A Solution for the Auto Industry

A Solution for the Auto Industry

This will be short and to the point. Like the 10% solution I have been touting to buy back and retire our national debt – I have another radical idea. Didn’t the government say they wanted radical ideas and changes. If I were bailing out the whole auto industry and we are then I would create a new company – let’s call it auto manufacturing USA. Each auto maker would contribute their manufacturing capacity – plant, property, equipment and by the way Union contracts into the new company. The new company then would look across all plants, product lines, capability and streamline the production of all automobiles for the big 3 or even foreign manufacturing. The optimization of the auto manufacturing sector – the challenge to convert all the plants and cars to being “more green” and the otherwise antiquated operations could be addressed under one business strategy. The best of breed operations would be kept, others upgraded and all the plants retooled with the ability to produce each other cars.

The auto makers would liberate huge assets on their balance sheet. Liabilities and operating capital from those operations would be shed. The IPO for the new company I am certain would create a windfall of capital into the industry and the requisite capital needed to upgrade, phase out, retool the manufacturing lines and create new ways to produce cars. Automakers then would be responsible for research and development, product marketing and distribution, finance and automotive innovation. That sounds much like the Pharmaceutical industry doesn’t it. Another radical idea that I think is on the money and can be used across many industries that would find it is in their best interest to team up with their competitors to make these types of ideas reality.

UNEMPLOYABLE & UNDEREMPLOYMENT

UNEMPLOYABLE & UNDEREMPLOYMENT

Jobless Americans now exceed 1967 figures. But unemployable and underemployment are the words we should all be looking at. With the tsunami coming rippling throughout the auto sector expect unemployment to skyrocket. But the industry workers face a worse reality – they are unemployable. As terrifying as that is for families across our nation it is a stark reality. Even if the workers in ghost towns created by plants closing – and this is not just auto – could get a job they would be severely underemployed at best. Basically, what option do they have? What option for work may be available for them? If industry leaves many towns there is nothing for them out there. If they live in larger cities they will never see the kind of wages they were likely earning prior.

The employment figures issued by the government are up and down week to week. The political machine is looking for some light to parley into political showmanship. But the reality is this will continue to rise as defense is getting hammered, retail, finance and every other sector. The fact that fewer companies may be laying off fewer workers has little bearing on the fact that all the workers that have and can find work are way UNDERemplyed. We do not figure this into the numbers and certainly not into our national consumption projections – the key element to our nation’s recovery.

What is going to happen when the auto sector is hobbled – and it will be? What will all those towns and workers do? We focus on manufacturing but up and down the supply chain, dealerships, parts manufacturers, vehicle finance and more will have severe layoffs and bankruptcy too. We all watch these unemployment figures and will watch them rise but I believe they are not the only useful numbers in portraying or economic strength. I believe they are touted when up and disregarded when sinking anyway. But the real fact is the US Consumption Economy will lose so much more and more participation from the underemployed – unemployable and of course unemployed but my opinion is the prior 2 classifications are forgotten, overlooked and more devastating to families and our economy.

GM Held Hostage

Money Talks – Employees and Stock Holders Walk

I cannot believe that the GM bond holders are strangling GM. They have a choice to allow the business to operate and convert at least some of their bonds into stock although no guarantees that will work – this is the dilemma. Wouldn’t it make sense that they are teed up to lose big money in a bankruptcy? Since they are bond holders they have a secured interest in the assets of GM. I believe their strategy is that no one is buying cars anyway so regardless GM is going bankrupt. Even if GM gets bailed out further the bond holders at least will be in the driver’s seat of a bankruptcy. This way they can make sure they are in the first position to get any money from a restructuring or sale of assets. In other words they get their money out first up to the total face value of the bonds. Well guess what – mom and pop and mainstream will get virtually wiped out!

If GM declares bankruptcy because they are forced to because of the inflexibility of the bond holders those bond holders will be partially responsible for bringing down another American icon brand. There seems to be no way around bankruptcy and this is also largely because people aren’t buying cars and that GM is backed into a corner. Strapped with unions, debt and lack of sales I do not believe there is any way around it and I do not believe that the auto industry in its current form will be a surviving industry here in America anyway. As appalling as it sounds these are the tea leaves. This industry is a dinosaur and just cannot compete globally.

The bond holders are strictly focused now on their ability to control GM assets in a bankruptcy. It is really the only thing they can do to protect their capital. It is not about people, shareholders or employees – it is all about the money. Money talks and people walk in this case. When you see several of America’s top automakers forced in bankruptcy and are cratering before our eyes we can’t even fathom and measure the massive unemployment skyrocketing and huge loss of more money in the stock market. This is really bad – I mean really bad – and watch for the other markets I have been ranting about because there are many more of these in other sectors to come.

Americans Can't or Won't Consume

What it means to Chrysler and may others

We are now seeing what I have been ranting about for a year. American consumption is the basis for our economy and a sustained recovery. This isn’t going to happen soon enough and the economic affairs of this nation won’t be back on track for up to decade – if we don’t corner ourselves into bankruptcy first. If you want an example watch Chrysler and the rest of the automakers. They can’t sell cars damn it! How many times do we have to sit back and watch this? No one is buying cars and shutting down deal relationships that have 44,000 cars on the lots isn’t going to help and certainly will crater a whole segment of the industry. This will for sure happen across almost every industry. Look at retail as well.

If you want bell weathers for the economy look no further. Home sales, credit card usage, investments, retail, auto – name it and its all hurt badly. Why – we are a consumption economy. Until we get that right and everyone comes to grips with this fact we will not get the real read on the damage now and to come. Manufacturers of every kind – clothes, make up, office products, tools, wood, nails etc.. can’t move their products off the shelves. Yes consumers won’t or can’t buy them. I believe we have only seen the tip of the iceberg here. This cascade will go up and down industry and back up again. The government’s growth and stepping in won’t help this any either. Unless we get consumers shored up and confident – not sporadically but with a degree of permanency we are cooked.

What are we to do? Raise taxes? Socialize industry? Borrow trillions? Can’t we see the writing on the wall? There is no end in sight for the American government to get out of its own way. There is no plan to stop borrowing, to pay down the national debt, to get consumers back to the marketplace – no plan at all. We hear all this crap on TV and are supposed to eat it up like some beauty contest. We offer extremely low income breaks and home loan restructuring on and on – but they aren’t the consumers! Middle class and the rich are.

I guess I will just throw rocks at the sun. I see no solution – end in sight for borrowing – getting consumers shored up and no way to stave off America’s bankruptcy. You all know I have some simple plans – like the 10% solution in my pocket. But instead the only plan the government is offering is more borrowing and bailing out big business. Ahhhhhhhhhhhhh. I will leave it at that – horrified, worried, appalled I can’t say enough – I have a sore throat from screaming.

North Korea has the bomb - Iran will be next

Obama is being challenged – even Joe Biden predicted it.

3 nations we would deem horrifying with the bomb are North Korea, Iran and Venezuela. All 3 are led by a hardcore regime and each has stated ambitions to wield the Hand of God. North Korea is by far the most grave to the US and its allies like Japan. North Korea has the means to bomb Japan now and has been lofting missiles to prove the point. I predict that while Obama is in office Iran will get the bomb! It is not just a bluff anymore this is a real situation that challenges the Obama administration. We had George Bush, although not generally popular, as our Bulldog. Now we have a Jimmy Carter in the White House and we all know what that did. Remember how fast Iran coughed up our hostages when Regan came in.

Joe Biden was very clear that the Obama administration would face “Tests” early in the administration and he is exactly right. Obama offered an olive branch to Iran and they spat on it. North Korea is just flogging its nukes in the face of the world – more specifically the US. The Liberal agenda has been one of positive change for the US global image and that is for certain needed. But at the same time there has never been a Liberal nation in history that has survived itself. Liberalism and a peaceful national stance will get America hurt and badly. Our enemies are working tirelessly to obtain, develop and potentially use their force and agenda to corner us and the terrorists are watching with glee.

Shut down Gitmo! Pull out of Iraq! And placate rogue nations is exactly what terrorists and dictators love to hear. In their minds they have won or are winning the battle with us. This makes the world a much more dangerous place and here we are worried about the rights of lunatics. Our velvet glove approach to the world works for many nations but not crazies. We are going to see what Liberals are made of now and if they have the guts to stand up and face threats. If we continue to outreach to nations and play Mr. Nice Guy in this dangerous world we will have another 911 and worse instability and threats worldwide. Even if the public didn’t like Bush I bet most Americans felt safer with a Bushdog in there making sure the world knew not to come even close to doing us harm.

The Government’s Iron Fist

I have a question. If government can’t balance a check book and run itself other than into the ground then why on earth would we believe that they can dictate business practices and take over more and more of the system. I believe these people really believe in themselves and their business savvy. Well, we all know its career politicians, lawyers, public personalities and yes some sharp business people that are in the vast minority in Congress. I can’t rant strong enough to get the point across that our government at Federal, State and Local levels is frankly incompetent and here we are letting them dictate how business is run.

The unprecedented interdiction of the government into our banking system was sorry to say absolutely necessary or we would have had a collapse. However, Obama is driving his fist through massive government expansion into the face of Capitalism. The door has been cast wide open for Obama to spend trillions of dollars to expand government like we have never seen and dictate to private industry what it can and cannot do. Automakers are one example and credit card companies another of late. Is this the price of doing business with the government? Can these government people help or hurt the industry and companies they are “bailing out”.

Well bailing out is interesting when you are sinking in a boat. Many industries should be left to drown anyway. But you can bail out and bail out the water but replacing it with an anchor will make it sink faster. Here we go with a huge anchor to be put around the auto industry’s neck. It is good to wean off of oil and help the environment but do we really think overhauling the manufacturing of cars is going to help a dying breed. Don’t you think all of the competitors will get there first anyway? You bet they will! Plus who is buying cars these days and how can the big three survive when they can’t push out more cars to dealers and consumers in the interim. That’s right it’s a sinking ship weighted down and the rats are going along for the ride.

We see all the union and auto execs joining that BS show on TV drummed up by the political branding people. Horrifying. They have to look happy and eat crow because the government has their foot on their neck. Why do you think there is a rush to not take government money? Banks, Insurance companies and any that see the government as toxic. The capitalists will do anything not to be in business with these people and certainly I wouldn’t want a business partner that is insane. Would you?

The good the bad and the ugly is coming our way and will keep coming as long as this administration spends us into bankruptcy and tries to mold capitalism into the same mess the government is in.

Pakistan Ground Zero

Radical Islam’s Nuclear Ambition

I’ve been writing about Pakistan for a while pointing to the ominous threat that the rapidly destabilizing situation there poses to the world. Just imagine radical Islam having the bomb! Iran isn’t the only one with nuclear ambition.

The question we have to ask ourselves is what would happen if Pakistan goes the way Iran did decades ago. The nuclear nation is hanging by a thread and their nukes are within striking distance of the Taliban already. What a horrifying scenario. Worse, history is repeating itself and actually repeating upon us. Pakistan is the Cambodia of this war just like in Vietnam. A hands off nation harboring the Taliban like the Viet Cong growing their military and power while we fight a politically correct WAR and let it all happen. The only thing they understand is power and if we don’t crush this it will become one of the worst situations our planet has faced.

If you don’t think Iran and the Taliban backed by Iran have their eyes fixed on getting their hands on Pakistan you are mistaken. This is the “Holy Grail” of situations. If Radical Islam can influence Pakistan or better help topple the government – even in some major parts of the country – they can get their hands on the Nukes. Well that won’t happen. Pakistan will take care of that. You better believe they won’t and may not be able to stop it. The Taliban isn’t throwing rocks at the sun and their benefactors like Iran and North Korea are pulling strings behind the curtain. The goal being to turn Pakistan into a Theocracy. Imagine if Iran had nukes when the revolution took place.

Here again we are being statesman and playing with velvet gloves. The Taliban knows this and also knows we have limits to what we can and can’t do. But they certainly don’t have to adhere to the Geneva convention. They cut off heads on TV and they blow up stuff across the world to bring attention to their cause that grows every day. As their movement grows the world becomes a far more dangerous place and now with Pakistan it has reached in my mind a final boiling point. Send more troops to Afghanistan. “Work with” the Pakistani government to help them combat radical Islam and the Taliban. What in the heck are we talking about? This situation is repulsive to me. If Pakistan is home to the Taliban and a nuclear nation then how the hell can we let them continue to exist there?

We 100% cannot allow them this safe haven and opportunity. If Pakistan can’t or want handle this the US should take matters into their own hands and turn Northern Pakistan into a wasteland. If all they respect is power and we won’t use it we are that Paper Tiger. Sleeves up, gloves off and put the Hand of God down on the Northern provinces there or our worst case scenario will come true. But since we are owned by the world and China paid for the Iraq war we have to sit by and watch these lunatics thumb their noses at us. I for one would have already turned northern Pakistan into a wasteland.

The Taliban Nuclear Ambition

Iran isn’t the only one that wants to wield the Hand of God

Pakistan is ground zero. If we think the Taliban is a bunch of rogue fighters throwing rocks at the sun – think again. What’s behind the Taliban is a hugely sophisticated agenda and alliance with nations like Iran. Frankly how are they getting weapons? That’s right Iran. Other rogue nations like North Korea can be supplying them too but what ambition lies beneath the Taliban’s growth and aggressiveness. Nuclear Weapons and a standing army. Pakistan is the ideal place for them to make a stand and if all goes as planned topple the country and cause a civil war.

Pakistan is soft peddling and trying to contain these people who cut off heads, slit throats and forcibly recruit males from all lands they occupy to beef up their forces. Woman – forget about them – they are drawn back into the Middle Ages. Remember these words “The Most Committed in War will Always Win”. And the Taliban is committed for certain. But here at home we sit in front of the TV and tune into our war time entertainment. Once we have had our fill of it we lose heart and stomach to persevere. Worse Liberals fight to give these people rights like at Guantánamo Bay. What rights do you think we would get if the shoe was on the other foot?

Maybe I am crazy but when people get beheaded on TV doesn’t that set off alarms that these people are animals and we are trying to play nice. The only thing respected in War is POWER. We exert our power in war in a politically correct way so we don’t upset the apple cart – frankly Islamic nations. Well here is the score.

If the Taliban are left in Pakistan they will gain access to nuclear weapons. Period. And I am 100% sure that Pakistan because of its politically correct war making capabilities will never be effective in deterring them. Even if short term peace deals and treaties are formed the fact is they will not stop. They believe their destiny – like Iran – is to wield the Hand of God. Well they will be able to soon.

I for one believe strongly we need to take all gloves off. And I do mean off in a huge way. Screw Pakistan if they can’t get their house in order. Taliban – Iran going nuclear is horrifying. And once they get the bomb how hard will it be to deal with them at that point. Hey here’s an answer. Look at Northern Pakistan. Take the whole area up there and drop MOABs all over the place – carpet bomb it for a year if necessary and destroy them in nothing short of a Biblical event. If all the other Muslims want to rise up across the world – then so be it – bring it on – our ideological war with them cannot be won – so we have to buck up and wipe them these people out. Do you think the Liberals have the you know what to do. Nope and we will see the horrifying results of bringing olive branches around when they want to poison us and our way of life.

Arlen Specter: A Real Turncoat

"I need to be reelected so I changed parties"

Arlen Specter knows Pennsylvania votes largely Democratic. He explicitly stated that his reason for tucking his tail into the Democratic Party was to make sure he was elected again - not even an ideological change behind his reasoning. How appalling is it when a Republican leader decides it is in his best interest just to shift parties so he can win a reelection?

Recently, going across the state, he realized that voter sentiment would make it very difficult for him to be reelected under the GOP ticket. So here is a guy who now says that he is at odds with the far right of the party ideologically but then turns around and makes a choice, and we all know this is why, not based on principle but on a desire to stay in Washington. Come on! He must think we are stupid. Any rhetoric and crap thrown out there to cover up his wanting to be reelected is just another political marketing campaign. Nothing more.

This is an obvious switching to the side he thinks is the winning side. This happens with sports enthusiast, in business and all other relationships. How do we often feel about those people? We consider them to be sellouts! That is what Arlen Specter has done and is doing. I can't believe he even said on several interviews that he will not risk his political career in the next election because he wanted to make sure he was reelected. I hope he loses and that the Democrats across Pennsylvania see behind this veil and realize this is a ploy.