RWB News: The federal government owns 61% of General Motors. For some reason, the American people don't seem to recognize that government ownership of private industry is blatant socialism. Michelle Bachmann, R-Minnesota, in pointing out the obvious on the House floor, provides an excellent example of what Socialism brings. It does not bring fairness or equality. It brings gangster government* with special favors, back-scratching, and all-out theft. This video was posted by The Kick Them All Out Project. You can join them at http://www.KickThemAllOut.com.
We Now Have A Total Gangster Government
Click here to view the embedded video.
We've seen the beginning of Gangster Government from the beginning of Government Motors. Congressman Ted Poe (R-Texas) gave an excellent speech pointing out the partisan bias permeating government-run business from the beginning.
Partisan Politics in Auto Dealership Closures?
As posted by Congressman Ted Poe, Washington, Jun 2, 2009
Mr. Speaker, just south of Houston, there is a town called Alvin, Texas, where a Chrysler dealership called Rogers Dodge is making a lot of money selling Chryslers; but on June 9, they are going to close down because the auto task force gang has notified them that they have to close.
Rogers Dodge is on the list of 789 Chrysler dealerships around the country that are being closed down under questionable circumstances. There are five in the Houston area alone. The question remains: What are the criteria for closing down these dealerships?
The auto task force gang picks winners and losers, but they refuse to tell America how those decisions are made. Well, neither they nor the administration is talking. The blissful silence makes us wonder what's going on. Some of these Chrysler dealerships being ordered to close are profitable–others are not–but according to some news reports, there's one thing they all have in common except for one single exception found so far: they all have connections in some manner to making campaign contributions to Republicans.
Chrysler, an American institution, is no longer being run as a private-sector company. It has been taken over by the auto task force tyrants appointed personally by the administration. These individuals tell Chrysler what to do, and they have to do it because Chrysler took all that bailout money before they went into bankruptcy. Now the auto task force gang gets to run the company.
By the way, Mr. Speaker, we still don't know where that wasted bailout money went.
According to the Federal Election Commission Web site, there are reporters and bloggers around the country who have been digging through lists of donations. They have been comparing donor names on the lists with the names of owners of the Chrysler dealerships that have been forced to close. Some of these reports say that campaign contributions went to GOP candidates or to political action committees from the Chrysler dealerships that are being forcibly shut down.
Did this group of auto task force individuals discriminate against Republican dealerships in Chrysler-style or in Chicago-style paybacks? We don't know. How in the world can we square that with the reports that only one dealership being ordered to close down so far contributed to the administration's campaign–and that was only for $200? Campaign contributions appear to be the common thread in all of these ordered closures. That's some coincidence.
Rogers Dodge in Alvin, Texas, is one of the more profitable dealerships. Newspaper reports say they have increased their new car sales by 50 percent in just the last 4 months. That's a big accomplishment in this economy. They paid cash for their brand-new $3.7 million building 3 years ago. Along with many other dealerships, they bought millions of dollars of inventory after being pressured by Chrysler to help the company's financial situation so that Chrysler wouldn't go bankrupt. Now all of these assets paid for by these dealerships will be worth mere pennies on the dollar. One report in the Houston Chronicle said this inventory of cars that the dealerships were pressured to buy now will have to be sold as used cars. Some of these dealerships are fighting back against the Auto Task Force with a lawsuit of their own. According to the Houston Chronicle article, Nicholas Parks, the president of Rogers Dodge and a lawyer, says he's fighting the closure because he doesn't think the bankruptcy court should be used to close these vendors, especially those that are making money. How can you use the bankruptcy laws to shut down a vendor who is making a profit for Chrysler? This is very interesting. The American people are starting to ask a few questions on their own.
Are these Auto Task Force tyrants picking the winners and losers based on campaign contributions? Does the administration have a Nixon-style enemies list? All these questions because the Auto Task Force guys aren't talking and aren't telling us why they closed down certain dealerships and why they let others remain open.
We are now living in a time where the government controls both Chrysler and GM, which we should call Government Motors. And the government alone, not the free market, decides who wins, who loses, who stays in business and who must be forcibly closed down. Meanwhile, 100,000-plus Chrysler workers at auto dealerships who did nothing wrong will be out of work on June 9 thanks to government control. So much for the promise of new jobs.
And that's just the way it is.
*The article by Michael Barone to which Bachmann refers follows as posted. He has indeed begun an entire series of Gangster Government columns.
*White House puts UAW ahead of property rights
By: Michael Barone, Posted May 6, 2009, at The Washington Examiner
Last Friday, the day after Chrysler filed for bankruptcy, I drove past the company's headquarters on Interstate 75 in Auburn Hills, Mich.
As I glanced at the pentagram logo I felt myself tearing up a little bit. Anyone who grew up in the Detroit area, as I did, can't help but be sad to see a once great company fail.
But my sadness turned to anger later when I heard what bankruptcy lawyer Tom Lauria said on a WJR talk show that morning. "One of my clients," Lauria told host Frank Beckmann, "was directly threatened by the White House and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight."
Lauria represented one of the bondholder firms, Perella Weinberg, which initially rejected the Obama deal that would give the bondholders about 33 cents on the dollar for their secured debts while giving the United Auto Workers retirees about 50 cents on the dollar for their unsecured debts.
This of course is a violation of one of the basic principles of bankruptcy law, which is that secured creditors — those who lended money only on the contractual promise that if the debt was unpaid they'd get specific property back — get paid off in full before unsecured creditors get anything. Perella Weinberg withdrew its objection to the settlement, but other bondholders did not, which triggered the bankruptcy filing.
After that came a denunciation of the objecting bondholders as "speculators" by Barack Obama in his news conference last Thursday. And then death threats to bondholders from parties unknown.
The White House denied that it strong-armed Perella Weinberg. The firm issued a statement saying it decided to accept the settlement, but it pointedly did not deny that it had been threatened by the White House. Which is to say, the threat worked.
The same goes for big banks that have received billions in government Troubled Asset Relief Program money. Many of them want to give back the money, but the government won't let them. They also voted to accept the Chrysler settlement. Nice little bank ya got there, wouldn't want anything to happen to it.
Left-wing bloggers have been saying that the White House's denial of making threats should be taken at face value and that Lauria's statement is not evidence to the contrary. But that's ridiculous. Lauria is a reputable lawyer and a contributor to Democratic candidates. He has no motive to lie. The White House does.
Think carefully about what's happening here. The White House, presumably car czar Steven Rattner and deputy Ron Bloom, is seeking to transfer the property of one group of people to another group that is politically favored. In the process, it is setting aside basic property rights in favor of rewarding the United Auto Workers for the support the union has given the Democratic Party. The only possible limit on the White House's power is the bankruptcy judge, who might not go along.
Michigan politicians of both parties joined Obama in denouncing the holdout bondholders. They point to the sad plight of UAW retirees not getting full payment of the health care benefits the union negotiated with Chrysler. But the plight of the beneficiaries of the pension funds represented by the bondholders is sad too. Ordinarily you would expect these claims to be weighed and determined by the rule of law. But not apparently in this administration.
Obama's attitude toward the rule of law is apparent in the words he used to describe what he is looking for in a nominee to replace Justice David Souter. He wants "someone who understands justice is not just about some abstract legal theory," he said, but someone who has "empathy." In other words, judges should decide cases so that the right people win, not according to the rule of law.
The Chrysler negotiations will not be the last occasion for this administration to engage in bailout favoritism and crony capitalism. There's a May 31 deadline to come up with a settlement for General Motors. And there will be others. In the meantime, who is going to buy bonds from unionized companies if the government is going to take their money away and give it to the union? We have just seen an episode of Gangster Government. It is likely to be part of a continuing series.
Read more at the Washington Examiner: http://www.washingtonexaminer.com/politics/White-House-puts-UAW-ahead-of-property-rights-44415057.html#ixzz13DwyzpLu
Sent from my iPhone
No comments:
Post a Comment