I'm still not sure if its Constitutional for the U.S. government to come into a company, fire its company President, appoint board members, tell the company what kind of cars to make, tell lenders what decisions they should make for a deal, etc. This seems like an overreaching of government power to me.
Is this really the kind of power the Founding Fathers intended for the U.S. government?
Thursday, May 28, 2009
Update on the Employee Free Choice Act
Looks like the Congress is looking toward dropping the part of the Employee Free Choice Act that would have removed the secret ballot for employees deciding whether or not to have a union. That's good news.
But the more dangerous part is still under consideration. The Act says that if a union and company management can't reach a contract deal in 90 days, then the U.S. government can come in and decide the contract for both parties.
That is very frightening especially given the recent government strong arm tactics in the Chrysler bankruptcy and coming GM bankruptcy. The government basically pressured lenders to forego their rights in a normal bankruptcy filing and asked them to lose 90% of the money they have loaned these companies. Then President Obama had the nerve to call these lenders greedy speculators for wanting to get their money back. Turns out some of these "greedy" people are Illinois teachers, policemen, and firemen. Their pension funds loaned money to GM and Chrysler thinking it was a very safe investment. These pension funds will lose 90% of their money invested in these companies. What greedy people they are actually wanting the return of their money. But we needed to save the UAW union after they and company management ran these companies into the ground.
So now we want to give even more power to the government in deciding union contracts with the Employee Free Choice Act. I think we know who the current government will support.
But the more dangerous part is still under consideration. The Act says that if a union and company management can't reach a contract deal in 90 days, then the U.S. government can come in and decide the contract for both parties.
That is very frightening especially given the recent government strong arm tactics in the Chrysler bankruptcy and coming GM bankruptcy. The government basically pressured lenders to forego their rights in a normal bankruptcy filing and asked them to lose 90% of the money they have loaned these companies. Then President Obama had the nerve to call these lenders greedy speculators for wanting to get their money back. Turns out some of these "greedy" people are Illinois teachers, policemen, and firemen. Their pension funds loaned money to GM and Chrysler thinking it was a very safe investment. These pension funds will lose 90% of their money invested in these companies. What greedy people they are actually wanting the return of their money. But we needed to save the UAW union after they and company management ran these companies into the ground.
So now we want to give even more power to the government in deciding union contracts with the Employee Free Choice Act. I think we know who the current government will support.
President Obama and Education
I have several questions for President Obama about education.
1. Why are his daughters in a private school instead of a public school?
2. Why did President Obama sign legislation that will remove poor children from his daughter's private school?
3. Why are public schools good enough for our kids but not good enough for his kids?
4. Why do nearly 1/3 of the Democratic congress have their kids in private schools?
5. Why should these politicians who avoid public education make decisions about my kids public education?
1. Why are his daughters in a private school instead of a public school?
2. Why did President Obama sign legislation that will remove poor children from his daughter's private school?
3. Why are public schools good enough for our kids but not good enough for his kids?
4. Why do nearly 1/3 of the Democratic congress have their kids in private schools?
5. Why should these politicians who avoid public education make decisions about my kids public education?
Government Motors
I'm trying to understand how a car company (GM) run by the government (70%) and the union (17%) is going to out compete the other car companies run by business people who understand the car business.
How is a government bleeding trillions of dollars going to help a car company bleeding billions of dollars eventually become profitable?
I saw in a news item today that some plants that GM had previously determined needed to be closed in order for GM to survive were now going to be kept open at the union's insistence. And you tell me that the government and the union can create a profitable company.
I'm afraid GM like nationalized companies in other socialist countries is going to be a black hole into which the government keeps pooring money down never to see it come back, but that's just my opinion.
I could be wrong. I hope I'm wrong. Best of luck to them.
How is a government bleeding trillions of dollars going to help a car company bleeding billions of dollars eventually become profitable?
I saw in a news item today that some plants that GM had previously determined needed to be closed in order for GM to survive were now going to be kept open at the union's insistence. And you tell me that the government and the union can create a profitable company.
I'm afraid GM like nationalized companies in other socialist countries is going to be a black hole into which the government keeps pooring money down never to see it come back, but that's just my opinion.
I could be wrong. I hope I'm wrong. Best of luck to them.
Economic Future
I'm starting to get a picture of the near term economic future.
Looking at President Obama's massive spending increases for this year and the next several, its starting to appear that the major borrowing that the government will require is going to put strong pressure on interest rates to climb. The only way to avoid this is for the Federal Reserve to print money and buy the debt, but if they do this then inflation will increase dramatically. Either way will be a drag on the economy. Also, the governments massive borrowing is going to crowd out the money that could be lent to businesses and the rest of us.
My hope is that the Fed will not print money and will allow the interest rates to go up. I can handle the increase in interest rates better than inflation. I don't think anyone wins with inflation. Higher interest rates might make the government rethink all the massive spending it wants do.
We'll see what happens.
Looking at President Obama's massive spending increases for this year and the next several, its starting to appear that the major borrowing that the government will require is going to put strong pressure on interest rates to climb. The only way to avoid this is for the Federal Reserve to print money and buy the debt, but if they do this then inflation will increase dramatically. Either way will be a drag on the economy. Also, the governments massive borrowing is going to crowd out the money that could be lent to businesses and the rest of us.
My hope is that the Fed will not print money and will allow the interest rates to go up. I can handle the increase in interest rates better than inflation. I don't think anyone wins with inflation. Higher interest rates might make the government rethink all the massive spending it wants do.
We'll see what happens.
Monday, May 11, 2009
Communist Chinese are confused and so am I
Time article: The Other GM
The following except from the Time article above says it all.
Still, GM's Chinese employees are acutely aware that the times are anything but normal. Obama's decision earlier this year to dismiss CEO Rick Wagoner was a jolt. As one young executive puts it, "we didn't think in America that the President could fire the CEO of a private company. For us Chinese, it was very confusing." Doubly so because Wagoner is viewed as one of architects of GM's dominance in China. Says a former GM executive: "It may be the ultimate irony of [Wagoner's] career that as bad as things are in the U.S., his more important legacy may turn out to be China. People don't get that now, but they will eventually."
Even the Chinese are surprised that President Obama is exercising power over business that they nor I thought he had or should have. The recent use of President's Obama political power to force Chrysler's lenders to drop their property rights under bankruptcy law is especially frightening. Also, the President is looking for any and all money in businesses that he can find to take for his spending programs. If I was a major investor, I would be afraid to invest in American companies. Who knows what other regulations and taxes are coming down the pipe to punish these evil corporations.
The following except from the Time article above says it all.
Still, GM's Chinese employees are acutely aware that the times are anything but normal. Obama's decision earlier this year to dismiss CEO Rick Wagoner was a jolt. As one young executive puts it, "we didn't think in America that the President could fire the CEO of a private company. For us Chinese, it was very confusing." Doubly so because Wagoner is viewed as one of architects of GM's dominance in China. Says a former GM executive: "It may be the ultimate irony of [Wagoner's] career that as bad as things are in the U.S., his more important legacy may turn out to be China. People don't get that now, but they will eventually."
Even the Chinese are surprised that President Obama is exercising power over business that they nor I thought he had or should have. The recent use of President's Obama political power to force Chrysler's lenders to drop their property rights under bankruptcy law is especially frightening. Also, the President is looking for any and all money in businesses that he can find to take for his spending programs. If I was a major investor, I would be afraid to invest in American companies. Who knows what other regulations and taxes are coming down the pipe to punish these evil corporations.
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