Just like we thought…

Now that Republicans in the Senate have drawn a line in the sand and killed the “American Socialist Experiment Act” (the auto bailout), GM has suddenly found a way to save money.  After all the whining and begging and flying to D.C. in private jets in an effort to extort money from the American taxpayer so they could continue to run their companies into the ground for just a little longer, we suddenly discover there is a plan C that we weren’t told about until it became obvious that Americans are going to keep their hands on their wallets this time around.

GM has decided to temporarily close plants across North America and cut output by a third in order to cut costs and preserve capital.  Wait a minute.  Weren’t they telling us earlier this week that without an immediate bailout they’d be completely shut down by New Years?  Didn’t it sound like the Democrats in Washington and the White House (they may as well be Democrats) were predicting something approaching the Apocalypse if the purse strings weren’t loosened NOW?

Here’s how the auto company execs played out their hand:

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1.  CEOs said unless Congress approves $34 billion in aid, the U.S. can look forward to becoming a 3rd world nation. 

2.  No?  Okay, since that didn’t work $25 billion will prevent imminent collapse of the U.S. economy. 

3. Still too much?  Well then, maybe $15 billion will be enough. 

4. What do you mean you won’t give us $15 billion?  Okay, $14 billion will have to do. 

5. You won’t even give us a measly $14 billion?  That’s not fair!  We’re going to pick up our toys and quit playing.  That’ll show you and the world as you know it will end.  Nobody will have a job, nobody will have any money, the country will fall into chaos, the DOW will go to $0, and Christmas will be canceled!

6.  You still won’t give us ANYTHING?!?!?!? We’re all going to die!!!!!!!!!!!!!!!!!!!!

7.  Well then, okay.  We’ll see what we can do to cut costs and keep as many jobs filled as we can so that when this economy rebounds we’ll still be in a position to restart and ramp up production to take advantage of it.  It would have been easier if you’d given us the money, but now we have to play by the rules and do what we probably would have done in the first place if you hadn’t just given the banks all that money.

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Okay, I exaggerated a little there, but you get the point.  Basically they were saying disaster awaited if they weren’t supplied with immediate cash and the amount needed kept being adjusted downward in an effort to find a point where they could just get something.

For those of you who believed the Democratic and UAW scare tactics and were convinced that Socialism was the only thing that could save us from impending doom, ask yourself “Who told me there were other options?”  “Who repeatedly said there were alternative paths involving restructuring the companies to make them competitive in today’s market?

I’ll tell you who.  It was the conservative “Gang of 6” along with conservative political pundits and activists on cable TV shows and the internet!  Groups like Rebuild the Party and Top Conservatives on Twitter marshalled their forces to rally behind the true conservative Senators to keep your kids and ours from inheriting many more billions of dollars in debt that one day will have to be repaid.

While Harry Reid (D-NV) and Nancy Pelosi (D-CA) tried to scare you into believing economic death would await you behind every door, behind every bush, and around every corner if we didn’t immediately implement full-blown Socialism, it was the conservatives who sounded the call of responsibility, accountability, patience, calm, and courage to deal with the impending crisis.

And suddenly, when it became obvious to these panhandling CEOs that nobody was going to fill their tin cups on the corner, we see a plan to carry them through this difficult time.  A real plan that appears to have been devised by someone with a degree in business.  Imagine that. 

It doesn’t take a rocket scientist to realize a company can’t sustain a cash burn rate of $1+ billion per month.  If your company is paying out that much more cash than it’s taking in, drastic changes to the business model should come quickly.  Yet GM knew for months this crisis was approaching and did nothing to prevent it!  Why would they when they thought if things got bad you and I would fill their coffers to keep them afloat?  It reminds me of a spoiled rich kid who spends all his money partying. Then, month after month has to come to his parents for money to pay the bills.

Know that we’re not deluding ourselves.  Hard times are yet to come–for the auto companies and for our economy at large.  But now we can confront the challenges the way they should be confronted, with restructuring and reorganization that will eventually result in a leaner, more productive business model that can once again thrive and be competitive in today’s market.

So all who believed it was imperative to pass this bill, to use taxpayer money in a vain effort to sustain an unsustainable business model, to fully embrace Socialism–an economic model that history has proven time and again cannot compete with free market Capitalism, think about who it was that spoke the truth throughout the hype.

It wasn’t the Reids and Pelosis, but the “Gang of 6” and all the conservative activists standing behind them.

Government Takeover Grows Bigger and Bigger

by Michele Bachmann at Townhall.com

A front page story in Thursday’s USA Today newspaper caught my attention:

“Federal share of economy soaring”

The article warns that the seemingly endless flow of bailout money flooding from the U.S. Treasury Department to Bear Stearns, AIG, the financial markets, etc., has put the federal share of the nation’s economic activity close to $1 out of every $4, the highest level since World War II.

What does this mean for our nation’s future? According to the USA Today, economists predict that as this rapid spending spree continues, it could lead to “slower economic growth, higher interest rates, and the likelihood that tax increases or spending cuts will be needed to tame a budget deficit headed toward a record $1 trillion.”

…(Read full article)

Sen. McConnell (R-KY) Statement on Failure of Auto Legislation

from the Office of Senator Mitch McConnell

Thursday, December 11, 2008

‘The sticking point that we are left with is the question of whether the UAW is willing to agree to a parity pay structure with other manufacturers in this country by a date certain… It is upon that issue that we’ve reached an impasse.’

WASHINGTON, DC – U.S. Senate Republican Leader Mitch McConnell made the following statement on the Senate floor on Thursday evening regarding the state of auto legislation:

“This has been a challenging exercise for everyone involved on both sides.

“We all remember, just a couple of months ago, we were called upon to rescue the American financial system. At the end of the day, after a few fits and starts, 74 out of 99 senators present thought it was a good idea to do that.

“It was a vote that we all proudly cast from our individual seats, and most of us supported it. It was a broad bipartisan vote supported by the two Presidential candidates as well.

“Now we’ve moved into a very tricky and challenging area and that is a sort of industry by industry rescue. And we’ve had before us the whole question of the viability of the American automobile manufacturers.

“None of us want to see them go down but very few of us had anything to do with the dilemma that they’ve created for themselves.

“And so the question was: is there a way out?

“The Administration negotiated in good faith with the Democratic Majority a proposal that was simply unacceptable to the vast majority of our side because we thought it, frankly, wouldn’t work.

“Into this breach stepped the Junior Senator from Tennessee who, I must say, has made an extraordinary impact in a very small amount of time. I’m hard-pressed to think of another member who’s been here such a short period of time who’s made such an impression on colleagues on both sides of the aisle by mastering an extraordinarily complicated subject and being able to explain it in a way that is understandable.

“And he has diligently pursued an agreement that could pass, that could enjoy broad support on both sides. And he has made great progress in that direction.

“The sticking point that we are left with is the question of whether the UAW is willing to agree to a parity pay structure with other manufacturers in this country by a date certain. And I understand their reluctance to do that.

“So far in the discussions that Sen. Corker and Sen. Dodd and others have had, they have not been willing to give a date specific by which parity could be achieved.

“It is upon that issue that we’ve reached an impasse for the moment.”

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Sen. Tom Coburn (R-OK) Press Release on Gov’t Waste

Coburn Report Highlights Worst Waste of 2008

Report Includes More Than $1.3 Billion in Pet Projects, Frivolous Grants and Other Ridiculous Spending

 

December 12, 2008

(WASHINGTON, D.C.) – U.S. Senator Tom Coburn, M.D. (R-OK), ranking member of the Subcommittee on Federal Financial Management, today released the oversight report “2008: Worst Waste of the Year.” The look back on 2008 features absurd federal spending from beltway bureaucrats and elected officials. To view the entire report click here.

“As we look back on federal spending for 2008, American taxpayers will laugh, and then cry at how their elected officials spent their hard-earned dollars. Not even these tough economic times have dulled Congress’ ability to find new and creative ways to waste taxpayer dollars,” Dr. Coburn said.

Examples of waste in 2008 include:

• $188,000 for Lobster Institute in Maine, home of the “LobsterCam”

• $1 million for bike paths on Louisiana levees while levees await basic repairs

• $2.4 million for a retractable shade canopy at a park in West Virginia

• $24.6 million for the National Park Service’s 100th year birthday in 2016 – 8 years early

• $3.2 million on a blimp the Pentagon does not want

• $367,000 wasted by a Texas school board on items like an inflatable alligator and under-the-sea waterslide, among other things

• $5 million for a bridge to a zoo parking lot in St. Louis

• $9,000 for a non-functioning airplane-shaped gas station in Tennessee

• $300,000 for specialty potatoes for high-end restaurants

“The waste highlighted in this report is only a fraction of the more than $385 billion the federal government throws away every year through waste, fraud and duplication. Yet, each example in this report is a snapshot that tells a larger story, just as the Bridge to Nowhere justifiably became a symbol of the corrupting nature of earmarks. The story the American people already understand is that Congress’ inability to make common sense decisions about spending priorities is putting our children’s future at risk. Until Congress abandons the short-term parochialism that gives us LobsterCams and inflatable alligators, we will never get a handle on the major economic challenges facing this country,” Dr. Coburn said.

Senator David Vitter (R-LA) Press Release on Bailout

Vitter Outlines Opposition to Auto Bailout Proposal

December 12, 2008 

(Washington, D.C.)– U.S. Sen. David Vitter today offered several alternatives to the auto bailout package being considered this week by Congress.

“Yesterday I announced two conclusions that I had reached on this bailout proposal: First, that I could not support this bailout in its present form and second, that I would use every possible procedural tool to delay or block a vote on its passage.  I continue to oppose this package today.

“I am not for doing nothing.  We cannot afford to simply pack up and go home because so much is at stake if we don’t take appropriate action.  I believe that if we are to do something, however, it should be the right thing.  There are two proposals being developed and discussed that I could support.

“One proposal by Senator Bob Corker would require that these companies reduce their outstanding debt by 2/3 and they bring their labor costs and work rules more in line with companies like Toyota, Nissan and Honda to make themselves more competitive.  This proposal would also require a change in UAW/VEBA payments, converting some to stock and providing employees with a real stake in the future of these companies.  Finally, it would require that all compensation beyond regular severance pay would end.

“I also support a formal bankruptcy process with help from the U.S. government. Automobile warranties would be backed up by the full faith and credit of the government with debtor financing available if necessary.  There are some who say that a declaration of bankruptcy would amount to disaster.  This is baseless fearmongering – there is another way.  We can demand fundamental, core restructuring and bring about real change in these companies, instead of simply throwing billions of dollars at them with no clear plan in hand.

“I urge my colleagues on both sides of the aisle to come together in a bipartisan manner and say yes to real restructuring.  If we are truly serious about helping these companies survive, we need to help ensure they can effectively compete in the marketplace,” said Vitter.

Senator Jim DeMint (R-SC) on Bailout

The Senator says it better than I can so I’ll let him do the talking!

Watch the interview.

Thanks Senator for standing up for those of us who don’t want to see the USA transformed into the USSA!

UPDATE:  Okay, I still couldn’t get the video from the Senator’s website to embed on WordPress, but I did find the following video on YouTube that I can put up.  It’s also a great statement by Sen. DeMint.

The more I see and hear of him, the more I like him!  Thanks Senator for standing up for our conservative values!

Press Release From Senator Ensign on Bailout

December 12, 2008

ENSIGN: TARP OPTION UNDERCUTS NEGOTIATIONS

Washington, D.C. – Senator John Ensign today called on the White House to take the option of using the Troubled Asset Relief Program (TARP) funds for the auto industry off the table.  Ensign led efforts in the Senate this week to stop the White House-Democrat auto bailout legislation because it took experts out of the process, injected politics and failed to require the necessary changes to make the Big 3 auto companies competitive over the long term.

“During debate last night and throughout negotiations, the Senate was only a few steps away from finalizing a deal,” said Ensign.  “By keeping the TARP funds as a last option, the White House significantly undermined any potential negotiation.  With TARP as a backstop, the concessions that had to made could not be taken seriously.”

Today, Ensign urged the White House to take the TARP option off the table and allow for the Senate to continue negotiations on a bill that will make the Big 3 automakers competitive over the long term, which will benefit the economy, American jobs and the auto industry.

Along with Banking Committee Ranking Member Richard Shelby, Ensign drafted an alternative bill that would have provided government backing to car warranties for the Big 3 if they went into bankruptcy and would have provided debtor-in-possession financing also contingent upon bankruptcy.  Instead of putting authority on a so-called “car czar,” Ensign and Shelby’s bill would have relied on the experts in the bankruptcy process.

“A car czar injects politics into a process that needs experts,” said Ensign.  “If we are serious about making these companies stronger over the long term, we need to have experts make these decisions outside of Washington, D.C., politics.  We owe it to the tax payers to be both responsible and effective.”

Blagojevich, a victim?

According to NBC’s Lee Cowan he is!  Take a look.

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NBC’s Lee Cowan: Blagojevich ‘Fell Victim to History’

Certainly delivering a unique take on the Blagojevich case, in a Thursday night story on why Illinois politics are so corrupt, NBC reporter Lee Cowan characterized the Governor of Illinois as a politician who “fell victim” to Chicago’s political machine. Apparently, corruption was just irresistible. Cowan contended: “The Windy City is a political stew of characters, a cast of players that even Hollywood would envy. Governor Rod Blagojevich is just the latest squeaky wheel in Chicago’s political machine. Although he promised to be different, he fell victim, prosecutors allege, to history.”

…(Read full story)

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What?!?!?! 

This is proof positive of the liberal bias that exists at NBC!  They just can’t bring themselves to paint a liberal in anything but a positive light, even one as crooked as Blago obviously is.  The simple fact is, Cowan would rather have a liberal criminal in public office than an honest conservative!

Wall Street tumbles as auto rescue bill dies in Senate

That’s what the link on Yahoo’s front page says anyway.

However, the article it links to is titled with the toned down headline:

Stocks extend losses amid worries about automakers

More liberal crap from the media.  They just can’t stand it that the DOW isn’t crashing after Senate Republicans refused to embrace Socialism last night.  After the failure of the “American Socialist Experiment Act”, Senate Majority Leader Harry Reid (D-NV) predicted doom for the US markets today.

The White House and Treasury Department are acting as if the country will implode if one or more of the Big 3 goes BK.  That’s ridiculous!  And the liberal media is enjoying every minute, working hard to set the stage for a revolt against the Republican Senators who stood their ground and refused to embrace the Dems’ and Bush’s Socialist efforts.

These companies need to file for bankruptcy and reorganize with a business model that can be competitive in todays market!

This bailout is a temporary fix, if it’s a fix all.  It’s like putting a bandaid on a severed arm.  The bailout backers will be able to say they’ve done something, but nothing real will be accomplished.  GM should have seen this coming earlier this year, but did nothing to prevent it.  This article in May reported GM burning through it’s cash at a rate of $1 billion per month, and that’s before things really tanked!  It’s probably been a lot worse for several months now.

Ford is the only one of the Big 3 not trying to suckle the taxpayer tit and that’s because it’s been working to reorganize for the last 2 years–without a cash infusion from taxpayers.

This bailout will only delay the inevitable.  Until GM and Chrysler make real changes, totally reinvent their business model, they’ll be coming back to the trough time and again.  The only way they’ll make those changes is if they’re forced to through BK–the sooner the better!

As I conclude the writing of this post, the DOW is currently down only 75 points. 

Not quite the catastrophe the liberals predicted.

Obama’s Undemocratic Plan to Tax Everything You Do and Send the Money to Kuwaiti Millionaires

from The Foundry

Despite the 5,800 miles between them, events yesterday in Poznan, Poland, and Sacramento, Calif., shed a frightening light on the direction President-elect Barack Obama’s administration wants to take our country on energy policy. First in Poznan, Sen. John Kerry (D-MA) promised delegates at an international climate conference that “Congress and the president-elect are committed to movement on mandatory goals as rapidly as possible.” According to Obama’s transition website, the preferred enforcement mechanism for these mandatory goals would be a cap-and-trade system for greenhouse gas emissions, which any honest economist will tell you is really just a energy tax dressed up in drag. Meanwhile, in Sacramento, the unelected California Air Resources Board approved “the nation’s most sweeping plan to reduce global warming by curbing emissions.” Like Obama’s plan, California’s plan features “an elaborate cap-and-trade program” at its core.

What makes California’s cap-and-trade plan so scary is that voters never had, and never will have, an opportunity to debate and vote on its implementation. The plan is being implemented entirely through the administrative process. None of the members of California board have ever had to, or ever will, face the voters. They are appointed by the governor.

…(Read full article)