The War of the Words
I'm sure many of you have been waiting with great anticipation for my take on the current campaigns and upcoming election. Well, this is it, beginning, middle and end. Truthfully, there isn't a whole lot to say, which of course will not stop me. This election is much like others in the recent past, just a little more extreme. The rhetoric is more aggressive and nastier, although the issues are similar: The economy (jobs), social issues like abortion (women's health) and health care especially for the elderly, and that old faithful, the middle class. Oh yes, I almost forgot foreign policy. Misrepresentations and outright lies abound. This, unfortunately, is what elections have deteriorated into.
What is new is the extreme polarization, the gap between left and right. The Obama administration is arguably more government-centric than, say the Clinton years (not all would agree), and Romney is somewhat more conservative than, say, the Bushes (again, not all would agree). The label "Socialist" is frequently applied to President Obama, with some justification, and a "Capitalist" sticker is slapped on Romney. In reality, that's essentially what this election is, or should be, about: philosophy of government.
All else derives from this factor, a consideration often lost in the fog of rhetoric. Domestic and world view depend on philosophical perception of solutions to problems. Obama and the current crop of Liberals have a centric world view that sees the solution to conflict as a meeting of the minds of all nations under centralized enforcement. Nationalism is undesirable. Hence a permissive and benign approach to the Middle East quagmire, an approach that currently does not seem to be working all that well. Our extended hand of friendship has been bitten.
Romney and most Conservatives adopt a more nationalistic approach to foreign relationships, a policy that essentially ensures an armed standoff among unfriendly nations. This, incidentally, is Benjamin Netanyahu's Middle East peace concept: an armed standoff, his version of MAD. But I digress. Both approaches are obviously flawed, but then the situation is intractable unless you subscribe to Jimmy Carter's solution: the elimination of Israel.
Domestically, the differences are classic liberal-conservative. Much misleading rhetoric abounds in this arena. For example, there is an Obama-Biden yard sign that reads, "Bin Laden is dead; the auto industry is alive; vote ... ." Not so. The assassination of Osama bin Laden was in the works for years, before Obama took office. It was authorized under G.W. Bush. Much planning and investigation, including identifying bin Laden's courier-driver and tracing him to Osama's compound, with subsequent mapping of the compound via IR satellite and drone analysis. Obama was called in at the last moment as Seal Team 6 was already in the process of executing the operation. Obama had very little to do with the operation other than giving the final go-ahead. Like he had a choice.
Insofar as the auto industry is concerned, GM and Chrysler were on the brink of bankruptcy. The implication by the administration is that without the massive infusion of bailout--read taxpayer--funds, the two industrial giants and their hundreds of thousands of jobs would disappear from the face of the earth. Anyone familiar with Chapter 11 bankruptcy knows that this is completely contrary to the principle of Chapter 11, which purpose is to allow the company/corporation to reorganize and remain in business. Practically every major airline has gone through bankruptcy and is still in operation.
The real issue was the UAW union contracts, which would have been abrogated by the Chapter 11 process and subject to difficult and certainly less beneficial renegotiation. The bailout was to salvage critical union support for the Democrat administration. Yes, it worked, but so would have Chapter 11, without the huge commitment of government (taxpayer/Chinese) funds.
Romney on the other hand paints Bain Capital as a benevolent organization dedicated to preserving jobs. Hardly. Bain Capital was and is a business primarily concerned with making money. Certainly, the salvage of troubled companies is part of the picture, since could very well be financially beneficial to Bain. However, should circumstances dictate, shutdown of a troubled company and loss of jobs is also in the picture.
I have previously discussed this business of the "middle class," which has myriad definitions. I do not like the division of the American populace into "classes". This is contrary to the principles of this country and the economic system that made it great. "All men are created equal" is not just a clever phrase. It means we all start off even, regardless of circumstances, and our station in life is the result of our efforts. The "middle class" can become the "upper class" or the "lower class" depending on our skills and effort. The "middle class" benefits from the economic progress of the nation as a whole. Government has precious little to do with it except to screw it up.
So, whom do you vote for? Depends on your own personal socio-political philosophy. If you are a lover of government and believe in its efficacy in solving problems, then vote for what we currently have. If you favor independence and personal initiative and believe that the less fettered the economy the better, that money in private hands is better than in the government's, then vote for a change.
I think you know where I stand. Most of all, please vote, but only once.
We encourage your comments but will strive to remove discussion that contains personal attacks, racial slurs, profanity or other inappropriate material as outlined in our guidelines. We post-moderate comments on most content, but may choose to pre-moderate some comments so please be patient if you don't see yours appear right way. We also ask for your help by reporting comments you think are inappropriate.






52 Comments
bamaphd - Oct 20, 2012 7:27 PM
I think not.
If GM and MoPar went to Chapter 11, the supply chain would have fallen apart, not only for them but for Ford as well and the North American based production of off shore makes. The suppliers make parts for all of these, but the size of each one of the companies they supply is substantial enough that one failure would hurt a lot two, might kill the whole supply chain. Most folks don't understand this at all.
The other part of this is that the big 3 supply to the defence department: go bankrupt and it sand ripples through the whole system.
The industry is based on "Just in time" inventory systems, so there is no warehouse capacity to "wait out" a regular chapter 11. all of these companies would have to shut down production, as would their suppliers.
The government has bailed out airlines and rail roads in the past. There is no other industry that as entwined in American life as the auto industry.
WFB resident - Oct 20, 2012 11:03 PM
Pierre Del Norte - Oct 20, 2012 11:45 PM
I was directly involved in the banking and finance industry in 2008 - there was absolutely NO private financing - no bank or private equity - nothing - whatsoever
to finance a bailout for the US auto industry. The government was the ONLY the
source. The ONLY reason we have an auto industry in this country is because of
Obama's bailout. But you simply don't get it.
Your problem is that you are so willing to talk about things you know absolutely
NOTHING about. As is the case of most right wing ideologs. But that doesn't stop
you does it WFB ?
ExToDResident - Oct 21, 2012 2:40 AM
I presume you are referring to Benghazi and the less than "optimal" (I blame
Stewart for putting the words in his mouth) situation there.
The libiyans are obviously grateful for the air support we provided as was
demonstrated by the dedication of the Libiyan security force assigned to defend the
embassy. As well as the Libiyan forces that responded to reinforce the force
defending the embassy.
Consider also that the Libyan government apologized for the attack as well as
demanding that all armed militia's come under government control or disband.
I think that the Libyans have clearly demonstrated that the attack on the embassy
does not represent the opinion of the overwhelming majority of
Libyans.Ambassador Stevens obviously meant a lot to the people he helped
(witness his delivery to a hospital amid the chaos), it is possible that his sacrifice
could mean something, maybe.
WFB resident - Oct 21, 2012 7:19 PM
you are in the banking sector you would know that ! Plus not all car manufacturers
needed bail out !!! Did you know that ? Or were you to busy counting your cash
drawer ? lol...
aneuhauser - Oct 22, 2012 5:46 PM
Bankruptcy simply would have allowed reorganization which took place anyway except now it was under government and union auspices. GM and Chrysler could have eliminated much of the overly generous provisions of their union contracts, especially in the areas of health care and pensions (I know; I used to work for GM. They WERE generous!), thereby cutting costs and getting back on a sound financial status. This is what Chapter 11 was designed to do.
WFB resident - Oct 22, 2012 10:38 PM
Pierre Del Norte - Oct 22, 2012 11:19 PM
A Debtor in Possession bankruptcy filing requires a plan of reorganization - which requires that it be FINANCED. Let me repeat - THERE WAS NO PRIVATE SECTOR FINANCING AVAILABLE!!!!!!! NONE!!!!
Do either of you remember the condition of the economy, and more importantly - the capital markets in 2008 - 09??? Free market capitalism was on the verge of collapse! Banks needed their own bailout. Credit and capital markets were nonexistent.
Both GM and Chrysler were INSOLVENT!! They were out of cash and had scheduled debt repayments they could not honor. They were BANKRUPT!
The United States government was the ONLY SOURCE of financing for the bailout. Had Obama not acted, GM and Chrysler would have been forced into Chapter 7 by their creditors - and that is call LIQUIDATION. You know as in SELL ALL ASSETS to pay off creditors.
Please don't believe me, believe the the people who were directly involved.
http://money.cnn.com/2012/09/06/autos/auto-bailout/index.html
Pierre Del Norte - Oct 22, 2012 11:26 PM
Sorry again Al - the only propaganda is coming from you on this subject. Or, more accurately, from the right wing Republican echo chamber that you are just repeating.
I expected something better than that from you Al.
WFB resident - Oct 23, 2012 7:40 AM
those companies ? lol... Stay tuned for those answers will be answered Not to
mention all the companies that are able to use those dies to produce those products
within days ! Talk about an economic boost !!! It would also allow those unions to
fold causing a decrease in costs for the final products !!! Yep so far just 3 plusses
just from the beginning ! Yet some how you forget that a need is made and in a
capitalist society ,it will be filled . Do you remember the over stocked cars for two
years ?? I do , but I tend to remember the news . While ex tends to cover up his
ears . lol... go on ex take a gander of the overstock of gm/chrysler cars for two
years in the news !! Do you remember ? buy a car incentive ?
jman99 - Oct 23, 2012 11:34 AM
The Chrysler turn around is remarkable. It could not have been done without government intervention after the "free market capitalists" almost buried it and the hundreds of thousands of jobs that went with it.
WFB resident - Oct 23, 2012 12:37 PM
Not to mention the others that would jump in to fill the gap when allowed to !!! Plus
remember 3 years ago the o claimed how he and the government made the green
energy sector thrive ? I do !!! Why do you not remember ? Because we can bought
their failure ? Just give GM and chrysler time ! That money boost can only last for so
long !!! Any PDLS's willing to bet ? lol...
Pierre Del Norte - Oct 23, 2012 1:24 PM
What exactly are you smoking, WFB?
There was absolutely NO ONE to jump in and fill the gap.
The only one left to jump in would be the "undertakers", the auctioneers who were ready to LIQUIDATE ALL THE ASSETS OF GM in a Chapter 7 Bankruptcy!!!
Ford was not insolvent or bankrupt. They did not NEED to be bailed-out.
Here is an idea WFB - Put this in your pipe and smoke it......
http://online.wsj.com/article/16219A85-0E04-4907-990C-4167E06CDD50.html#!16219A85-0E04-4907-990C-4167E06CDD50
jman99 - Oct 23, 2012 2:04 PM
Ford had also just sold a number of over seas holdings just previously to Wall Street meltdown and thus had no liquidity or cash flow issues. It's biggest problem would have been the supplier chain going down because of the failure of GM and Chrysler.
ExToDResident - Oct 23, 2012 6:16 PM
have made no comments regarding finance in this blog of Al's.
I suppose it helps one feel like they are "winning" when one directs their
comments at someone who is not part of the debate a kind of "win by default".
Pierre Del Norte - Oct 23, 2012 7:29 PM
You are a thinker and this is kind of a philosophical question.
Why is it that the radical right wing of the republican party (which is pretty much the whole party) so easy to call-out for their unmitigated hypocrisy?
http://www.thedailyshow.com/watch/mon-october-22-2012/bulls--t-mountain--episode-i---the-phantom-menace
Pierre Del Norte - Oct 23, 2012 7:34 PM
My last post was misdirected - but incredibly funny non-the-less.
WFB resident - Oct 23, 2012 8:33 PM
car companies in the world (plus smaller ones) might want a chance at GM and
Chryslers stock( dies and buildings,equipment ) !! Plus nothing is wrong wit the
liquidators . for they find buyers . Do you not understand what liquidate means ?
lol...
jman99 - Oct 23, 2012 8:44 PM
car companies in the world (plus smaller ones) might want a chance at GM and
Chryslers stock( dies and buildings,equipment ) !!"
Why?
WFB resident - Oct 24, 2012 12:20 PM
destination place ! To break the union strangle hold on the USA !! Take your pick !
lol...