District of Corruption
October 13, 2012
Every year around this time, American car companies start rolling out their newest, shiniest models, hoping to entice you into buying one. It’s Detroit’s chance to show you what they’ve been working on – the latest and greatest. And this year is no exception. They’ve got some pretty good-looking cars coming out. But something is different this time around – and it starts with the auto companies themselves. Just a few years ago, the auto industry wasn’t just struggling – it was flatlining. GM and Chrysler were on the verge of collapse. Suppliers and distributors were at risk of going under. More than a million jobs across the country were on the line – and not just auto jobs, but the jobs of teachers, small business owners, and everyone in communities that depend on this great American industry.
But we refused to throw in the towel and do nothing. We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way. Today, auto sales are the highest they’ve been in more than four years. GM is back. Ford and Chrysler are growing again. Together, our auto industry has created nearly a quarter of a million new jobs right here in America. And we’re not just making more cars and trucks – we’re making better ones.
[What I'm not telling you: During this election season--with no positive record to run on--I've taken to grasping at straws albeit, broken straws! This 'Government' Motors 'recovery' is a complete fabrication, from start to finish. To begin, the reader needs to know the definition, the ramifications of the type of bankruptcy that General Motors was facing.
Just the word 'bankruptcy' leaves a bad taste in one's mouth, but the action of bankruptcy is a viable, sometimes warranted business action at certain points in a company's life. The definition, thus:
"The financial status of a firm that has been legally judged either to have debts that exceed assets or to be unable to pay its bills. Formal bankruptcy may result in reorganization and continued operation of the firm, or it may require liquidation and distribution of the proceeds. In either case, most security owners, especially shareholders, are likely to suffer losses."
Now that my subjects are knowledgable with that definition, we can proceed with the details of what actually happened in the whole sordid affair. For many, many years previous, General Motors--as did most auto manufacturers--made it a point to 'roll-over-and-play-dead' to conclude negotiations with the various unions directly involved with the auto industry. Finally, with union health care benefits; with union retirement and pension benefits; et al, coupled with a plainly inept upper management; coupled with a less-than-workable business plan, General Motors--and to a lesser extent, Chrysler Corporation--bumped--face-first--into the required-decision wall!!
Now, here's what happened: GM declared bankruptcy and prepared for reorganization while continuing to build cars and trucks. All could have eventually been resolved--most probably not to the unions' satisfaction--without the regime stepping in and dictating the terms and conditions. Here, it's important to understand what had happened previous to this corporate collapse:
the various auto union hierarchies provided both great financial and boots-on-the-ground support for my 2008 "Campaign of Fluff" as well as quietly, subtly forcing the union memberships to donate and provide boots-on-the-ground as well. I owed them--BIG TIME--for, without that forced support, I'd have never been in the position to be your exalted ruler; to spread the Saul Alinsky principles of socialism throughout America!!
When the federal government--read: I, your exalted ruler--stepped in to demand the terms of the reorganization outside the pervue of any bankruptcy court, ALL non-union individuals and entities were screwed-to-the-wall!!
- Firstly, the several hundred-thousand GM bondholders were paid off at less than three-cents on the dollar, a huge saving for Government Motors; a devastating loss for said bond holders. At the same time, GM common stock was driven to an all-time low of 18-cents per share.
- Secondly, all non-union auto workers were put on 'layoff' and their healthcare and retirement benefits agreements nullified.
- Thirdly, all parts suppliers-creditors were assured payoffs, though not nearly as devastating as the deep level to which I screwed the bondholders.
- Fourthly, no matter what you've heard, the 'cash' bailout of Government Motors was only $6.7 Billion; we carefully 'hid' the rest of the $50 Billion in pork, used for GM asset purchases.
- Fifthly, the vast majority of salaried employees of Government Motors as well as spun-off suppliers lost over 70% of their retirement cash benefits as well as all their healthcare benefits.
- Sixthly, a nearly 20% equity position in the new Government Motors was 'awarded' to the various auto unions in payment for their combined support of my 2008 "Campaign of Fluff."
- Seventhly, the federal government assumed a 61% (365 million shares) equity position in the new Government Motors. For the taxpayer to break-even, the stock price will have to rise above $55.00 per share. At yesterday's (10/12/2012) close, GM was $24.50.
- Eighthly, on 12/31/2009, the DJIA closed at 10,428.05; on 10/12/2012, the DJIA closed at 13,328.85 for an increase of 27.81%. The GM IPO on November 18, 2010 was priced at $33 per share, generating a Treasury payback of $11 Billion+, resulting in a reduction the 'taxpayer stake' in Government Motors to 33%, Whoop'tie-Doo!! During the aforementioned period, the value of Government Motors' common stock DECLINED by 34.6%!!
- Ninthly, so long as the federal government--read: me, your exalted ruler--holds said 33% stake, I can dictate on-going terms and conditions. I've already exercised this power: Can anyone spell C-H-E-V-Y V-O-L-T?!?
- Tenthly, this 'investment'
is goinghas gone the way of all my other marque investments, namely Solyndra!! At the V-O-L-T's break-even price of $41,000, Goverment Motors can't give 'em away!! Not even with a 'taxpayer rebate' of $7,500-10,000!!
- Eleventhly, this "....created nearly a quarter-million new jobs here in America...." statement? Completely misleading, complete BULLSHIT! These 'created' jobs are merely replacements for the several hundred-thousand non-union employees 'laid-off' during the regime takeover of Government Motors!
After 30 years of inaction, we raised fuel standards so that by the middle of the next decade, cars and light trucks will average almost 55 miles per gallon – nearly double what they get today. That means you’ll only have to fill up every two weeks instead of every week. It’s good for your wallet, it’s good for our economy, and it’s good for the environment. The technology that makes it happen will also help America stay on the cutting edge for decades to come. Just this week, GM announced they plan to hire 1,500 workers for a new research center in Michigan to help make sure the high-tech cars of tomorrow are designed and built right here in America. I’ve also signed new bipartisan trade agreements into law, because I want to see more cars on the road in places like South Korea imported from Detroit and Toledo and Chicago. All of this is something the American people can and should be proud of. It’s a reminder that when the American people put their mind to something, there’s nothing we can’t do. So next time you see one of those brand new 2013 models on TV or on the lot, think about how far we’ve come together. Think about how – thanks to the hard work and can-do spirit of the American people – more of those cars and trucks are being manufactured by American workers at American companies in communities all across the country. And they’re going to save you more money at the pump. That’s what America is all about. When we get knocked down, we get back up. We come back stronger. And as long as I’m President, that’s what we’ll keep doing.
[What I'm not telling you: These new CAFE standards will be a benefit if the regime-forced 175% increase in fuel prices at-the-pump continue beyond my upcoming 'retirement!' To achieve these standards, the American auto companes are being forced to make more-and-more parts out of plastic; out of lighter, weaker materials. This fuel saving will come at the expense of current passenger safety standards.
A portion of the announced Government Motors' plan to hire 1,500 workers for a new research facility in MIchigan, comes at the expense of a closing Government Motors facility in tiny, little Honeoye Falls (honey-OIE), N.Y. Until their notification, the 220-250 employees at said facility did fuel-cell development and experimentation. This action by Government Motors will be a huge, albeit temporary, set-back for the village.
Those referenced bi-partisan trade agreements I signed.... just how effective; just how profitable will they be? Have you ever seen the roads in most of South Korea?!? In most places, two donkey-carts can't pass side-by-side; how the hell will ONE AMERICAN CAR navigate said cart-paths?!?
I did make one correct statement in this entire blather opportunity:
"When we get knocked down, we get back up."
More correctly stated:
"When the regime knocks down the middle-class, they get back up with a vengence at the polls!"]