GM being pushed into bankruptcy is not the REAL story. It is the move to weaken the US economy further, just at a time when it needs to be
strengthened, that is the real story. There were many other alternatives that could have been taken by the government.
Tax credits and/or incentives to buyers of US cars would have been a better way to "fund" the auto industry,( See USA TODAY story 3/18/2009
That is just one way, which other countries have used successfully, to deal with this current economic crisis. So why was this path chosen? May I
submit to you one possible reason:
Last fall Berkshire Hathaway bought 10% of BYD for $230 million. The deal, which is awaiting final approval from the Chinese government, didn't
get much notice at the time. It was announced in late September, as the global financial markets teetered on the abyss. But Buffett and Munger and
Sokol think it is a very big deal indeed. They think BYD has a shot at becoming the world's largest automaker, primarily by selling electric cars, as
well as a leader in the fast-growing solar power industry.
( the 4/13/2009 article from CNN MONEY is here:
GM's new Volt model would be competition to the BYD electric car and a possible loss of ol' Warrens investment,( question how much GM stock did
Berkshire Hathaway have? answer - NONE - see for yourself -
). Remember that Warren Buffet has been an economic
advisor to candidate Obama before he came to office. Maybe he advised a course of action that would make his $230 million investment pay him a better
Now this is not new to US politics. Remember when the US was the leading maker of television sets? No? Well check out the summary / script from this
PBS Frontline show:
President Nixon's administration bent over backwards to let Japan become the leading TV maker. And as I recall Japan later went on to have the top
ten banks in the world... for a time - but look at Japan now.
My point is the leadership in power today is acting much the same as they did in Nixon's time. Bargains are being made in face-to-face meetings that
we will not learn about for years - if ever. They result in benefits for the parties involved or the parties the negotiators represent. The
public's interests are not considered, except where they may be a possible impediment to the success of the plan.
Here is another example and an automotive one too. I was watching the "merger" stories that came out before the Daimler Benz and Chrysler deal
was done. As I recall it went on and on.,( you can read up on it here:
At about that same time I received my first list of attendees to a meeting that was held under "Chatham House Rules". And on that list was the name
Jürgen E. Schrempp, which I recognized as being interviewed about his company Daimler-Benz looking to merge / buy Chrysler. But the name of the head
of Chrysler at the time, Robert Eaton, was not on the list.
So I thought well, let's see if there is anything to the rumored influence that this group has - if the deal ends up with Eaton and Chrysler on top,
than this group should not be taken too seriously. But if it goes the other way with Schrempp and Daimler-Benz coming out on top, then members of
this group might really have the upper hand in such business dealings.
Well you probably know what happened. Daimler-Benz in the final analysis didn't merge with - they bought out Chrysler. And today does anyone know
where Robert Eaton is? But good ol' Jürgen E. Schrempp is still truckin'. In fact he is still a member of that tight knit group of movers and
shakers - Bilderberg... watch for them in any news story