The Problem with Bail-outs: Auto Industry

Smaller banks are already offering themselves up to the altar of the government bail-out in order to continue to be competitive in the banking industry - so the nationalization of our infrastructure is clearly underway.

But now the aging auto industry is sniffing around the empty coffers, looking to be bought out by the government - nationalize the US auto giants - nationalize 3 million jobs. To what gain?

Let's look at the 2009 Ford line-up... Their Hybrid cars are laughable in the MPG department, and they have not proposed one single alternative fueled (electric, hydrogen, etc) vehicle for 2009, 2010, etc. Their "Flex" vehicle does not even use flex fuel technology - and is merely a poor name for another standard automobile. They have become out of touch with the consumer, and are paying the price in lower sales and under performing product.

General Motors has an electric vehicle being introduced for 2010 under limited quantity, but it is coming at a cost of their entire SUV line. The markets are indicating a trend toward "other than gas" vehicles - and perhaps their innovators can incorporate the electric technology into their family vehicles. There is some hope with GM - driven by the free market.

Chrysler - well, I cannot remember a good vehicle coming off of their lines in some time!

All three auto giants are showing a sluggish response to market forces, little move towards structural overhaul of the corporate operations because of the market failures, and as such are being punished by the markets.

The auto industry is not failing - foreign automakers are thriving - staying on the cutting edge of automotive innovation. It is the AMERICAN auto industry that is failing for lacking innovation and ability to adjust.

Now steps in the government... The Government will potentially be buying up the US auto giants as part of the nationali--- oops... the economic assistance program... The US Government, an entity living beyond the intention of the Constitution, authoritarian in nature and poised for total control over the subjects of the United States, is contemplating ownership of the US auto giants. Assume, for a moment, that the US Auto Makers, in an effort to merely retain jobs, begin to pump out and continually flood the market with automobiles that NO ONE WANTS - all in the name of retaining jobs... The government will then BE BOUND to ensure that their workers interests are being looked after - and as such, would LIMIT the sale of foreign cars in the United States. US Citizens would be obligated to purchase US cars. Tariffs would be imposed on foreign auto industries - ultimately hurting the US jobs associated with their manufacturing operations within the US. Perhaps they would be forced, should they choose to continue to sell in the US market, to relocate headquarters to the United States and become a US Government subservient industry as well... all in the name of "continued competitiveness".

Dearest readers - the system is grossly broken.

The free market is no longer free. The US government has become a force unstoppable by it's subjects. The stage has been set for a world government, under the guise of world economic stability. We are witness to a world without borders being constructed before our eyes... a world where the rulers oversee the continued obedience of the pleebs - work to sustain consumption, consume to support our government, the government will ensure your freedom.

Work and Obedience ensures Freedom... where have I heard that before?

People - I implore your logic and reasonable thought on this issue! We are truly at a crossroads in our great experiment. One option, which has all the momentum, leads us down a road of continued governmental growth, continued governmental authority, and continued erosion of civil liberties across the board. The other option, which is in the minority, is to strive for the radical concept for which our founders fought - liberty... let bad businesses fail, let the people hold corrupt politicians and CEO's accountable in the court of law, let Americans get back to family value - not consumer/work values... tell the government to STOP taxing our land, STOP taxing our income, STOP taxing our success and the success of our families... Tell the government that enough is enough, that it is time to minimize, time for some introspection.

There is danger in a big central government. There is more danger in a large world based government. The only intent is to rule - there is no accountability to the citizen, because the citizen ceases to exist. There is no progress in government forced consumerism... there can be no innovation.

Perhaps John Galt had the right idea?

"I swear—by my life and my love of it—that I will never live for the
sake of another man, nor ask another man to live for mine.” John Galt in
Atlas Shrugged

Bush's Legacy - Socialist America

Forget Barack Obama's plans for Socialism. The GOP need look no further than our own party leader in the search of a Socialist Scumbag!

Sure, Obama is going to be a thousand times worse, God help us if he wins.

But the nationalization of our banks, lending firms, mortgage industry, education system, and now auto industry, with an option to nationalize the oil and energy sector (once they are taxed into oblivion or forced to fund energy alternatives that will be nationalized and put them out of business anyway) - that is all the legacy of George Bush, the most Liberally Left president in the History of the United States, with the most authoritarian regime in the history as well - rivalling King George, against whom we won our independence.

Bush has ushered in a new era.

Under Obama, he will utilize the socialist momentum established by Bush to enact sweeping governmental reform, putting an end to civil liberty and establishing the perpetual police state of the Americas - policing thoughts, spending, labor, etc... Say good-bye to personal defense, personal responsibility, and personal freedom to speak out against the government. Those will give way to gun bans making Brady look like child's play. He will have the power to place 5 of 9 Supreme Court Justices, which he believes should be radical left judges who uphold the ideal of wealth redistribution, etc... either way, the deck is stacked against the citizen - and we will surely live under Tyranny.

Under McCain, he will utilize this socialist momentum to appease the populist complainers, continuing Bush's policy of entitlements. He will open the borders to millions of immigrant workers, who will benefit from further hand-outs. He indicates that the direction will change, but I argue that it will just not be as bad as Obama. He is the other side of the same coin. he is the lesser of two evils.

With Congress pushing the Fed for another $150 Billion bail-out, the $700 Billion being used to snatch up and nationalize private industry giants, and the public crying out against corruption, as long as the tit is not pulled from THEIR mouth... Change is what we are getting... Change into a nationalized socialist country under authoritarian control.

Thanks, Bush! Thanks for the legacy!

SNL Satires the Bail-out - Upsets the Liberal Left

Saturday Night Live has an infamous history as of late regarding politics - coming down hard on Republican Vice Presidential nominee Sarah Palin, and the show's political voice is clearly left when former cast-members like Chevy Chase hope that the show goes further and "decimates" our next VP.

However, sometimes they get it right... as was the case in their representation of the $700 Billion Wall-Street Welfare plan. There has been much controversy surrounding this direct slam on the Democratic Party for it's actions regarding the bailout, as well as directly attacking Pelosi, Barney Frank, GW Bush, and labelling George Soros as "the Owner of the Democratic Party". They did a great job of calling out the leadership of this nation, and showing how ridiculous such "welfare" plans are and how Democratic ideology actually is the root cause of this entire mess.

If this gets high play, perhaps some on the left might question the truth behind the cause of the economic crisis. There is a long list of causes dating back to the creation of FDIC in 1933 and Fannie Mae in 1938 all the way through to the Clinton and Bush administrations' enforcement of CRA and the "ownership" society. This has nothing to do with the free market (as Obama would indicate, as he did in last night's debate) - our financial markets have not been "deregulated" and anyone who claims so is dishonest. The real key has been a fiat paper currency that is managed by a central bank who has continually tried to eliminate risk but has instead fostered malinvestment, bubbles, and increasing leverage throughout. The solution is to defend individual property rights, free banking and the gold standard.

$700 Billion Bailout Fails - Freedom Loving Libertarians Win

The House voted 205-228 on the Wall Street Bailout, sending a resounding voice to Americans, and the world, that you are own your own.

Normally, in a crisis, telling someone that they are on their own would be considered bad - however, Reagan's great one-liner tells the story best (paraphrased): The scariest thing you can hear is "I'm from the government and I'm here to help"...

In this case, the government took the advice of the people and are deciding to let Bush's nationalization of the United States fail - trusting, instead, on the strength of the American citizen (not consumer) to pull themselves up by the bootstrap!

In this case, the bailout was being voted down at the same time that the free-market did what it does best - WORKING. Wachovia banks sold out their failed business to CITIbank, and indication of how the system is set-up to catch itself as the shakedown occurs.

I called it on Friday that this bail-out was a bad idea, and its failure is inspiring - inspiring in that there are those in the House of Representatives who, regardless of political affiliation, are truly freedom loving free thinkers, able to smell a rotten fish coming from the White House.

What now? The market will stabilize if left alone. Bad businesses will fail. Companies will be forced to adapt. Credit will be harder to come by (and rightfully so). Average Joe Citizen will rethink the 52 inch plasma screen tv in favor of the 36 inch version that he can actually afford. And the world will live to see another day... Maybe this is the wake-up call we needed to help us realign our priorities as individuals and Americans!

MEANWHILE - the Federal Reserve is undermining attempts at stabilization of the US market by injecting Billions of US dollars onto the Global market, causing the value of the US dollar to plummet, and increasing inflation in America.

The best plan would be for the Federal Reserve to close, the United States to value the dollar at pre-Federal Reserve levels by proclaiming a currency correction - releasing new currency in exchange for Federal Reserve Notes at an exchange rate of 22:1. All loans, accounts, etc would be adjusted to the new standard rate, wherein One Gold Certificate would physically represent one unit of gold in the National Treasury. The only way to stabilize this market is to stop the globalization of the US market, return to a gold standard, and return to a policy of non-intervention in the free market by the Federal Government!

What is the RIGHT Answer to the Economy?

I took yesterday off from blogging to really think about the $700 Billion bail-out, the role of the federal government in our society, and what needs to happen to ensure the economy survives this self-made crisis.

To start, it is necessary to understand the source of this melt-down of the lending firms. The source is not so much "greed" as it is "good intention". The Congress has struggled on economic issues in the past, attempting to do good for the market and main street, however, their constant intervention has led to the mess we are in today. So says the history books: The road to hell is paved with good intentions. That is where we find ourselves today - economic hell... or do we?

I haven't seen any run on the banks (those that are still operating). Folks are continuing to invest in the stock market - making some risky trades in order to capitalize on the shifting market. Ultimately, the market is still working - the economic fundamentals are sound in the United States, and as such, the economy will be sound as well. McCain was right. However, there is a stipulation.

The stipulation comes with the government bail-out. Bush and the Democrats keep coming forward claiming that every minute we wait is another minute that the country's economy continues to fail. Yet the only failure I have seen is nothing more than a correction in the market, and a move on the value of the dollar due to the Federal Reserve cranking out the funny money. (the value of the US dollar is currently 6% of 1913 dollar value - a loss of 94% value) The bail-out, if it is planned to be a $700Billion buy-out - which is code word for nationalization of the Investment, Insurance, and Banking industry - gives monopoly business power to the Federal Government... The US government will become a competing business who also makes the rules for the game... very dangerous.

What is the right answer?

After a long day contemplating the Constitution (yeah - it still exists, barely!), I have determined that the best plan forward would look like this:

If the economy is in trouble, reduce government spending. Pass a line-item-veto, or a "no earmark" law, eliminating pork and allowing the US to use all tax revenue to pay the military, pay the elected officials, and pay off the debt. They should all also agree to a constitutional amendment to balance the US budget each year. No more deficit spending. No more living beyond our means - as a country, or as a citizen!

The government should institute a Flat Tax, or a Fair Tax (consumption tax). This would give initial money back to the people 100% - allowing more money to exist in the free market for investment, consumerism, or savings. This Fair or Flat tax would also include Corporations. Eliminate unnecessary taxes on businesses, offering incentives for business to come back to the United States. In doing so, with a larger tax base, even at a lower tax rate, the income to pay down the debt and run the bare-bones government would increase.

Let the bad businesses fail. The need will still exist for companies to develop and fill the void. Instead of backing a bad investment, let the free market flux weed out poor choices, and encourage innovative Free Market solutions - such as self regulation (or government sponsored, so long as it works) regarding CEO compensation and fraud loopholes that currently exist. If a company makes a bad choice, I should not be forced to bail them out. Let them fail - it re-enforces good business ethics!

Ultimately, if the plan looks like it will be a pay-out, we are stuck with a bigger government, another bureaucracy, less freedom to enter the free market as a start-up (as the Government is now your competition), and a tax burden from which we will never recover!

John McCain and the economic advisers of the far right should do whatever they can to stall the bail-out. The treasury secretary, the President, and the leadership calling for the Nationalization of the economic sector are nailing the coffin of Capitalism in America.

This is a case where we pray that our leadership does what is RIGHT, and not what appears as politically expedient!