Tag Archives: US Auto Industry

Welfare for the rich at GM, Ford, and Chrysler as they cut jobs?

strange-car-wreckUS car giants seek $21bn funding. That would bring them close to $40 billion handed out to them by the Bush-Obama team if they succeed! And Obama, the No Change President, will make them do a few tricks to get their new billions, but that’s about it. Who can actually think that a top dog welfare scheme like this which will eventually be paid for by the newly unemployed taxpayer poor is something called a ‘stimulus package’? Hey! A liberal Democrat would!

Merry Christmas, Santa has a new ride

Christmas pickup
Season’s Felicitations from Not My Tribe
COLORADO, 2008- A Manitou family in Crystal Hills opted to hang Christmas lights on their old truck in lieu of their home. Was it to economize, to conserve, or to commemorate 2008 as the year of the pickup?

If I’m the only Grinch ascribing that interpretation, I still think it’s unassailable. 2008 was the year the pickup truck hit the crash test barrier.

Gas prices of four dollars per gallon tarnished the appeal of the pickup. Even now as inexplicably low fuel costs are dangled before Americans like a dealer’s freebie, the downward spinning economy has doomed the in-utile utility vehicle and there’s no getting back up on that saddle.

Is that any kind of Christmas message? Sure! It’s Obama’s urbane, metropolitan, social-conscious, victory over the Republican cowboy. Common sense over common simple. Practical over pretend.

2009 world collapse of auto production in route

us-autosGas prices are sinking! Whoopie! Hooray! But why is that happening? Kind of eery, isn’t it? Answer is that gas prices are falling simply because there is a world collapse in automobile production now underway. GM is going down, a boat loaded with lead, and other automobile companies will soon follow. World gasoline demand will be decreasing and already is. Workers are losing their jobs, and now will buy less gas, less everything. Demand is down, down, down.

Standard & Poor’s said on Thursday it could cut GM and Ford’s credit ratings deeper into junk, saying that both automakers had enough liquidity through 2008, “but the accelerating deteriorating industry fundamentals will be a serious challenge to liquidity during 2009.” GM shares drop to 58-year low, global risks eyed Paper junk was backing vehicle junk it seems…

The world is beginning to see that this capitalist downturn is not just about ‘derivatives’, mortgages, and credit. It is a production downturn, too. Capitalism is not a system run on logic. It has production cycles (like a machine almost) where over production leads to economic depression, all initially fueled by looting and criminality at the very top. At the very top of this corporate excess profit looting system is the US Pentagon, which is a giant welfare pie for the super rich. Other industries like real estate and health ‘care’ merely stumble along behind as second bests in the looting frenzy of the super rich.

What ever you do, don’t buy a new SUV at still inflated prices and inflated consumption of precious societal resources. And get a job closer to home if you can? Most of the travel done in this country is basically unnecessary travel. Other countries will suffer more, simply because when travel is done, it usually is much more necessary than the riding around in circles that the US worker has to involve themselves in daily.