Hypocrisy.com - The Right Guy on The Left Coast

Bend over and brace yourself America — here it comes again.

Martin Walker write in a Washington (UPI) Nov 19, 2008 datelined article that, “(A) GM bankruptcy would not save money for the U.S. economy. The healthcare and pension obligations would simply shift to state welfare, Medicare and Medicaid and the pension guarantee system.”

There are 479,000 retirees getting GM pensions. Pensioners are quarantined a maximum of $40,000 a year from The Pension Benefit Guaranty Corp. PBGC is another one of those federal shadow corporations nobody pays much attention to until the defecation hits the impeller. But, it GM fails PBGC could wind up paying 20 billion a year to GM pensioners, or for any other qualifying company that fails. So in that context a $25 billion “bridge-to-nowhere-loan” to GM looks cheap is there is even a slight chance it will reverse track and could be paid back.

Second, he says a Chapter 11 bankruptcy filing would likely hit sales hard, as consumers fear that multiyear warranties and their local dealerships and future supplies of spare parts might not be reliable. Frankly that’s mostly a boogieman.

Third, Walker argues there is a strategic aspect to the U.S. auto industry. It is a critical part of the national industrial base and the economy as a whole, as well as the defense sector. But, what he doesn’t say many of US military vehicles are being made elsewhere anyway because U. S. plants can’t or won’t do it.

Detroit he points out is the key partner in the Army’s Tank Automotive Research, Development and Engineering Center and the Fuel Efficient Ground Vehicle Demonstrator Project. Detroit Diesel and ArvinMeritor are irreplaceable links in the military’s long supply chain but they can run just fine without help from legions of General Motors Institute graduates’ help.

Fourth, GM is profitable in Europe, Latin America, Asia and the Middle East. GM upped its profits in Europe by 65 percent last year.  GM also posted records in Asia, Latin America and the Middle East. In China, GM leads all automakers in sales. In 2007 sales rose 20 percent for GM in China compared with 2006, and GM became the first manufacturer to sell 1 million vehicles in China.

But, that may not last. Opel, GM’s German wing wants Berlin to bail it out and Brussels to restructure aid under the European Union’s proposed scheme to help its auto industries retool for a green future. But Opel, like the British wing of GM known as Vauxhall, is looking hard at buyout options and there are buyers.

Fifth, and maybe most important people are still going to buy cars. The credit crunch has been complicating things since the boneheads in Congress shoveled money to banks without a demand to lend it – so they aren’t – but will. But forget about the U. S. the growing wealth of the developing world means a boom is on the way.

Walker says there are now 800 million vehicles on the world’s roads; by 2020 there are expected to be 1.5 billion, with strong growth in China, India and elsewhere.

The good news is things like the Volt, GM’s electric-powered (but still hybrid) car coming to market within 18 months. Ford and Chrysler have hybrid vehicles already, and fully electric and fuel-cell cars are in development.

He argues all these good idea should not go to waste what he doesn’t say is they won’t. Remember GM and to some extent Ford and Chrysler won’t let that happen and their foreign operations although related are more independent that dependent.

Sixth, remember GM and Ford are well advanced on the restructuring path, after new agreements with the labor unions, improved quality and models, and ongoing reform of its sprawling dealer network.

United Auto Workers union is talking about funding a voluntary employee beneficiary association has ended its $50 billion liability in unfounded benefits. This has already saved GM $5 billion.

Moreover, healthcare reform, a likely priority of the incoming Obama administration, could shift the remaining burden of health costs from companies to a national insurance system that should further relieve the auto industry’s current high cost structure. The bugaboo is those costs will fall on taxpayers.

The rub in all this is that the current crash sneaked up on America driving car and truck sales down from 16 to 13 million units and it is still headed south.

GM’s current North American operating costs of $31 billion a year at its 24 plants need to be slashed by at least a third. That costs jobs and wrecks communities. I know I watched steel plants close followed by blocks of closed stores and even the local movie house. Three plants are already slated for closure.

Walker’s argument that GM’s has “spawned a “sprawling and swollen dealership network” but he forgets that dealerships – including some 4,000 in small-towns are private businesses and that will take care of itself. So keep hands off.

He rightly points out if Congress decides against a GM bailout it need not be the end of the world. When UK Prime Minister Margaret Thatcher refused further subsidies to British Leyland, the last U.K.-owned major car manufacturer things came back and UK now makes and exports more cars and employee more people than it did then. Plus, Walker finally says, given the manufacturing presence of Honda, Toyota, BMW, Mercedes and Hyundai, the U.K. experience may well be repeated in the United States, even if Ford and GM collapse.

After all based on current share price Ford and GM both could be bought for less than $10 billion so somebody will – clean house; flush those toilets and clean the bowls and get on with it.

The Democrats in Congress are so beholding to tens of millions of contributions from big labor and millions of workers to keep them in office they will likely not what what’s right. So here comes $25 billion and probably $50 billion or more and things will still be a fouled up as Hogan’s goat.

Martin Walker hit a pretty solid ball but I had to short stop it and hold him up on first base. But, he still did better than those strike outs in Washington DC.

New attack submarine has offensive purpose

Dateline Paris (AFP) Nov 19, 2008 The first of a new class of multipurpose Russian nuclear attack submarines currently in construction will be operational by 2010, a Russian news agency reported Wednesday.  The Severodvinsk “will be operational in 2010,” Ria Novosti said. Named after the White Sea port which houses the main Russian nuclear submarine base, the Severodvinsk is 119 metres long (390 feet) and can navigate at a depth of 600 metres about 2,000 feet under water..

It “will be able to perform every mission that could be asked of it by the state: attacking different targets when underwater, on the surface or (by) land,” according to a naval admiral also quoted. According to the Russian news service, Ria Novasti, the submarine can launch a variety of long-range cruise missiles (up to 3,100 miles) with nuclear warheads, and effectively engage hostile submarines and surface warships.

Work on the Severodvinsk started in 1992, and the vessel had been scheduled to be commissioned before 1998. Work sputtered until this year when financing totaled 4 billion rubles ($146 mln). Under an ambitious 2007-2015 Kremlin Plan, the Navy will receive several dozen surface ships and submarines, including five Borey nuclear-powered strategic ballistic missile submarines equipped with new Bulava ballistic missiles, two Yasen nuclear-powered multipurpose submarines, six Lada diesel-electric submarines, three frigates and five corvettes. Collapsing crude oil prices and pressure on natural; gas prices are gnawing holes in the Putin Plan to increase military spending by a mamouth 23%.

A Russian sailor has been blamed for deaths aboard another new Russian submarine when he allegedly trigger a fire fighting system and suffocated a score of civilian workers aboard during a shakedown cruise.

Severodvinsk (Russian: Северодви́нск) is a city in Arkhangelsk Oblast, Russia, located in the delta of the Northern Dvina, 35 kilometers (22 mi) west of Arkhangelsk on Russia’s Atlantic coast. The city now with a population of 200,000 was first discovered around 1,000 AD by Vikings. Today’s city was largely purpose built as a naval base.

Water needed for long term Mars exploration and colonization.

So far NASA has not discovered any H. G. Wells-like Martian monsters but it’s Mars Reconnaissance Orbiter has found vast buried water ice glaciers under blankets of rocky debris at much lower latitudes than any ice previously identified on Mars.

Ground-penetrating radar was used to detect the glaciers that extend for dozens of miles from the edges of mountains or cliffs. This discovery is similar to massive ice glaciers that have been detected under rocky coverings in Antarctica.

“Just one of the features we examined is three times larger than the city of Los Angeles and up to half a mile thick. And there are many more,” Scientists report.

“The fact these features are in the same latitude bands, about 35 to 60 degrees in both hemispheres, points to a climate-driven mechanism for explaining how they got there.”

“The tilt of Mars’ spin axis sometimes gets much greater than it is now. Climate modeling tells us ice sheets could cover mid-latitude regions of Mars during those high-tilt periods. The buried glaciers make sense as preserved fragments from an ice age millions of years ago. On Earth, such buried glacial ice in Antarctica preserves the record of traces of ancient organisms and past climate history.”

Even though no “little green men” have been discovered on Mars or for that matter even traces of life – this discovery raises interests and the presence of trillions of gallons of water removes a big question of long term exploration missions or even colonialization.

Palestinian Brothers Gave Obama $31,000 from GAZA strip.

The Federal Election Commission was prepared to sweep aside formal demands for a full audit of irregularities in the Obama campaign until the idea of Hillary Clinton being Secretary of State surfaced. More specifically are monies flowing from foreigners and foreign governments to former President Bill Clinton and into the Obama’s pockets.

The rub with the FEC is concerns can also include receiving money from foreign donors. The FEC compiled a list last month of more than 16,000 contributions from overseas sources. A Newsmax survey of roughly one-fifth of those names found 118 individuals who appeared to be foreign citizens.

Non-U. S. citizens are forbidden from contributing and more specifically campaigns, if knowing, are prohibited from accepting such contributions lest foreigners and foreign governments buy influence.

4,000 contributors to the Obama campaign exceeded the $2,300 individual limits and could be prosecuted and if found guilty fined and even imprisoned.

So, will the commission act now? Incoming commissioners Don McGahn, a Republican, and Cynthia Bauerly, a Democrat, insisted that they would hear cases at the FEC in terms of their merits, not party affiliation.

One egregious example is contribution from two brothers in the Gaza Strip, Hosam and Monir Edwan. Together, they gave over $31,000 to the Obama campaign. The brothers listed their address as Gaza Strip, Rafah,” and used a foreign currency credit card to make their donations.

Obama’s campaign also received millions of dollars in cash cards where a person buys the card for cash, contributes without name or address being reported. In one case an individual bought out a retailers supply with a stack of $100 bills.

Partisans are pointing out that this does not reflect the idea of “change” or “reform.”

At minimum say critics Obama’s campaign should be thoroughly vetted as former President Clinton financed investigated to remove any doubt of foreign influence or expose it if it exists.

Chambliss and Coleman Seats on knife’s edge.

Republican incumbent Senator Saxby Chambliss holds a four-point lead over Democratic challenger Jim Martin in Georgia ’s closely-watched Senate runoff race, according to the first Rasmussen Reports survey in the state since Election Day.

A runoff is required since no one security a majority of the vote on November 4^th ,Chambliss leads 50% to 46%, with the vote scheduled for December 2. Only four percent (4%) are undecided. At present Democrats have a 56 advantage; plus one avowed Socialist and an independent (Lieberman) who caucus with the Democrats - two short of a veto proof Senate and hence Congress.

The Minnesota race between uber-leftist, and sarcastic un-funny man Al Franken and bland Republican incumbent Norm Coleman is in a manual recount. They were separated by 209 votes of 2.9 million cast but Coleman’s lead as of 7:03 AM Thursday is 179 due to results from liberal, urban St. Louis County Franken has sued to count absentee ballots even if received late.

Franken’s camp estimates that as many as 250 volunteer attorneys will descend on the state.

Coleman is a former Mayor of St, Paul; first term Senator elected in 2002, a previous member of the Democratic-Farmer-Labor Party (DFL), Coleman switched to the Republican Party of Minnesota in 1996. In 1998 he lost a bid for Governor of Minnesota against former professional wrestler Jesse Ventura , a member of the Reform Party of Minnesota , and Democratic Farmer Labor candidate Hubert H. “Skip” Humphrey III .

Recounting costs about 3 cents per ballot or $87,000 but before every legal challenge is resolved could consume millions of dollars.

48% Say Let Car Companies Fail - That Was Before Corporate Jet Joke.

Nearly half of U.S. voters (48%) say it is better for the economy to let companies like General Motors fail rather than providing government subsidies to keep them in business. Last week that number was 46%, and the poll was taken before revelations of the corporate jet fleet hauling GM, Ford and Chrysler’s CEO banck and forth to their Washington DC beg-a-thon.

Thirty-five percent (35%) believe it’s better to subsidize their continued existence, according to a new Rasmussen Reports national telephone survey. Seventeen percent (17%) are undecided.

Sixty-four percent (64%) of Republicans and 60% of unaffiliated voters say it’s better to let troubled companies like GM fail, compared to 26% of Democrats.

Fifty percent (50%) of Democrats think it’s better to subsidize them, but just one-quarter of GOP and unaffiliated voters agree.

Fifty-three percent (53%) of investors say it is better to let companies like GM fail, compared to 38% of non-investors.

12% of voters, about one of eight, say their personal finances will be significantly hurt if General Motors files for bankruptcy protection. Seventy-three percent (73%) say their finances will not be impacted, while 15% aren’t sure.

Earth to NASA - how about a cost inventory of a $100,000 tool bag?

‘Oh, great!” Astronaut Heide Stefanyshyn-Piper exclaimed watching helplessly as a $100,000 tool bag floated off into the void of space while she was working on the International Sp[ace State (ISS).

Piper forgot to tie it down and the world’s most expensive tool bag is now part of the floating junk orbiting the Earth.

Stefanyshyn-Piper borrowed tools from her companion space walker Steve Bowen, who carried the same contents in his bag.

NASA tracks objects lost close to the International Space Station and the space shuttle because they can be harmful if they later collide.

There is so much space debris in low orbits around the Earth, we wish Chicken Little were right about the sky falling-at least when it comes to debris that is cluttering up our space environment and starting to truly interfere with use of space.

Man-made debris is clogging up active satellite traffic lanes and the situation is getting worse. As we approach space gridlock, space will eventually become inaccessible to all nations for all applications. There will eventually be no more GPS navigation, no more weather data beamed from space and no more satellite television, etc. — and, unfortunately, no one is doing anything about cleaning up space!

There are good things from Tuesday “whoops” renewed discussions about cleaning up space, and requiring “deorbiting” mechanisms that would ensure stuff leaves orbit and burns up and doesn’t just float around for decades and even centuries.

A request has been sent to NASA to explain what could cost $100,000 in a tool bag and if it answers we will let you know.

Never Use a Gold Collection Plate.

My late uncle, Rev. John, used to say “Never use a gold collection plate.” GM, Ford and Chrysler’s CEOs could have benefited from his advice as the hypocrites swooshed into Washington DC aboard private jets yesterday to beg for $25 billion in taxpayer money at least in part to pay for their fleets of jets. Apparently they have all cut costs by laying off their public relations department, or if they haven’t – they should and get someone who is not so completely tone deaf.

Only Congressman Barney Frank out did that troika of hypocrites by charging that denying them the bailout was really about hurting blue collar assembly line workers having already shoveled tens of billions to bailout to white collar bankers. Frank’s first class hypocrisy was heightened by failing to mention that his homosexual boyfriend lover at Fannie Mae was one of the first beneficiaries; how much money he and his mostly Democrat cohorts rake in from United Auto Workers or that he took a sweetheart mortgage from failed Countrywide.

It was Mark Twain who said, “Suppose you were an idiot. And suppose you were a member of Congress….But then I repeat myself.” Makes you wonder how Twain would amend his sarcasm to include the trio of arrogant auto executives having covered the mush mouthed Congressman and his cronies..

Qaddafi Tweaked Putin’s Nose Just As His Grand Scheme Is Going South

Russia is exasperated that Libyan leader Moammar Qaddafi balked at signing contracts worth up to $4.5 billion during his recent three-day visit to Russia. The Russian analyst said Moscow offered Libya the most advanced weaponry, much of it still unavailable to the Russian military.

Sources said Putin, had agreed to write off Libya’s old $4.5 billion debt, when he met Qaddafi in Tripoli in April 2008, and the two leaders agreed to promote defense and energy cooperation. “Everything is moving very slowly, much too slowly for Putin,” a Russian defense source said.

During Qaddafi’s visit to Moscow, the Libyan leader was shown the Su-35 multi-role fighter, the T-90 MBT, the S-300PMU2 air defense system and the Ka-50-2 attack helicopter. No deals were announced. Part is the reason maybe complaints from other about the reliability and effectiveness of Russian weapons.

Qaddafi tweaked Putin’s nose negotiating for Soviet-era S-300 air defense platforms in Belarus and Ukraine. The sources said both Kiev and Minsk offered the platforms at a much cheaper price than Moscow.

Plus, Qaddafi has other fish to fry as his country appears about to fly apart as unrest and revolution is growing and entrenching as a new guerrilla force that is attracting outside interest.

Russia is cash strapped and Libya maybe miffed by being excused from the recent natural gas cartel meeting involving Iran, Qatar and Russia. Plus as crude oil use crashes in China prices are plummeting. Europe is less enthusiastic about its dependency on Russia’s natural gas. All this presents Putin with the worst of all worlds.

Grudgingly Putin is recognizing that his personal plans for a new Russian empire will have to be delayed until the world’s economic downturn turns around. He’s buying time by signaling willingness to get closer to the West including the USA, and apparently believes a new Obama administration will make it easier to get what he wants.

This posting is adapted, edited and supplemented from a November 18, 2008 Moscow datelined World Tribune article.

…most print reporters and nearly all television newsreaders have little or no economic or scientific education - nor are they the sharpest knives in the drawer.

Forty-six percent (46%) of Americans say most reporters and media outlets try to make the economy seem worse than it really is, according to a new Rasmussen Reports national telephone survey.

Sixteen percent (16%) say most reporters and media outlets try to make the economy look better than it really is, while 25% say they present an accurate picture. Thirteen percent (13%) are undecided.

Investors are even more skeptical. Fifty-one percent (51%) say the media makes the economy appear worse than it actually is, compared to 40% of non-investors.

(See article America Divided Into Literate And Illiterate November 16, 2008 , Hypocrisy.com), i.e., “ News, political debate, theater, art and books are judged not on the power of their ideas but on their ability to entertain. Cultural products that force us to examine ourselves and our society are condemned as elitist and impenetrable.”

A private analysis I am privileged to, found that most print reporters and nearly all television newsreaders have little or no economic or scientific education. Further a small study and analysis showed print reporters to have average IQ and television newsreaders to be somewhat below average in native intelligence as measured on the Stanford-Binet 5^th generation scale that is the most up-to-date.

I must disclose that in 1960 as a completely hollow-headed boy I was an invited participant in the recalibration that resulted in the 4^th revision of the standard Stanford-Binet scalling..