More Crap from Detroit? by James Jaeger
The three major automobile companies that have been producing ugly, inefficient cars that break down DESERVE to go out of business. That said, they MUST be bailed out on principle.
For Congress to give the profligate banks $700 billion yet fail to give the profligate auto manufacturers $25 billion is unfair to the working class citizens that have been raped and pillaged by the CEOs, management and stockholders of GM, Ford and Chrysler, the Big 3.
IT IS A SAD COMMENTARY THAT THE BANKERS ON WALL STREET, WHO PRODUCE MONEY OUT OF THIN AIR, GET $700 BILLION AT THE DROP OF A HAT -- YET AUTO MANUFACTURES, WHO PRODUCE CARS OUT OF BLOOD, SWEAT AND TEARS, MAY BARELY GET EVEN $25 BILLION.
This disparity proves that we now live in a country governed by plutocrats who value the services of Wall Street bankers 28 times more than the services of Main Street citizens who make up what's left of the manufacturing base of the nation.
BANKERS = $700 BILLION?
CAR WORKERS = $25 BILLION?
700/25 = 28.
What We have Become:
The reason the auto manufacturers must be bailed out is because we are a society that practices unbridled, monopoly capitalism under supreme government regulation. This regulation is known as fiat-issuing central banking. Such a society must thus be consistent with its anti-free market ideology and bail entities out whenever they are too big to fail.
The major corporations in the United States do NOT practice free-enterprise capitalism. They practice unbridled capitalism and monopoly capitalism (aka, corporate fascism), neither of which have anything to do with free-enterprise capitalism or free-market capitalism.
As I have discussed at length in other articles(1), one cannot successfully have an economic system that is quasi-regulated. An economy that is quasi-regulated is as dangerous as an automobile that is quasi-driven by four people. When a central bank, the Federal Reserve System, has been given the power to print up money out of thin air, and this money is the medium of exchange that represents all products and services in the economy, then that system is REGULATED by the central bank. That system is thus NOT a free market system. That system is NOT a free enterprise system. That system is a regulated economy that practices unbridled capitalism and monopoly capitalism. Unbridled capitalism is capitalism whereby the largest corporations, banks and military-industrial complex have first call on the new fiat money as it's printed up. With this money created out of thin air, these entities can run roughshod over not only Congress, but the entire middle class of a nation. They can buy up Congress to pass any law they want. They can get NAFTA passed so they can ship American jobs to foreign markets and keep the boarders wide open to allow low-wage employees in. They can gut the manufacturing base of a nation with impunity and destroy the middle class. They can produce cheap, ugly cars that break down and get low mileage as long as they want.
But when such a group of profligate corporate failures comes to Washington for a lousy $25 billion, they certainly deserve it as much as the criminal corporate fascists that operate the banks on Wall Street.
To bailout greedy, aesthetic-challenged, corporate CEOs on Main Street when Congress bailed out Wall Street banksters at 28 times the price tag is not only stupid and inconsistent, it's un-American.
WE ARE AN EQUITABLE COUNTRY. WE SHOULD TREAT ALL SCUM THE SAME.
The Problem at the Big 3:
When citizens and media pundits point out that the CEOs for the auto makers came into DC on Gulfstream jets at $20,000 per trip, and make a big deal of this, it goes to show how shallow these people are. Is this a sign that the executives at GM, Ford and Chrysler are profligate? No, all CEOs travel this way. They are required to travel this way by their insurance companies for security reasons. Besides, 20,000 represents only .00008% of $25,000,000,000. That's hardly the problem at the Big 3.
The problem at the Big 3 is the entire management AND design department are incompetent and have little or no vision and MUST go. Specifically, the problems at the Big 3 are as follows:
1. The cars are ugly and don't appeal to the kids;
2. The cars use too much gasoline;
3. The cars are over-produced, complex and break down too easily;
4. The cars are too expensive;
5. The cars don't handle well;
6. The cars aren't safe enough;
7. The cars use gasoline;
8. The Big 3 wastes money on bogus over diversity -- making too many selections, many of them obsolete and/or too big.
When the Big 3 get money from the gov, they MUST address points 1 - 8 above. These points cannot be addressed by the current management or design team because they HAVEN'T addressed them in over 30 years. Again, they ALL must go as they have had many years to get it right and have done nothing but get it wrong.
Lastly, the unions that control the auto workers must be dissolved or the workers must hunker down and stop charging so much for their labor. If they are pissed off at this state of affairs, their proper recourse is Bill Clinton and the Congress that passed NAFTA. The reason management is off-shoring labor is because workers are demanding wages that are too high for our import structure. You either MUST demand Congress impose PROTECTIVE tariffs OR you MUST lower your wage demands. The people that spout free-trade are YOUR enemies and they are the enemies of America because the so-called free trade they promulgate is NOT free at all: its cost is the destruction of the American manufacturing base and the middle class.
YOU CAN ACTUALLY MEASURE THE COST OF "FREE" TRADE. IT'S THE TRADE DEFICIT.
Thus either YOUR wages must come down, or the management's wages must come down or cheap cars, made from Chinese slave labor must be taxed so they don't OUT-compete the Big 3 product. Or all of the above must happen. There is no other way, except for one. Technology can be created that takes the place of ALL human labor, domestic and foreign. Bet on it: corporate plutocrats are working as hard as they can to get this in place so they can simply be rid of human labor hassles and all of Adam Smith's considerations. See ZEITGEIST Addendum for details.
How the TARP Should Be Allocated:
Here's how the $700 billion from the Troubled Assets Rescue Program (TARP) should be allocated:
Wall Street Banks & Financial Institutions (30%) .............. $210,000,000,000
Major Manufacturing and Industry (30%) ....................... $210,000,000,000
Ordinary Citizens (30%) ...................................... $210,000,000,000
Contingency at (10%) ......................................... $70,000,000,000
Under NO circumstance should the banks or insurance companies get more than $210 billion. These entities are NOT more important than the manufacturing entities. That said, neither the financial entities or the manufacturing entities are more important than the people that can't service their mortgages.
The best way to save the system is to NOT give all the money to the executives, directors and stockholders in the financial community that over extended their firms with leverage and greed-motivated financial instruments. Just like all the management in the Big 3 Auto manufacturers need to go, all of the management in the Wall Street banks, insurance companies and investment banks need to go as well.
TO DEMAND THAT THE AUTO CEOS AND MANAGEMENT ARE FIRED AND NOT DEMAND THAT THE BANK, AIG AND FINANCIAL CEOS ON WALL STREET ARE FIRED AS WELL IS A FAILURE OF FAIR PLAY.
THE BANK WALL STREET CEOS AND THEIR MANAGEMENT TEAMS MUST GO.
THE BIG 3 CEOS AND THEIR MANAGEMENT TEAMS MUST GO.
Sub-prime borrowers got in trouble because the greedy banks encouraged and provided loans for them in order to keep the fiat currency ponzi going. The fiat money ponzi requires new loans be made endlessly because MONEY IS DEBT and DEBT IS MONEY. See movie called MONEY AS DEBT
Thus it is NOT the fault of the sub-prime borrowers. Anyone will take money when it's offered. The banks have been offering almost free money. Money that's created out of thin air is (almost) free. Money that is created out of thin air is fiat money. When the banks create fiat money, they create money that has artificially low interest rates. Since this is a violation of the US Constitution, the banks are guilty of creating money not redeemable in silver and gold and giving it to poor citizens under the guise of a "loan." It is no wonder people got in trouble.
But then this is what the banks wanted: sub-prime borrowers to get into trouble.
After all, how else could the banks go about their daily business: printing money out of nothing, lending it for interest payments, foreclosing on real estate assets, confiscating the best assets directly or indirectly, covertly and overtly.
BANKS SUCK THE ENERGY OUT OF CIVILIZATION.
THE ENERGY OF CIVILIZATION IS EMBODIED IN SAVINGS AND INTEREST.
FIAT MONEY RUINS SAVINGS.
ENTITIES THAT COLLECT INTEREST THUS SUCK THE LIFE BLOOD OUT OF CIVILIZATION.
The argument that sub-prime borrowers don't deserve help paying their mortgages is bogus. If the loans made to them were made from REAL money, not fiat/fractional money, then one might have an argument that these borrowers were culpable. BUT the money lent to them was just an accounting entry with no real asset on the part of the bank in the contract. Thus the borrowers are putting up consideration but the lender is not.
This is why the borrowers deserve $250 billion out of the TARP.
By the way, the $700 billion TARP money will NOT come from taxes, as the media endless spews. It will be monetized from debt. This means the Federal Reserve System will create the money out of thin air. YOU, the tax payer, will pay for it later -- through inflation. Every time you hear a media-gov talking head say the $700 billion will come from the taxpayers, realize such talking-head is a) ignorant, b) stupid and/or c) obfuscating the facts for personal gain. For more information on how this works, see the movie, FIAT EMPIRE for free on Google Video, or get a DVD at http://www.FiatEmpire.com.
Were we a free-enterprise, capitalist society, it would be unthinkable to bail out either the banks or the auto makers. But, since we are not a free-enterprise, capitalist nation, we are thus forced to do what all regulated, government-controlled, fascist societies do: endlessly bail out their failing industries. When the Federal Reserve has one fiat-money foot on the gas peddle and the other on the break, it's only a short time before the gov and major corporations will have their hands on the steering wheel. Such a vehicle, though highly regulated, will inevitably run into a wall. Welcome to MELTDOWN 101, a class now in session.
I agree 100% with what Michael Moore said on Larry King tonight. In an historic appearance since Moore tried to track down GM's then-chairman, Roger Smith, in his breakthrough film, ROGER & ME, Moore stated everything that needed to be said. He said the Big 3 don't listen to the consumer; they don't build the right cars; they don't know what to do; the current management team needs to go. Moore said the Big 3 have been arrogantly shoving the same big SUVs down people s throats for years. They need to build cars that don't run on fossil fuels and that don't rely on planned obsolescence. The auto companies also need to take a major role in rebuilding the mass-transportation system of this country. If the major auto manufactures are given "taxpayer" money, there need to be some major changes in Detroit.
"We are seeing the end of capitalism as we know it and to this I say good riddance." -- Michael Moore.
He's not entirely wrong. We are seeing the end of UNBRIDLED CAPITALISM and MONOPOLY CAPITALISM and to this we should ALL say: GOOD RIDDANCE!
(1) See http://www.jaegerresearchinstitute.org/menu5.htm
19 November 2008
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