Archive for March, 2009

Bankruptcy is Obamas’ Plan for GM and Chrysler

Economics, Politics | Posted by C.C.Mitchell
Mar 30 2009

The Obama administration announced today that the leading possibility for a restructuring plan for General Motors (GM) and Chrysler is Bankruptcy.  The key factor in this plan is to get the UAW

General Motors Corporation
Image via Wikipedia

to agree to an all new labor contract. This will be a very difficult task for GM to pull off as they have been in contract talks for some time and have not met an agreement. All of this comes about on the heels of General Motors’ CEO Rick Wagoner essentially being fired by President Obama.

Bankruptcy, seeming the only feasible option to most advisers  including the President, would split both automakers into “good” and “bad” elements.

The move would in essence split both companies into their “good” and “bad” components. The government would like to see the “good” GM to be a standalone company, according to an administration official. The “good” Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said.

This Yin and Yang approach seems is the preference of The Obama Administration as The Wall Street Journal points out:

GM looks increasingly like it will be forced into filing for bankruptcy protection, sometime in mid-to-late May, in a plan where the automaker breaks into two companies, the surviving entity a “new GM” that maintains key brands such as Chevy and Cadillac and some international units, say several people familiar with the situation.

Stakes in this new GM could be given to creditors and UAW members. It is also possible the new company could be sold whole or in parts to investors.

Hopefully President Obama will have some pull with his friends at the UAW as the auto makers will need all the help they can get in negotiating a new contract. Under this Yin and Yang Plan the good GM would not have to oblige tens of billions of dollars in retiree and health care expenditures. Those obligations would be held by the other GM element made up of the less attractive parts of GM like Hummer and Saturn as well as other entities such as under performing plants. This element, the bad element would remain in bankruptcy most likely until a buyer is found for it.

Proceeds from the bad GM sale would go towards paying creditors and GM retirees.

Chrysler’s plan is largely centered around the alliance with Fiat and a new labor contract with the UAW and the reworking of debt deals with its’ creditors.

President Obama went on to say that the failure of the auto industry was due to a lack of leadership in Detroit and in Washington that has gone on for decades. In other words he blamed every one that came before him.

I also find it hypocritical that Mr. Wagoner was fired by the President while the UAW President Ron Gettlefinger was left in his position. What about the CEO of AIG? I don’t even know his name, that says something considering today’s media.

It is foolish for any one to believe for even a moment that the United Auto Workers Union isn’t as much to

The United Auto Workers Union

The United Auto Workers Union

blame for financial failures over the past decade or two. We have all heard the stories of the Jobs bank program sapping millions from the corporation every year. The insane benefits workers and retirees receive, and their overblown wages.

President Obama also blundered when he stated “We cannot, we must not, and we will not let our auto industry simply vanish,”  and then a few moments later stated that every one was going to have to bite the bullet: The Unions, the workers, the companies and the creditors were all going to have to make sacrifices, and if they held out indefinitely their may be no more government bailouts.

He just said, “We cannot, we must not, and we will not let our auto industry simply vanish.”  No one is going to believe that the auto industry would be allowed to fail. GM and Chrysler were also given several months to devise a plan that would make them viable again or they would have to give the money back; so what happens? They were given more time after their plans fell short of expectations today.

And why is it so easy for AIG to receive $160 billion in bailout money but the auto industry has to jump through so many hoops to please Washington before they are awarded such a small fraction of the average Wall Street bailout? Maybe its a matter of campaign contributions. Lets face it, GM and Chrysler employ a lot more people than AIG does. There is a lot more to loose in the auto industry than in the financial sector job wise.

When the American people allow The President to fire executives from private sector firms and install such belligerent hypocrisy in policies toward one group over another it is a sign of a Cracked World.

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Obamas’ Falling Poll Numbers are Only the Beginning

Politics | Posted by C.C.Mitchell
Mar 28 2009
President Obama

President Obama

It looks like President Obamas’ popularity is starting to falter. The more recent polls have not been kind to the president in light of the AIG scandal; The utter enormity of the stimulus plan and the deficit spending it will create for the long term; and the lack of non-partisan politics is taking its’ toll on the presidential poll. Lets not forget the moronic administrative nominees for  key positions that have blown up in his face.

The AIG scandal proved to be engineered by democrats in congress and approved by the president himself. It has become rather well known that Dr.O and his lieutenant lunatics knew of the bonuses all along and only displayed a pseudo-outrage after the public raged.

The massive overall size of the $787 billion spending package in stimulus clothing ensures that we will be paying for The Presidents’ mistakes for years to come. By the way so will your kids. This squashes his boasting of reducing the national debt; a major talking point during the 2008 election campaign.

Another major talking point to get stabbed in the heart was that of an end to partisan politics, despite the outcry from Republican members of Congress The President and the rest of the democrats simply ran them over with spending bills and domestic policies they raged against. This is the same partisan politics that he promised to put an end to. In fact he insisted that his latest endeavour, Cap and Trade be pushed through the senate immediately without debate. Sorry but your only the president not a King, Congress does not take orders from you Mr. Obama. There is no compromise in this presidency that I can see.

The Wall Street Journal covered this well:

Candidate Obama vowed to end “the same partisanship and pettiness and immaturity that has poisoned our politics.” Yet his administration geared up MoveOn.org to lead a left-wing coalition to pressure Republicans and centrist Democrats, organized a daily conference call to coordinate liberal attack dogs, and strategized with Americans United for Change on ads depicting the GOP as the party of “no.”

Rather than working with Republicans on the budget, the administration attacked them as mindless obstructionists. Yet the administration’s policies are not nearly as popular as one might suppose

All of these things effected public opion poll numbers negatively. President Obama is no longer enjoying the highest of polling data now that his intentions for the nation have come to light. The Obama Band-wagoners have come to their senses and passed on the latest picture of Kool-Aid. While still above 50% on numerous issues these statistics are falling fast.

Again from WSJ:

For example, the liberal Center for American Progress recently found that 61% of Americans say government spending is almost always wasteful and inefficient, and 57% think free market solutions are better than government at creating jobs and economic growth. A late February poll by NBC News/Wall Street Journal found that 61% were concerned “the federal government will spend too much money” and “drive up the budget deficit” versus 29% concerned the government “will spend too little.”

Mr. Obama’s job approval ratings, already just average for a new president. Last week’s Pew poll showed Mr. Obama’s approval at 59% with 26% disapproval, down from February’s 64% approval and 17% disapproval. His standing on the economy is also falling: Newsweek found in January that 71% were confident Mr. Obama would be able to turn around the economy, while 26% were not. By March, his ratings had fallen to 65% confident, 33% not.

Hmm IS he smarter than a 5th Grader?

The newest report from the CBO, The Congressional Budget Office, reports that the President will be adding $9.3 Trillion to the National Debt, doubling it in six years and tripling it in 10 years. The President calls this a transition from borrow and spend to save and invest. I don’t see it, neither does anyone that can do 5th

Deficit and Debt Increases 2001 - 2007

Deficit and Debt Increases 2001 - 2007

grade math.

By the year 2019, the national debt would reach 82.4% of GDP.  The president’s budget director Peter Orszag,  even admits that deficits and debts like these are “unsustainable.”

Now there is a new force of disapproval that reaches beyond mere poll numbers and other polling data. The Tax day Tea Party a new breed of protesters, signs and slogans against the high taxation that seems without representation. Since there is no voice on the right that matters, (no bipartisanship at all), to Mr.Obama Tea Partiers feel that they are not being adequatley represented. These parties are being organized in over 40 cities across the country. Hopefully these demonstrations will have as much impact on Mr. Obama as his poll numbers do.

If the falling polls don’t wake him up his job could get a whole lot tougher in 2010:

The dynamic he has set in motion could spur the emergence of strong competitors to Mr. Obama in 2012 who take a strong, principled stand against record-setting deficits, debt and taxes. It may also strengthen Republican chances in next year’s midterm elections.

Democrats should, for example, be troubled by a new National Public Radio poll showing Republicans tied or ahead in generic matchups for Congress. And while the midterms are 20 months off, Republican gubernatorial hopefuls in Virginia (Attorney General Bob McDonnell) and New Jersey (former U.S. Attorney Chris Christie) are ahead in two states Barack Obama carried last year that vote this fall.

Obama Points Back to the GOP’s Future

Polls aside, this could very well play in to the hands of The Republicans. Even in a Cracked World I see light at the end of the tunnel. Lets hope it’s not the front of a freight train.

For more information about the Tax Day Tea Party read TheBoboFiles

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Can Mexican Wall Protect Against Drug Wars?

Immigration, National Security, Politics | Posted by C.C.Mitchell
Mar 26 2009

In recent days the dangers of Mexican drug cartels have been spotlighted in the media as well as what should be done about them. While Mexican drugs are smuggled into the United States, large volumes of cash and weaponry are being smuggled in to Mexico.

When asked if the President would be willing to commit to putting National Guard Troops on the U.S.-Mexican border, White House Press Secretary Robert Gibbs said, “The president has committed to reviewing those requests, I don’t know of a timeline of a recommendation or a decision on that, but I know that he will certainly take their (request) under advisement.”

“Committed to reviewing”? He decided in less than two months to spend more money than all the other

Heavily Armed Mexican Smugglers

Heavily Armed Mexican Smugglers

presidents in the history of the United States of America combined. Why is it so difficult to put The National Guard on the Mexican Border? These drug smugglers are armed to the teeth; assault rifles, machine guns, flack jackets.

The two deadliest drug cartels in Mexico field around 100,000 of what could only be described as foot soldiers.

The danger keeps growing; The Washington Times puts it in perspective.

The death toll dwarfs that in Afghanistan, where about 200 fatalities, including 29 U.S. troops, were reported in the first two months of 2009. About 400 people, including 31 U.S. military personnel, died in Iraq during the same period.

“Some recent Mexican army and police confrontations with drug cartels have resembled small-unit combat, with cartels employing automatic weapons and grenades,”

Building The Great Wall of Mexico

This is enough to convince me, in addition to more National Guard troops I think we should build the Great Wall of Mexico. Not just a fence, but a Wall, a wall from the Texas Gulf Coast to the Pacific shores of California. A structure to rival The Great Wall of China.

This would not only keep out illegal immigrants that our economy can no longer support, but it would eliminate drug and weapons smuggling, it would also separate the American populous from a literal war zone. And prevent Weapons and cash from being smuggled into Mexico from The United States which is a tangible and growing problem

This wall could be patrolled with armed border soldiers and modern sensory equipment, a new military base should be established on the wall by which surveillance aircraft like the (predator drone) could be launched  to patrol the border.

President Obama said that he intends to help stimulate the economy with millions of new construction jobs, this project would help create some of those jobs. Through out the Great Depression our government initiated some of the largest construction project in history such as The Empire State Building, and Hoover Damn.

Weapons Seized at the Mexican Border

Weapons Seized at the Mexican Border

The National Guard would beef up the border patrol while construction is in progress. The weapons confiscated at the border from gun runners and drug smugglers could probably equip all of our border troops. We have already seized massive weapons caches, these troops could get these weapons out of the hands murderous drug smugglers that could otherwise be used on innocent civilians.

How many jobs would this undertaking create? Consider the National Guardsman in this as well as the construction workers.

This would be much more constructive (no pun intended) than Hillary Clinton apologizing for our role in the escalation of the drug trade.

So far President Obama has yet to offer any specifics of his plans to control the Mexican border drug trade. All the while knowing that Congress has already passed a bill to build the fence in 2006. As explained by Opposing views this project was for a 700 mile long fence, not long enough to span the entire distance. They also have not yet funded this program in a congressional budget. Why hasn’t President Obama funded this? He’s funded everything else.

President Obama is in such a frenzy to advance his liberal agenda but he won’t protect citizens from harm spilling over from the Mexican Drug Wars.

Its a Cracked World!

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Geithner and Democrats want to Seize Power Over Fianancial Institutions

Economics, Politics | Posted by C.C.Mitchell
Mar 24 2009
U.S. Department of Treasury headquarters in Wa...
Image via Wikipedia

Today Timothy Geithner asked Congress to give him the authority to seize control over companies that he considers to be troubled. Companies like AIG. In doing so he asked our congress to take another bold step closer to Socialism. Giving the government control over companies that they see unfit to run themselves. When the government is running supposed private companies, and distributing the wealth created by those companies we have socialism.

Geithner argued for such authority during the House Financial Services Committee’s hearing on the handling of bonuses paid to executives at American International Group. FoxNews

The very same bonuses discussed here, that Geithner, Obama, and Christopher Dodd made legal through their sitmulus plan. Dodd placed the clause in the bill after succumbing to pressure from President Obama and The Treasury Department. This is a Power Grab which has been planned carefully. They have built in excuses to ask for the  socialist motion.

In a nutshell Geithner wants the same power the FDIC holds over failed banks all for one person to control.

Geithner is asking that the treasury secretary be granted unprecedented power, to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.

Under this authority the treasury secretary would have extraordinary power. The ability to take over and a run a major financial institution. Even the FDIC is an Agency, meaning a group of people not just one person. Not to mention the fact that he is using AIG as a reasoning behind the request. The AIG scandal was caused by the government in the first place. It is also prudent to acknowledge that unlike the FDIC, Secretary Geithner  would be able to manipulate nondepository financial institutions, or those that do not accept deposits like insurance companies and brokerage firms. Its not just about protecting the depositors savings here.

These guys want control over companies that they may not be qualified to operate. Who says that Mr. Geithner, or any other future Treasury Secretary knows anything about running an insurance company?

What makes these officials think they are capable of running any company at any time better than the people who are already running it, even if they’re running it in to the ground?

The biggest problem I have with this idea is that once again the government wants to interfere with business and try to be all things to all people. They want all encompassing power over all facets of our economy and our lives. They wanted to control the census, now they want to control the financial sector.

This is Socialism any way you slice it.  These companies should simply be allowed to fail and none of these issues would be at hand. There would be no AIG bonuses and no need for a new sweeping power for the treasury secretary.

Socialism is un-america! Do you hear that Speaker Pelosi? Socialism is un-american!

In a little over 60 days this new government has orchestrated the bonus payments to top AIG executives (in exchange for campaign contributions); passed the largest spending bills in the history of our nation; restructured income taxes to redistribute wealth; and now they want to SEIZE CONTROL of private businesses and finacial institutions.

Barney Frank stated that AIG may have guarenteed the bonus payments but they can not guarentee that  these executiveskeep their jobs. He then went on to point out that the government owns 80% of AIG.

They want to decide who gets fired at these companies.

Barney Frank forgot one thing if the government owns 80% of AIG it means that the tax payers own that 80% not him and his cronies.

This is just another power grab by the left.

Here is food for thought: How will it be determined which companies should be taken over by the government?

Chew on that and remember, It’s a Cracked World, this could happen to you!

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