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Jun 1 2009

Government Motors - One Step Closer to Socialism

255-general-motors-logo.jpgGeneral Motors declared bankruptcy today, which would have been a good thing if it has simply been allowed to fail, gone into bankruptcy, followed the law, unshackled itself of its unmanageable burdens, and emerged a leaner, meaner, more competitive company. But, oh no, this is Amerika in the 21st century, and now the hand of Marx and Lenin rise from the grave and guide our government loving President to take control of GM and pay back his political cronies.

The U.S. government already threw $19.4 billion at GM under the guise of keeping it out of bankruptcy when the real purpose, all along, was to use the funding as an excuse to take control of the company. Now the plan is to give GM another $30 billion of your and my money in exchange for which the U.S. government will own 72.5% of the company. The United Automobile Workers ("UAW") union will be given 17.5% of the company despite the fact that the debt owed to them was unsecured, meaning they should have received nothing. It sure pays to have the President in your back pocket. Meanwhile, the secured creditors get 10% of the company which works out to mere pennies on the dollar for their secured debt. All of this is in gross violation of all of our nation's bankruptcy laws as well as the United States Constitution.

It's like if Peter took out a $100,000 mortgage and offered his home as security for the loan. Then Peter went to his friend Paul and said, "Hey, I'm a trustworthy guy, why don't you loan me $100,000 based solely on my good word." Paul loans Peter the money hoping, but with absolutely no guarantee, that he will get repaid. Peter then goes bankrupt but instead of going through good old regular bankruptcy, the government steps in and, contrary to all laws, dictates how everything is going to work out prior to filing and declares that unsecured Paul will get the house while the secured bank will get the dog house out back.

Contrary to popular belief lies, GM was not too big to fail. It is only the fourth largest bankruptcy in U.S. history. America would have survived just fine, but it was just too good of an an opportunity for the Obama administration to pass up to have the government take control and ownership of a major corporation.

socialism: (soh-shuh-liz-uhm)

1. Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.

2. The stage in Marxist-Leninist theory intermediate between capitalism and communism, in which collective ownership of the economy under the dictatorship of the proletariat has not yet been successfully achieved.

When it comes to war, liberals are always crying about "exit strategy" even though the only exit strategy a war should have is total victory. So, you'd think liberals would have an exit strategy with regard to government ownership of a private corporation...that is, unless they never really intend the government to give up ownership. So, what is the government's exist strategy for its ownership stake in GM? There is no current plan. You decide why, incompetence or no intention to give up control.

I swear to God that I will never buy an automobile from a state and union owned company. I will not participate in the march toward socialism and the destruction our capitalist free market system which, until government intervention, was the greatest economic engine the world had ever seen.

Source and source.

Posted by Don |

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