RANT: Gooferment Motors bailout has cost over 32B$ dollars so far

Tuesday, October 27, 2015


Not News: UAW Considering Plan to Milk the Unemployment System If It Calls a GM Strike
By Tom Blumer | October 24, 2015 | 10:30 PM EDT

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The news coming out of Detroit about near-deadline negotiations between the United Auto Workers union and General Motors has been pretty quiet. As the Sunday 11:59 p.m. deadline approaches, the Associated Press only has a four-paragraph blurb indicating that the union wants to get a richer package than it just garnered in negotiations with Fiat Chrysler. A Reuters report goes into detail about GM’s cost structure still being higher than that seen at Toyota’s and Nissan’s U.S. plants by about 15 percent and 31 percent, respectively. The New York Times is only carrying reports from the wires.

One note of substance about the UAW’s strategy covered at Bloomberg News — surely known to others following the industry who are filing bland reports — is that it plans to milk the unemployment insurance system in the event of a protracted strike.

To be clear, such a strike would appear to be very unlikely, if for no other reason than the fact that Americans remember that the Obama administration bailed out GM at a considerable cost several years ago. The final fully-loaded cost involved was $26.5 billion — not the $11.2 billion touted by the press last year. It’s safe to say that quite a few people would not take kindly to the idea of the primary beneficiaries of that unprecedented largesse walking out on their jobs when so many others are still unemployed and under-employed over six years after the most recent recession’s official end.

(Additionally, the linked $26.5 billion analysis appears not to have picked up the effect of the government permitting GM to carry forward $16 billion in tax losses incurred by the “old GM” into the “new GM” — even though “a business that undergoes a change in ownership usually has to forfeit the old company’s net operating losses,” which certainly happened during the bailout. At the statutory federal income tax rate of 35 percent, that decision alone cost the U.S. treasury $5.6 billion.)

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And the UAW isn’t happy?

Talk about Crony Capitalism.

Now they want to stick the taxpayer — via unemployment insurance — with the cost of their “strike”.

Guess no one remembers the current 18T+ national debt and the guesstimated 200T+ in unfunded liabilities that our posterity will have to deal with!


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GLOBAL: Looking for an exemplar of what might happen here

Sunday, October 12, 2008


October 11th, 2008 at 4:32 am

Studying Japan’s Dark Years to See How the U.S. Might Fare

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Japan in the 1990s saw billions of dollars worth of wealth disappear. A generation of “parasite singles” grew up, living with their parents well into their 30s. The suicide rate spiked, and university graduates spent years in part-time jobs. Japanese entrepreneurs had no or limited access to capital, stymieing innovation. Yet the standard of living for the average Japanese did not dramatically change — the pain of the crisis unfolded over many years and the government refrained from dire pronouncements.

Unemployment would peak at only 5.5 percent, an enviable rate for much of the world in good times. Deflation — or price declines as gloomy consumers and skeptical businesses put off purchasing — sickened the economy. Yet leading experts now agree its impact was not as severe as originally thought.

Japan saw repeated years of low or negative growth, but the final tally was something short of a decade-long recession — with the 10 years leading up to 2000 averaging out at almost 1 percent growth. Companies like Toyota would prosper in adverse times, forced to sharpen their competitive edge. Emerging in the 2000s as the leader in hybrid cars, Toyota found itself on stronger footing than its U.S. counterparts.

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Well, our politicians are dumber than the average bear in the woods. So what is our five or ten year forecast?

On the plus side, they can’t hide the distress. Unlike the Japanese did.

On the minus side, the Japanese people are savers; we aren’t. (As a nation. Not me personally. Now that I’m in the retirement red zone, I’m trying to make up for lost time and all my relatives will have to fend for themselves. Unless one of my books goes platinum, they would be kept in the style that they’d like to become accustomed to! And Frau Reinke could make a frugal squirrel look like a spendthrift.)

On the minus side, more than half of the people work for the gooferment. That’s not a model that can sustain itself. Especially, if the gooferment raises taxes and “producers” decide to chuck it all and go on the dole.

Inflation is unavoidable. Where do they get all these billions they are printing? Certainly not from savings. “Re capital ization”, my tush. Capital only comes from savings. You know Robinson Crusoe forgoes eating a fish so he can eat while he makes a fish net. Savings. Real savings.

Unfortunately, the sheeple are going to get a real “eddykation in ecckkyynomicks”. It’s called the dismal science for a reason. It’s dismal. There are NO silver bullets in real life. You can’t have it all. And, no amount of printing press money is going to make it so.

Forecast: Runaway inflation. More gooferment spending. More pain in the country at below the Teddie Kennedy level. (Don’t you love how rich politicians — redundant repetition of terms –have the audacity to say “i feel your pain”!) Fixed income folk takes the brunt.

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RANT: It’s not an “economy” failure, nor a “free market” failure. It’s a “political” failure!

Saturday, October 11, 2008

On Oct 10, 2008, at 10:08 PM, P wrote:

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From: “Chuck & Joyce”
Date: October 10, 2008 7:18:54 PM EDT
To: <Undisclosed-Recipient:;>
Subject: Fw: Our failed economy

Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country to a pack of nit-wits who couldn’t make money running a whore house and selling booze?

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the economy hasn’t failed. we’ve failed to keep our politicians in line with what the dead old white guys outlined as the proper role of gooferment. at our own peril. anyone who votes for an incumbent this year is part of the problem. even if the incumbent had NOTHING to do with it or did nothing bad, they were: (1) tacitly complicit; (2) too stupid to realize what was coming down the road; OR (3) ineffective to stop it. Look at how many times Ron Paul was the lone voice “no”! No on the war. No on taxes. No on Fannie and Freddie. No on the Fed. Sigh. Best gooferment money can buy. Sorry. It wasn’t an economy failure; it was a political failure. We may become the next hyperinflation — like present day Rhodesia, Argentina of the 70s, or Germany of the 1930s. We know how well those all worked out. Gold coins may be needed. The Dead Old White Guys told us that was money. But we didn’t listen as FDR and Nixon fooled us. The 1913 FED started to procession to where we are today. Spinning out of control. Does no good to be right when the commonweal goes over the cliff taking us all to perdition. Argh. It’s all socialism and the elite in their hubris have led us there. Now where is my pitchfork and torch!

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Warning! Don’t stick your fingers in the Libertarian’s cage and poke or prod them. They can snap back. Us little L libertarians are very frustrated. No amount of warning “Here comes The Cliff” has done any good. All we get are dumb looks as people ask “Who’s Cliff?” Guess you know now. Welcome to what Mises, Hayek, Rothfarb, and all the “Austrian School” economists have been warning about!

Don’t blame me. I supported Ron Paul!

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POLITICAL: You’re Going To Guarantee A Depression!!! Ron Paul

Sunday, October 5, 2008

POLITICAL: You’re Going To Guarantee A Depression!!! Ron Paul

Ah the congress critters vote to enslave us with the chains of debt and inflation.

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