Update 6/11/2016
This page is divided into four parts, listed below:
1. 2016 Presidential Campaign Update
2. My Letter To The Other Presidential Candidates
3. Essay: America's Decline after World War Two
4. Magazine Article: The Detroit Disaster Conspiracy Theory
2016 Presidential
Campaign Update
My presidential campaign has been dealt another
setback. This one is devastating. Despite anti-virus protection, my computer
was infected and virtually destroyed. My
external hard drive back-up didn't prevent almost all of my files from being
lost. I am now sifting through the
wreckage and learning how to use a new computer operating system. The important file containing my letter
challenging the other presidential candidates to a public debate and other
important campaign related documents is gone forever. On top of that, someone destroyed some of my
home-made roadside signs and left the pieces laying on the ground. Is someone sending me a message?
Despite this infuriating situation, it is my
patriotic duty to carry on my fight for U. S. Treasury issued, debt-free United
States Notes (U. S. Notes). And it is my
responsibility as a presidential candidate educate the American people with the
WHOLE TRUTH about the problems and dangers facing our nation, including
excessive government debt. The looting
of Greece is a case in point and a cautionary tale worthy of close
examination. This link to the U. S.
Treasury web site: U. S. Treasury - FAQ: Legal Tender Status of Currency
will verify that what I say about United States Notes is true and based on
existing law.
From the beginning a year ago, the presidential
campaigns have been mostly the usual soap opera of vapid, claptrap, pandering
sound bites and dubious “promises.” The
difference between me and all the other candidates, including the ones who
dropped out, is that I demand action from Congress and the president NOW,
not after the election. After the
election it will be too late. I know
from frustrating experience that once elected, politicians are totally
insulated and virtually unaccountable.
I've waited twelve years for an answer to my
Constitution-based proposal for debt-free funding of government, at all
levels. My proposal is to supplement existing tax revenue. I don't propose to eliminate taxes. Responsible citizens should be willing to pay
for their government. But a $19 trillion
national debt and funding short falls in states and municipalities all across
the country dramatically prove that taxes are not covering the cost of
government. In 2004 when I began my
battle with the politicians for debt-free U. S. Notes, the national debt was $7
trillion. An unnecessary
twelve trillion dollar increase has been loaded on the backs of American
taxpayers since then! This doesn't
include increased state and municipal debt.
Of course, debt-free U. S. Note funding can reduce taxes and
government debt.
Holding politicians accountable for, and
cutting, unnecessary spending is a separate issue because that won't fix the
debt problem that exists now. But before
we can do that we have to confront the dirty little not so secret fact that
government debt at all levels is an integral part of the global financial
system and the private sector pension “system.”
What happens to the “fixed income” market if the national debt and state
and municipal debt is ”paid off” as some conservative Republican politicians
propose? Incredibly, I hear conservative
Republicans complain in Congress that “We won't be able to sell our government
debt.” if we don't slash “entitlement” programs like social security, Medicare
and Medicaid. What a system! They conveniently forget that the so-called
social security “trust fund” went into the red because of the subprime mortgage
disaster in 2007/2008 and the resultant Great Recession. Incidentally, what bank holds the mythical
$2.7 trillion social security “surplus”?
I estimate that $5 trillion has been stolen by politicians from the
“trust fund” since the federal budget was “unified” in 1969! This money is owed to the
American people. The only way it can actually
and honestly be repaid is with U. S. Notes.
Stealing tax dollars and borrowed money from the federal general revenue
fund to “replace” the stolen trust fund money only compounds the theft. It's a classic case of robbing Peter to pay
Paul the money that was stolen from Paul.
I'm calling for an uncorrupted audit to determine exactly how
much money has been stolen since 1969.
Conservative Republicans constantly complain
about taxes and government debt. This is
their excuse the attack “entitlements” and government programs. But where were their complaints when
Republican George W. Bush plunged America into the enormously expensive,
totally unnecessary Iraq War and then cut taxes, twice?! Conservative Republicans say America's high
business taxes are causing “corporate inversions.” This is when a U. S. corporation moves to a
low tax country like Ireland. Here is a
question that I want conservative Republicans to answer: Have Ireland and other low tax countries been
engaged in enormously expensive, virtually continuous wars (hot and cold) since
1917? Does Ireland and other low tax
countries have an enormously expensive global military footprint? What passes for a public “debate” of the
issues facing America is a grotesque sham and an insult to my intelligence.
I don't like to inject my personal life into
politics. But, in this case, I will in
order to make an important point. My
wife is seriously ill with cancer. We
have been making and will continue to make, numerous trips to Pittsburgh for
surgery and doctor's visits. This
involves traveling on the infamous parkway.
This limited access “highway” is a dangerous combination of NASCAR and
demolition derby. Pittsburgh has needed
a beltway for at least thirty years.
Without a beltway, all traffic that could be diverted around the city,
including huge trucks and buses, is crammed onto the hopelessly overloaded parkway. This guarantees gridlock, nightmarish lane
changes and frightening on and off ramps.
But, despited the wonderful economic “turnaround” since the near death
of the regional steel industry, Pittsburgh still can't afford a beltway. And we have hundreds of suspension pounding
potholes. I particularly hate the ones
that give me a choice of a head on collision with opposing traffic, running
into a ditch or hitting the potholes, perfectly positioned to hit both front
wheels.
I've written to virtually all of my elected
politicians (their names can be found elsewhere on this web site) about
debt-free U. S. Notes only to be stonewalled for twelve years. The latest stonewaller is Democrat Pennsylvania
governor Tom Wolf. I proposed unlimited
debt-free United States Notes for funding infrastructure maintenance
and improvement to him. He won't even
send me a form letter! A beltway around
Pittsburgh would be a massive, multi year infrastructure project with hundreds
of well paying jobs. Funded with U. S.
Notes, there would be no new debt and no
tax increase. Who could resist
this win – win proposal? Instead, it has
been reported that Wolf wants to float a two billion dollar bond issue. A proposal that will never pass the
Republican controlled legislature.
So, thanks to former Democratic governor Ed
Rendell and loan originator in chief Tom Wolf (I never wrote to former
Republican governor Tom Corbett), Pittsburgh will never have a
beltway. I remember the letters I sent
them, that they ignored, every time my wife and I are forced to travel on that
rotten parkway. When I say we have
no good politicians, I'm vastly understating the
problem. I E-mailed a mayor whose town
had been devastated by a flood. I
explained that unlimited U. S. Notes could fund whatever infrastructure was
needed to protect his town from flooding in the future. He ignored me. I E-mailed another mayor who was in the media
crying the blues about his dying rust belt town. I explained that unlimited U. S. Notes could
be used for economic development with no tax increase and no debt. He ignored me. I wrote to all five offices of a U. S.
senator who had a major city in her state devastated by a flood. I explained to her that unlimited U. S. Notes
could build levees strong enough to withstand a category six hurricane if such
a thing ever happened. She ignored
me. Our politicians are so horrible they
actually discredit democracy!
Here's another example of what I'm talking
about: If I had been Speaker of the
House of Representatives in 2007, I would have impeached both President George
W. Bush and Vice President Dick Cheney.
We would have learned for certain if they had lied to Congress about
weapons of mass destruction. Lying to
Congress is a felony, obviously an impeachable offense. I'm convinced that if Bush and Cheney had
been impeached, Nancy Pelosi would have been the first woman president in
American history. I also believe
the Republican Party would have been totally discredited for a generation. And their neo conservative masters would have
been discredited permanently. Instead,
the feckless Democratic Party let the ultra conservative Republican Party and
the neo conservatives come roaring back to power from the catastrophe of the
Bush/Cheney Administration. Sometimes I
think the Democratic Party is the best friend the Republican Party ever
had! This leadership vacuum is the
reason I am running for the office of President of the United States.
I'm disgusted by the weakling Democratic Party's
response to Republican and conservative attacks on them and the American
government. To hear the conservatives
and Republicans tell it, President Barack Obama is the worst president since,
well, George W. Bush. I have many serious
policy disagreements with President Obama, but compared to Republican G. W.
Bush he is vast improvement. Space does
not permit a comprehensive thesis debunking the mostly nonsensical right wing
attacks on the president so I will try to do it as briefly as possible:
Starting with the September 11, 2001 World Trade
Center attack; what was Bush and his Republican administration doing in the
months before the attack?
Why didn't they prevent the attack?
Bush and his Republican national security team claim that they were
given “faulty intelligence” that led to the Iraq War. Why didn't they know it was “faulty”? Why didn't they “blowback” on the people who
gave them the “faulty” intell? WHO
gave them the “faulty” intell and why weren't those people held
accountable? After all, they caused an
unnecessary war that cost the lives of hundreds of thousands of people
including thousands of Americans, cost trillions of taxpayer's dollars and
caused a Middle East catastrophe that may be unfixable! Of course there are some explosive conspiracy
theories but I won't go there.
Conservatives and Republicans attack the president mercilessly for not
fixing the Middle East disaster that Bush and the Republicans created. What if that Republican Middle East debacle is
unfixable?! That would
certainly get President Obama off the hook.
Do I have a plan to fix the Middle East disaster? Yes.
But I will only reveal it to President Obama in a closed door classified
briefing. I have no desire to wait until
after the election to have my plan enacted, assuming that I would be elected
president. Why wait? If there is a way to stop the carnage and
destruction, we must act now!
Incidentally, unlike Donald Trump, Senator Sanders, governor Johnson
and Secretary Clinton, I am the only
candidate who served in the military (Navy AMH E-4/E-5, 1962-1966). I was not in combat but I was in two front
line squadrons during the Cold War/Vietnam War era. I served in VA-12 in the Mediterranean and
VW-11 in the North Atlantic. I was a
flight deck plane captain aboard the aircraft carrier USS Franklin D.
Roosevelt (my favorite president).
The
problems with the budget deficit and national debt can be traced directly back
to George W. Bush. Remember, he was
handed a surplus when he took office.
The Afghanistan war and the unnecessary Iraq war were
started on Bush's watch. But
conservatives and Republicans ignore this truth and try to blame Obama for
increased government spending and debt.
And remember, Obama was stuck with the cost of the bank bail out even
though the disaster was caused by and happened under Bush. Bush and the Republicans pushed for the bank
deregulation and securitization that caused the subprime mortgage disaster. Yet ,despited the major role that
securitization played in the crisis, I heard a Republican in Congress say that
securitization is a vital part of out financial system! Was the bail out money really paid back to
the government and if it was, where did the banks get the money? And what about the loss of tax revenue
caused by the Great Recession? President Obama bent over backwards to
accommodate the conservatives and Republicans.
In return, they (figuratively) stabbed him in the back and opposed him
at every opportunity. Despite this,
considering the disaster that he inherited, the Obama recovery is
impressive. As for the problems, real or
imagined, with the economy, blame the deregulated, globalized, free
market, capitalist New Normal private sector, not Obama. It is the private sector's war on the working
class that is the cause of unjustified income inequality, poverty
and a stagnant economy. It was the pull
out of General Motors and the American auto industry that destroyed the tax
base and caused the economic disasters in Flint, Detroit and other parts of
Michigan. It is the private sector
that controls the economy, not the government or the president. When the private sector “promises” jobs and
economic growth if the government cuts business taxes and regulations, that's economic
blackmail. Isn't extortion a
crime?
I'm astounded when I hear conservatives and
Republicans repeat the absurd claim that we need a businessman to be
president. They say: “the government
should be run like a business.” Well,
George W. Bush and Dick Cheney were businessmen. In fact, they were both CEOs! And it is an indisputable fact that their
administration was a total disaster.
However, they did run the government like a business. They privatized a significant part of their unnecessary
Iraq War, they privatized the Iraqi oil industry and handed out
lucrative war related business contracts.
Of course, all this privatization increased the enormous cost of the
war. Why are the Democrats so reluctant
to blame the disastrous Bush administration and the private sector for
America's problems? Probably because
many top neo conservative, neo liberal, globalist Democrats are implicated
America's problems.
The Affordable Care Act (“Obamacare”) was an
altruistic effort by President Obama and the Democrats to provide healthcare to
the underinsured middle class, the working poor and the poor. Is that so terrible? Judging by the hateful reaction of
conservatives and Republicans, you would think they committed a major crime
against humanity. What did the
Republicans ever do to provide healtcare to the middle class, the working poor
and the poor? Nothing. The problem with the Affordable Care Act is
that Obama and the Democrats tried to work within the for-profit healthcare
insurance “industry” and subsidize the program with tax dollars. But the free market and the profit motive are
the weak links in the healthcare chain.
My U. S. Note funded proposal for universal healthcare (explained elsewhere
on this web site) doesn't require tax dollars and isn't hamstrung by the
for-profit insurance “industry.”
Obviously, the healthcare crisis and all the problems in the economy are
the result of the failure of the capitalist system, not a failure of
government.
And I am soooooooooooo sick of hearing the cry
baby conservatives, Republicans and fat cat right wing talking heads whine
about America's “highest corporate tax rate in the world.” What about the corporations that pay NO
federal tax? If the corporate tax is so
high, where did those massive profits come from? And what about the multi billion dollar's
worth of dividends and stock buy backs?
If the tax system is so “confiscatory,” where did all those American
millionaires, multi millionaires, billionaires and multi billionaires come
from? Who is buying those multi million
dollar cars, yachts, mansions and works of art?
Why does the number of American millionaires and billionaires increase
every year (except when Wall Street crashes the economy)? As for the complexity of the tax code and
taxes that, in some cases, really are too high, I have debt-free money
solutions to those problems (explained elsewhere on this web site).
Space does not permit a comprehensive
explanation of my Constitution-based, debt-free money economic, monetary and
social reforms. I removed from this web
site my essays titled “Building a Strong Economy” and “Rebuilding American
Manufacturing” that were written for my 2010 campaign for the Pennsylvania
state legislature. I am revising them to
reflect the current political and economic environment. Most of my ideas for economic, fiscal,
monetary and social reform can be found in various places on this web
site. However, a comprehensive overview
of them can be found in my February 11, 2012 Update on this web
site. Simply scroll back to that post. I
invite you to compare my thesis with what is proposed by the other presidential
candidates or any politician now serving in government. The New Normal economy that has so many Trump
and Sanders supporters angry has been called a “gig economy.” I call it a “gingerbread Economy.” I call my alternative the “Constitution
economy” because it fulfills the Constitutional mandate to “promote the
general welfare” of the American people. That said, this quote from my 2010 campaign
essay Building a Strong Economy should allay fears that I am a business
hating communist determined to destroy the capitalist system: “The fact that I
am a pro worker populist doesn’t mean that I am anti business. However, I do believe in economic
justice. I have plenty of ideas for job
creation that will benefit business as well as workers.” “Despite my populist agenda, I could be the
best friend the American business community ever had. I’m not a tax and spend politician.” “The recent social instability in Baltimore
and other volatile areas reveals a broken economic system that, as a
president/mechanic, I will make every effort to fix.” “With unlimited debt free-money for funding,
the government can partner with the private sector to create good jobs that
will employ the “unemployable” before they become a menace to themselves and
society. My jobs program can turn
economically devastated [dangerous] neighborhoods into areas of peaceful
prosperity.”
Conversely, President Obama's recent trip to
Vietnam to push TPP is a perfect example of the continuing bipartisan war on
the American working class. History
certainly does repeat itself. All the
World War Two atrocities were instantly forgotten as Germany and Japan were
handed American jobs and integrated, as vassal states, into the global
capitalist empire. The antiwar
protesters said the Vietnam War, with fifty-eight thousand Americans and two
million Vietnamese killed, was a capitalist/imperialist atrocity. Obama's Vietnam trip proves that they were
right! Vietnam, like Iraq, was never a
threat to American national security.
Why do our politicians start these wars?! Despite the complaints from conservatives and
Republicans about the “restrictive,” “oppressive,” “heavy hand of government,”
Obama's trip proves that our “government,” in effect, is an extension of the
private sector. Vietnam's inclusion in
TPP will make them another vassal state (like America) in the ubiguitous,
predatory global capitalist empire. Does
arms sales to Vietnam mean they are being recruited for a future war with our
“trading partner” China? Isn't this the
way the stupid politicians blundered into World War One and later, the War in
Afghanistan?! I'm sure these points
will NEVER come up in the fraudulent presidential campaigns.
I have a message for all those “blue collar
Republicans,”“Reagan Democrats” and Bernie Sanders supporters. DON'T VOTE FOR DONALD TRUMP OR ANY
REPUBLICAN IF HILLARY CLINTON GETS THE NOMINATION. Republicans aren't your friends. And don't stay home. Vote for Democrats. Then get involved in the politics of
your party! Take back your party
from the neo liberals, the neo conservatives and the globalists. I know from personal experience that the
“real Democrats” sat back and let their party slip out of their hands. I've been a blue collar worker all of my
working life. I know the Democratic
Party leadership has made many serious mistakes. But compared to the Republicans, I have no
doubt that a Democrat is almost always a better choice for the working
class. Do you know that it was Ronald
Reagan who put the TAX on social security benefits?! (Do you know that employers can deduct their
social security payroll contribution from their taxes as a business
expense?) To quote Lee Iacocca: “...if
there had been a Republican administration in 1979, Chrysler wouldn't be
around. The Republicans wouldn't even
have said hello to us.” (Chrysler would
have been liquidated.) We don't need a
third party. We have a party. And we don't need a revolution. We just need one good politician to lead us
and to let the American government solve America's problems with debt-free
United States Notes. The problems at
the Veterans Administration, social security, Medicare, Medicaid, TSA, IRS,
SEC, CFTC, Flint and Detroit Michigan and
most government problems are caused by LACK OF MONEY. That is the problem. And that problem can be fixed without
raising taxes or borrowing money with U. S. Treasury issued debt-free
money. The problems of unemployment,
underemployment, working poor, low wages, poverty, the healthcare crisis,
rotten or non-existent pensions and other economic problems exist because the
private sector dropped the ball.
With debt-free money, the government can fix all these problems because
it doesn't have to please stockholders or make a profit. The government has a Constitutional mandate
to “promote the general welfare” of the American people. I have been trying to have a public debate about
these issues with my elected representatives for TWELVE YEARS!!! But for twelve years all I get is a deafening
silence.
I want to take this opportunity to state my
opinion about the “scandal” at the Veterans Administration. Long waiting times aren't unique to the
VA. They are a widespread problem in our
free market “greatest healthcare system in the world.” Why?
Two reasons: 1. less doctors mean more profit. 2. there is a shortage of doctors in this
country. At the VA, fewer doctors mean
less tax dollars for funding. This is
why the VA is always underfunded. For twelve
years I have been trying to fix the underfunding problem with Treasury
issued, debt-free U. S. Notes but the rotten politicians won't let me! Of course, this situation conveniently plays
right into the hands of the privatizers.
Conservative media pundits and Republicans are in a privatization
frenzy. They love to talk about
“incompetent bureaucrats” but they never talk about VA underfunding. I explain the “incompetence” like this: the
VA administrators are told “run the VA with what we give you or we will get
someone who will.” This is why there
were no mass firings. And then Obama
brings in someone from the private sector to do damage control and start the
privatization. I would like to state for
the record that Obama has been stonewalling me on U. S. Notes since BEFORE he
was elected! Somewhere on this web site
I ask the question: are our veterans victims of a privatization conspiracy?!
One more point before I conclude. Why is there a doctor shortage in this
country? Our society and culture have
some fundamental problems. These
problems are reflected in the low test scores and low graduation rate of our
students and our enormous prison population.
Delineation of these problems is beyond the scope of this article. However, I will say that our culture and
society produce an inordinately high number of delinquent, dysfunctional young
people. These young people are almost
always bad students and rarely become doctors or engineers. The other factor, in my opinion, is that many
good students look for soft gingerbread jobs in the gingerbread economy. Wall Street, Hollywood and silicone valley
are among the preferred destinations.
Doctor, engineer, nurse and mechanic are tough jobs that require a
demanding education and lots of responsibility.
And you have to get your hands dirty or bloody. This is the exact opposite of gingerbread
jobs like stock picker, industry analyst, script writer or a bumper music
player in the right wing conservative media.
So, doctors and engineers are imported from the upper classes of foreign
countries like India and Korea. Do I think
I know how to fix these societal problems?
Yes, I do. That's why I'm running
for president.
Ronald Reagan said: “Government isn't the
solution to our problems, government is the problem.” He also said the scariest words are “I'm
from the government and I'm here to help you.”
I'm outraged that a president would direct these slanderous
insults against the American government that I took an oath to defend when I
enlisted in the military. According to
my dictionary, the definition of sedition is: “incitement of discontent
or rebellion against the government.”
And the synonym listed is TREASON!
If I had been a member of Congress when Reagan made those despicable
remarks, I would have introduced articles of impeachment. I'll admit that politicians and bureaucrats
make mistakes that hurt businesses. But
that doesn't justify condemning and destroying government as an
institution. For years I have been
trying to explain the difference between the institution of
government and the politicians that we elect.
If we elect bad politicians, we have bad government. If we elect good politicians, we have good
government. Government is neutral. The government does plenty of things to help
the American people. And it does plenty
of things to help businesses. That's
called corporate welfare. If the
government doesn't protect the American people from the excesses of the private
sector, who will? People are shocked at
the predations of the payday loan “industry.”
Am I risking my life when I say payday loans could be made interest free
by the government with U. S. Notes? What
politician would dare to introduce legislation to set up and fund a postal
banking system with U. S. Notes? Would
that be political suicide?
It is time for Congress, House and Senate, to do
their Constitutional duty and “promote the general welfare” of
the American people. This can be done by
immediately introducing legislation directing the U. S. Treasury to
begin issuing United States Notes directly into the the federal trust funds to
replace ALL of the money that has been stolen from the government and spent
by the politicians since the budget was “unified” in 1969. “Replacing”the stolen money with tax dollars
and debt money from the general revenue fund only compounds the theft. The legislation can be introduced in the
Senate by Senator Bernie Sanders and in the House by Representative Nancy
Pelosi. If this proposal is rejected, on
behalf of the American people, I demand a written explanation of WHY it
was rejected from Senator Mitch McConnell and Representative Paul Ryan. All correspondence and rebuttals from
politicians, reputable pundits and academics should be sent to Committee to
Elect Ray Uhric, PO box 815, Coraopolis, PA 15108.
**********************************
Below is the letter that I will send to the
remaining major presidential candidates.
In this letter I will request that the candidates address the debt-free
money issue that I raise in the letter and on this web site, in a timely
manner. I will also request that
they present my debt-free government funding proposals to the currently serving
federal politicians, in a timely manner. I have proposed debt-free government funding
many times to politicians over the past twelve years only to be ignored or
stonewalled every time. If the
candidates refuse to respond to these requests, on behalf of the American
people, I will demand a written explanation of why they deny the
American people the enormous benefits of U. S. Constitution-based debt-free
money. Their explanations will be put up
on this web site and published in the mainstream media as soon as I can get the
media to finally acknowledge my existence!
The $19 trillion national debt is a threat to national security and the general
welfare of the American people.
U. S. Treasury issuance of debt-free United States Notes is the only
responsible solution to the national debt threat and America's fiscal, economic
and social problems. The time to stop
the irresponsible and dangerous fiscal policies of our loan originator
politicians is NOW!
************************************
My Letter To The Other Candidates
PO
box 815
Coraopolis,
PA 15108
June
11, 2016
Donald J. Trump
725 Fifth Ave.
New York, NY 10022
Dear Mr. Trump:
I am a presidential candidate like you. I have been registered with the Federal
Election Commission since April 21, 2015.
Unlike your total access to the news media, my voice has been
suppressed. For more than a year I have
watched in frustration as the vast majority of the campaign rhetoric has been
the usual soap opera of vapid, claptrap, pandering sound bites. A perfect opportunity to educate the American
people about the critically important issues has been squandered. As usual, the corporate media are careful to
avoid steering the presidential “debates” and discussion in the direction of
discomforting substance. As a
presidential candidate, I have the right and the duty to inject truth and
substance into this presidential election cycle. In this letter, I intend to do exactly that.
I am running on a Full Employment (with just
compensation and benefits), Low Tax, Low Debt, Debt-Free Money platform. The main plank of my platform is a permanent
U. S. Constitution-based: article 1, section 8, paragraph 5, debt-free money
solution to federal, state and local government funding problems. Debt-free money can also stimulate the
economy with well paying government and private sector jobs. My proposal is based on existing law: The
Legal Tender Act of 1862. The
Constitution and the law give the U. S. Congress the authority direct the U. S.
Treasury to issue debt-free legal tender currency –- United
States Notes (U. S. Notes). This is the
same currency that was issued under Presidents Abraham Lincoln in 1862 and John
F. Kennedy in 1963. Under Lincoln, $449,338,902
worth of U. S. Notes was issued by the Treasury. This increased America's national money
supply by approximately twenty-five percent with no inflation. President Kennedy's $4 billion of U. S. Notes
was withdrawn from circulation by Congress after he was assassinated.
This link to the U. S. Treasury Department web
site: U. S. Treasury - FAQ: Legal Tender Status of Currency on my web
site: rayuhric.com will verify that what I say about United
States Notes is true and based on existing law.
According to the Constitution, the government has the unique
authority to “coin,” that is, create money.
There is nothing in the Constitution about the Federal Reserve. Thus, was it an unconstitutional, illegal
crime for Congress to give its enumerated power to create money to the
Federal Reserve without a constitutional amendment? Despite the stupidity of Congress, $300
million of Abraham Lincoln's original $449,338,902 of debt-free money remains
an unissued part of our national money supply.
Under the authority of the Legal Tender Act of 1862, Congress can
increase this $300 million to whatever amount is needed to solve America’s
fiscal, economic and social problems.
The Treasury web site states: “The issuance of United States Notes is
subject to the limitations established by Congress. It established a statutory limitation of $300
million on the amount of United States Notes authorized to be outstanding and in
circulation in the United States.”
United States Notes are interchangeable with and have exactly the same
value as Federal Reserve Notes. Therefore,
the claim that U. S. Notes would not be accepted in the global economy is
spurious. On January 21, 1971, Congress
discontinued the circulation of U. S. Notes.
As a candidate for President of the United States, I have the right to
demand that Congress explain WHY this was done. Incidentally, in 1971 the national debt was
$398 billion. Today it is $19
trillion. That's an 18 trillion, 602
billion dollar increase! Our politicians
have made sure these facts remain a well kept secret.
Based on the legal justification established
above, I propose that U. S. Notes should be put directly into
the federal trust funds to replace the trillions
of dollars ($5 trillion?) that have been stolen since the
federal budget was “unified” in 1969. Replacing stolen trust fund money with tax
dollars from the general revenue fund and borrowed money only compounds the
theft. I demand an uncorrupted audit
of the trust funds to determine the exact amount of stolen money. Treasury issued debt-free money is the
perfect, legal and practicable solution to America’s fiscal, economic and
social problems. As a presidential
candidate, will you publicly support my debt-free money proposals as stated in
this letter and on my web site? If you
are elected president, will you direct Congress to authorize the U. S. Treasury
to issue debt-free money as was done by Presidents Lincoln and Kennedy? Based on the facts stated above, Congress
“with a stroke of a pen” can authorize the Treasury to issue debt-free United
States Notes in any amount. This action
can be taken immediately. Why wait until
after the November election to begin fixing America's fiscal, economic and
social problems? In my 12/12/2015 post
on my web site, there is what I believe is an irrefutable thesis explaining the
legal justification for U. S. Treasury issuance of United States Notes. I suggest you read it before you reject my
proposals.
I propose to use United States Notes to
supplement the normal funding of Social security, Medicare, Medicaid, the Pension
Benefit Guarantee Corporation (PBGC), the SEC, CFTC, IRS, the Veterans
Administration and other important and necessary government functions. Thus, these vitally important government
programs and agencies will be generously funded, made permanently solvent and
benefits will be increased irrespective of tax revenue or economic
conditions. This will be a major
economic stimulus with no tax increase and no increase of the national debt. Today, government funding is such a disaster
that several private sector charities are making television appeals for money
for our wounded and disabled veterans. Wounded
and disabled veterans have become charity cases! This is a national disgrace! For years I have been badgering my
democratically elected politicians telling them to use Treasury issued
debt-free money to fund ALL of the needs of our veterans. Tragically, I have been stonewalled and
ignored by the dozens of politicians who I have contacted.
I stress the issue of Treasury issued debt-free
money in this letter because so many of America's problems are the result of
lack of money. Military funding needs to
be increased to meet the growing national security threats. Infrastructure funding is dangerously
inadequate. Entitlement programs are
shamefully inadequate for a modern civilized society. Full healthcare must be provided for all
American workers and their families and the poor. The Transportation Safety Administration is
dangerously in need of increased funding, The Federal Aviation Administration
and other government regulatory agencies are badly underfunded. Social programs need to be expanded to reduce
social instability and violence. Well
paying productive jobs must be created for at risk young people before they
become a danger to themselves and society.
While Republicans and Democrats argue endlessly about what to cut and
what not to cut, we must take remedial action NOW to fix America's problems.
I have populist, AMERICA FIRST positions on all
of the issues and challenges facing America, both domestic and foreign. I will
discuss and debate them all AFTER the issue of Treasury issued debt-free money
is resolved to my satisfaction. When I
first proposed the issuance of debt-free money to more than a dozen politicians
in June of 2004, the national debt was $7 trillion. Since then, $12 trillion of unnecessary debt
has been loaded on the backs of American taxpayers. Mr. Trump, I challenge you to give me a point
by point response to this letter in a timely manner. Thank you.
Sincerely,
Ray
Uhric
***********************************
America’s Decline After World War Two
Two closely related forces are responsible for
America’s frightening economic, political, fiscal, ethical and moral decline
since 1945: the pursuit of of maximum profits by American businesses and
expansion and defense of the global capitalist empire. Both demanded downsizing, globalization,
union busting, out sourcing, off shoring and cheap sweat shop foreign labor. These forces transformed America’s tremendously
productive economy of 1945 into the debt-based consumption economy of
2016. America had a productive economy
during World War Two that was unprecedented in world history. Today, we have what I term a “gingerbread
economy.” Others call it a “gig economy.” This transformation is the result of what I
call “strategic economics” and the economic barbarism of free market
capitalism.
To achieve the goals of strategic economics,
America’s productive economy had to be dismantled and redistributed among the vassal
states of the global capitalist empire.
In the case of our auto industry, were the products deliberately
sabotaged in order to avoid resistance from the American people? Skeptics of this explosive question should
examine the history of the American auto industry since 1946 to today. Compare the disastrous American decline to
the meteoric rise of the foreign brands that dominate much of the American car
market. Why was enormous American direct
investment poured into foreign auto companies, including from American auto
companies?! I cover this subject
comprehensively in my “Detroit Disaster Conspiracy Theory” article below. The prosperity created in the capitalist
vassal states – Japan, Germany and South Korea – at the expense of America, was
one weapon the capitalists used undermine and destroy the socialist rival that
was emerging in the aftermath of World War Two.
The other weapon was protracted, bloody and enormously expensive
military confrontation. This process
destroyed socialism but it also hollowed out the American middle class,
increased poverty and transformed America into a debt ridden vassal state in
the global capitalist empire. Is
America’s decline a problem or just the inevitable economic reality in the
so-called new world order?
Now that the 2016 presidential election cycle is
underway, the subject of “income inequality” is a hot topic for both
parties. (Does anybody believe that
conservative Republicans are opposed to income inequality?) As usual, the public discussion of the issue
is flawed. The vitally important
adjective “unjustified” is omitted from the phrase income
inequality. Republicans and
conservatives are quick to point out that income inequality isn’t necessarily
bad. They say “do you want a cashier to
make as much as a CEO? Are all these
conservative pundits and politicians really that stupid that they don’t realize
that unjustified income inequality is the problem? This brings up an extremely important but
mostly ignored aspect of the unjustified income inequality discussion:
overcompensation and undercompensation.
This is the “third rail” of economics.
When I bring this subject up, the usual reaction is: “Who will determine
who is overpaid and who is underpaid”? I
say this is not an unanswerable question.
What does unjustified income inequality have to
do with America’s decline? Increased
unjustified economic stratification is a symptom of American’s decline. The pursuit of maximum profits, downsizing,
globalization, union busting, out sourcing, off shoring and cheap overseas
sweat shop labor, virtually destroyed American manufacturing, millions of
middle class jobs and increased poverty in America. Who would deny that this caused a decline in
the social fabric and strength of America?
Who would deny that this increased social instability? Of course, the pursuit of maximum profit is
the reason for unjustified income inequality, declining wages, the loss of job
security, loss of benefits and loss of pensions. Conservatives and Republicans blame President
Obama’s “socialist” economic policies for the slow recovery after the 2007/2008
crash and declining wages. Is anybody
stupid enough to believe this blatantly dishonest nonsense? It is a fact that all of the negative things
that happened to American workers after World War Two are a direct result of
free market capitalist economic policies.
Socialist/populist economic policies would produce the opposite of
unjustified economic inequality.
Unjustified income inequality is a direct consequence of globalization
and deunionization because workers are virtually powerless to improve their
economic situation. It is a myth that
workers “don't take advantage of opportunities”
It is a game of economic musical chairs when there aren't enough good
jobs in the New Normal economy.
In order to maintain economic activity after
America’s manufacturing sector was virtually destroyed by globalization and
wages across the board went down, increased debt has replaced the lost
wages. And to maintain government operations,
our massive global military footprint and ongoing neo conservative military
operations, debt replaced lost tax dollars.
Our $19 trillion national debt, budget crises in many states and
unsustainable municipal debt is an obvious symptom of America’s economic and
fiscal decline. I'm sure the globalizers
were well aware of the fact that declining incomes result in lower tax
revenue. But that was obviously part of
the plan to “starve the beast” and weaken the power of the American government
to regulate the private sector. I
believe the decline in living standards in Greece and other heavily indebted
capitalist vassal states is a preview of America’s economic and social future
unless we change course. Economic
decline, a reckless neo conservative foreign policy, the ongoing and possibly
endless neo conservative foreign wars, possible military confrontations with
China and Russia, the terrorist threat resulting from a reckless and stupid neo
conservative Middle East policy and an ever increasing multi trillion dollar
national debt may combine to produce an existential threat to America as we
know it! As a patriotic America First
populist, I will not silently accept this self-serving stupidity.
Another (little noticed) manifestation of
America’s decline is the increasing foreign penetration of the American
economy. This is nothing new. This trend has been with us for a long
time. Many familiar brands on our store
shelves are foreign companies – Nestle, Norelco, Phillips, Sony, Samsung and
Bayer are examples. In fact, the largest
for profit employer in the Pittsburgh area is Bayer, a German company. This trend has accelerated dramatically in
recent years. Publicly owned American
corporations are for sale to the highest bidder. That’s why they have been gobbled up by cash
flush foreign businesses from other vassal states in the global capitalist
empire. Japanese Bridgestone’s purchase
of Firestone is just one of many examples I could name. American stockholders eagerly relinquish
ownership when they are offered a premium price for their stock. The American tire industry has been
devastated by foreign penetration just like our auto industry. The Kerkorian/Iacocca hostile takeover attack
sent Chrysler on a downhill slide that resulted in the disastrous Fiat-Chrysler
“merger.” This debacle was the death of
a one hundred year old American company.
When American car companies started shedding brands like Plymouth, Pontiac
and Oldsmobile, I proposed having the American government buy these brands with
debt-free United States Notes. That
would have interfered with the “creative destruction” plans of the global
capitalists but it would have prevented the disaster that is the American auto
industry today. It is interesting to
note that shedding brands was the recommendation of the American business press
to fix the problems of the American auto industry. Did these “experts” not notice the massive
proliferation of brands from Honda, Nissan and Toyota? Having the government buy discarded brands
and companies with debt-free money will horrify the free traders
(traitors?). But I would have rather
seen the magnificent Westinghouse Electric Corporation owned by the American
people than chopped up and sold off like party favors to crony
capitalists. On January 15, 2016,
General Electric sold their appliance division to the Chinese. The non-productive stockholders got a fat 22
percent pop in their GE holdings. How
soon will the Kentucky GE workers be competing with Chinese sweatshop labor
Senator McConnell?
Foreign manufacturers get tax breaks when they
set up “transplant” production facilities to make their products here. Our pro trade politicians insist that these
are “American products.” This is great
marketing for the foreign companies that are eating our lunch economically and
accelerating America’s economic decline.
The pro trade economists and politicians tell us “we will never go to
war with our trading partners,” China for example. This is complete nonsense. The European countries had vigorous cross
border trade before they were destroying each other in World War One and the
resultant World War Two. Obama “pivoted
to Asia” to confront the military threat of our “trading partner” China. Pro trade politicians conveniently ignore the
fact that the U. S. Constitution gives Congress, and only Congress, the power
to control the value of the dollar.
Thus, they can accept our “trading partners” manipulating their currency
to dominate our market and fatten the profits of the retail “industry.”
The new gingerbread businesses that have
“replaced” the so-called rust belt manufacturing are mostly facades with
manufacturing out sourced to foreign sweat shops. Many “industries” like telecommunications,
finance and real estate produce nothing.
Our economy is sustained by gingerbread “industries” like finance,
retail, marketing, advertising telecommunications, entertainment, hospitality,
sports and other non productive activities.
The banking “industry” could be thought of as a legal racket. The American government issues debt (Treasury
bonds, bill and notes) and gives it to the Federal Reserve (Fed). The Fed creates money based on that debt and
“loans” (gives) it to the banks. Then
the banks loan it to us at interest.
What a racket! Banks have other
non productive ways to make money such as “trading” in the markets and mergers
and acquisitions (i.e., destroying companies).
Why does the gross domestic product (GDP) go up when actual production
in the economy goes down?
The answer lies (pun intended) in the fraudulent
way GDP is calculated. (GDP: personal
consumption, business investment, government
spending and net exports.) Much
of the gingerbread economic activity involves selling and buying the foreign
made products of foreign multinational corporations. Or, buying foreign made products sold by
American multinational corporations. The
legal, medical and accounting professions are necessary but non productive. The transportation “industry” is also
necessary, but non productive. How much
economic activity involves advertising, marketing and selling foreign made
products? It is true that America
produces and exports a lot of food.
However, there is a downside to this overproduction that is rarely
discussed. Exporting the last of our
reserves of oil and natural gas is supposed to save the gingerbread economy
from stagnation. Future generations may
curse us for this foolish gift to the energy companies. High speed rail equipment for the west coast
will be made by the Chinese. This is a
typical example of the New Normal American economy.
Is the New Normal gingerbread/gig economy viable
or an illusion? We have a healthcare
crisis, an infrastructure funding crisis, a college affordability crisis, a
student loan debt crisis, an immigration crisis, a youth/black/Hispanic/native
American unemployment crisis, a national debt crisis, a pension crisis, a
looming municipal bond default crisis, the housing market is still a problem
after the subprime mortgage disaster, the 2007/2008 financial disaster produced
a permanent $77 billion annual social security deficit. This deficit will increase dramatically in
the future. We have a Medicare crisis, a
Medicaid crisis, a Veterans Administration funding crisis, there is a lack of
middle class jobs, in many areas there is a lack of municipal funding for
police and fire protection, for libraries, youth support activities and other
important community activities, and poverty is still a major problem. The very structure of the economy causes
income distribution to be a sick joke.
In fact, foreign sweat shops are an integral part of the American economy. The stock markets and financial services suck
massive amounts of money out of the economy, and produce nothing. Is productivity an obsolete concept? Is its only function to be a lash across the
backs of the workers of the world? Have
we learned nothing from the disasters of 1929 and 2007/2008? Thanks to our for sale politicians, the
“government” is, in effect, an extension of the private sector. To me, America isn’t a country moving
forward. It is a country in
decline. As a nation, is this the best
we can do?
Do I dare to speak of moral decline? I will only address economic morality in this
essay. Polls show that the take no
prisoners American consumers prefer sweat shop produced products to more
expensive American made items, on the rare occasions when they have a
choice. This is the free market in
action. Globalization and “right to
work” states destroyed millions of union jobs.
Americans seem to approve, consequences
(economically devastated Detroit for example) be damned. I guess this “rambling” essay proves that I
am way out of step with the Zeitgeist. However, I will defend every word against any
rebuttal from any reputable pundit, academic or politician.
I have debt-free monetary solutions for
America's fiscal, economic and social problems.
I'm proud to say that I get my inspiration from Presidents Abraham
Lincoln, Franklin Roosevelt, John Kennedy and Jesus (but I don't go to church). My proposals get their legal authority from
the U. S. Constitution and existing law.
But, for twelve years I have been stonewalled and smacked down by the
politicians, the media, academia and the voters. To be blunt, I think we have an ignorance crisis,
a stupidity crisis and a corruption crisis.
Why should the Americans who depend on social security, Medicare,
Medicaid, the Veterans Administration, the PBGC and other important government
functions suffer because of the ignorance, stupidity and corruption of our
elected politicians?! They gave us the
subprime mortgage disaster, the Great Recession, the disastrous neo
conservative foreign policy and the Iraq War.
These policy blunders (and many others) are why the important government
functions I listed are threatened. Only
debt-free U. S. Notes can save us from the consequences of the folly of our
political leaders.
I will not pander to the voters or defend the
leaders of my Democratic Party when they are wrong. I will state my policy recommendations
honestly. I will not “spin” my platform
to please this group or that group in order to get elected. I will adhere to the Constitution. That means I must promote “the general
welfare” of and address the legitimate grievances of the American people, if I
am elected. For years the voters have
been offered false choices. The false
choice between U. S. Treasury issued, legal tender, debt-free United States
Notes and hyperinflation is just one insidious and destructive example. The result of this scandalous scam is an
unsustainable, destructive $19 trillion national debt. We live in a democracy. The voters can accept my proposals or reject
them. However, the voters can’t make
intelligent, objective decisions about public policy while I continue to be
frozen out of the public debate. The
time has come for TRUTH in politics.
I will debate any foreign policy or domestic
policy issue AFTER the debt-free money issue is resolved to my
satisfaction. Rebuttals from any
reputable pundit, politician or academic should be sent to PO box 815,
Coraopolis, PA 15108.
***************************
I give a
comprehensive explanation of how I believe a capitalist conspiracy destroyed
the American auto industry in a article titled “The Detroit Disaster Conspiracy
Theory” below. The original version of
the article was published on my old web site which I was advised to take down
by my “handler” in Harrisburg when I ran for the Pennsylvania General Assembly
(state legislature). The original
article evolved into long and a short versions.
I tried to have these articles published. They were rejected (suppressed?) by the several
national publications that I contacted.
The long
version was submitted to Time magazine and the Atlantic Monthly. I think I also submitted it to The New Yorker
but I can't remember for sure. The
reaction was silence. There was no
rejection notice or any acknowledgement that I contacted them. This seems odd to me. Of course, their silence means that I can't
prove that anybody at the magazines read and rejected the articles. The article is quite long but I figured the
magazines could edit it and shorten it to fit their requirements. Were they reluctant to send me a rejection
notice because I might tell the world on
my web site that they saw the article but refused to publish it. Silence is the standard response that I “get”
from virtually everyone I contact. That
way (except in a few cases) I can’t prove that anybody ever heard of me. Now that I am a presidential candidate, you
would think that it is impossible for the “establishment” to ignore me. As I explained on my last web site Update,
that logical conclusion is totally wrong!
I submitted
the shortened, less polemical version of my conspiracy article to three or four
car enthusiast magazines. The response
again was dead silence, not even a single rejection notice. Were the editors so exalted that it was
beneath them acknowledge my existence?
Were they ashamed to admit that they were scooped by a mechanic who had
never been to J school? Or, are they
well aware of the conspiracy but they have to pretend that it doesn’t
exist? That way they won’t offend their
advertisers and risk a backlash from the now enlightened public. The short version is not included because it
would be redundant.
The Detroit Disaster Conspiracy
Theory (long version)
[Updated 2/20/2012, 11/27/2014 and
1/15/2015]
introduction
Today,
February 20, 2012, the Democrats are celebrating “saving of the American auto
industry.” On the other side, the
Republicans are griping because President Obama didn’t “let the markets work
their magic” and deliver the death blow to General Motors. I have two questions: does an American auto
industry actually exist, and, did the Democrats really save it?
Below is a
lengthy polemic that I wrote for a web site that I was advised to take down
when I ran for public office in. At the
end of the article, I call for a government investigation of the reasons for
the disastrous decline of the American auto industry. I want to know who was responsible and what
were their motives? I am still calling
for an uncorrupted Congressional investigation of the actions of the American
auto industry’s top executives and boards of directors. They were in charge when the American auto
industry was destroyed.
I believe
the American auto industry is virtually dead and that it was top management and
compliant politicians who deliberately killed it. Today, General Motors and Ford are nothing
but weakling links in the global supply chain.
And Chrysler Corporation no longer exists. Contrary to popular belief, Chrysler isn’t part
of the American auto industry.
“Chrysler” is a subsidiary of a Netherlands-based holding company with
headquarters in London, UK. I consider
the “Chrysler” manufacturing facilities in the United States foreign
transplants. How many Americans know or
care that “Firestone” tires are manufactured by a subsidiary of Japan’s Bridgestone
tire company? Does it matter that Hondas
built in Marysville, Ohio are products of a Japanese company?
And, for
the final nail in the coffin of the American auto industry, conservatives,
Republican politicians and the business press are proudly proclaiming the
non-union, foreign owned transplants in the southern states “the new American
auto industry.” In fact, in 1991, Bush
administration officials, in order to bust European quotas on Japanese cars,
declared Hondas made in Ohio “American cars.”
I think it is obvious that our auto industry is all but dead. A sizable percentage of the American people
couldn’t care less. But I do care about
the death of another American industry.
Was it a good idea to kill the American auto industry in order to
destroy the auto workers union? Is the
destruction of American industry bad for America and the American people? Do our foreign “trading partners” think the
leaders of the American people are stupid fools?
The Detroit Disaster Conspiracy Theory
(12/16/2008) By Ray Uhric
In my
neighborhood, American cars are disappearing from the driveways. The American people, apparently, have voted
with their wallets for the death of the American auto industry. It has become a cliché that: “Detroit makes
cars that people don’t want buy.”
Mysteriously, I have never heard any politician or anyone in the media
ask Detroit’s top management WHY they build cars that people don’t want to buy. In this article, I will attempt to answer
that question. Since I seem to be the
only person who cares enough to ask the question, this article may be a waste
of time. However, I consider it my
patriotic duty to fill in this huge hole in the historical record.
Today,
December 16, 2008, the media are doing their best to keep us in suspense as to
whether GM, Ford and Chrysler will die or if the White House will throw them a
financial lifeline. An industry that was
once a source of pride for America may be mortally wounded. What happened? Americans seem to be remarkably indifferent
to an issue that could have devastating consequences for an already reeling
economy. The Wall Street pundits say:
why should we care? We have a brand new
non-union “American” auto industry in the Southern states. Transplants: Honda, Toyota, Mercedes, BMW and
others, build cars here and employ American workers. That makes them “American cars,” right? Wrong.
I don’t
want to debate whether a Nissan made in Tennessee is an American car. My objective is to satisfy my curiosity as to
why the Detroit automakers went into self-destruct mode shortly after the end
of World War Two -- just as the Cold War was heating up. Detroit’s decline certainly didn’t hurt the
global capitalist’s Cold War strategy to build up the post war economies of
Germany and Japan. But that’s another
story to be covered later.
Putting
that aside, these are some of the common explanations for why Americans turned
their backs on our auto industry:
“Detroit management is stupid; they wouldn’t adapt; they offered a ‘ho hum’
product line; they make boring cars; poor quality; awful styling and they make
cars people don’t want to buy.” Whether
or not these things are true isn’t my question.
The question is: if these criticisms of American cars are valid, why
aren’t people curious about why these criticisms are valid? The loss of this industry could wreck the
economy and the lives of thousands of workers.
You would think that people would be intensely interested or at least
curious.
To me, it
seems extremely odd that all of the American automakers made exactly the same,
well publicized, “mistakes” – year after year, decade after decade. Why wouldn’t one or more (there used to more
than the “Big Three”) break out of this self-destructive pattern? The market share was there for the taking but
they all handed it to the foreign competition on a silver platter. Why?
To paraphrase a disgusted Texas Chevrolet dealer: “They couldn’t have
lost market share more effectively if they would have done it
deliberately.” Is it possible that it
was deliberate?
Why would
the senior management of the American auto industry deliberately lose market
share? Simply add up the number of shut
down unionized plants and the answer to this question becomes obvious, at least
to me. This irresponsible class warfare may be applauded on Wall Street but
what will the ultimate cost be to the economy, the U. S. Treasury and the
families of thousands of workers? Did
Wall Street demand that the auto workers union be destroyed even if it meant
destroying the American Auto industry?
In my well informed and well researched opinion, the answer is obviously
yes.
But, what
about the dealers and the investors?
Wouldn’t they want to save our dying American auto industry? Most car dealers are diversified. The mega dealers sell Japanese, German,
Korean, and probably soon Chinese and Indian cars. They have long ago factored in the
disappearance of the American auto industry.
An American car is just another face in the crowd. As for Wall Street, they’re diversified and
global. The profit growth of the foreign
brands gobbling up the American market is a magnet for the “smart money.” Remember, Wall Street’s mouthpiece, the business
press, never tires of telling us that Detroit is profitable in China. No legacy costs there.
The issue
of legacy costs means that for blue-collar workers the American Dream is
becoming a myth (and for some, a nightmare).
Like a nuclear power plant, a private sector corporation has a finite
life span. When the workers get old and
sick and infirm, the corporation becomes, metaphorically, radioactive and it
must be discarded. Or, there must be
massive cuts in the worker’s pay and benefits or production shifted to a place
with no legacy costs. The business press
and the so-called “liberal” mainstream media demand that United Auto Workers
(UAW) union workers and retirees take cuts in their wages, healthcare coverage,
and pension benefits. I say, all the
people who are demanding that the autoworkers take cuts should take cuts in
their pay, healthcare and pension benefits.
Only a hypocrite would demand a sacrifice of others that they are not
willing to make themselves.
But when it
comes to legacy costs, nothing can match the burden of the compensation given
to corporate executives and federal politicians. All those Southern politicians who spent
millions of tax dollars to lure the foreign, non-union companies into their
states should take cuts in pay, healthcare coverage and their pensions. That is what they are demanding of the
unionized American autoworkers. Our
politicians subsidize the foreign competition so they can put American workers
on the street! I thought conservative
politicians hated socialism. Whose side
are they on anyway? I wonder if they all
have dual citizenship. Are they citizens
and secret agents of Japan or Germany or Korea?
(By the way, dual citizenship should be illegal. If you can’t give total allegiance to
America, you shouldn’t pretend to be an American.)
The
conservatives and the Southern politicians conveniently forget that Germany and
Japan have national healthcare systems that give their manufactures a cost
advantage over us. (Toyota said they
built a plant in Canada rather than the U. S. because Canada has universal
healthcare.) The conservatives and
Southern politicians ignore the foreign government subsidies, the American
capital and tax dollars that built up the foreign car companies after World War
Two and the currency manipulation that gave/gives the foreign car companies a
price advantage. What politician will
tell you that currency manipulation fattens the profits of foreign car dealers
and the retailers of foreign products?
That's why the politicians will never stop currency manipulation despite
their promises to do it. They ignore the
below cost dumping that grabbed market share and the fact that Toyota sells the
Prius at a loss. I thought this was
illegal. Conservatives and Southern
politicians want us to believe that they are too stupid to realize that one
hundred year old companies inevitably incur legacy costs. What do they want, a workforce comprised
entirely of illegal alien migrants riding to work in the back of pickup trucks?
According
to my conspiracy theory, this is all part of the American/global capitalist’s (Wall
Street) Master Plan to gradually downsize, outsource, de-unionize and
eventually offshore the American auto industry.
And the plan was running right on schedule – until Wall Street’s
sub-prime mortgage meltdown disaster/global credit crisis blew a gigantic hole
in the American economy. Detroit’s CEOs
begging tapped out taxpayers for a bailout was never in the Master Plan. When the Big Three CEOs say they could have
made it if it wasn’t for the recent economic train wreck, they’re telling the
truth. The plan was to gradually
destroy the union. And, when the last
painful concession is wrung out of the last hapless United Auto Worker, Wall
Street will suddenly issue a “buy” rating on the Big Three stocks and the
“shrewd” investors will make a killing.
Ironically, the current recession (depression?) may work to the
advantage of Wall Street after all. The
final deathblow to the UAW will come sooner rather than later.
The media
circus surrounding the Detroit bailout hearings was a gigantic PR black eye for
the UAW. The hearings were aired on
every cable news channel, wall-to-wall, gavel-to-gavel. Even the so-called “liberal media” piled
on. It seemed like everybody in the
country was screaming for the blood of the unionized American autoworkers. I’m sure the multi-millionaire CEOs were
uncomfortable begging Congress for money but they will be heroes down at the
country club. Maybe they will get medals
from the Chamber of Commerce for service above and beyond the call of duty.
In my
opinion, the goal of creating a non-union auto industry is the real reason the
Big Three, year after year, “wouldn’t adapt.”
This is why, decade after decade, Detroit put out “ho hum,” “boring”
products “that people don’t want to buy.”
I believe Detroit’s top management never tried to compete with the
foreign manufactures. In fact, they
actually financed and supported the foreign competition. This is the real cause of the auto industry
disaster and it is a subject that many anti-worker “experts” and pundits
skillfully avoid. They rarely mention the billions of dollars of cash that were
squandered by Detroit when they bought and refurbished dying foreign
automakers. Like a stupid, senile, brain
dead old sugar daddy, the American auto executives went on a worldwide spending
spree. The industry analysts constantly
complain about UAW contracts but do they mention the multi-million dollar
financial disaster that was Ford’s Jaguar adventure? This is just one of many such balance sheet
destroying “mistakes” that I could list.
I was a
“car guy” and an auto racing enthusiast long before I was old enough to
drive. I enjoy all forms of auto racing
but my primary interest is sports cars.
In the next part of this article, auto racing and sports cars will be my
primary focus.
The sad
story of the slow death of the American auto industry begins with the Marshal
Plan at the end World War Two. How much
money did the politicians steal from the American taxpayers to rebuild German
and Japanese industry in order to prevent these countries from going
communist? How much technology was
transferred? How much capital was
lavished on our former deadly enemies?
All the atrocities were instantly forgiven because the American
capitalists were creating the weapon they would use against the unionized
American workers. And, in the process,
these capitalist fools transformed America from the world’s biggest creditor
nation into the world’s biggest debtor.
Some historians say the real winners of World War Two were Germany and
Japan.
Immediately
after the war, Ford and Harley-Davidson built plants in Japan for Japanese
manufacturers. Honeywell and Bell and
Howell set up joint ventures with Japanese camera manufactures thus catapulting
Japan into their position of world dominance in cameras and optics. The American market was thrown wide open to
our recently hated enemies. Coast to
coast foreign auto dealer networks instantly sprang up thanks to millions of dollars
of American investment. You can be sure
that very little of that cost went on Japanese or German balance sheets. The “American” businessmen had to make sure
the capitalist foreigners were profitable in order to destabilize the so-called
“communist” governments in Asia, Europe and Cuba. The economic theater of the Cold War was
raging and American workers were now the enemy.
To make
sure the Japanese manufacturers had the industrial muscle they needed to
destroy the American autoworker, W. Edwards Deming, an American and one of the
world’s foremost quality and reliability engineers was dispatched to
Japan. From 1950 onward he taught top
Japanese management and engineers his methods of management and quality. He is honored to this day in Japan for his
glorious contribution to their industry.
While Deming was in Japan, however, the American auto executives were
busy telling anybody in the media who would listen about their quality control
problems.
During the
1950s and 1960s, Detroit refused to build sports cars to compete with Ferrari,
Maserati, Jaguar, Aston Martin, Porsche, Mercedes and many others. Instead, they embarked on a series of joint
ventures with the Europeans and Japanese.
The cars that resulted accomplished three things. They wasted lots of money; they made the foreigners
look smart and they made Detroit look stupid.
How many billions of dollars have been sucked out of the American
economy and the U.S. Treasury, over the last 50 years, when the wealthiest
Americans bought high profit margin, overpriced, Porsches, BMWs, Mercedes,
Audis, Spykers, Maybachs, Rufs, Ferarris, Maseratis, Alfa Romeos, Lancias,
Lamborghinis, Bugattis, Lotuses, Bentleys, Rolls Royces, Aston Martins,
Jaguars, Infinitis, Lexuses, Acuras, Superformance Cobras and GT-40s instead of
American luxury and performance cars?
Would anyone on Wall Street, in Washington or academia dare to calculate
the total cost to America of this needless economic disaster? And, this enormous number does not include
the massive loss from all our other dead and dying American manufacturing
industries.
The great
patriotic American sportsman Briggs Cunningham struggled from 1950 into the
1960s trying to achieve success in international sports car racing with an
American car. The captains of the
American auto industry watched him struggle against the Ferrari, Maserati,
Mercedes, Jaguar and Porsche onslaught but offered little in the way of
support. Finally, he gave up and raced
Jaguars, Ferraris and other foreign cars.
In 1953, when the wealthy children of the wealthy American auto
executives were clamoring for Ferraris and Jaguars, something had to be
done. So, to prevent thinking people
from smelling a rat, Detroit gave us the Corvette. Now don’t get me wrong; I like
Corvettes. In fact, if I had the money,
I would own a 1960 Corvette with a 283 V8, solid lifters, fuel injection and a
4 speed transmission. In 1960, however,
the Corvette should have had a 5 speed.
With 5 speeds, disc brakes, an alloy engine with overhead cams and a
stressed alloy body, the Corvette might have actually won Sebring and Le
Mans. Of course, this was just an
“honest mistake.” When Detroit’s
management and engineers went to college, didn’t they notice that truck
transmissions had five or more speeds, American aircraft had disk brakes in the
1940s and America was a major producer of aluminum alloys?
The first
Corvette (1953) had a pushrod, cast iron, in line six. This was a very good truck engine. But it was hopelessly outclassed by the
aluminum, overhead cam, V12 Ferraris and the double overhead cam Jaguars. When you consider the enormous technical and
financial resources available to General Motors at the time, it is impossible
to believe that anybody could have been that stupid as to sabotage the first
Corvette with a 2 speed automatic transmission, drum brakes, a cast iron push
rod engine, a heavy steel frame and an unstressed fiberglass body. Nobody could be that stupid! In fact, these “mistakes” nearly killed the
Corvette before it was ever born. Was
that the plan? In 1953, the Porsche
Spyder had an all aluminum double overhead cam roller bearing crank engine and
a 4 speed transmission. The Corvette
didn’t get a 3 speed transmission until 1955.
Ford, Chrysler and all the other U. S. manufacturers made sure they
never made cars to compete with the Europeans, and later, the Japanese. And these “mistakes” continue right up to the
present day. Would anybody in their
right mind say that Detroit seriously tried to compete with the foreign
invaders? Remember, in 1960 General Motors
owned Allison Aircraft Engine Company.
The Allison V-1710 was an aluminum and magnesium overhead cam, 4 valves
per cylinder V12 engine. This engine was
in production in the 1930s. American
auto makers were building semi monocoque aircraft structures in the 1940s, long
before the British Lotus race cars had them.
Ford built a single overhead cam 600 hp V8 for NASCAR in 1964. But this engine was never put in a production
car. General Electric had a turbocharged
V12 Liberty engine in 1918! American
aircraft had disc brakes in the 1940s.
Detroit could have competed against the foreign manufacturers but the
CEOs and the directors on the boards said no. Nobody could be that stupid.
Why didn’t
Chrysler build a sports car? They had
the facilities and the money. Hot
rodders were building what were essentially sports cars in their back
yards! Ford killed the Thunderbird
sports car and then sold the preposterous idea to the public that the “T bird”
had to be a big, heavy, four-seat car in order to increase sales. Why didn’t Ford build BOTH, a two seat sports
car and a four seat personal luxury car?
And remember, the iconic GT-40 and the Cobra were both born as British cars. It took American hot rodders to make them
winners. When a rules change outlawed
Ford’s 427 ci Le Mans winning 250 mph GT-40 MkIV, Ford pulled out of sports car
racing and let the Porsche 917K become a legend. Ford had the 255 ci Indy 500 winning quad cam
engine that could have been enlarged to 305 ci and dropped right into the MkI
or a lightened MkIV. This car would have
given Porsche a run for the massive pile of money that they sucked out of this
country. Instead, Ford just quit and let
Porsche dominate sports car racing from that time to this day! General Motors was equally clay-footed when
it came to Can Am racing. Big block
Chevy engines dominated the Can Am series until Porsche showed up with their SUNOCO
SPONSORED twin turbo 917/30. GM
could have bolted a couple of turbochargers on their big block and deflated
some of Porsche’s “all conquering” legend.
Instead, like Ford, they just quit and disgraced America’s reputation in
the industrialized world. The Indy quad
cam GT-40 race car and the twin turbo big block Chevy Can Am engine were both
developed independently. But Ford and
General Motors weren’t interested. This
has to be a conspiracy because nobody could be that stupid!
While the
Ferraris, Porsches and Jaguars were getting rave reviews in the all-important
enthusiast car magazines; Detroit’s offerings were greeted with almost
universal contempt. The pattern was set
and it continues right into the present with hybrids, electric cars “street
tuners” and top of the line luxury and sports cars, in my opinion. Detroit has nothing in the top tier market
segment. When it comes to alienating the
youth market, women and the rich, the “Big Three” seem to have bad marketing
down to a science. I believe the top
Detroit executives deliberately created the stupid, stodgy image that they rode
right into bankruptcy or near bankruptcy and busted union contracts.
Beginning
in the 1960s, Esso, Good Year, Firestone, Gulf Oil, Sunoco, Texaco, Mobil Oil
Marlboro, STP and many other American corporations poured tens of millions of
dollars of sponsorship money into European racing teams. In Europe, the image destroying Detroit
helicopter cash drop was muscling up the European auto industry. In 1966, Ford gave British Cosworth $250,000
so they could build a world beating Formula 1 racing engine. This, despite the fact that Ford already had
a world class, in house, DOHC, Indy 500 winning engine on the shelf! Why didn’t Ford use their Indy engine to
compete in Formula 1? Why did they waste
all that money in order to help the British build a racing engine? And the self-destructive pattern rolled
on. In 1965, Honda entered Formula 1
with two American drivers. In 1966 and
1967, the tiny Australian company Repco-Brabham won the Formula 1 world
championship with a modified Oldsmobile engine that was abandoned and transferred
to Europe by General Motors. Despite
their enormous resources, Detroit never competed in Formula 1. Is it any wonder that the American people
have such contempt for our auto industry and can’t wait to see it tossed into
the dustbin of history? Am I the only
American who wants to be proud of what we make in America? What should I think when someone who inherits
a Lincoln dealership drives a Toyota Camry?
What should I think when someone who inherits Ford Motor Company drives
a Ferrari? Several years ago when
visiting friends, I lamented rhetorically that someday Honda will probably buy
Ford and Toyota will probably buy General Motors. The response from a woman who never owned an
American car was “Good!” I think pride
in America is dead. And it shows!
For
decades, in Europe and America, our greatest race car drivers were (and still
are) winning races and championships in foreign cars sponsored by American
corporations. Ford rescued Japanese
Mazda from bankruptcy, twice. Mazda
promptly took the rotary engine that General Motors virtually gave them and
used it to humiliate America on the racetracks of the world -- with American
teams and American drivers. What were
the Ford executives thinking when they created and sustained the Mazda monster that
is the nemesis of the American auto industry?
Does anybody mind that our local Cadillac dealer was replaced by a Mazda
dealer? I do. A Pittsburgh Cadillac dealer built a
magnificent Lexus dealership directly across the street from their shabby clapboard
Cadillac dealership. (What were the IBM
executives thinking when they, in effect, created the German SAP software
monster that is the nemesis of the American software industry? Was this a Wall Street stock play?) From the 1960s to this very day, the best and
the brightest of American auto racing teams and talent use all their brainpower
and risk life, limb and fortune to put foreign cars in the winner’s
circle. Why did “All American Racers”
build the all conquering championship winning AAR/Eagle Mk III GTP for
Toyota?! The competition isn’t between
us and the foreigners. It is us against
us. No wonder we lost! What happened to pride in America? What happened to the win at all cost fighting
spirit of “The Greatest Generation” of World War Two? Did Wall Street and Washington opportunist
politicians destroy America’s economic fighting spirit? What is there to cheer about at the Indy 500,
Italian cars with Japanese and British engines?
Will the Southern politicians be happy when every NASCAR on the track is
a Toyota? I would rather watch a rerun
of Jim Hall winning the 1965 Sebring 12 Hours in his all American
Chaparral. That was something to cheer
about and I’m happy to say I was there to see it. There is no American today of the caliber of
Jim Hall in 1965. What a shame on this
generation!
In the
1960s the same self-destructive pattern continued with passenger cars. Top management doomed the ill-fated Corvair
before the car ever got to the production line.
It was “cost considerations” that prevented the engineers from designing
and building the early cars properly.
Could anybody be that stupid to put a heavy iron cylinder (rather than
aluminum) engine and uncontrolled swing axles in the rear engine Corvair? The Corvair was a great car with one designed
in flaw. Despite the fact that this flaw
was later corrected, GM took the Corvair out of production. The swing axel “blunder” made Ralph Nader
famous and made General Motors look like a bunch of idiots. It has to be a conspiracy because nobody
could have been that stupid.
I won’t
rehash the passenger car “mistakes.” of the 1970s, 80s, 90s and later. I will only say that all of them could have
been avoided. A suspicious coincidence
occurred during this sad period. When
the government required improved safety, pollution and fuel economy standards,
the American car makers fell on their face and blamed government regulations
for their problems. The foreign
manufactures took this opportunity to increase their penetration of the
American market. (The Porsche 911 Turbo
had twice the horsepower of the pathetically underpowered Corvette, in a car
that weighed almost a thousand pounds less than the Corvette.) Consumer defections to foreign manufacturers
dramatically increased. Of course, the
closing of unionized auto plants accelerated and this terrified the union
leaders and membership. They had no
choice but to sign concessionary contracts.
What a happy coincidence for the stockholders. Also, this gave conservative politicians and
pundits an opportunity to vilify the “nanny state” government for interfering
in the “free market.” Another
coincidence? [However, after reading Lee
Iacocca's autobiography, I have to agree that the “stupid” regulators seemed to
be out to destroy the American auto industry.
Another coincidence?]
Going back
to the 1960s, the most infamous, anti competitive outrage committed by GM’s top
management occurred when they killed the 1963 Corvette Grand Sport. Chevrolet engineers secretly built a world
class, Ferrari killer called the Grand Sport.
Super lightweight, with a state-of-the-art aluminum DOHC (the original
proposal) engine, America was ready to take on the world. But America never got a chance. When top management got wind of the car, they
instantly killed the project and reprimanded the engineers responsible for this
outrageous insubordination! Remember,
racing by GM employees was forbidden by Automobile Hall of Fame inductee
Frederick Donner since 1957. Yes sir,
“the suits” really know how to compete.
Is that what the professors taught them at Wharton and Harvard Business
Schools? The answer is YES.
Were the
top executives of General Motors insane?
Were they stupid? Were they
“Mid-Westerners who wouldn’t adapt”? No,
no and no. They were standard issue
global capitalists doing what global capitalists do. Their priorities are destroying unions and
traveling the world in their private jets looking for cheap labor. If a sports car, made in America, in a
unionized plant, conquered the automotive world, it would have ruined
everything. The myth they were creating
would have been crushed under the wheels of the 1963 Corvette Grand Sport. What happened to pride in America?
Where were
the American politicians, the Chamber of Commerce, and the “National”
Association of Manufactures when all this “stupidity” was going on? Why was there no criticism or investigation
of this bazaar, cookie cutter consistent, self-destructive pattern that
persisted for 50 YEARS?! Why did nobody
ever ask Detroit why they didn’t adapt?
Why didn’t Detroit build high tech motorcycles to compete with the
Japanese and Germans? They had the
facilities, the technology and plenty of money.
Why did Detroit’s marketing people let the Japanese and the Germans
create a fabulous image with the young people of America while they did
everything they could to discredit themselves with this vitally important
consumer segment? The leaders of the
American auto industry could have fought for their market share and crushed
foreign invaders. But they chose not
to. Why?
Were they stupid? I say nobody
could be that stupid. Or, was it part of
the Marshal Plan/global capitalist plan to give away the American car market in
exchange for strategic military alliances and bases in Japan, Italy, West
Germany, South Korea and England?
And to
really put the final nail in the coffin of their balance sheets, Detroit
continued to squander billions of dollars of cash buying up dying foreign car
companies until virtually all of their cash was gone. How much money did GM lose when they bought
Lotus? Let’s not forget the hundreds of
millions of dollars that went down the rat hole when Ford and Chrysler
bankrolled foreign (Jaguar and Lamborghini) Formula 1 racing teams. In 2000, General Motors bought a stake in
Fiat. That meant they were bankrolling
Ferrari’s Formula 1 team! This
“investment” disaster cost GM more than 2 billion dollars. Ford bought Volvo for $6.5 billion. How much money did Ford lose on this “investment”? Why did they do it? GM bought controlling interests in Saab and
Isuzu. In 2001, GM bought financially
troubled Korean car company Daewoo which today is GM Vietnam! Why did Ford try to buy Ferrari? Why did Lee Iacocca buy Lamborghini? GM bought a 20% stake in Suzuki. Ford bought a 33% stake in Mazda. Ford bought financial boat anchor Aston
Martin. “Lee Iacocca’s baby” the Chrysler-Maserati lost $500 million from
Chrysler’s balance sheet. Then in 1995,
the hostile Kerkorian/Iacocca attack sent Chrysler on a downhill slide that
resulted in the disastrous Fiat-Chrysler “merger.” This debacle was the death of a one hundred
year old American company. Incidentally,
American “icon” Chrysler CEO Iacocca owned a Lamborghini. Ford lost a ton of money when they bought and
sold Land Rover. Why did General Motors
sell Allison Aircraft Engine Company to Rolls Royce? This gave the British company a seamless
product line from the bottom to the top of the jet engine market and it made
them an American defense contractor. How
much did GM stockholders profit from this sell out of America by the private
sector? And this is just a partial
list! Is this the way American car
companies “compete” with the foreign enemy that is devouring their market share? Am I the only one who notices these
things? The only thing our paid off
“free press” media notices is the worker’s “legacy costs.”
And then
there is the problem of “brain drain.”
In numerous articles and interviews, highly qualified engineers, designers
and managers openly admit that they would never work for the American auto
companies because of their stodgy, hidebound, suicidal business
philosophy. There are probably more
Americans working for the foreign competition than for the “American” auto companies. For those who worship globalization and the
so-called free market, this is wonderful.
But, for the few of us who worry about the long-term economic viability
of America, this is a recipe for disaster.
I would like to remind Wall Street, our politicians and academia that “A
House Divided Can Not Stand.” When
Americans compete against America – America is doomed.
At one
time, America had the most advanced home electronics industry in the
world. Now we have no home electronics
industry. Were the American workers who
used to make our televisions, radios and stereos so highly paid that the
capitalists on Wall Street had to destroy the entire industry in order to throw
these people out into the street? Will
America’s auto industry someday be just a distant memory like the American home
electronics industry?
Congratulations
to Detroit’s top management, Wall Street, and their Southern politician
henchmen – isn’t “Creative Destruction” wonderful? You destroyed the American auto industry so
that you could create a “domestic,” non-union, auto industry for the countries
that were our bitter, deadly enemies in World War Two. No one will ever accuse you all of putting
AMERICA FIRST.
Any fool
could have seen 10, 20 or even 30 years ago that the steady loss of market
share would destroy the American auto industry.
But, just like the subprime mortgage disaster, the insiders knew it was
coming, but they did nothing to prevent it.
Tragically, the American people eagerly swallowed the myth that
Detroit’s problems were largely the fault of the unionized autoworkers and “bad
management.”
I wish I
could write a book documenting Detroit’s maddening 50 year unbroken string of
“honest mistakes.” The Ford Taurus SHO
with the Yamaha massaged engine and the 1990-1996 Corvette ZR-1 with the Lotus
dual overhead cam heads are just two of many examples of Detroit fouling their
own nest. For forty years, “American”
car companies have been importing foreign vehicles and foreign vehicles from
their foreign subsidiaries and slapping American model names on them. As a proud former owner of a 1968 Pontiac
GTO, I would rather walk than own a “Pontiac” GTO made in Australia! And let’s not forget the Harley-Davidson
(Lotus) V-Rod. I know from direct
personal observation that the Pontiac Fiero was a marketing and public
relations disaster. This car was
sabotaged, like the Corvair, at the highest level of GM corporate
management. The car sold well to people
expecting to get a sports car equivalent to the Toyota MR2. People, who I knew personally, were furiously
disappointed when they realized that they were stuck with a “commuter”/
“secretary’s” car. People who were loyal
to General Motors for years turned their backs on the American auto industry
because of the Fiero.
The
“captains of the American auto industry” never miss an opportunity to make
themselves, and America, look stupid. In
the transmission wars, Detroit always managed to be at least one gear behind
the foreign competition. For years European
car companies bought General Motors automatic transmissions. Now both Ford and GM buy German ZF
transmissions. What kind of image was Detroit’s top management trying to create
with Ford and Chevrolet badged Indy racing engines that were made in England? How many billions of dollars have gone to
England, Germany, Italy and Japan for racing cars, racing engines, racing parts
and racing tires? How much did this
stupid and needless money drain increase our trade deficit? Why did the entire American auto industry
make exactly the same “mistakes” year after year, decade after decade? Why did the American auto industry
self-destruct? Capitalist creative
destruction, globalization, union busting, class warfare and foreign military
alliances and bases, that’s why.
Globalization is heaven for the investor class but it is hell for the
working class. What will be the ultimate
result of America falling from the world’s premier manufacturing powerhouse to
a debt ridden industrial backwater?
These statements
by two top Ford executives will give an important insight into the
globalization Master Plan: “You should never worry about what country makes
your car, only the brand.” When asked
why Ford grossly overpaid when they bought money-losing Jaguar, a Ford
executive said: “We wanted a prestige nameplate.” What was Lincoln, chopped liver? It was obvious to me, as a close observer,
that Ford management deliberately sabotaged Lincoln and Mercury for the benefit
of Jaguar sales. If I was a member of
Congress, there would have been an investigation years ago into why Detroit’s
top management was so “stupid.” After 50
years of losing market share, Congress is still playing dumb. But they know how to say legacy costs. I want to talk about the legacy costs of
Congress. Considering their miserable
track record, I would say that Congress owes the taxpayers money. Let them live on their campaign
contributions. We all know they work for
the lobbyists, not the taxpayers.
Ironically,
the bad reputation that American cars have acquired over the past 20 or 30
years, in my opinion, is largely unjustified.
As I explained above, because of the “stupid” Detroit top management,
American cars have acquired a terrible image.
Marketing, styling, product line, advertising and stupid public
relations – it seems like everything is geared to make the foreign competition
look good and American cars look bad.
Why buy a “German engineered Buick” when you can buy a German engineered
German car? Chrysler is “America’s
import.” What the hell is THAT supposed
to mean? A bad image is the kiss of
death for any corporation no matter how good its products are. In reality, American cars are good
products. [Update 11/27/2014: My
1998, 100,000 plus mile Oldsmobile 88 still runs like a new car. It requires very little maintenance. The engine doesn’t burn oil and it was tuned
up only once for a pittance of what it costs to maintain the typical foreign
car. The original transaxle has never
been worked on and it works perfectly.
The car has a great ride with the original
struts. It has the original stainless steel exhaust
system and the original un-rebuilt master cylinder and wheel cylinders. It has the original starter and alternator. The amazing ant-lock brakes saved me from disaster
several times when sudden ice/snow storms beat the deicing crews to the
roads. And the traction control is ever
vigilant during unpredictable winter weather.
Of course, there is some rust damage underneath but the paint and the
body look like a new car despite almost 17 years of running on Pennsylvania’s
salt covered winter roads. There is a
slight misalignment of the hood and left front fender. This is understandable after I hit a (small)
deer! When the car was ten years old, I
did three 10/10ths wide open hot laps of the Watkins Glen race track. With its low center of gravity and
independent rear suspension, it handled like a sports sedan without a bit of
brake fade. This great car was unfazed
by this very serious abuse. I love
driving this car. It’s fast for a big
sedan with only 205 hp and it gets 32 mpg on the highway. At 3455 lb, it’s lighter than a Mustang,
Camaro, Challenger, BMW M3, Nissan GT-R and Jaguar F-Type coupe. It has excellent mid-range torque so it
climbs Pittsburgh’s steep hills with ease.
It will haul six adults in comfort and it has a huge trunk. I would buy a new one in a heartbeat. Too bad the geniuses at General Motors took
it out of production!]
In my
experience, for every-day transportation (and don’t forget the fabulous
Corvette and Ford GT), you can’t beat American cars. They’re cheaper to buy and they’re cheaper to
maintain and repair. And in my
experience, very dependable. There are a
lot of good people in Motown (and in our unionized auto plants) doing their
best to make great cars. It’s the top
management who do their best to alienate the customers. They will “save money” cutting corners
designing and building the cars but waste millions of dollars on stupid
celebrity athlete endorsements. By the
way, anybody who buys a car on the strength of a celebrity endorsement is an
IDIOT. I could never understand why the
marketing people waste money like that.
Do they think we are that stupid?
Did it ever occur to top management that paying some athlete to endorse
your product is DISHONEST? This
stupidity really backfired on the “suits” when a celebrity athlete publicly
admitted that he didn’t own the GM product that he drove in the commercial. He drives a Porsche. General Motors solved that problem by giving
him a Cadillac! Why don’t they put the
money they waste on celebrity endorsements and golf tournaments into research,
development and high quality materials?
Pay off the corporate debt. Or
give that money to the workers who build the cars. Unlike the celebrities, they earned it.
Space does
not permit a complete analysis of Detroit top management’s obviously deliberate
marketing, styling, engineering, spending, “investment,” product line (not
production line) and public relations screw-ups. These “mistakes” had to be deliberate because
NOBODY CAN BE THAT STUPID. Until the
CEOs and the directors convince me that they are that stupid, I will
continue to believe that it is a global capitalist conspiracy.
Over the
years, I’ve had many American cars and I never had a bad one. Most of them were actually great cars. I saw “mistakes” but they were caused by
executive decisions, not by the workers.
The economic treason of the top executives, including the boards of
directors, has done enormous damage to the people and the city of Detroit. They have made the American auto industry the
butt of jokes of late night comedians and situation comedies. And they have discredited America in the eyes
of the industrialized world. When will
they be held accountable by the American government? When will there be an honest, uncorrupted
Congressional investigation to determine if the disaster was stupidity or
conspiracy?
Retired
General Motors celebrity executive Bob Lutz wrote a book blaming the “bean counters”
for the destruction of the American auto industry. Did anybody ever ask this “car guy” why
nobody fired those bean counters?
Ray Uhric writes a political blog:
www.rayuhric.com