Is USA Turning Communist?
Socialists Have Turned To Capitalism, The USA Government Should Take Note.
General Motors, Ford and Chrysler are all facing possible bankruptcy.
The Big Three are looking like they are not so big after all, well, that is, if you consider their ability to dominate the market.
Instead of doing what Toyota and Honda have done, the management of the Big Three have gotten too big for their boots and are now walking on a hot tin roof; only $50 billion can cool it down.
7 (Bloomberg) -- General Motors Corp, Ford Motor Company.
and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, a person familiar with the matter said.
The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified because the plan isn't public.
In return, the companies would be willing to take steps such as granting stock warrants, the person said.
The saddest part about all these bailouts is they tend to prolong the pain.
Soft landings do not really work except for politicians.
A lesson could be learnt from what happened to British Leyland that once manufactured a range of popular cars including the Mini, the Landrover and the MG sports car.
The company no longer exists but was once bailed out with billions from the British Government.
Then there is AMTRAK which is costing the US tax payer around $1.
5 billion in subsidies a year.
Government led bailouts do not really help the majority of the population.
Communism is not taking on capitalism because it was a success.
Communists are embracing private capital because it produces better results in producing wealth.
It is no surprise the wealth of the West is heading East.
It has been being passed from the West to the East since Japan invaded, followed by Taiwan, Malaysia, Korea, Indonesia and now India and, more particularly, China.
Fat cats can only get rich when there are governments providing subsidies to industries at the expense of the worker.
If the fat cats are paid for what they actually do, then only the cream or the crop will rise to the top.
While there is a need for government regulation, too much government regulation makes it easier for lawyers to manipulate the system.
When things are simple, then it is easy to see what is going on, and whether people are fiddling the books or skimming the cash.
When the three stooges arrived to apply for their government bailouts of GM, FORD and Chrysler, they were asked whether they came in their private jets.
Each on acknowledged that they did come in their private company jets.
They were then asked whether they would be going back on a much cheaper commercial flight.
Not one of them seemed to think that was an excellent cost saving measure, even though the three fat cats were begging for $50 million dollars to be given them.
When the now deceased J.
Paul Getty was entertaining the idea of becoming a socialist in the 1930s, he travelled to Russia to see how beneficial socialism (i.
e.
communism) was to the people of the Union of Soviet Socialist Republics.
To Getty's dismay he saw the worker standing in long lines with food vouchers to buy a few products in what were largely empty supermarkets, while the ruling class wined and dined and had every luxury in abundance at their disposal.
Since this is what happens when governments start calling the tune, Getty decided to be a capitalist and within in three decades was employing 12,000 people.
Before Getty died, he set up the J.
Paul Getty museum with the intention that it would be free to the public and their would be no drain on the public purse because the government treasury would never have to bail it out because of financial mismanagement.
So where is the USA heading? Is it heading towards a financial collapse and socialism by default? Or will Barack Obama be like J.
Paul Getty and change the course of USA, so that it is able to establish its ascendancy in the global markets?
General Motors, Ford and Chrysler are all facing possible bankruptcy.
The Big Three are looking like they are not so big after all, well, that is, if you consider their ability to dominate the market.
Instead of doing what Toyota and Honda have done, the management of the Big Three have gotten too big for their boots and are now walking on a hot tin roof; only $50 billion can cool it down.
7 (Bloomberg) -- General Motors Corp, Ford Motor Company.
and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years, a person familiar with the matter said.
The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve, said the person, who asked not to be identified because the plan isn't public.
In return, the companies would be willing to take steps such as granting stock warrants, the person said.
The saddest part about all these bailouts is they tend to prolong the pain.
Soft landings do not really work except for politicians.
A lesson could be learnt from what happened to British Leyland that once manufactured a range of popular cars including the Mini, the Landrover and the MG sports car.
The company no longer exists but was once bailed out with billions from the British Government.
Then there is AMTRAK which is costing the US tax payer around $1.
5 billion in subsidies a year.
Government led bailouts do not really help the majority of the population.
Communism is not taking on capitalism because it was a success.
Communists are embracing private capital because it produces better results in producing wealth.
It is no surprise the wealth of the West is heading East.
It has been being passed from the West to the East since Japan invaded, followed by Taiwan, Malaysia, Korea, Indonesia and now India and, more particularly, China.
Fat cats can only get rich when there are governments providing subsidies to industries at the expense of the worker.
If the fat cats are paid for what they actually do, then only the cream or the crop will rise to the top.
While there is a need for government regulation, too much government regulation makes it easier for lawyers to manipulate the system.
When things are simple, then it is easy to see what is going on, and whether people are fiddling the books or skimming the cash.
When the three stooges arrived to apply for their government bailouts of GM, FORD and Chrysler, they were asked whether they came in their private jets.
Each on acknowledged that they did come in their private company jets.
They were then asked whether they would be going back on a much cheaper commercial flight.
Not one of them seemed to think that was an excellent cost saving measure, even though the three fat cats were begging for $50 million dollars to be given them.
When the now deceased J.
Paul Getty was entertaining the idea of becoming a socialist in the 1930s, he travelled to Russia to see how beneficial socialism (i.
e.
communism) was to the people of the Union of Soviet Socialist Republics.
To Getty's dismay he saw the worker standing in long lines with food vouchers to buy a few products in what were largely empty supermarkets, while the ruling class wined and dined and had every luxury in abundance at their disposal.
Since this is what happens when governments start calling the tune, Getty decided to be a capitalist and within in three decades was employing 12,000 people.
Before Getty died, he set up the J.
Paul Getty museum with the intention that it would be free to the public and their would be no drain on the public purse because the government treasury would never have to bail it out because of financial mismanagement.
So where is the USA heading? Is it heading towards a financial collapse and socialism by default? Or will Barack Obama be like J.
Paul Getty and change the course of USA, so that it is able to establish its ascendancy in the global markets?
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