be a banana republic, a la Argentina.

Folks need to get a heads-up on this and be prepared if this does indeed come down the pike.

Please pass along this info to tweeps, FB, family & friends.

I would like to say that I am stunned, but given the track record of this Administration I guess I shouldn’t be.

Thank you.

“Stunned” doesn’t really seem to cover it, does it?


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A guest post from Alec Rawls.

Crime 1: Another multi-billion dollar subsidy for Government Motors.

When Obama stole Chrysler from its stockholders and gave it to his union cronies, we knew he would take every opportunity to waste taxpayer dollars trying to keep this lead balloon afloat. The Cash for Clunkers subsidy is just particularly egregious, since it works by subsidizing the last people in the world who need a subsidy: those who are well off enough to buy new cars in the midst of a deep recession. Talk about a middle class welfare program!

Crime 2: Eliminating Government Motors’ competition by gratuitously slagging an expected 750,000 perfectly good used cars in the sub-$4500 price range.

The Obamacrats aren’t just subsidizing cars for the well-to-do. They are destroying the cars that the less well-off are in the market for, driving up used car prices as part of their effort to make new cars more attractive:

Some parts may be kept but the engine and drive-train must be destroyed. Specifically the engine will be injected with a liquid glass solution to permanently disable the engine and it will be the responsibility of the dealer to make sure this is done to the engine.

Injected with liquid glass? Sounds like a Quentin Tarentino murder fantasy, and the reality isn’t any prettier. Witness Obama’s procedure for destroying the would-be cars of the non-wealthy:

Here is another one, a spiffy-looking Volvo that holds out for 4-plus minutes. Some clunker, and check out the row of semi-new cars lined up to go next:

Take THAT all you graduate students, newlyweds, store clerks, aspiring actors, single moms, non-deadbeat dads, warehouse workers, journalists, hippies, and other assorted poor relations. You want a car, you can scrape together your savings for a down payment on the privilege of paying hundreds of dollars a month to Government Motors for FIVE YEARS, just like everybody else.

How big is this crime?

A very substantial portion of the population NEVER buys a new car. I, for instance, have never bought a new car, and I never expect to. Why would I, when California has the best used car market in the world? In the last 10 years I have bought two 1984 Toyota Vans, one with 45,000 miles, one with 115,000 miles, each for $1500. Both still run great. One is set up as a work vehicle. One converts from passenger van to camper. No new vehicles would serve as well, or look as sharp.

My two uber-vans, one extra-dirty from its recent 2000 mile trek to Seattle and back. (Shasta, Crater Lake, Boeing Museum of Flight, Blue Angels, Olympic Peninsula, Fort Stevens, Oregon Dunes, North Coast, and back across the Golden Gate. Ain’t that America?)

The vehicles that are being gratuitously destroyed are newer than my two vans (which are just outside the 25 year age limit) and they are up to three times the price. For instance, the immensely popular Toyota Previa vans (1990-96) all qualify.

A good California Previa with a hundred thousand miles left on it sells for two to three thousand dollars. The government’s offer of 35-45 hundred is outbidding the market even on these top quality used vehicles. Cash for Clunkers is a misnomer. Some bottom-of-the-barrel cars will be turned in, but the rules insure that most will not be these “clunkers.”

To qualify, a car must have been registered in the name of the new car buyer for the last 12 months and it must have been insured for the last 12 months. These actively-used cars of people who buy new cars are the quality core of the used car market. Most “clunkers” will be perfectly good cars that would be prize possessions for a half million less well-off Americans, wantonly destroyed only because the Obamacrats prefer that they be destroyed. Dollar for dollar, this is the equivalent of trying to solve the glut of housing foreclosures by purchasing the houses with taxpayer money then burning them down.

Any Obama supporter who claims to be motivated by distributional justice, go soak your head. You want to subsidize the better off? Be as stupid as you want. But don’t go destroying en masse what the less well-off need to survive.

All justified by a lie

Obama’s excuse for decimating the last two generations of used vans, SUV’s, pick-up trucks and full size cars is the global warming hoax. The ascendancy of Obama was, in his own narcissistic words:

…the moment when the rise of the oceans began to slow and our planet began to heal.

Energy consumption must be curtailed in the extreme:

…under my plan of a cap and trade system, electricity rates would necessarily skyrocket.

It is all about CO2 and the phony global warming industry that Vice President Al Gore created with $10b of seed money when he pioneered and administered the executive branch’s global warming portfolio (now called “climate change,” since the earth stopped warming 10 years ago). Gore’s appointees have directed almost all of the full $79b that the U.S. has spent on climate science since 1989, and they don’t care at all whether CO2 is actually warming the planet. Their real motivation is an eco-religious belief that economic activity is gobbling up the natural world, so that for the natural world to survive, economic activity must contract.

To these high priests of green religion, CO2 is the perfect fall guy, no matter how insignificant its actual impact on climate. If the CO2 released by fossil fuel burning can be framed as a threat to the planet, that provides a rationale for drastically curtailing human economic activity, thereby stopping economic activity from gobbling up the natural world, whether or not CO2 itself actually has any harmful effects.

CO2 alarmists reject the scientific method

We can say with nearly complete certainty that the bulk of 20th century warming was NOT caused by CO2. This is because we know what DID cause the warming: the “grand maximum” levels of solar-magnetic activity that obtained for most solar cycles between 1930 and 2003.

Numerous studies have found a high degree of correlation (.6 to .8) between solar-magnetic activity and global temperature. That is, solar-magnetic activity “explains” statistically 60-80% of global temperature change on all time scales. That degree of correlation, observed over thousands and millions of years, HAS to be causal, and the causation can only go one way. It is not the temperature of the earth that is causing sunspots.

What is not well understood is HOW solar-magnetic activity drives global temperature. We just know that it does, just as before Einstein we did not know what mechanism causes massive objects to fall towards each other, we just knew that they do.

We actually have some pretty good theories of how solar-magnetic activity drives global temperature but set that aside. The eco-religionists, who thanks to Al Gore control ALL of the research funds for the “climate change” industry, use uncertainty about HOW solar-magnetic activity drives global temperature as an excuse for completely omitting the solar-magnetic variable from their models. They explicitly put theory over data, exactly the opposite of the scientific method, which says that data is always supposed to trump theory.

This anti-scientific method misattributes to CO2 the warming caused by high 20th century levels of solar-magnetic activity. Put solar-magnetic activity back into the equation, attributing to it what warming has historically been correlated with high levels of solar-magnetic activity, and the levels of warming that could possibly be attributable to CO2 become small. In particular, they become benign.

Warming in general is good. When Greenland was green, civilization prospered, as did plants and other living things. Nothing gobbles up the natural world like ice. It is only by claiming that CO2 could cause some unprecedented “runaway warming” that the alarmists have been able to present CO2 as dangerous. Stop misattributing solar-magnetic warming to CO2 and that possibility is off the table.

The dominant driver of global climate is solar-magnetic activity and any modicum of warming we can get out CO2 is all to the good. If our fossil fuel burning has the side effect of making our warm times a little warmer and our cold times a little less cold, that is a happy bit of luck for a world that ALWAYS seems to be colder than the optimum, with the next glacial period due any millennium.

Proof that the IPCC completely omits the solar-magnetic variable

Just look at any of the IPCC assessment reports. They all include the following graphic (slightly updated over the years):

From the 4th Assessment Report (figure 2.4 on page 39 of the Synthesis Report).

The only “natural” climate influence accounted by the IPCC is “solar irradiance,” which means visible light and other electro-magnetic radiation. It does not in any way include the solar-magnetic flux, which is completely omitted from all IPCC models, even though every climate scientists knows full well that, according to the raw data, magnetic effects are the primary driver of global temperature.

EVERY educated person who accepts CO2 alarmism on the authority of the global warming anti-scientists is failing the most basic due diligence.

Technically, the alarmists’ anti-scientific inversion of theory and evidence takes the form of what is called “omitted variable fraud,” where the omission of any important explanatory variable causes its explanatory effect to be misattributed to whatever correlated variables are included (in this case CO2 which, like solar activity, also went up in the 20th century). This is the most basic, the most common, the most familiar form of statistical fraud. Everyone who has ever studied not just any physical science but any social science at any moderately high level is fully competent recognize for themselves the statistical fraud that is being committed by the CO2 alarmists.

The educated Democrat-voting elites who are pushing to unplug industrial capitalism on the authority of alarmist anti-scientists have an obligation of due diligence to check for themselves whether the facts of the matter are beyond their own competence, and they are ALL failing this basic obligation. They are just assuming that they have to accept on authority that the survival of the planet requires the radical curtailment of CO2, when even a quick look at the facts reveals that the statistically most important variable is omitted from the alarmist models.

Why this willingness to uncritically enlist as foot-soldiers for the destruction of modernity? Because like the CO2 anti-scientists themselves, these Democrat elites also don’t care whether CO2 is actually a threat. They too are eco-religionists who are glad for any excuse to curtail the economic growth that according to their presumptions is gobbling up the natural world.

Wrong about economics too

Of course the eco-religionists are also wrong about economic growth being bad for the environment. Economic growth creates and is created by technological advance, and it is technological advance that is allowing mankind and the natural world to both thrive at once. Economic activity is not the enemy of the natural world. It is the salvation of the natural world.

Having dedicated their intellectual resources to maintaining their religious presumptions instead of following reason and evidence, our Democrat elites have become pure political animals in the lowest sense, driven entirely by their lust for power. Every excuse, be it phony concern for distributive justice or phony concern for the environment, is wielded with complete dishonesty, utterly heedless of how distributive justice or the environment are actually affected, until all that is left is their ultimate presumption: that the one thing most necessary is that THEY have power.

This pathology finds its epitome in President Obama. Cash for Clunkers is just one paltry multi-billion dollar program, but the same coming-and-going perversity is manifest in Obama’s larger jihad against CO2—his push for cap and trade legislation. If we would uncork energy, the economy would rebound tomorrow, but Obama is determined to close the energy spigot down, not open it up.

Anybody who thinks this recession is ending is out of their minds. Obama is draining the oil and pouring in the silica slurry. What part of “under my plan … electricity rates would necessarily skyrocket,” do Americans not understand?

If you want to hear where the economy is headed, listen to the “squirk” from the end of the Obama-car-death video, when the engine jerks at the end of the hangman’s rope:

This is the sound of a valuable helper being sacrificed by government to the false idols of green religion. It isn’t just barbarous. It is a clear violation of the establishment clause. Execute the worst human criminals, yes, but Mission Solano has it right: “No Death Penalty for Cars!



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The all-new, all-different 2010 "Obama-mobile"

The all-new, all-different 2010 "Obama-mobile"

(DETROIT)  Government Motors (formerly General Motors) announced it’s new lineup today amid speculation that the Department of Transportation would mandate new higher fuel economy standards.

The standout star of the lineup is new new 2010 “Obama-mobile” (shown here in mock up form.)  “Awl the thwills of the open woad with awl the Horsepower of a fwont-wheel-dwive!” intoned Congressman Bawney Fwank, (D-Taxachussetts).  “And Wots and wots of horsepower for those fast getaways fwom angwy constituents.”

Accompanying the new model’s debut was  video statement by President Obama (D-Kenya), clarifying the confusing position his administration has given on the ‘Cash for Clunkers” program.

“Many people have made the mistake of assuming this “Cash for Clunkers” program has something to do with the automobile industry,” intoned the (alleged) President.  “Nothing could be further from the truth.  It is, in fact, part of our new Single-Payer Healthcare initiative.”



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