Is the economic bailout of corporations justified?
I am alarmed that an estimated 1.4 million GM workers and suppliers could suddenly find themselves out of work and apparently Congress is concerned as well. House Speaker Pelosi previously met with car company executives to arrange another, additional bailout of up to $50 billion. Without the bailout GM will likely go broke in the first half of 2009.
The Fed a;ready gave AIG an $85 billion line of credit in an attempt to save America’s largest insurer.When that failed to work, the Fed added $38 billion more through its borrowing facility. Now — just the other day — after AIG announced it lost another $25 billion in July, August and September. So our government has now given AIG a new total rescue package in additional $150 billion refinancing. I can only assume that if the company continues to fail, the Fed will agreed to buy more billions of AIG’s toxic commercial paper.
AIG is just only one company, and already it has gotten as much money then the entire U.S. population got from the economic stimulus package of 2008. In addition to AIG and GM, the Fed has attempted to bail out Freddie Mac and Fanny Mae and many banks as well. While all this is happening I hear very little about regulation or control of these failed corporations.
In my opinion, resolving this financial crisis should be from the bottom up, not the top down. If the American people are incapable of supporting the corporate structure by purchasing goods and services then no amount of bailout for corporations can or will resolve the crisis. The trickle down philosophy will not work. The money would be far better spent putting the American worker to work in such programs as the CCC camps and WPA and use these resources to improve and upgrade our deteriorating infrastructure. This action would of course be considered socialistic by many. However, it is far more just and moral to bail out the masses who were not responsible for this disaster then to bail out corporate management and their shareholders. Why bail out those same corporations who refused regulation and mismanaged their companies. Let failed corporations fail as they should. Let the ax fall where it may. To use the American taxpayer's money to support incompetent and/or greedy management is neither cost/effective nor just.
Monday, July 6, 2009
Wednesday, May 6, 2009
Thursday, April 30, 2009
Banking... A giant Ponzi scheme?
When will the American people and our leadership come to the recognition that our banking system, as a whole, is the greatest Ponzi scheme in existence? What most fail to recognize is the fact that a bank considers a loan given as an asset. The more loans it provides the greater its asset position. What is most disturbing is the fact that these "loans" do not have to be tied to a tangible asset, or have any association with them. What we have in reality is that all money in existence is debt. If a run on any particular bank occurs the central bank is supposed to "bail it out". This situation works fine (just as a Ponzi scheme does) providing there is not a run on many of the banks at the same time. The problem we now have is that we are on the verge of a run on numerous banks and the banks (including the Central Bank) do not have sufficient funds to cover their obligations. Money has no real value unless it is tied to a tangible asset; and the dollar is not tied to any tangible asset. When we left the gold standard we terminated that relationship. The lack of government control and regulation over recent years has only accelerated the potential collapse of our banking system. I do not believe the government bailout as presently planned is sufficient to bring our banks to a stable position; especially when the CEO's are rewarding themselves billions of dollars in bonuses while their banks are collapsing. I am disheartened to think that we have not yet seen the worst of our problems.
My country is not the same...
My country is not the same...
As an American I am concerned, not only for myself, but for all of my fellow citizens. Many in government leadership positions have become obsessed with greed and control. As a result, we are all victims. Few of our citizens appear to have the fortitude to challenge the unjust and immoral acts being perpetrated by many in government. Nothing seems to be of more importance to many then achieving personal goals and objectives. The passion, love and caring that we had for each other 60 years ago and which made us believe in each other has eroded. There are those who believe our conscience is dead but I think not. There is still an inherent part in many of us that yearns to be free again and to infect those who are disillusioned and/or oppressed. I only hope that a change in that direction for all Americans is in our near future. If not, the country we knew and loved will no longer exist.
As an American I am concerned, not only for myself, but for all of my fellow citizens. Many in government leadership positions have become obsessed with greed and control. As a result, we are all victims. Few of our citizens appear to have the fortitude to challenge the unjust and immoral acts being perpetrated by many in government. Nothing seems to be of more importance to many then achieving personal goals and objectives. The passion, love and caring that we had for each other 60 years ago and which made us believe in each other has eroded. There are those who believe our conscience is dead but I think not. There is still an inherent part in many of us that yearns to be free again and to infect those who are disillusioned and/or oppressed. I only hope that a change in that direction for all Americans is in our near future. If not, the country we knew and loved will no longer exist.
Is America in its decline?
Is America in its decline?
In the United States there are more people with masters degrees in engineering, computer technology, and mathematics who are becoming self-employed handymen and gardeners or have taken positions in foreign countries. More skilled and unskilled workers are becoming unemployed every day. There is a sense of despair that previously was felt only by Blacks and Hispanics but is now being felt by many white middle class citizens as well. We lack a national health program with many in our country unable to get medical treatment. Our medical doctors are up in arms because of the high cost of mal-practice suits and the reduction of government payments through Medicare and other insurance. The drugs we develop are sold to citizens of other nations for pennies compared to the cost we must pay here. The cells of our jails and prisons are all over populated with one out of every one hundred of our citizens in prison . We read of outbreaks of food poisoning because of infected imported food. Assault, battery, and road rage is becoming more common in all states. People litigate because of the least little infraction or mistake. Pedophile priests and so-called men of God are protected by their churches. Local and federal governments are under enormous financial strain.
Greed appears to the overriding force. Honest and caring political leadership is difficult to find. Our politically active courts have usurped the United States Constitution. Our rule of law has been handed over to the politicians in control. Truth and empathy have become strangers. Our infrastructure is deteriorating, we have initiated an unjust war in Iraq with our leadership supporting torture, we have a severe budget deficit, and our leadership appears to have no concern for the environment. Our state of affairs is despicable and does not reflect an encouraging forecast for the future of our country. Perhaps I am too much of a realist. We have successfully exported our technical know-how along with the advantages of our once tightly held production capacity and capability. We are now exporting even our jobs. With major employment in the United States on the decline there is little left except for government service, low wage service related work, the medical professions, entertainment, and the legal field. Many Americans now feel a sense of despair and ask where are we heading? It appears to be easier to hate then to love. Social apathy is becoming more the norm. Many have come to believe that money is the salvation for their happiness. We must ask: Is there really much difference between America’s politically biased and greedy leadership and the dictators that are so prevalent around the world? Our political leaders publicly flaunt much that is decent, moral, and just. Our administration has initiated an unjust war in Iraq, supports torture and has lied to the American people. This is at a time when China is preparing to take on outer space, when North Korea wants to sell nuclear warheads on the black market, when most members of the United Nations and the world deplore our actions.
Our educational system is on the decline and the foundation of our intellect is becoming more slave-dependant upon the knowledge and skills that come to us from abroad. We are being told what to think and how to vote.
With those facts to consider, how much longer will America be free? Is it no wonder we have political polarization. Our government has caused a sense of insecurity and with it a decline in morality and responsibility. Our nation’s leadership has spent the last four decades developing wealth and at the same time tearing down the moral fibers and the competitiveness and greatness of our nation. Are we becoming like so many other nations around the world? It appears to me that we are becoming a nation of greed, corruption, violence, injustice, and cruelty with a distinct trend toward becoming a global dictator.
America is in its decline as other great nations have declined throughout the centuries. Radical and immediate change is needed or our nation will end up in the same category.
In the United States there are more people with masters degrees in engineering, computer technology, and mathematics who are becoming self-employed handymen and gardeners or have taken positions in foreign countries. More skilled and unskilled workers are becoming unemployed every day. There is a sense of despair that previously was felt only by Blacks and Hispanics but is now being felt by many white middle class citizens as well. We lack a national health program with many in our country unable to get medical treatment. Our medical doctors are up in arms because of the high cost of mal-practice suits and the reduction of government payments through Medicare and other insurance. The drugs we develop are sold to citizens of other nations for pennies compared to the cost we must pay here. The cells of our jails and prisons are all over populated with one out of every one hundred of our citizens in prison . We read of outbreaks of food poisoning because of infected imported food. Assault, battery, and road rage is becoming more common in all states. People litigate because of the least little infraction or mistake. Pedophile priests and so-called men of God are protected by their churches. Local and federal governments are under enormous financial strain.
Greed appears to the overriding force. Honest and caring political leadership is difficult to find. Our politically active courts have usurped the United States Constitution. Our rule of law has been handed over to the politicians in control. Truth and empathy have become strangers. Our infrastructure is deteriorating, we have initiated an unjust war in Iraq with our leadership supporting torture, we have a severe budget deficit, and our leadership appears to have no concern for the environment. Our state of affairs is despicable and does not reflect an encouraging forecast for the future of our country. Perhaps I am too much of a realist. We have successfully exported our technical know-how along with the advantages of our once tightly held production capacity and capability. We are now exporting even our jobs. With major employment in the United States on the decline there is little left except for government service, low wage service related work, the medical professions, entertainment, and the legal field. Many Americans now feel a sense of despair and ask where are we heading? It appears to be easier to hate then to love. Social apathy is becoming more the norm. Many have come to believe that money is the salvation for their happiness. We must ask: Is there really much difference between America’s politically biased and greedy leadership and the dictators that are so prevalent around the world? Our political leaders publicly flaunt much that is decent, moral, and just. Our administration has initiated an unjust war in Iraq, supports torture and has lied to the American people. This is at a time when China is preparing to take on outer space, when North Korea wants to sell nuclear warheads on the black market, when most members of the United Nations and the world deplore our actions.
Our educational system is on the decline and the foundation of our intellect is becoming more slave-dependant upon the knowledge and skills that come to us from abroad. We are being told what to think and how to vote.
With those facts to consider, how much longer will America be free? Is it no wonder we have political polarization. Our government has caused a sense of insecurity and with it a decline in morality and responsibility. Our nation’s leadership has spent the last four decades developing wealth and at the same time tearing down the moral fibers and the competitiveness and greatness of our nation. Are we becoming like so many other nations around the world? It appears to me that we are becoming a nation of greed, corruption, violence, injustice, and cruelty with a distinct trend toward becoming a global dictator.
America is in its decline as other great nations have declined throughout the centuries. Radical and immediate change is needed or our nation will end up in the same category.
Automobile bailouts?
No automobile company bailouts!Our government should not bail out the auto industry. Doing so would be throwing good money after bad. Let the ax fall where it may. The whole of the US automobile industry requires an update and restructuring. It is bloated and inefficient. We need to become competitive and institute a radical change in management and direction. Chapter 11 bankruptcy may be a good approach. Our government should recognize that the British government attempted to bail out their auto industry (British Leyland) in the 70's and 80s when it was threatened with bankruptcy. The bail out did not work and British Leyland subsequently failed and filed for bankrupt . The same would happen with our auto industry if we bailed out their incompetent management and supported the bloated structure in existence today. I sincerely hope we have learned a lesson from the British.
Change is needed
Real change is needed in our future.
It is not only our nation's economic situation that requires resolution and change, it is our foreign policy as well. When president elect Obama assumes the presidency I sincerely hope he does not make a colossal mistake by staying in either Iraq or Afghanistan. Both wars were a mistake from the beginning and are not winnable. The ethnic, tribal, and sectarian conflict coupled with a strong dislike for foreign interference throughout in the middle east preclude winning either war. There is some indication that Obama is planning to withdraw from Iraq but expand the Afghanistan occupation. I hope that he reconsiders this course of action. Real change is sorely needed both in our foreign policy and here at home, not just a change in administration.
It is not only our nation's economic situation that requires resolution and change, it is our foreign policy as well. When president elect Obama assumes the presidency I sincerely hope he does not make a colossal mistake by staying in either Iraq or Afghanistan. Both wars were a mistake from the beginning and are not winnable. The ethnic, tribal, and sectarian conflict coupled with a strong dislike for foreign interference throughout in the middle east preclude winning either war. There is some indication that Obama is planning to withdraw from Iraq but expand the Afghanistan occupation. I hope that he reconsiders this course of action. Real change is sorely needed both in our foreign policy and here at home, not just a change in administration.
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