Fighting to Preserve Liberty in America
As I check the current price of GM stock this morning, $31 per share, and I contemplate how in the world it is going to reach the $53 per share price Americans need to fully recover their “investment” in the automaker, a recent news story lays it on the line. It’s not going to happen. The Obama administration has announced that it is demanding that auto companies double the mileage that their fleets get, to 56.2 miles per gallon, by 2025.
The Obama administration, having stepped in it with both feet to protect their union backers rather than let two of the three U.S. automobile companies go into bankruptcy, are now weighing the sale of the stock owned by us, in an Initial Public Offering (IPO). Their plans are to scale back the offering to prop up the price that they might be able to get in the market so that they can ultimately get most of the taxpayer money they spent, back.
“While both G.M. and the Treasury still hope to reduce the government’s stake in the company to less than 50 percent and rid the company of its Government Motors nickname, that goal may not be met, one of the people said,” according to the New York Times. In saying that, auto analysts are increasingly projecting that the government could get most or all of its remaining $43 billion investment, but it will takes years to accomplish. Uh-oh.
How much time do we have left before Joe Biden’s prophesy comes true that within six months of taking office Obama, and by extension we, will face an international crisis? Well, unless you haven’t been paying attention, I think he will hit his mark before his 100 days are up.
Obama and Biden and the rest of their supporters have confused the difference between being liked and being respected. Daniel Patrick Moynihan, while ambassador to the UN called the world, “A Dangerous Place.” When trying to be a leader in a world that is dangerous, it is far better to be respected than liked.
The Obama Feel Good Tour
As President Obama tours the world and grovels at the feet of the Europeans, the Saudis, and Latin American dictators, trying to “repair the damage,” done by President Bush, our enemies are licking their chops. The Europeans flocked to see him, touch him, kiss him, but when he asked for a commitment of more troops for Afghanistan, how did they respond? Awkward silence and an offer of 5,000 troops to train police while at the same time an insistence that the “world” should have some say in the regulation of the U.S. economy.
While President Obama achieved his goal of improving the U.S.’s likability quotient, pirates were taking ships on the high seas, North Korea sent an ICBM over Japan, Iran celebrated Nuclear Technology Day, and the Taliban made inroads in Pakistan. How did the popular leader respond? To North Korea, he scolded that actions have consequences and words have meaning and proposed more words from the UN to be piled on top of the words the North Koreans are already ignoring.
Disarmament
To continue with the feel good groove, we have stopped calling terrorists terrorists. Their acts are now to be called Man Caused Disasters and I guess the terrorists themselves are to be called Man Caused Disaster Causing Men (or Women). After all, we don’t want them to be offended by being called terrorists. Isn’t that was caused 9/11? It was merely a response to our bad behavior, no? Our lack of likability?
There is no longer a War on Terror. It’s an Overseas Contingency Operation. We don’t want to raise Osama bin Laden’s sensibilities thinking we might be at war with him, but we do need contingency planning in case something happens. As a further show of good faith, let’s start re-writing the Al Qaeda training manual for them by telling them exactly what kind of interrogation techniques we use so that they can best prepare the training of their members to resist them. Of course, we already swore we would never use them again anyway, but we have to make sure they are prepared for the infidel’s trickery. Repeat after me: “I am not going to drown. I am not going to drown. I am not going to drown.” There, it’s simple, now they can resist even our most diabolical torture. But we shouldn’t forget to tell them that if an interrogator so much as raises his voice they should do the following:
If that doesn’t get them to lay down their arms, what will?
Respect Not Likability
The only time the United States is both respected and liked is when the bullets are flying and the United States is saving the hides of our new friends. When the shooting stops or it is confined to a theater far away from the talkers, the United States will be disliked but, however begrudgingly, respected.
Ronald W. Reagan may have been liked personally in private but when the klieg lights were on, he was “an amiable dunce,” and “a cowboy.” But Reagan stood firm and put Pershing II missiles in Europe against all protests. Such steadfastness led to the eventual arms negotiations and winning the cold war. At the moment President Reagan took the oath of office, the Ayatollahs in Iran released the American hostages they held for 444 days. They respected that Reagan would act, not just talk.
George W. Bush was not liked. He was another cowboy, one who was inarticulate to boot. But he was respected. After 9/11 the world respected that he would hunt down and kill America’s enemies. After the Iraq invasion, Libya publicly shut down their nuclear program. Quadaffi didn’t want to be next. President Bush kept America safe for seven years after 9/11. Now, this Congress and this President want set aside over 200 years of precedent and to put them on trial for doing that.
Preparing for Our Enemies
President Obama plans to keep America secure by cutting our defense budget by 25%. He plans on a staggering increase in our national debt and selling it to the Chinese. Picture the Chinese doing to the USA what Obama did to General Motors. Can you just see the head of the Chinese Communist Party saying to Obama, “Well, we own you now. You’re fired.”
Can this Juggernaut be Stopped?
On April 15th over 1 million people gathered at Tea Parties around the country to protest the growth of government, the taking of our liberty and out of control taxes. The Obama main stream media largely ignored the event, or willfully disparaged it.
A recent Rasmussen poll, “85% of mainstream Americans say the government has too much money and power, just 2% of the political class agree.” If they have no bread, let them eat cake! The poll went on to say, “51% of Americans have a favorable view of the Tea Parties but the political class strongly disagrees.” {emphasis added} How more out of touch with the people can they be? How more arrogant in their shameless grab for power can they be?
I will end this post, my friends, with a quotation from the Declaration of Independence.
“WE hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain inalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness — That to secure these Rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these Ends, it is the Right of the People to alter or abolish it, and to institute new Government, laying its Foundation on such Principles, and organizing its Powers in such Form, as to them shall seem most likely to effect their Safety and Happiness.”
July 4, 1776
I hope to see you at the Tea Party on July 4, 2009
Can liberty be saved? Is there a chance that we can rescue our country from the federal juggernaut that wants to reach down into the deepest recesses of your life and take control? They spend your money with reckless abandon and say, “What Me Worry?” Those in power would have indulged in the trappings of office, sated on money and power, and be long gone with their spoils while the crumpled bill lies on the floor for you and your children and your children’s children to pick up and pay.
They have invited many to the party, to eat, drink, and be merry with promises of “middle class” tax cuts that are the greatest April Fools joke of all time. Don’t worry we’ll get the rich to pay for it all. You know, those evil fat cats on Wall Street. But the Republicans on Wall Street have long be replaced by Democrats. That’s right, Gordon Gecko is a Democrat. 60% of Wall Street contributions went to Democrats vs. Republicans. How long will the top 2% of earners keep shouldering the burden before they slow down, stop, or emigrate. Who will pick up the pieces then? Who will support the drunken revelers that Obama piled on the public dole?
AIG Outrage
All of the outrage by Congressional and Administration leadership over the AIG bonuses is the epitome of hubris. AIG contributed $104,000 to each Barack Obama and Christopher Dodd, during the recent election cycle. Do you remember the brouhaha over language in the stimulus bill that had a loophole that allowed the AIG bonuses to be paid? Dodd said he didn’t include the loophole. Later he said he did include it but at the insistence of the Obama administration. Now is it just me or does anyone else see a quid pro quo here? Then they come out red-faced professing that the bonuses are an outrage. Senator Schumer, who is threatening to unconstitutionally tax the bonuses into oblivion, took $112,000 in contributions from AIG.
Lessons from Hugo Chavez?
More recently President Obama effectively fired the CEO of General Motors and now speaks of bankruptcy. I, among many others, said they should have filed for bankruptcy long before taxpayers bailed them out. So now after we have sunk taxpayer money into GM and Chrysler, Obama steps in and effectively runs the company on “our behalf” as owners of 80% of the company and now says bankruptcy is a good idea! When will the amateur hour come to an end? But watch carefully, because Obama will assiduously avoid offending the auto workers union, despite the fact that the union contracts put US auto makers at a $2000 per car disadvantage against the competition. GM (Government Motors) will now be forced to make cars that satisfy Obama’s left wing supporters but that Americans don’t want to buy. It will be interesting to see how the government forces us to buy them.
What Do the Europeans Think?
For years we have been told by the left that we must listen to what the Europeans are saying. They say we have to consider foreign laws in weighing Supreme Court cases. They decried Bush’s policies as alienating our European friends. So what do the Europeans think of Obama now?
The president of the European Union on Wednesday ripped the Obama administration’s economic policies, calling its deficit spending and bank bailouts “a road to hell.” — Washington Post, March 25
A Very Dangerous Path
In March of 1933 Adolf Hitler, proclaiming a national emergency of a potential communist revolution asked the German legislature, the Reichstag, to grant him emergency powers to deal with the situation. Such a proposal required two-thirds approval by that body. The final vote was 441 in favor, 84 opposed. From that point on, Hitler was dictator.
Rahm Emmanuel likes to say, “You never want a serious crisis to go to waste.” President Obama is taking the current financial crisis to ram through a massive power grab. The legislation is being rammed through with such force and urgency that no one has a chance to read it. What ticking time bomb could be tucked in those pages that get voted on and passed without scrutiny? Just look at the AIG fiasco for the answer. No one seemed to know or admit it was in there. If we allow this to continue, we may find some other provision included in the dead of night that will destroy our country forever.
Be on your guard.
The government decides that we have no choice but to bail out the automobile companies. Before taking office Obama supported the bailout. In my humble opinion, I believed the auto companies should have turned to the bankruptcy courts. Now, President Obama is clearing the way for states such as California to significantly increase mileage standards for cars.
So let’s examine this. The big three are forced to sell a lot of small cars at no profit or a loss for each profitable vehicle like a Cadillac they sell so that their fleet average fuel economy will meet CAFE standards. The result of this government meddling is that the big three are unprofitable, so they have little or no money to invest in the next generation of cars. Because they are on the brink of insolvency, the government steps in and bails them out with billions of taxpayer dollars. Even with that, it may not be enough and the auto companies may require more. So what does our government do now? It opens the door for states to tighten the noose around the necks of the auto companies by increasing the mileage standards.
So now the auto firms will have to sell even more small cars at a minimum profit or loss for each profitable Cadillac they sell, in a down economy no less, practically guaranteeing that the auto companies will come back to the government asking for even more bailout money.
The inexperience display goes on in Washington. How long can we stand it?
It’s hard to read the news about the auto industry and not clench your fists at the outrage. GM and to a lesser extent, Ford and Chrysler, are asking the American taxpayer to bail them out, but what is their position?
This company negotiated an agreement with its union that pays them almost full pay if they are laid off. Let me get this straight. You lay people off, as painful as that may be, to cut costs. GM negotiates an agreement that keeps the costs, but sends the people away. From their perspective, it’s free labor, they pay for it either way so put them to work! But no, I’m sure there are union restrictions about what you can put them to work doing.
In 2000 we saw the Dot.com bubble. What was the fallout? Millions were lost on Wall Street. Companies by the bushel basket went out of business. Thousands were thrown out of work. How much did taxpayers cough up to bail them out? Nothing. The market dealt with it. The strong companies re-grouped, the weak fell by the wayside. John Chambers, CEO of Cisco Systems, changed his own salary to $1 per year until he righted his ship. Today Cisco has $26 billion in the bank and Chambers is still at the helm. Nice work, John. It wasn’t done with arrogance and going hat in hand to Washington looking for a hand out.
In the 1970s and 1980s in the UK, British Leyland, maker of the Triumph, MG, Rover, Jaguar, Austin and five others, was in need of a bailout to keep going. The British government complied eventually pumping in $16.5 billion in taxpayer money to the company. It limped along for another few years and then went out of business. It sold its Jaguar and Land Rover brands to Ford, which then poured $10 billion into Jaguar. It recently sold both brands to Tata of India, getting back about half of what it paid for the brands.
Did the British economy go under? Is the British military without tanks? Let’s not forget that the Jeep was made by American Motors. Where is American Motors today? A company named AM General makes the military Hummer. Guess what the “AM” stands for? GM, Ford and Chrysler combined made about 17 million vehicles in 2007. Does anyone think this demand will vanish if GM, Ford and Chrysler vanish? Of course not. Either GM, Ford, and Chrysler will re-make themselves, new companies will emerge, or U.S. based foreign companies will grow to take up the slack. The jobs will move around. The demand is there, the supply will emerge to satisfy it.
The way out of this mess is to go Chapter 11, reorganize, renegotiate onerous labor contracts, sell off properties no longer needed but tied up in commitments to bonds that were sold to attract a factory, etc. The government should do their part and dump the CAFE standards. Americans will still want high mileage cars and companies will build them. It may not be GM, Ford and Chrysler who build them, but if they trim down, maybe they will. But they do make a profit on their premium models and light trucks. Let them.
But keep your hand out of my wallet.
