Auto Industry Bailout Plot Thickens
The report below suggests use of the word ‘global’ when referring to current economic troubles around the world not only describes the geographic nature of the problem but geopolitical as well. German Chancellor Angela Merkel’s concern of money going to US automakers from US taxpayers putting German automakers at risk provides a substantially humorous face on this reverse order of trade subsidy worries. How many foreign countries place barriers to US goods all the while accepting US corporate outsourcing to spur growth in their own economies?
The early promise of ‘a new direction’ in France with the election of Nicolas Sarkozy may be giving way to the honeymoon is long over and the French are scurrying back to their old ways of sending up flares of impending doom and expecting external concessions. This blog’s suggestion that the best thing about Sarkozy leading France was the opportunity for more photo ops of Carla Bruni may end up being less comedy relief and more political reality.
Russia seems to be the only country in this report which relies greatly on the other part of the auto industry equation, energy. The recent dive in the price of oil from its July record highs leaves the nation with the split personality between cold war demon and new world democracy with a severe reversal of fortune in petro dollars.
The only thing missing from all this international intercourse is the predictable hope for world peace and global tranquility. The only common ground here is that all concerned are on equal footing when it comes to playing the game, ‘blank’ on your neighbor. But it is reassuring that good and evil in international politics is equally balanced among the nations described in the report. And that is only because the likes of Iran and similar nations are not noticeably involved. Maybe they are a little less noisy with the fall of oil prices too.
Stanford Matthews
MoreWhat.com
18 November 2008 |
European officials are taking a close look at how the United States is helping its ailing auto industry.
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| President George W. Bush welcomes Chancellor Angela Merkel of Germany to the Summit on Financial Markets and the World Economy Saturday, Nov. 15, 2008, at the National Building Museum in Washington, D.C. White House photo by Chris Greenberg |
German Chancellor Angela Merkel says she wants to make sure aid to the U.S. auto industry will not put Europe’s own auto companies at a competitive disadvantage.
Merkel’s comments came at a news conference Tuesday in the northern Italian city of Trieste with Italian Prime Minister Silvio Berlusconi.
Carmakers in both the U.S. and Europe have been asking for government help, with French automaker Peugeot, Europe’s second largest car company, warning the global auto industry is in danger of a collapse.
Meanwhile, France wants to see a stronger international response to the global financial crisis.
In a statement released today, French President Nicolas Sarkozy says France will host a summit in January because world leaders must show they can offer “concrete solutions.”
At a meeting of industrial and developing countries last week in Washington, leaders only managed to agree on a set of principles to prevent the global economy from getting worse.
The Paris summit will be co-hosted by former British Prime Minister Tony Blair, and will include world leaders as well as Nobel prize-winning economists.
Reuters news agency reports International Monetary Fund Managing Director Dominique Strauss-Kahn says the list of countries asking for help is growing every day. And Russian President Dmitri Medvedev says his government may need to spend another $180 billion to stabilize the Russian economy.
Russia has already spent almost $200 billion on a series of measures to counter the economic meltdown. The World Bank today cut its growth forecast for the Russian economy in 2008 and 2009.
India is also worried about the effect of the global financial crisis on its economic growth. Finance Minister Palaniappan Chidambaram said Tuesday the government should cut interest rates. He also called on businesses to cut prices and accept lower profit margins to help stimulate the Indian economy.
The International Federation of Red Cross and Red Crescent Societies says the financial crisis is having an impact on donations from wealthy nations.
And migrant workers from the Philippines tell VOA the financial crisis is having an impact on how much money they are able to send to their families back home.
In 2007, Filipino migrant workers sent more than $14 billion to the Philippines, equal to 13 percent of the country’s gross domestic product.
Some information for this report was provided by AFP.
GOP bailout stooge to Cavuto: “It’s not your money” (Michelle Malkin)
November 18th, 2008 at 11:09 pm
So France and Germany are worried about the possibility of the U.S. Government subsidizing the U.S. auto industry but they have no problem with government subsidies for Airbus?
Pot — meet Kettle. You’re both black.
November 18th, 2008 at 11:12 pm
so true ..welcome to communism ala Obama………the red flag wave of da future!
November 19th, 2008 at 4:35 am
“German Chancellor Angela Merkel says she wants to make sure aid to the U.S. auto industry will not put Europe’s own auto companies at a competitive disadvantage.”
Is Merkel talking about the possible U.S. aid to U.S. autoworkers???? If so, aren’t we honored to have her input??? phtttt
If there was any hope of these Summits proving productive, they would have rolled up their sleeves and stayed with it until the “bright light” came on. Oh, I forgot, only underlings do that.
I really enjoyed your intro.
November 19th, 2008 at 4:42 am
Based on your locale Perri, do I detect a little Boeing bias? Just kidding. I’m a pilot and I DO HAVE A BOEING BIAS, at least since I was introduced to the B-17.
I luv when the EU hints at a dislike for gov’t subsidies, oh, excuse me, US gov’t subsidies.
Thanks for stoppin’ in, Perri, and the commentary.
November 19th, 2008 at 4:45 am
As for the commie thing Angel, I’m not crazy about borsch as I don’t favor beets, but the vodka will be ok, long as it’s Stoli.
November 19th, 2008 at 4:54 am
Maggie,
My take on most things political especially summits is there primary purpose is for photo ops to soothe the uninformed segment of the population and secondly mindless and meaningless soundbites as fodder for the MSM and finally an opportunity for international backroom deals and arm twisting with carrots and sticks as disgusting as the homeland version of each attending country’s own politics.
What can they do at a ’summit’ that they cannot do with available technology for video conferencing or even old fashioned conference calls? The answer is the intimidation available with a face to face, group photo ops and not having to explain to the MSM why a high level private meeting took place.
Hey Angel, oops, missed the thanks for stoppin’ in part and the same goes for you Maggie, thanks all.
November 19th, 2008 at 6:41 am
Nope, no Boeing bias here… maybe some Lockheed bias, but that’s familial.
November 19th, 2008 at 2:22 pm
Ok Perri, now you made this aviation fan recall the Skunkworks, Kelly Johnson and the SR-71. Absolutely my favorite aircraft although there are others….many others. But I shouldn’t move the discussion of this post to things aviation I suppose.
November 19th, 2008 at 3:29 pm
[…] Blog @ MoreWhat.com […]
November 19th, 2008 at 3:37 pm
From Right Voices, \’pixie dust\’, that\’s a good one.
In light of all the noise about the auto industry bailout debate more than this post\’s report on Merkel and others obsessing over US taxpayer subsidies of the auto industry should be included. The link to Michelle Malkin and the link from Right Voices make that clear.
While it was already too late for the auto industry a post here in early 2007 featured the dismal performance of the American auto industry and the writing on the wall announcing impending doom if things didn\’t change quickly. As far back as the eighties and Ford\’s debut of the Probe sent a signal that major events were taking place. If memory serves, Ford\’s partnership with Mazda on the Probe included Ford\’s assistance to Mazda for setting up shop in the US. That may have been the beginning of the end.
Everyone knows auto execs caved to organized labor and allowed all sorts of concessions for expediency and now it\’s time to pay the piper and they can\’t. There was writing on the walls for labor also but all one heard was a loud whining sound and it wasn\’t coming from automobile engines. Workers were angry that some of their jobs would be taken over by robotic machines like in welding. There are stories of people who get payed for not even showing up to work but remaining on the employee roster. If you are looking to cast blame it\’s all over the industry on both sides of the management/labor issues. And it didn\’t help that government ignored the need to move away from fossil fuels with the unheeded warning of the earlier so-called oil crisis phenonmenon in the seventies. Thirty years or more of inaction on alternative energy and all they could do is paint the auto industry as the bad guys for not drastically increasing the mpg of vehicles coming outta Detroit and elsewhere. And of course the general public didn\’t need much incentive to continue the love affair with cars and other vehicles. Bigger, faster, heavier, with all the modern conveniences and who cares if they get lousy gas mileage? Gas is cheap, right? Just the fact that car loans went from a typical three year payoff to six years or more should be some kind of clue we couldn\’t afford the love affair anymore.
So now what?