International Forecaster Weekly

GM Moves Into China

GM moves into China... free trade means free reign for elitists... Neocon travel notes.... a who's who... making the rest of the world hate the US... airbases in Azerbaijan....

Bob Chapman | May 22, 2005

What if we told you General Motors’ demise was planned years ago, would you believe us? GM sold 30,000 plus cars in China in the first quarter. Since 2001 it has spent $3.5 billion to build manufacturing plants in China. GM last year bought $6 billion in Chinese auto parts and at the same time laid off 37,500 US workers. In 1985, GM started building transmissions in China. In 1990, it began to establish a light truck plant in Shenyang and it began building a $1 billion factory to produce 100,000 Buick sedans a year. In 1992, GM shut down its Buick plant in Flint, Michigan. This past April GM announced plans to build a $400 million engine and power drive plant in Russia, as it announced layoffs at US plants. It has a deal to build Russian-engineered cars to sell for $5,000. That deal is 40% underwritten by the European Bank for Reconstruction, which gets 10% of its funding from the US government, which is you and us. They sell the Niva sports utility vehicle that sells for $8,000 in Russia and for $11,000 in Europe and Mexico under the Chevy brand. In the late 1980s GM built a $150 million Hungarian auto factory and in the early 1990s built a plant in the Czech Republic. GM has a long record of offshoring and outsourcing. Making it even more insulting to American autoworkers, one of the chief conduits of this corrupt corporate welfare is the Export-Import Bank, which provides $15.5 billion in taxpayer-subsidized loans or loan guarantees annually. Since 1985, communist China has become the largest Asian beneficiary of Eximbank loans and guarantees. This is not only GM moving its business offshore, but we taxpayers are helping to finance the loss of our own jobs. Since 2000, GM has received over $500 million in direct loans and loan guarantees from the Export-Import Bank. The result has been GM has reduced its workforce from 559,000 to 314,000. GM has just announced it will close three major plants in the US.

The 1994 passage of NAFTA was a boon to GM and other manufacturers. We predicted a massive loss of US manufacturing jobs, but we were one of only a few lone voices in the wilderness. In 1999, Mexico was running an $11.9 billion trade surplus in autos, supplying the US with 560,000 cars while importing only 46,000. Soon we won’t export Mexico any cars as cheap Russian imports flood the Mexican market, thanks to GM. Free trade and globalization is the tactic being used to implement world government. Part of the groundwork of which was laid in 1965 in the Canada-US Auto Agreement. This was a precursor to NAFTA. Next are CAFTA and FTAA designed to bring about economic and political merging?

GM is the largest private employer in the world and has been a symbol of American prosperity and personal and social mobility. We expect, as was done in 1979 with Chrysler, as GM’s situation gets worse there will be a call for a similar bailout at taxpayers’ expense. This is an example of planned destruction and resurrection to advance free trade and globalization and to further destroy the American economy.

Free trade is the furtherance of elitist international cartels. It embraces many forms of government intervention that makes free trade not free, but robber baron globalization. In the process, government finances corporate welfare for the elitist insiders. The Fortune 500 and other major corporations are the major beneficiaries. Almost all of these corporations are being partially financed by the Eximbank, the European Bank for Reconstruction, the IMF and the World Bank. It’s a gravy train for rich corporations. Large orders for US goods are expedited often by retiring debt of the buying country owed to the US. The Eximbank has $260 billion at its disposal currently to subsidize the business of major transnational corporations. When deals do not work we get to pay for them. Not only does our government subsidize and bail out elitist corporations, but it also bails out countries that are customers. In recent years our government has bailed out Mexico, part of Asia, Japan and Long Term Capital Management, LTCM. There is no reason for these bailouts. They are pure corporatist fascism and not the province of our government. These bailouts are part of America’s imperial reach supposedly for our economic well being and our safety. They are the reflection that laissez-faire capitalism does not work and that isn’t so, it does work. Toady’s free trade doesn’t apply under that heading because the end product is destined to be the deliberate destruction of the US economy. Anyone who cannot see that is just plain dumb or opportunistic. Markets are no longer allowed to correct because our government wants to manage them all. That is government by regulation or fascism. It is your taxes and the debt you are responsible for that is bailing all these entities out. Whether it’s Mexico, LTCM or the investment markets. Almost all economic problems stem from government intervention. A good part of that is free trade. Another example of which is OPIC, the Overseas Private Investment Corp., which is an export subsidy program, and another form of corporate welfare. The subsidies are given out to US transnational corporations to do business in foreign countries to then undercut US domestic businesses. OPIC in 32 years has supported $150 billion worth of foreign investments that have helped foreign countries generate 700,000 jobs, most of which were at the expense of American workers. These policies by all these government agencies are championed by denizens of both political parties, because most of them are controlled by the same elitists behind the scenes. Both socialist and fascists love free trade and globalization. Needless to say, corporate fat cats and self-serving politicians love it as well. The wealthy get richer and the poor and middle class are forced to struggle harder. Internationalism is a state of mind, promulgated officially for the elitists via the Council on Foreign Relations, the Trilateral Commission and the Bilderberger group. They tell Americans it is good to be inter-dependent – it will lead to a better life, when in fact, it will lead to economic slavery under either socialism or fascism. Part of this game is the end of sovereignty and the amalgamation of nations into a New World Order. Free trade and globalization is the vehicle to take us there. If individuals in other countries disagree with elitist philosophy and goals they murder them and if they cannot do that they invade them, kill the populace and occupy their nation. You have recently seen that in Afghanistan and Iraq. Free trade makes America dependent on other nations. It steals America’s freedom and independence. That is why we have free trade agreements and production sharing. We also have it to create monopolies and cartels. We do not like being dependent or interdependent. We do not want NAFTA, WTO, CAFTA and FTAA. They all subject us eventually to tyranny. At home our fascist government has Patriot Acts I and II, and now a National ID card. Don’t you people get it, you are being enslaved.

We have just received the attendee list from the Bilderberger meetings in Rottach-Egern, Germany on May 5-8, 2005. We also received a number of pictures of attendees and also pictures of CIA and US Special Forces personnel. All at our expense, of course. The meeting was secret as usual and much of the elitists world press attended, but no one reported on the events because they are forbidden to do so. Some of the more notable attendees, Franco Bernabe, Vice Chairman, Rothschild, David Rockefeller, Henry Kissinger, Martin Feldstein, Timothy Guthner, President Federal Reserve Bank of New York, Richard Haass, President CFR, Richard Holbrooke, Vernon Jordon, Henry Kravis and his wife, Michael Ledeen, Richard Perle and Paul Wolfowitz.

In a Star-Tribune poll, Minnesotans said President Bush’s job approval rating is 42%, an all-time low; 55% said the country was pretty seriously off on the wrong track. That is a drop of 6% in four months. The President is down 9% in four months. The biggest drop in approval was from those under 44 years old.

Soon the Gestapo at our airports will be strip-searching you with their new ex-ray machine. Screeners will get a clear picture of what is under passengers’ clothing. They see you nude. They are already being used at 12 airports to screen passengers suspected of carrying drugs.

Desperate, the US Army will allow recruits to sign up for just 15 months of active-duty service, rather than the typical four years. Fiscal 2006 will be tough after only getting 42% of needed estimated recruits last month. It has only met 18% of its yearly goal thus far.

Touching off renewed talk about stagflation, US wholesale prices rose at an accelerated clip in April, while industrial output was surprisingly weak. The Producer Price Index (PPI) was up 0.6% in April. This is after the BLS hedonics; goodness knows what the real figure is. Whatever, this will cause higher inflation and cut corporate profits. The year-on-year PPI increase is 4.8%.

Defense Secretary Donald Rumsfeld has visited Azerbaijan twice in the last four months. The only conclusion can be that the US will increase its military presence there. That is a mobile Army base for local uses as well as to re-deploy US troops in Europe and Asia. The excuse for stationing troops there is the Baku-Tbilisi-Ceyhan oil pipeline and its protection. We do hope the oil companies are paying for this protection. Our government is ready to assign not less than $100 million during the coming 10 years for the development of a so-called Caspian Guard, which is now 1-1/2 years old. They and US troops will guard the pipeline so the elitist international consortium can get richer. The pipeline goes into operation this year. The neocons are also in negotiations with Azerbaijan for airbases, from which the US could attack Iran. Russia does not like the arrangement at all in Azerbaijan nor in Georgia, but they have remained quiet about the matter.

Millions of Muslims have been protesting from Gaza to Pakistan to Indonesia regarding the desecration of the Koran by American interrogators at Guantanamo Bay, Cuba. Many people were killed when protests turned into riots.

Violence also flared up in Uzbekistan in what essentially is an internal matter. Close to 1,000 people were killed. Uzbekistan is just north of Afghanistan.

Talk to foreigners in their home countries and you discover that George W. Bush and his neocons have ruined America’s reputation. Either the death of the President or impeachment would restore the world’s confidence in our country. These people have caused the deaths of hundreds of thousands of people justified by a lie and Congress refuses to initiate impeachment proceedings. They have devastated two countries and have several more lined up for destruction. Hundreds of millions of Muslims hate us. Worse yet, he has created a fascist police state at home. We have anti-American riots spread all over the world. It is difficult to believe that Americans were dumb enough to put this lunatic and his band of crazies back in the White House.

Next Tuesday George and the neocons will either anger China by accusing it of manipulating its exchange rate to gain an unfair trade advantage, or it will anger Congress by giving China a clean bill of health. This comes as Congressmen from both parties are clamoring for trade restrictions on Chinese imports, as well as expressing skepticism about trade-opening deals in general. Bush has to do something or Congress will pass trade tariffs. If China devalues, US inflation will rise even higher, as will interest rates as China stops buying US Treasuries. Our guess is that Bush will not confront China and the problem will go to the IMF and be solved over the next three years. This would be but another joke.

As economic problems start to show their ugly faces later this year, we will be fighting a new war for the neocon version of democracy in Iran or North Korea. As the tensions of the draft, layoffs, financial failure become ominous and living standards fall, there will be greater repression of Americans under Patriot I and II as our citizens shout their questions at government. Oil is being pumped at capacity well above amounts needed for commerce to suppress prices to try to temper rising inflation. They also need all the oil they can get in case of major destruction of Iran’s oil facilities. War will be blamed for economic failure and the morons in our society who voted for Bush will go right along with the subterfuge. These old Republican idiots will not even notice the collateral damage. Incidentally, we say that as lifelong republicans and real right-wingers. By the end of the year the invasions will have begun. Americans are about to experience their worst nightmare. The new world order thinks they know best how you should live and where you should work. We are about to experience darkness and evil as we have never known it before. We will win but because Americans have not been vigilant, they will pay a terrible cost. You can bet once action begins in Iran, Iraq will explode in escalating violence. We are essentially bankrupt and that becomes more evident as time moves on. There will be great difficulty ahead. Our elitists in Washington turned a blind eye to extensive sanctions busting big fellow elitists in the pre-war sale of Iraqi oil according to a new Senate investigation. We are glad the Senate is taking notice. We reported on this over a year ago. US oil purchases accounted for 52% of the kickbacks paid to the regime in return for cheap oil. On occasion our government even facilitated the illicit sales. It was also found that the US Attorney refused to take action against a Texas oil company, BayOil, which was then a conduit for payment to Saddam Hussein. The State Department gave a tacit green light for shipments of nearly eight million barrels bought by Jordan, a stooge for the US government. When UN monitors asked for information on BayOil, the US Treasury refused to comply. Our government assisted the theft of $11 billion and they will cover it all up.