Category: Economy

Recieved via e-mail

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This popped in my in box:

Citizens Against Government Waste

Dear Newsmax Reader,

Democratic congressional leaders and the Obama Administration have hyped the American Recovery and Reinvestment Act of 2009 as an urgent and essential “economic stimulus” package. This bill would be more aptly titled, the Pelosi-Reid Borrow-and-Spend Act!

The Senate is planning to vote on S.1, its version of the “stimulus,” this week. We can defeat it if all of the Republican members of the Senate vote NO, as their Republican colleagues in the House of Representatives did. I urge you to send a powerful message to your U.S. Senators today that you oppose this bloated, ill-conceived plan!

The $819 billion “stimulus” package approved by the House last week and the nearly $900 billion version now under consideration in the Senate would add to a federal deficit already projected to reach a record $1.2 trillion this year. This bill is not only one of the largest spending measures ever to pass through Congress, it will cost more over two years than we’ve spent to date on the wars in Iraq and Afghanistan!

The bill’s ability to fulfill its stated mission of stimulating the economy is also questionable at best. The nonpartisan Congressional Budget Office has concluded that more than half of the hundreds of billions of dollars in infrastructure spending contained in the bill, such as $26 billion of the $30 billion allocated for highways and $15.5 billion of the $18.5 billion for renewable energy projects, will not take place for more than two years — long after economists predict the current recession will have ended.

What’s more, the tax cuts in the package are narrowly targeted, with the largest portion going to more rebate checks, a strategy that failed to reverse our economy’s slide last year.

Even worse, the bill contains all sorts of special-interest and congressional pet spending projects that have virtually nothing to do with economic growth. As just one example, it allocates $335 million to the Centers for Disease Control (CDC) for the prevention of sexually transmitted diseases. Not only will this “healthcare” spending do nothing for the health of our economy, CDC has a track record of using such funds for events like a transgender beauty pageant in San Francisco and a conference, entitled “Got Love? Flirt/Date/Score,” that taught participants how “to flirt with greater finesse.”

Rather than burdening today’s and tomorrow’s taxpayers with this massive government spending spree, Congress should create more incentives and opportunities for private-sector jobs and growth by cutting government spending and enacting across-the-board tax cuts for individuals and businesses, like those that helped reverse economic slumps in the 1960s, 1980s, and earlier this decade.

If the Senate follows the House’s lead and passes this borrow-and-spend “stimulus” bill, it will waste record amounts of tax dollars, provide virtually no benefit to the economy, and only add to our nation’s soaring liabilities.

Please tell your Senators today that you want them to vote NO on the American Recovery and Reinvestment Act!

Sincerely,

Thomas A. Schatz
President

P.S. If the Senate approves the American Recovery and Reinvestment Act, federal lawmakers will have authorized more than $2 trillion in new government spending since February, 2008. While the cost of “jump-starting” the economy is sobering, the coming fiscal mushroom cloud is truly alarming. The national debt currently stands at a mind-numbing $10.6 trillion, and America is sinking into debt at the rate of $3.3 billion per day. Our children and grandchildren simply can’t afford this borrow-and-spend “stimulus” bill. Please deliver that message to your Senators today!

***
The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste (CAGW), the nation’s largest taxpayer watchdog organization with more than one million members and supporters nationwide. CCAGW is a 501(c)(4) nonpartisan, nonprofit organization that lobbies for legislation to eliminate waste, fraud, abuse, and mismanagement in government. Contributions to CCAGW are not tax-deductible for federal income tax purposes. For more information about CCAGW, visit www.ccagw.org. Help CCAGW wage and win this battle to stop the Senate from passing this disastrous ”stimulus” bill and burdening future generations with crippling debt by making a contribution to support our grassroots and lobbying efforts today.

Please help us put a stop to this so-called “economic stimulus” bill by contacting your friends and neighbors and urging them to write to their Senators.

The Simulus and the Republicans

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An interesting question to be asked.

Will the Republicans opt to do this, given the gravity of the recession? They are in no mind to allow the bill to go through without substantial changes. The Senate Republicans, just like the House ones, believe that the stimulus bill is something of a Trojan horse. While no one disputes that a big fiscal punch is needed, many items in the current plan (which has been hastily thrown together) will take too long to deliver; at least a third of the House’s $819 billion package will not have been spent 19 months from now, according to an analysis by the Congressional Budget Office.

The Republicans prefer tax cuts, which have the advantage of delivering their punch almost instantly. The problem is that in tough times like these, people are likely to save rather than spend their tax gains especially if—as in this case—the cuts are strictly temporary. Extra saving does nothing to boost demand in an economy that is suffering from a shortage of it. Republicans also object to some of the protectionist “Buy American” provisions attached to some of the money, and to inanities such as a $200m plan to returf the Mall in Washington, DC, (this last has now been removed from the House bill).

A party with a majority can usually pass whatever it likes in the House, but the same is not true in the Senate. Debates in the Senate are not rigidly time-limited as they are in the House, and in order to end discussion and move to a substantive vote, a motion of “clôture”, or closure, has to pass. The snag is that 60 votes are needed to pass such a motion; and the Democrats have only 58 senators. In theory, if the Republicans hang firm—and they held absolutely firm in the House—they could prevent the stimulus bill from ever being put to a full vote.

BARACK OBAMA’S gargantuan stimulus bill moves to the Senate on Monday February 2nd, after passing through the House of Representatives without a single Republican vote in favour. That means that it is in trouble.

via How Senate Republicans will respond to the stimulus bill | Stimulus and the Senate | The Economist.

Hopefully, the Senate Republicans will strip out all of the special interest pork that is within that bill and will pass a bill that will help the economy. Instead of further the socialist agenda of the far left.  But I do not look for any huge sweeping changes. As Michelle Malkin has reported, the Republicans want to play Democrat-lite and go along with Obama’s plans. Wonderful. So much for the loyal opposition guys. 🙄

How about just letting the economy run it’s course and taking the Government’s hands off of it? Instead, they want to play communist-lite and prop up everyone. Yeah, it will work, until China cuts us off, as well as the other Nation’s that are buying our debt.

Sometimes, I really think that the psychos are running the “nuthouse” in Washington D.C. 😮

Japan’s Economy on the verge of collapse as well.

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Russia is not the only one. Japan now is on the verge of collapse as well.

A reader chided me for not making note of the truly dreadful factory output figures released last Thursday, which showed a fall of 9.6%.

I have to confess that I have fallen into “Japan bad news” syndrome, in that I expect bad news out of Japan and therefore did not focus enough on the details. And while I do not aspire to covering every financial news story (that’s what the MSM is for), the latest figures paint a grim picture, even by our new, desensitized standards.

It wasn’t simply that December was truly awful, but it came on top of a nearly-as-bad November

via naked capitalism: Veneroso: Japan on the Edge of the Abyss.

Again, this is what happens when you inflate a money supply and create a bubble.

Yves continues:

Yves here. I only get the privilege of reading Veneroso now and again, but I cannot recall him taking a tone remotely like what follows:

I have been writing about an Asian black hole for almost two months now. I have been crying from the rooftops about an emerging depression in Japan. It has been as though a neutron bomb had gone off in the world. There was no one who seemed to notice, no one who seemed to listen.

Every week it gets worse and worse and worse. Today it was Japan….

THERE HAS NEVER BEEN DATA THIS BAD FOR ANY MAJOR ECONOMY – EVEN IN THE GREAT DEPRESSION. December industrial production came in down 9.6%, worse than the METI forecast. It is now down almost 21% year over year. METI forecasts a further 4.7% decline in February. The inventory to production ratio soared again. Maybe METI will be correct.

If it is, Japan industrial production will have fallen 28% (non annualized) in four months. It will have fallen by a third in about a year. Nothing in the history of major nations compares. A 28% decline in four months would be more than half of the entire decline in U.S. industrial production over the 3 years and nine months of the U.S. Great Depression.

It would be a greater decline in four months than in any 12 month period in the Great Depression in the U.S. We are literally looking at the unimaginable. (I am attaching the U.S. industrial production index from the Great Depression for comparison).

IT’S A DEPRESSION IN JAPAN – ALREADY – PURE AND SIMPLE.

If this is true, unless President Obama can pull some sort of a miracle out of his rather skinny ass. We are in deep trouble. The reason I say this is because we are in a Globalist Economy, whether we like it or not, and Japan’s failures are our failures as well.

I think it will get much worse, before it gets any better. 🙁

(Via Freedom’s Phoenix)

Barry will pork the budget, but cut our defense.

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The Dad-blasted idiot!

The Obama administration has asked the military’s Joint Chiefs of Staff to cut the Pentagon’s budget request for the fiscal year 2010 by more than 10 percent — about $55 billion — a senior U.S. defense official tells FOX News.

Last year’s defense budget was $512 billion. Service chiefs and planners will be spending the weekend “burning the midnight oil” looking at ways to cut the budget — looking especially at weapons programs, the defense official said.

Some overall budget figures are expected to be announced Monday.

Obama met Friday at the White House with a small group of military advisers, including Admiral Mike Mullen, chairman of the Joint Chiefs, Gen. James Cartwright, vice chairman, and Gen. Jim Jones, National Security Council chairman.

via Defense Official: Obama Calling for Defense Budget Cuts –  FOXNews.com.

He does this, but he’ll pork the hell out of that stimulus package.  What a damned douche nozzle! 😡

I know what I’d like to call ol’ Bambi right about now. But I’m biting my tongue….. quite hard.

Others: RedState, Josh_Painter’s blog, Hot Air, Stop The ACLU Gateway Pundit, Riehl World View, THE ASTUTE BLOGGERS, The Jawa Report and Cold Fury

GDP shrinks to 3.8 percent, signaling bad economic conditions

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This is not good at all.

The United States economy shrank at its fastest pace in a quarter century from October through December, the government reported on Friday, as consumer spending and business investment collapsed, signaling more economic contraction in the months ahead.

In the broadest official accounting of the toll of the credit crisis, the government reported that gross domestic product shrank at an annual rate of 3.8 percent in the fourth quarter of 2008. While that was less than economists’ expectations of a 5.5 percent drop, the decline would have been much steeper — more than 5 percent — if shipments of goods had fallen as sharply as orders.

President Obama seized on the figures Friday morning, calling the contraction a “continuing disaster” for working families, and again urged Congress to pass a package of tax cuts and spending. The House, divided on party lines, passed an $819 billion stimulus plan on Wednesday, and Senate is expected to take up the measure next week.

“What we can’t do is drag our feet or delay much longer,” Mr. Obama said. “The American people expect us to act.”

The president also announced the creation of a Task Force on Middle-Class Working Families, which will seek to raise living standards of working families. It will be led by Vice President Biden.

Wall Street tumbled after the numbers were released, with the Dow Jones industrial average falling more than 100 points in midday trading. The broader Standard & Poor’s 500-stock index was down 1.5 percent.

The slide in gross domestic product — a crucial measure of economic health — is likely to continue at an alarming pace well into the summer as consumers continue to curtail spending and businesses reduce their capital investments and cut their payrolls, economists said.

In the fourth quarter, rising inventories accounted for the difference between the overall 3.8 percent contraction of the economy and a steeper 5.1 decline in final domestic sales.

“The difference between 3.8 and 5.1 percent is the inventory buildup,” Nigel Gault, chief United States economist at IHS Global Insight, said. “My only explanation is that companies could not cut production fast enough.”

With inventory accumulation gone, the economy will contract in the first quarter at more than a 5 percent annual rate, Mr. Gault said.

Employers reduced their corporate investments in computers, office equipment, machinery and other capital goods by an annualized 19.1 percent in the fourth quarter.

Trade fell, as Americans bought fewer Asian-made televisions and computers, and global demand for American goods and services ebbed. Exports in the fourth quarter declined 19.7 percent while imports dropped 15.7 percent.

Josh Bivens, an economist at the Economic Policy Institute said that the drop in exports was distressing because of their contribution to growth in recent years.

“That’s been a real key strength to the economy,” Mr. Bevins said. “They were punching above their weight for a couple of years, but they have really collapsed.”

And American consumers, who took on home equity loans and large amounts of credit card debt to finance their lifestyles earlier in the decade, curtailed their spending for a second consecutive quarter. Consumer spending, which typically accounts for two-thirds of economic growth, fell 3.5 percent in the quarter, after decreasing 3.8 percent in the third quarter.

With no end in sight to the downturn, the stark numbers on Friday are likely to intensify the debate over an enormous stimulus plan moving through Congress.

Christina D. Romer, chairwoman of President Obama’s Council of Economic Advisers, said the report offered more evidence that the economy continued to contract severely, and said “immediate action” was needed to shore up the financial sector and broader demand.

“Aggressive, well-designed fiscal stimulus is critical to reversing this severe decline and putting the economy on the road to recovery and improved long-run growth,” Ms. Romer said Friday in a statement.

Michael E. Feroli, a United States economist at JPMorgan Chase, said, “The fact that you’re not seeing any evidence that things are turning for the better has added quite a bit to the urgency to get things done and do something substantial.”

via Pullback Less-Than-Expected in 4th Quarter – NYTimes.com.

The downward spiral continues, the fallout from the breaking of the bubble that existed during the Bush Administration. The Bubble that was created by the Clinton Administration. Instead of listening to Ron Paul, who did have the proper correction for this mess; instead were are attempting to throw money at the problem, this will end in disaster. Ron Paul spoke about this, in a video that I posted. He also spoke with the people on MSNBC’s Morning Joe, here’s that Video: (Via Jack Hunter)

Of course, the mental midgets on “Morning Joe”, just did not get it at all. 🙄

Welcome to the massive screwing of the American people folks! Your beloved leaders have failed you, and now, we all have to suffer. 😡

Why does America always do stupid things like this?

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I will never, ever understand why America does stupid things like this right here, ever!

The Obama administration on Friday made an emergency contribution of more than $20 million for urgent relief efforts in the Gaza Strip, a day after the United Nations launched a flash appeal for $613 million to help Palestinians recover from Israel’s three-week military operation there.

The State Department said President Barack Obama had authorized the use of $20.3 million from the U.S. Emergency Refugee and Migration Assistance Fund for humanitarian assistance to the 1.4 million Palestinians in Gaza.

The money will go to U.N. agencies and the International Committee of the Red Cross, which are distributing emergency food assistance, providing medical care and temporary shelter, creating temporary employment and restoring access to electricity and potable water, the department said in a statement.

The Israeli offensive killed nearly 1,300 Palestinians, including hundreds of civilians, and caused an estimated $2 billion in damage, Palestinian officials say. The assault was launched to halt years of Hamas rocket fire on southern Israel.

via US puts up $20 million for Gaza relief – AP.

You want to know where this money is going to end up? In the hands of Hamas, the very terrorist organization that was attacking Israel, in the first place.  This money is supposed to be reserved for American Citizens, not for foreign countries!  You know, I find it absolutely amazing that the United States of America, would support a military attack on Gaza by Israel to defeat terrorists; only to have them send aid to the very people that Israel attacked. Not only this, our government is using money that is specifically earmarked for the people of the United States of America. This is an outrage! Someone should be complaining to the high Heavens about it!

The reason this outrages me so much is this; yeah, that money might go to American agencies approved by our Government, but ultimately, it will end up right back into the hands of the Hamas terrorists.

I will never understand why America continues to prop up those they claim are terrorists.

Ron Paul once again, speaks the truth.

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This comes via  LewRockwell.com Blog.

Ron Paul just telling it like it is. People call him a kook, but, you know what? He’s absolutely right.

You want to know why the Neo-Conservatives hate this man so much? Because he exposes them for the fascist, Anti-American scum that they are. 

A damned good read!

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This is awesome, go give it a read:

Despite such sentiments among many economists, the stimulus plan is certain to be passed by Congress and signed by President Obama.

Which means the last chance to head off “stimulus” boondoggle is to make sure the money isn’t there to be spent. And since our debt-ridden government has no money of its own to flush away, and will have to borrow the cash, scaring off potential lenders is the best bet.

So, come on America. Say it in print, on the radio, on TV, on blogs and in advertisements. Say it loud and say it proud: If the world is dumb enough to loan more money to the U.S. government, don’t expect it to be paid back. The Americans who will be making decisions in the decades to come won’t be bound by the folly of the current crop of office-holders.

If enough of us say it, the world will listen, and cut off the tap.

If that doesn’t stop the spending spree, nothing will.

via Disloyal Opposition: Screw the stimulus — let’s scare off the lenders.

I could not have said it better myself. 😀

(via National Review (Libertarian Blog))

House Passes Democrat Liberal Moonbat’s $819 Billion Economic Stimulus Plan

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I’m very glad to see the the Loyal Opposition doing it’s job, for a change!

With no Republican support, the House approved an $819 billion stimulus plan that will serve as the cornerstone of President Obama’s efforts to resuscitate the economy, an early victory for the new president but still a disappointment because of the lack of Republican votes.

The measure passed 244 to 188, with 11 Democrats and 177 Republicans voting against it.

The two-year economic package includes $275 billion in tax cuts and more than $550 billion in domestic spending on roads and bridges, alternative-energy development, health-care technology, unemployment assistance, and aid to states and local governments. It would also provide up to $500 per year in tax relief for most workers and more than $300 billion in aid to states for funding to help rebuild schools, provide health-care to the poor and reconstruct highways and bridges.

via House Passes $819 Billion Economic Stimulus – washingtonpost.com.

For the Video, Go Here, Embedded videos won’t load, from WaPo, Liberal Programmers are such idiots.

I guess President Obama was not able to convince the Republicans to get in line. So much for that Obama and Change line. I’m all for helping economy, but this damn thing is nothing more than a big waste. I mean, what in this is going to put ME back to work? None of it! I mean, because we all know that all the contracts for the road work is going to go to all MINORITY workers. Seeing the Democrats want to avoid the “White Construction workers“.

So, yeah, like Michelle said, this is all your crap sandwich Communist Liberals; YOU CAN EAT IT!

What idiots, we got an empty suit communist running the White House and communists running the damn Congress and Senate. McCarthy would be rolling over in his grave. 🙄

Good luck with that!

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The DC Examiner challenges President Obama:

“After a relentless expansion of big government for decades under both Republican and Democratic administrations, the nation’s economy is finally buckling under the load. In his inauguration address, President Barack Obama blamed “greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age.” But Obama’s $825 billion stimulus plan contains few “hard choices”- just lots more government spending.

“The hardest choice off all is to scale back government at the local, state and federal levels and stop the seemingly inexorable growth of entitlement programs that are bankrupting the nation. But is the Obama administration up to this kind of real change?”

I hate to say it, but it’s just not going to happen.

Welcome to the new nationalized USA!

(Via the Libertarian Party Blog) (H/T IPR Blog)

From the “Awesomeness” Stack

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Earlier today, I received a tweet from John Hawkings over at Right Wing News. Which pointed to a posting over on his Blog. John Hawkings also runs the Conservative Ads over on BlogAds; which you can get great ad prices over there, might want to check that out.

Anyhow, there was this e-mail that John was talking about, that I guess he saw over at DailyKos, that was attributed a Michael Crowley , however Mr. Crowley says he did not write it, but just the same, the posting is quite awesome.

Check it out:

Read More …

Family Planning money…..under the bus!

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Obama finally capitulates.

WASHINGTON – House Democrats are likely to jettison family planning funds for the low-income from an $825 billion economic stimulus bill, officials said late Monday, following a personal appeal from President Barack Obama at a time the administration is courting Republican critics of the legislation.

Several officials said a final decision was expected on Tuesday, coinciding with Obama’s scheduled visit to the Capitol for separate meetings with House and Senate Republicans.

The provision has emerged as a point of contention among Republicans, who criticize it as an example of wasteful spending that would neither create jobs nor otherwise improve the economy.

Under the provision, states no longer would be required to obtain federal permission to offer family planning services — including contraceptives — under Medicaid, the health program for the low-income.

via Officials: Family planning money may be dropped – Yahoo! News.

I must say, I cannot criticize Obama for this one. Because I feel abortion is murder, I am glad to see that Obama is telling Democrats in Congress to dump this. This is one that I will give him credit for. The Economy can be recovered without paying for abortions or handing out condoms. I find it quite shocking that the Democrats would use a economic situation like this, to further a murderous agenda.Which furthers my belief that the Democratic Party has become the communist party and an Anti-Christian, Anti-Life party.

(Via Memeorandum)

The President’s Weekly Video Address

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Related: Download the Recovery Plan Metrics Report

Transcript: (Source: The White House)

Remarks of President Barack Obama

Weekly Address

Saturday, January 24th, 2009

We begin this year and this Administration in the midst of an unprecedented crisis that calls for unprecedented action. Just this week, we saw more people file for unemployment than at any time in the last twenty-six years, and experts agree that if nothing is done, the unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future.

In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.

That is why I have proposed an American Recovery and Reinvestment Plan to immediately jumpstart job creation as well as long-term economic growth. I am pleased to say that both parties in Congress are already hard at work on this plan, and I hope to sign it into law in less than a month.

It’s a plan that will save or create three to four million jobs over the next few years, and one that recognizes both the paradox and the promise of this moment – the fact that there are millions of Americans trying to find work even as, all around the country, there’s so much work to be done. That’s why this is not just a short-term program to boost employment. It’s one that will invest in our most important priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century.

Today I’d like to talk specifically about the progress we expect to make in each of these areas.

To accelerate the creation of a clean energy economy, we will double our capacity to generate alternative sources of energy like wind, solar, and biofuels over the next three years. We’ll begin to build a new electricity grid that lay down more than 3,000 miles of transmission lines to convey this new energy from coast to coast. We’ll save taxpayers $2 billion a year by making 75% of federal buildings more energy efficient, and save the average working family $350 on their energy bills by weatherizing 2.5 million homes.

To lower health care cost, cut medical errors, and improve care, we’ll computerize the nation’s health record in five years, saving billions of dollars in health care costs and countless lives. And we’ll protect health insurance for more than 8 million Americans who are in danger of losing their coverage during this economic downturn.

To ensure our children can compete and succeed in this new economy, we’ll renovate and modernize 10,000 schools, building state-of-the-art classrooms, libraries, and labs to improve learning for over five million students. We’ll invest more in Pell Grants to make college affordable for seven million more students, provide a $2,500 college tax credit to four million students, and triple the number of fellowships in science to help spur the next generation of innovation.

Finally, we will rebuild and retrofit America to meet the demands of the 21st century. That means repairing and modernizing thousands of miles of America’s roadways and providing new mass transit options for millions of Americans. It means protecting America by securing 90 major ports and creating a better communications network for local law enforcement and public safety officials in the event of an emergency. And it means expanding broadband access to millions of Americans, so business can compete on a level-playing field, wherever they’re located.

I know that some are skeptical about the size and scale of this recovery plan. I understand that skepticism, which is why this recovery plan must and will include unprecedented measures that will allow the American people to hold my Administration accountable for these results. We won’t just throw money at our problems – we’ll invest in what works. Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made public, and informed by independent experts whenever possible. We’ll launch an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government, and every American will be able to see how and where we spend taxpayer dollars by going to a new website called recovery.gov.

No one policy or program will solve the challenges we face right now, nor will this crisis recede in a short period of time. But if we act now and act boldly; if we start rewarding hard work and responsibility once more; if we act as citizens and not partisans and begin again the work of remaking America, then I have faith that we will emerge from this trying time even stronger and more prosperous than we were before. Thanks for listening.

(H/T HotAir)

Others: New York Times, AmSpecBlog, Political Machine, AMERICAblog News, Political Punch, Gothamist and ONTD: Politics

Toyota is feeling the pinch too.

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So much for that stupid  Neo-Con line saying that the slump in auto sales is the automakers fault.

Via the New York Times:

TOKYO — Toyota Motor will idle its plants in Japan for 11 days in February and March to reduce output in the face of steeply declining global vehicle sales, the company said Tuesday.

The Japanese auto giant said the suspension would affect production at all 12 of its directly operated domestic plants, which include four vehicle assembly plants and also factories that make transmissions, engines and other parts. The closings are in addition to a three-day shutdown this month at these plants that Toyota had already announced.

The move is unusual for a company that just a few months ago seemed unable to keep up with voracious global demand for its fuel-efficient vehicles. But even strong players like Toyota have failed to escape the drastic slowdown in the global auto industry.

The company said it would idle the plants to reduce stocks of unsold vehicles amid a relentless slide in sales, particularly in the United States, its biggest market. Last month, Toyota’s sales there dropped 37 percent, a larger decline than at its struggling American rivals General Motors and Ford.

Plunging sales and a stronger Japanese yen, which reduces the yen value of overseas profits, forced Toyota to forecast last month its first annual loss in 70 years at its vehicle-making operations.

Toyota did not say how many vehicles would be affected by the suspension announced Tuesday. The company said its four domestic assembly plants produced 1.5 million vehicles in 2007, the most recent year for which the company has figures. Toyota-brand cars are also made by other companies in the Toyota group.

The company had already announced that it would shut down truck production at two United States plants for three months

Its American rivals — General Motors, Ford Motor and Chrysler — have also idled plants across North America in response to the slowdown.

For once, I am in agreement with a Liberal, and yes, it is the same knuckle-headed liberal that insulted Conservatives. Hey, I am one that praises when it’s due and bitches when it’s due too; At least I’m fair. 😉 😀 😛

Matthew Yglesias Weighs in:

This is the conceptual problem with efforts to “save” the car industry through bailouts or union busting or whatever you like. One assumes demand for cars will get higher than it is right now, but the industry has a whole just has more capacity to build cars than there is demand for new cars. Which is fine. When you look across the developed world and try to take stock of the medium- and long-run problems facing the OECD nations there’s just no way you’re going to reach the conclusion that an automobile shortage is a big concern. But obviously it’s not fine for the companies that make cars. There’s going to be a need for some shrinkage.

Yeah, I know, most likely some of the Conservatives who are basically scraping my blog for content are going to try and deride me as a fake conservative, because I stick up for the middle class and because I happen to be the son of retired General Motors Worker and U.A.W. member. Well, I got two words; screw you and the rest of the asshole Madison Ave. Conservatives. 😡

Anyhow, I happen to agree with Matthew here, I live here in the Detroit Area. If the auto industry dies, so does this area. That will cause my parents to suffer, they need the health insurance, as they are both diabetic and the amount of medications that they take is staggering.  Anyhow, this article above disproves and basically strikes down the “Meme” that was going around in the Conservative Blogosphere that the issues with the auto industry was the fault of the automakers. Which I totally dismissed as abject bullshit of the highest order. It was the fault of President Clinton for putting pressure on the loan companies to give those toxic subprime loans to those who were considered high risk. That is what started this whole thing. Of course, equal blame can be given to the Republican Congress of 2003 for not changing the laws, after all, they were warned by the Bush White House to do something; and they did nothing at all.

Best thing they could do, was have a hearing, of which the CEO of Freddie Mac pulled the race card, and congress backed off. So, all the blaming of the Auto Companies was nothing more than a feeble attempt by the Republicans at scapegoating the wrong damned people.

Here’s hoping that Japan’s auto industry totally collapses and people, both American and otherwise, have to buy American products, for a change!

Rep. Ron Paul on the Israeli Gaza Conflict

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I must admit, the man speaks the truth. I don’t agree with one point however. To me, it does not matter how many missiles Hamas fired into Israel, one missile is one too many. But the rest, I pretty much agree with.

Quote of the Day

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Indeed, Toyota claims losses for the first time in 70 years—though how Toyota’s management was able to keep sales up in 1945, when Gen. Curtis LeMay’s B-29s were conducting their nightly visits, escapes me.

Bush may believe he has sinned against free-market principles, but he is following the path of his great free-market predecessor. Ronald Reagan, too, was not prepared to see Japan take down the U.S. auto industry, or steel industry, or computer chip industry, or Harley-Davidson.

Believing Japan was dumping to destroy U.S. companies, Reagan put patriotism before ideology and imposed quotas on Japanese imports. He, too, was castigated by the same commentariat that is berating Bush.

Vice President Cheney, too, has endorsed the bailout of Detroit. Of the senators who voted to pull the plug on General Motors, Cheney is said to have remarked, “It’s Herbert Hoover time” up there in the GOP caucus.

[….]

Like Prohibition in Hoover’s phrase, globalism is “an experiment, noble in purpose, that has failed.”

Funny Video: Sponsor an Executive

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This was sent to me by the smartest Democrat I know………………My Mom.  😀

The Reading Room: The Proper Role of Government by Ezra Taft Benson

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I was given this link via twitter a couple days ago, I bookmarked it.

I admit, that I didn’t read the entire thing, But I read enough of it, to see that it is something that everyone, of all political stripes should, in fact, read.

Go here to read, “The Proper Role of Government by Ezra Taft Benson”

More Signs of the Hard Times Ahead

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This is just not a good thing, at all. 🙁

Via the New York Times:

With unemployment claims reaching their highest levels in decades, states are running out of money to pay benefits, and some are turning to the federal government for loans or increasing taxes on businesses to make the payments.

Thirty states are at risk of having the funds that pay out unemployment benefits become insolvent over the next few months, according to the National Association of State Workforce Agencies. Funds in two states, Indiana and Michigan, have already dried up, and both states are borrowing from the federal government to make payments to the unemployed.

Unemployment taxes are collected by states from employers, but the rate varies from state to state per employee. In good times states build up trust funds so that when unemployment is high there is enough money to cover the requests for benefits, which are guaranteed by the federal government.

“You don’t expect the loans to happen this early in a jobs slump,” said Andrew Stettner, the deputy director of the National Employment Law Project, an advocacy organization for low-wage workers. “You would expect that the states should, even when they are not well prepared, to have savings.”

The Labor Department said last week that initial applications for jobless benefits rose to 573,000, the highest reading since November 1982. It is recommended that states keep at least one year of peak-level benefits in their trusts, but many have not, and already some states are far worse off than others.

Yet more of the ripple effect in the Nation’s Economy. Of course, I could sit here and blame the Democrats or the Republicans. But honestly, who is really to blame here? I personally think it is the fault of both parties really. First off, it is the fault of the globalist Neo-Cons who would rather ship jobs overseas for cheaper labor, than to keep the jobs here on Terra Firma. Second, it is the Democrats, with Bill Clinton putting pressure on the lending companies to offer high risk loans to those, who normally could not afford them. Put simply, it was a system that was set up upon risk and it ultimately failed.

So, now we’re stuck with states with extremely high unemployment rates and states who are having to ask the Federal Government for help to support these people.  Now some of my more purist fellow Libertarians  would essentially say, “Screw ’em! Let ’em suffer!” But seeing I am from the area, and I do admit to being more a moderate, I do not hold to such asinine views.

I personally think that the worst thing that our Government can do is throw up their hands and panic. Throwing more legislation and huge amounts of money at the problem will not work. The Wall Street Bailout proved that. I think, as a moderate, the best thing that the Federal Government can do is give the States that need the help the funds to keep the unemployment programs running and try the best they can to weather out the storm.  The Economy is not going to stay horrible forever, we had a recession in the 1980’s, which was a result of some of the stupidity of the Carter administration.  We weathered that storm out and recovered, I believe that we will do the same here. Yes, there will be hardships for a while, but in the end, we will prevail. We always have and will always will.

Local News: It is not just the big three feeling the pinch

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It seems that the big three are not the only automakers feeling the pinch.

Via Detroit News:

Honda Motor Co. is reducing production in North America by a further 119,000 vehicles in its fiscal year ending March 31, the company said Friday. Honda previously had announced output cuts of 56,000 vehicles for the year.

The Japanese automaker now expects its full-year output in the region to dip to 1.29 million cars and light trucks, from its original target of 1.47 million.

Production is being cut across the board, with output reductions planned for small as well as larger vehicles, company spokesman Ed Miller said. “Showroom traffic is down for everyone,” he said. “The dealers just aren’t in a position to order the number of cars they had been ordering.”

Production cuts are scheduled for Honda’s plants in Alabama, Ohio, Indiana and Canada, but the company does not plan to lay off any workers.

So much for the idea that the big three are causing their own problems. Looks like the Japanese are feeling the pinch too.  I would be willing to bet that you will not be seeing this blogged on any other Conservative Blogs. Because that would mess up the message that it is the Unions fault that G.M. and Chrysler are in the shape that they are in.

Of course they are not going to lay anyone off, the Japanese have all that extra money laying around, they can pay those people to work. They have made it by stealing market share away from the America Workers.

It truly is a pity, those bastards bombed Pearl Harbor in 1941. We defeated them, but they really won the long war, by stealing our jobs and market share, aided and abetted by Globalist Neo-Conservatives, who’s only concern was to make a quick buck.