It Is Now Mathematically Impossible To Pay Off The U.S. National Debt. OBAMA HAS KILLED THE AMERICAN DREAM!

TERRIFYING BUT TRUE: It Is Now Mathematically Impossible To Pay Off The U.S. National Debt. OBAMA HAS KILLED THE AMERICAN DREAM!

TERRIFYING BUT TRUE: It Is Now Mathematically Impossible To Pay Off The U.S. National Debt. OBAMA HAS KILLED THE AMERICAN DREAM!

This is a long read and after I read it and the re re re read it... I am depressed..

A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are  demanding a solution. What they don't realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt. You see, the truth is that the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the national debt. And if they did that, obviously American society would stop functioning because nobody would have any money to buy or sell anything.

And the U.S. government would still be massively in debt.

So why doesn't the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?

Well, for one very simple reason.

That is not the way our system works.

You see, for more dollars to enter the system, the U.S. government has to go into more debt.

The U.S. government does not issue U.S. currency - the Federal Reserve does.

The Federal Reserve is a private bank owned and operated for profit by a very powerful group of elite international bankers.

If you will pull a dollar bill out and take a look at it, you will notice that it says "Federal Reserve Note" at the top.

It belongs to the Federal Reserve.

The U.S. government cannot simply go out and create new money whenever it wants under our current system.

Instead, it must get it from the Federal Reserve.

So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes. 

The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).

So that is how the U.S. government gets more green pieces of paper called "U.S. dollars" to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.

So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.

Are you starting to get the picture?

As you read this, the U.S. national debt is approximately 12 trillion dollars, although it is going up so rapidly that it is really hard to pin down an exact figure.

So how much money actually exists in the United States today?

Well, there are several ways to measure this.  READ A WHOLE LOT MORE... TAKE SOME TIME...
The "M0" money supply is the total of all physical bills and currency, plus the money on hand in bank vaults and all of the deposits those banks have at reserve banks.  As of mid-2009, the Federal Reserve said that this amount was about 908 billion dollars.
The "M1" money supply includes all of the currency in the "M0" money supply, along with all of the money held in checking accounts and other checkable accounts at banks, as well as all money contained in travelers' checks.  According to the Federal Reserve, this totaled approximately 1.7 trillion dollars in December 2009, but not all of this money actually "exists" as we will see in a moment.
The "M2" money supply includes everything in the "M1" money supply plus most other savings accounts, money market accounts, retail money market mutual funds, and small denomination time deposits (certificates of deposit of under $100,000).  According to the Federal Reserve, this totaled approximately 8.5 trillion dollars in December 2009, but once again, not all of this money actually "exists" as we will see in a moment.
The "M3" money supply includes everything in the "M2" money supply plus all other CDs (large time deposits and institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.  The Federal Reserve does not keep track of M3 anymore, but according to ShadowStats.com it is currently somewhere in the neighborhood of 14 trillion dollars.  But again, not all of this "money" actually "exists" either.
So why doesn't it exist?
It is because our financial system is based on something called fractional reserve banking.
When you go over to your local bank and deposit $100, they do not keep your $100 in the bank.  Instead, they keep only a small fraction of your money there at the bank and they lend out the rest to someone else.  Then, if that person deposits the money that was just borrowed at the same bank, that bank can loan out most of that money once again.  In this way, the amount of "money" quickly gets multiplied.  But in reality, only $100 actually exists.  The system works because we do not all run down to the bank and demand all of our money at the same time.
According to the New York Federal Reserve Bank, fractional reserve banking can be explained this way....
"If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+...=$1,000)."
So much of the "money" out there today is basically made up out of thin air.
In fact, most banks have no reserve requirements at all on savings deposits, CDs and certain kinds of money market accounts.  Primarily, reserve requirements apply only to "transactions deposits" – essentially checking accounts.
The truth is that banks are freer today to dramatically "multiply" the amounts deposited with them than ever before.  But all of this "multiplied" money is only on paper - it doesn't actually exist.
The point is that the broadest measures of the money supply (M2 and M3) vastly overstate how much "real money" actually exists in the system.
So if the U.S. government went out today and demanded every single dollar from all banks, businesses and individuals in the United States it would not be able to collect 14 trillion dollars (M3) or even 8.5 trillion dollars (M2) because those amounts are based on fractional reserve banking.
So the bottom line is this....
#1) If all money owned by all American banks, businesses and individuals was gathered up today and sent to the U.S. government, there would not be enough to pay off the U.S. national debt.
#2) The only way to create more money is to go into even more debt which makes the problem even worse.
You see, this is what the whole Federal Reserve System was designed to do.  It was designed to slowly drain the massive wealth of the American people and transfer it to the elite international bankers.
It is a game that is designed so that the U.S. government cannot win.  As soon as they create more money by borrowing it, the U.S. government owes more than what was created because of interest.
If you owe more money than ever was created you can never pay it back.
That means perpetual debt for as long as the system exists.
It is a system designed to force the U.S. government into ever-increasing amounts of debt because there is no escape.
We could solve this problem by shutting down the Federal Reserve and restoring the power to issue U.S. currency to the U.S. Congress (which is what the U.S. Constitution calls for).  But the politicians in Washington D.C. are not about to do that.
So unless you are willing to fundamentally change the current system, you might as well quit complaining about the U.S. national debt because it is now mathematically impossible to pay it off.
***UPDATE***
It has been suggested that the same dollar can be used to pay off debt over and over - this is theoretically true as long as the dollar remains in the system.
For example, if the U.S. government gives China a dollar to pay off a debt, there is a good chance that the U.S. government will be able to acquire that dollar again and use it to pay off another debt.
However, this is not true when debt is retired with the Federal Reserve.  In that case, money is actually removed from the system.  In fact, because of the "money multiplier", when debt is retired with the Federal Reserve it can remove ten times that amount of money (and actually more, but let's not get too technical) from the system.
You see, fractional reserve banking works both ways.  When $100 is introduced into the system, it can theoretically create $1000 as the example in the article above demonstrates.  However, when that $100 is removed, it can have the opposite impact.
And considering the fact that the Federal Reserve "purchased" the vast majority of new U.S. government debt last year, we have got a real mess on our hands.
Even if a way could be figured out how to pay off all the debt we owe to foreign nations (such as China, Japan, etc.) it would still be mathematically impossible to pay off the debt that we owe to the Federal Reserve which is exploding so fast that it is hard to even keep track of.
Of course we could repudiate that debt and shut down the Federal Reserve, but very few in Washington D.C. have any interest in doing that.
It has also been suggested that instead of just using dollars to pay off the U.S. national debt, we could use the assets of the U.S. government to pay it off.
That is rather extreme, but let us consider that for a moment.
That total value of all physical assets in the United States, both publicly and privately owned, is somewhere in the neighborhood of 45 to 50 trillion dollars.  Of course the idea of the U.S. government "owning" every single asset of the American people is repugnant to our entire way of life, but let's assume that for a moment.
According to the 2008 Financial Report of the United States Government, which is an official United States government report, the total liabilities of the United States government, including future social security and medicare payments that the U.S. government is already committed to pay out, now exceed 65 TRILLION dollars.  This amount is more than the entire GDP of the whole world.
In fact, there are other authors who have written that the actual figure for the future liabilities of the U.S. government should be much higher, but let's be conservative and go with 65 trillion for now.
So, if the U.S. government took control of all physical assets in the United States and sold them off, it could not even make enough money to pay for everything that the U.S. government is already on the hook for.
Ouch.
If you have not read the 2008 Financial Report of the United States Government, you really should.  Actually the 2009 report should be available very soon if it isn't already.  If anyone knows if it is available, please let us know.
The truth is that the U.S. government is in much bigger financial trouble than we have been led to believe.
For example, according to the report (which remember is an official U.S. government report) the real U.S. budget deficit for 2008 was not 455 billion dollars.  It was actually 5.1 trillion dollars.
So why the difference?
The CBO's 455 billion figure is based on cash accounting, while the 5.1 trillion figure in the 2008 Financial Report of the United States Government is based on GAAP accounting. GAAP accounting is what is used by all the major firms on Wall Street and it is regarded as a much more accurate reflection of financial reality.
So needless to say, the United States is in a financial mess of unprecedented magnitude.
So what should we do?  Does anyone have any suggestions?
***UPDATE 2***
We have received a lot of great comments on this article.  Trying to understand the U.S. financial system (even after studying it for years) can be very difficult at times.  In fact, it can almost seem like playing 3 dimensional chess.
Several readers have correctly pointed out that when the U.S. money supply is expanded by the Federal Reserve, the interest that is to be paid on that new debt is not created.
So where does the money to pay that interest come from?  Well, eventually the money supply has to be expanded some more.  But that creates even more debt.
That brings us to the next point.
Several readers have insisted that the Federal Reserve is not privately owned and that since it returns "most" of the profits it makes to the U.S. government that we should not be concerned about the debt owed to it.
The truth is that what you have with the Federal Reserve is layers of ownership.  The following was originally posted on the Federal Reserve's website....
"The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations – possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year."
So Federal Reserve "stock" is owned by member banks.  So who owns the member banks?  Well, when you sift through additional layers of ownership, you will ultimately find that people like the Rothschilds, the Rockefellers and the Queen of England have very large ownership interests in the big banks.  But there are so many layers of ownership that they are able to disguise themselves well.
You see, these people are not stupid.  They did not become the richest people in the world by being morons.  It was the banking elite of the world who designed the Federal Reserve and it is the banking elite of the world who benefit the most from the Federal Reserve today.  In the article above when we described the Federal Reserve as "a private bank owned and operated for profit by a very powerful group of elite international bankers" we may have been oversimplifying things a bit, but it is the essence of what is going on.
In an excellent article that she did on the Federal Reserve, Ellen Brown described a number of the ways that the Federal Reserve makes money for those who own it....
The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders. A mere 6% a year may not be considered a profit in the world of Wall Street high finance, but most businesses that manage to cover all their expenses and give their shareholders a guaranteed 6% return are considered "for profit" corporations.
In addition to this guaranteed 6%, the banks will now be getting interest from the taxpayers on their "reserves." The basic reserve requirement set by the Federal Reserve is 10%. The website of the Federal Reserve Bank of New York explains that as money is redeposited and relent throughout the banking system, this 10% held in "reserve" can be fanned into ten times that sum in loans; that is, $10,000 in reserves becomes $100,000 in loans. Federal Reserve Statistical Release H.8 puts the total "loans and leases in bank credit" as of September 24, 2008 at $7,049 billion. Ten percent of that is $700 billion. That means we the taxpayers will be paying interest to the banks on at least $700 billion annually – this so that the banks can retain the reserves to accumulate interest on ten times that sum in loans.
The banks earn these returns from the taxpayers for the privilege of having the banks’ interests protected by an all-powerful independent private central bank, even when those interests may be opposed to the taxpayers’ -- for example, when the banks use their special status as private money creators to fund speculative derivative schemes that threaten to collapse the U.S. economy. Among other special benefits, banks and other financial institutions (but not other corporations) can borrow at the low Fed funds rate of about 2%. They can then turn around and put this money into 30-year Treasury bonds at 4.5%, earning an immediate 2.5% from the taxpayers, just by virtue of their position as favored banks. A long list of banks (but not other corporations) is also now protected from the short selling that can crash the price of other stocks.
The reality is that there are a lot of ways that the Federal Reserve is a money-making tool.  Yes, they do return "some" of their profits to the U.S. government each year.  But the Federal Reserve is NOT a government agency and it DOES make profits.
So just how much money is made over there?  The truth is that we have to rely on what the Federal Reserve tells us, because they have never been subjected to a comprehensive audit by the U.S. government.
Ever.
Right now there is legislation going through Congress that would change that, and the Federal Reserve is fighting it tooth and nail.  They are warning that such an audit could cause a financial disaster.
What are they so afraid of?
Are they afraid that we might get to peek inside and see what they have been up to all these years?
If you are a history buff, then you probably know that debates about a "central bank" go all the way back to the Founding Fathers.
The European banking elite have always been determined to control our currency, and that is exactly what is happening today.
Ever since the Federal Reserve was created, there have been members of the U.S. Congress that have been trying to warn the American people about the insidious nature of this institution.
Just check out what the Honorable Louis McFadden, Chairman of the House Banking and Currency Committee had to say all the way back in the 1930s....
"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."

http://theeconomiccollapseblog.com/archives/it-is-now-mathematically-impossible-to-pay-off-the-u-s-national-debt

We are prisoners of our debt!

UNDERSTAND HOW ILLEGAL THE GENERAL MOTORS BAILOUT WAS..You will Understand Obama's not so Secret Connection with the UNIONS

ONCE YOU UNDERSTAND HOW ILLEGAL THE GENERAL MOTORS BAILOUT WAS..You will Understand Obama's Not So Secret Connection with the UNIONS

 

 

 

 

 

THIS IS RICHARD TRUMKA...GOOGLE HIM !!

How did he get behind that podium ?

 

ONCE YOU UNDERSTAND HOW ILLEGAL THE GENERAL MOTORS BAILOUT WAS..You get an Understanding of the Obama Not So Secret Connection with the Unions and the Left is!! Please take the time to read this!!
Obama's General Motors [GM] Tarp Bailout - The Untold Details
Regardless of the GM bailout headlines proclaiming the staggering numbers, the real story of the government's bailout of GM, using TARP funds, is much more than just the billions of dollars involved. It is more importantly a story of governmental hubris that started with President Bush and the Republican Congress panicking and pandering to public fears, followed by President Obama and his administration - the Treasury Department in particular, skirting, or ignoring the rule of law to pursue a plan that was formulated based on political considerations rather than established contract law and sound economic procedures.
As a nation of laws, our problems with the GM bailout shouldn't be just the billions of taxpayer dollars used, they should also include the governmental bailout actions that broke whatever rules got in the way of their agenda, and, their intended efforts to deceive the public though misinformation and factual omission.
Bailing Out General Motors - The Background
First it should be noted that the General Motors bailout efforts also included Chrysler Corp. Although each have their own story details, the government actions to save the auto industry addressed many of the problems as being intertwined, and applied many solutions as common to both entities.
In late 2007, GM's financial situation was getting so bad that economists were ringing the alarm bells - warning of a possible collapse of the company. In 2008 those alarms became emergency sirens. General Motors could no longer avoid filing for bankruptcy, and it was doubtful that it could be a Chapter 11, or even a chapter 13 filing that would allow General Motors to reorganize and re-emerge as a new company - it would be a Chapter 7 filing - complete company liquidation; GM would perish as just one more failed company.
Americans, (and the world), were bombarded with Doomsday headlines: GM BANKRUPTCY TO COST 100,000's OF AMERICAN JOBS, GM COLLAPSE MEANS DEATH OF U.S. AUTO INDUSTRY, GOVERNMENT MUST SAVE GM TO SAVE U.S. ECONOMY
Bush was a lame-duck president when TARP, (Troubled Assets Relief Program), was created, (Bush's Treasury Secretary Henry Paulson's plan), to fight the crisis in the U.S. financial market. But he supported it, as did Congress, and incoming President Obama. It would be Obama's administration that would take over and administer the government's TARP efforts for the General Motors bailout.
Using TARP was seen as the only option to save GM. But there was a problem - this was the start of government's shenanigans in the GM bailout saga - TARP was legislatively created specifically for the financial market's crisis, and its use of funds was mandated for the purpose of buying troubled assets from financial institutions that would fail if they could not get rid of those toxic assets. Hence TARP. There were no provisions or authorities that would allow TARP to be used for a GM bailout. It would take more legislation from Congress to authorize such use.
But... there is always a but, the public was already screaming foul at Congress and the President over the daily headlines of how billions of dollars of TARP funds were going to favored financial institutions, overseas banks and investors, and worse - executive bonuses.
Both administrations knew Congress would not approve the needed legislation in the face of such a public outcry. So essentially, they agreed to just do it anyway. Of course they pointed to this paragraph or that in the TARP mandate, and stretched the meanings to, perhaps, technically authorize their use of TARP for a GM bailout. Several legal challenges were raised, (more on that later), and many legal experts opine that a court test would go against the administration's use of the funds.
Under the direction and control of Treasury Secretary Timothy Geithner, the Obama administration proceeded with the governmental bail-out plan for GM, (and Chrysler).
$51/$71/$81 Billion Taxpayer dollars go to save GM
Experts are still quibbling over the exact amount of taxpayer money that went into the GM bailout - but what's a few 10's of billions of dollars here and there.
Now we were bombarded with headlines touting the numbers: TARP TO SPEND $8 BILLION TO SAVE GM - GOVERNMENT GIVES GM $51 BILLION... and on and on.
Everyday was a new "billions" number - with a different explanation for its need or use: $11 billion to keep small parts supply-chain companies in business, $21 billion to see GM through bankruptcy proceedings, $10 billion for this, $20 billion for that... pretty soon we were inured to the numbers. A billion dollars used to be a bunch of money, period! But with these kind of numbers in the headlines weekly - they seemed to become just more scoreboard entries than actual dollar amounts.
Some generally excepted Tarp Fund Bailout numbers...

• $49.5 Billion - Conservative agreement of total TARP funds loaned or given to GM
• $30.1 Billion - Government purchase of GM stock - GM did not have enough financing to support a re-organization plan a bankruptcy court could accept, (or so it was stated), so to get the money, the U.S. Government gave GM $30.1 billion dollars in exchange for 60% ownership of the New GM company
• *note: many sources add this to the TARP GM loans amounts to arrive at a total of taxpayer-funded loans to the GM bailout - to come up with the big $77 or $81 billion dollar numbers, but this is not correct, the $30.1 billion is not a loan that can be repaid - it can only be recovered through the sale of the government's interest in GM ownership.

This explanation isn't intended to detail the timeline or trail of TARP funds to GM, there are other sources for those details. The only purpose here was to paint a general image that it is BIG Money - regardless of the exact amount, as mentioned the $49.5 billion is the conservative number that GM and the government acknowledge.
The General Motors Bankruptcy Plan
Details of the government's involvement in, and approval of, GM's bankruptcy plan, (formulated by Treasury Secretary Geithner, the Auto Worker's Unions, (UAW), and technically GM's management), that was submitted to the Bankruptcy Court for approval, were the determining factors deciding whether GM would be forced to liquidate, or allowed to file under Chapter 11 terms and emerge from the filings as a new company - to continue business.
But in fact, it was a completely new process that the bankruptcy courts had never dealt with before - a government-subsidized reorganization plan that the court could only tinker with, and then rubber-stamp its approval.
The winners and losers of the Government's plan for GM bankruptcy hearing
This is where the administration shows its true colors.

1. U.S. Government buys 60% share of the New GM company for $30.1 billion - giving GM the necessary "debtor in possession" funds reserve that the court required in order to consider a Chapter 11 filing
2. The AWU's, (UAW), received a 17% ownership stake in GM, (65% in Chrysler), in lieu of the money GM owed for union health and pension commitments. At the time this equated to about 40 cents on the dollar, but in reality stock shares could be sold at levels that would not only make the health and pension funds whole - but possibly generate a profit. *Note: Unions made an initial stock sale, (a portion of their shares), right after the IPO, at a rate that generated a $4 billion profit to the funds
3. Private secured investors were given a settlement agreement at the rate of 29 cents on the dollar *Note: these "private investors" also included investment funds composed of other union pension funds, like the Federated Teachers Association - which naturally screamed murder and went to court - where they failed to find relief - looks like the Obama administration and the UAW had more clout. THIS WAS UNPRECEDENTED IN CONTRACT LAW WHERE SECVURED CREDITORS WERE GIVE SECOND POSITION!!
4. **It should be noted that established contract law required secured creditors be paid first, but Obama's administration simply ignored this legal requirement and gave the unsecured union creditors first position - leaving whatever might be left for the secured investors.
5. Common-share stock holders were completely wiped out, when GM emerged from bankruptcy, all shares in the "old" GM were worthless since the "old" GM didn't exist anymore
6. GM was allowed to retain a $45 billion business-loss tax credit, carried forth from the "old" GM to the "New" GM - a practice unheard of in bankruptcy proceedings, essentially adding a $45 billion "gift" to off-set tax liabilities of the new company.
7. Delphi, a parts supplier network and GM spinoff, had all GM debt to it cancelled. Treasury Secretary Timothy Geithner also decided to cut pensions liabilities for salaried non-union employees to expedite GM’s emergence from bankruptcy.

There are many more GM bankruptcy plan details of course, but these are the biggies, and as with the TARP bailout amounts, more information is readily available from other sources.
The deception and misinformation begins
It all started with a statement by President Obama, to paraphrase: We do not want to be involved in the day to day operations and decisions of the New GM, and we have no intention of micro-managing their new executive team.
But....
The administration forced out the CEO of General Motors, Rick Wagoner
FOIA, (Freedom of Information Act), filings found that GM’s TV ad campaign last year that misleadingly* claimed that the company had paid back its government loan in full was approved by the administration. They also uncovered e-mails between GM CEO Ed Whitacre and various Treasury and other federal officials a month in advance of GM’s announcement of TARP loan repayments. These emails included draft schedules, draft remarks to be given by Mr. Whitacre, and draft press releases from both GM and the Treasury Department.
*GM did not payback the TARP loans as their announcement appeared to say. They only paid back one particular loan package of $6.7 billion - not the $49.5 billion the announcement implied. Even worse was that GM also did not repay the loan with monies and profits from the newly invigorated company - they paid it back with more TARP funds from another TARP escrow account, none of the repayment funds came from GM monies.
And Obama's administration knew this, and as shown above, actually helped compose and orchestrate the public announcements that deceived the public.
The Obama administration also took to the airwaves, proclaiming GM's announcement of 2011 1st quarter profits of $3.7 billion dollars, as proof of the success of their bailout efforts in saving the auto industry. President Obama even held a press conference to proclaim this as a sign of of the success of his administrations bailout efforts.
But, it wasn't true. $1.5 billion of that $3.7 billion came directly from the spin-off sale of GM's Delphi group, and a couple other smaller business units, and had nothing to do with sales and operational profits.. Leaving a real operational profit of only $1.2 billion, which was less than Ford's "non-government" assisted profits for the same quarter. The $1.2 billion number was even more misleading because it did not include any tax costs, (but Ford's numbers did), due to the $45 billion tax-loss "gift" the bankruptcy court allowed GM to carry forward onto the new company's books.
Finally - was the bailout really needed....
There has been much said for and against the need for the General Motors bailout.
Public officials from many auto industry-related organizations, the Obama administration - from the top down, and with very few exceptions - most members of Congress, all proclaimed that GM was too big to be allowed to fail. Too many jobs, (100,000's, and hundreds of small support businesses), would be lost, and too much of our economy depended on the survival of GM. Failure would be so catastrophic that not only would it undo all that had been done to save our financial markets, it would topple other segments of our economy - like dominoes, right down to the mom and pop diners that depended on auto industry worker's lunch money.
This may be true, had GM been forced to liquidate, and completely cease operations.
Maybe, but, there are other very knowledgeable business and bankruptcy experts that have different opinions. Many believe GM would have been granted Chapter 11 status without government intervention. They believe this would have been much more beneficial to both the company and our economy.
They believe bankruptcy would have allowed GM to:

• Start with a clean slate in union negotiations - relieving them of the legacy burdens of unaffordable union health and benefits costs that were one of the major contributors to their need for bankruptcy protection
• Negotiate new union wage contracts that were more realistic and in-line with other auto maker's cost - thus allowing them to be better positioned to be competitive. Industry average union wages are $56-$58 per hour, (including benefits costs), GM's union wage costs were $70 per hour
• Follow other typical Chapter 11 re-emergence efforts, like; shedding unprofitable parts of the company, (lie. streamlining it's bloated dealerships program), re-negotiate cost-prohibitive contractual obligations, and more...

The point being, the same options afforded any other business that seeks Chapter 11 protection in order to reorganize into a profitable company - would have been available to GM.
Todd Zywicki, a bankruptcy expert at George Mason University, highly doubts that GM would have faced liquidation. Because the company was financially distressed—after years of poor management—but not economically nonviable, in short - just the type of situation the bankruptcy laws were designed for. If GM had put together a credible restructuring plan, it would have been able to obtain debtor-in-possession financing under which, as the name suggests, the debtors would have essentially possessed the company. But it would have been allowed to emerge as a more streamlined entity. Without needing $49.5 billion +/- of the taxpayer's dollars.
If Todd, and other similar bankruptcy law experts are correct, then why was the Obama administration so focused on a bailout-only solution?
Could it be because the unions would have stood in line just like the rest of the creditors? Or because the bankruptcy court would have voided all labor union contracts, allowing GM to start fresh negotiations with the unions - without the legacy burdens already in the contracts, ($70 per hour, $12-$14 per hour more than GM's competitors)? Or because it would have allowed GM to streamline and re-negotiate its dealership program contracts, (almost ALL auto industry experts agree GM's dealership program was over-saturated - supporting too many dealerships was another major cost driving the company's profits down), which realistically GM could not accomplish due to local political influence that in turn became Congressional political influence?
We may never know for sure. Or as the bankruptcy experts indicated, when more behind-the-scenes details are discovered, we may find out this was a case of political manipulation and deception on the grandest scale ever seen in our country's economic history.
But of course, you may have a different perspective, especially if you are a member of one of the AWU's, (like the UAW).
Footnote: As of the 2011 4th quarter, the New GM has made no further TARP loan repayments.
Source http://gaanderson.hubpages.com/hub/Obama-General-Motors-GM-Tarp-Bailout-Untold-Details
So much of the GM bailout effort was done behind political doors that it really wasn't clear what was what - until after the fact. As more details became public, and more contract and bankruptcy lawyers and experts weighed in it became less certain that the "Doomsday" scenario was accurate.
1. GM's position did not meet the criteria of a nonviable business - which would only merit a Chapter 7 filing
2. previous bankruptcy rulings indicate pension obligations would have received priority consideration, but behind secured creditors (as required by contract law - not just tossed out the door
3. A viable reorganization plan would have merited government-backed loan guarantee support, just not the massive hand-outs the bailout provided
4. Many experts point to the numerous successful major airlines bankruptcy reorganizations as examples of how the proceedings could have worked - almost an apples to apples comparison.
but alas, now it just stands as one more example of inept government meddlingTHIS IS THE SOCIALIST MEDDLING BY THE OBAMA CABNAL IN CAHOOTS WITH THEIR INION THUG BOSSES !!

Calll in the PATRIOT POSSE...WE CAN CHANGE THIS !!

We Can Learn About Shortages And Preparation From The Economic Collapse ...and it is coming!

10 Things That We Can Learn About Shortages And Preparation From The Economic Collapse In Greece

10 Things That We Can Learn About Shortages And Preparation From The Economic Collapse In GreeceIT WILL START IN CALIFORNIA...PLEASE BE PREPARED. ROMNEY WILL NOT BE ABLE TO STOP THE INITIAL DISASTER!!When the economy of a nation collapses, almost everything changes.  Unfortunately, most people have never been through anything like that, so it can be difficult to know how to prepare.  For those that are busy preparing for the coming global financial collapse, there is a lot to be learned from the economic depression that is happening right now in Greece.  Essentially, what Greece is experiencing is a low level economic collapse.  Unemployment is absolutely rampant and poverty is rapidly spreading, but the good news for Greece is that the global financial system is still operating somewhat normally and they are getting some financial assistance from the outside.  Things in Greece could be a whole lot worse, and they will probably get a whole lot worse before it is all said and done.  But already things have gotten bad enough in Greece that it gives us an idea of what a full-blown economic collapse in the 21st century may look like.  There are reports of food and medicine shortages in Greece, crime and suicides are on the rise and people have been rapidly pulling their money out of the banks.  Hopefully this article will give you some ideas!that you can use as you prepare for the economic chaos that will soon be unfolding all over the globe.

The following are 10 things that we can learn about shortages and preparation from the economic collapse in Greece....
#1 Food Shortages Can Actually Happen

Most people assume that they will always be able to run out to their local supermarket or to Wal-Mart and get all of the supplies they need.

Unfortunately, that is a false assumption.  The truth is that our food distribution system is extremely vulnerable.

In Greece, many people are starting to totally run out of food.  Even some government institutions (such as prisons) are now reporting food shortages.  The following was originally from a Greek news source....

The financing for many prisons has decreased to a minimum for some months now, resulting in hundreds of detainees being malnourished and surviving on the charity of local communities.

The latest example is the prison in Corinth where after the supply stoppage from the nearby military camp, the prisoners are at the mercy of God because, as reported by prison staff, not even one grain of rice has been left in their warehouses. When a few days earlier the commander of the camp announced to the prison management the transportation stoppage, citing lack of food supplies even for the soldiers, he shut down the last source of supply for 84 prisoners. The response of some Corinth citizens was immediate as they took it upon themselves to support the prisoners, since all protests to the Justice ministry were fruitless.

#2 Medicine Is One Of The First Things That Becomes Scarce During An Economic Collapse
If you are dependent on medicine in order to survive, you might want to figure out how you are going to get by if your supply of medicine is totally cut off someday.
In Greece, medicine shortages have become a massive problem.  The following is from a recent Bloomberg article....

Mina Mavrou, who runs a pharmacy in a middle-class Athens suburb, spends hours each day pleading with drugmakers, wholesalers and colleagues to hunt down medicines for clients. Life-saving drugs such as Sanofi (SAN)’s blood-thinner Clexane and GlaxoSmithKline Plc (GSK)’s asthma inhaler Flixotide often appear as lines of crimson data on pharmacists’ computer screens, meaning the products aren’t in stock or that pharmacists can’t order as many units as they need.
“When we see red, we want to cry,” Mavrou said. “The situation is worsening day by day.”
The 12,000 pharmacies that dot almost every street corner in Greek cities are the damaged capillaries of a complex system for getting treatment to patients. The Panhellenic Association of Pharmacists reports shortages of almost half the country’s 500 most-used medicines. Even when drugs are available, pharmacists often must foot the bill up front, or patients simply do without.

#3 When An Economy Collapses, So Might The Power Grid
Try this some time - turn off all power to your home for 24 hours and try to live normally.
Sadly, most people simply do not understand just how dependent we are on the power grid.  Without power, all of our lives would change dramatically.
In Greece, authorities are warning of an impending "collapse" of the power grid.  If it goes down for an extended period of time in Greece, the consequences would be catastrophic....

Greece’s power regulator RAE told Reuters on Friday it was calling an emergency meeting next week to avert a collapse of the debt-stricken country’s electricity and natural gas system.
“RAE is taking crisis initiatives throughout next week to avert the collapse of the natural gas and electricity system,” the regulator’s chief Nikos Vasilakos told Reuters.
RAE took the decision after receiving a letter from Greece’s natural gas company DEPA, which threatened to cut supplies to electricity producers if they failed to settle their arrears with the company.

#4 During An Economic Collapse You Cannot Even Take Water For Granted
If the power grid goes down, you will soon no longer have clean water coming out of your faucets.  That is one of the reasons why it is absolutely imperative that the power grid stay operable in Greece.
Sadly, most people don't understand just how vulnerable our water system is.  In a previous article, I quoted from a report that discussed how rapidly our water supply would be in jeopardy in the event of a major transportation disruption....

According to the American Water Works Association, Americans drink more than one billion glasses of tap water per day. For safety and security reasons, most water supply plants maintain a larger inventory of supplies than the typical business. However, the amount of chemical storage varies significantly and is site specific. According to the Chlorine Institute, most water treatment facilities receive chlorine in cylinders (150 pounds and one ton cylinders) that are delivered by motor carriers. On average, trucks deliver purification chemicals to water supply plants every seven to 14 days. Without these chemicals, water cannot be purified and made safe for drinking. Without truck deliveries of purification chemicals, water supply plants will run out of drinkable water in 14 to 28 days. Once the water supply is drained, water will be deemed safe for drinking only when boiled. Lack of clean drinking water will lead to increased gastrointestinal and other illnesses, further taxing an already weakened healthcare system.

What will you do when clean water stops coming out of your faucets?
You might want to start thinking about that.
#5 During An Economic Crisis Your Credit Cards And Debit Cards May Stop Working
Most people have become very accustomed to using either debit cards or credit cards for almost everything.
But what would happen if the financial system locked up for a period of time and you were not able to use them?
This is something that the citizens of Greece are potentially facing in the coming months, and this is something that all of us need to start thinking about.
#6 Crime, Rioting And Looting Become Commonplace During An Economic Collapse
Big corporations are already making extensive plans for how to protect their stores in the event that Greece switches from the euro to the drachma.
The following is from a recent Reuters article....

British electrical retailer Dixons has spent the last few weeks stockpiling security shutters to protect its nearly 100 stores across Greece in case of riot.
The planning, says Dixons chief Sebastian James, may look alarmist but it's good to be prepared.
Company bosses around Europe agree. As the financial crisis in Greece worsens, companies are getting ready for everything from social unrest to a complete meltdown of the financial system.

#7 During A Financial Meltdown Many Average Citizens Will Start Bartering
During this economic depression, alternative currencies have already been popping up in Greece.
When things fall apart on a global scale, will you have things to barter for the things that you need?
#8 Suicides Spike During An Economic Collapse
When you think of the Great Depression of the 1930s, what do you think of?
Many people think of images of people jumping out of buildings.
Well, something similar has been happening in Greece.  Suicide statistics in Greece have been absolutely soaring during the last couple of years.
Once prosperity disappears, many people feel as though life is not worth living anymore.
#9 Your Currency May Rapidly Lose Value During An Economic Crisis
Just remember what happened in Germany during the Weimar Republic and what has happened recently in places like Zimbabwe.
The truth is that it can happen anywhere.
Right now, Greeks are pulling their money out of the banks because they are worried that their euros will be turned into drachmas which would rapidly lose value.
If I was living in Greece I would definitely be concerned about that.  The return of the drachma seems to get closer with each passing day.  Just check out these screenshots.
#10 When Things Hit The Fan The Government Will Not Save You
Has the government of Greece come to the rescue of all of those that are deeply suffering right now?
Of course not.  The truth is that the Greek government can barely take care of itself at the moment.
History has shown us that governments simply cannot be counted on when things hit the fan.
Just remember what happened during the aftermath of Hurricane Katrina.
In the end, the only one that can be counted on to take care of you and your family is you.
So you better start preparing.
Unfortunately, as I wrote about the other day, time is rapidly running out for the global financial system.
Even some of the top economic officials in the world are warning that another major crisis could be on the way.
Just check out what World Bank President Robert Zoellick said the other day....

"Events in Greece could trigger financial fright in Spain, Italy and across the eurozone. The summer of 2012 offers an eerie echo of 2008."

He also compared a potential exit of Greece from the eurozone to the collapse of Lehman Brothers back during the last financial crisis....

"If Greece leaves the eurozone, the contagion is impossible to predict, just as Lehman had unexpected consequences."

So what are some things that the average person can do to get prepared?
Well, a recent article on SHTFplan.com entitled "The List: A to Z Survival for the Abysmal Times Ahead" contains hundreds of ideas for preparing for the chaotic economic environment that we are heading into.
Preparation is going to look different for every family.  No two situations are exactly the same.
But there are some practical steps that nearly all of us can take to better position ourselves for what is coming.  Now is the time to get educated and now is the time to take action.
Or you could be like all of those that laughed at Noah while he was building that big boat.
In the end, things did not work out too well for those folks.PREPARE FOR THE WORST EXPECT THE BEST...GOD BLESS AMERICA!!

Riots IN GREECE, same picture in METRO AREAS OF THE USA !!

Obama OUTSOURCING...... A Record Of Failure Spanning The Globe ..Hey Obama... "The Fu*k"...(I mean) The Buck stops with you...( Hell!...WTF... I mean BOTH Asshole!)

A Record Of Failure Spanning The Globe

Over his four years in office, Obama promised that he would focus on creating "jobs that pay well and can't be outsourced." However, as he racked up trillions in new debt, billions of dollars did go to create jobs that were outsourced or spent overseas. Whether it is electric cars made in Finland or solar panels in Mexico,

taxpayers would be astonished to learn that their hard earned money went abroad for jobs that weren't created in the United States.

"And I will invest $15 billion a year in renewable sources of energy to create five million new energy jobs over the next decade - jobs that pay well and can't be outsourced; jobs building solar panels and wind turbines and a new electricity grid; jobs that will help us eliminate the oil we import from the Middle East in ten years and help save the planet in the bargain. That's how America can lead again."

President Barack Obama, October 30, 2008

 

 

 

Tracing Obama's Overseas Investments

 

CLICK HERE TO SEE DYNAMIC DISPLAY: http://www.obamanomicsoutsourced.com/

Electric Cars

Obama handed over billions of dollars in loan guarantees and stimulus awards pursuant to his goal of putting one-million electric vehicles on the road by 2015. Much of that money ended up leaving our shores. A $2.4 billion stimulus program to support battery production sent nearly half of its money to foreign firms, including two South Korean companies that used their awards to hire foreign nationals in Michigan to do work that Americans easily could have done. In the end, despite all the money Obama handed out, electric vehicle sales have lagged and The Washington Post deemed his goal of one million electric cars "overly optimistic."

Wind Farms

Obama's stimulus included over $8.5 billion in grants for wind farms that flowed overseas, despite Congressional criticism from both sides of the aisle. In total, over half of the money went to either foreign developers or foreign wind turbine manufacturers, creating thousands of jobs overseas with money that was supposed to create jobs within the United States. Even worse, hundreds of millions of dollars went to wind farms that began construction before the stimulus was passed. The end result of all this spending: the wind energy industry lost 10,000 jobs last year.

Manufacturing TaxCredits

As Obama was doling out over $2.3 billion in clean energy manufacturing tax credits that were supposed to create jobs in America, $880 million went to foreign firms. Worse still, some of those same recipients are now closing up shop and shipping jobs overseas.

Loan Guarantees

Remember Solyndra? The problems with Obama's loan guarantee program don't end there. The largest recipient of Obama's program to jumpstart green energy projects was the Spanish Company Abengoa, which took in $2.7 billion in loan guarantees for three of its projects. Other projects importing foreign-made solar panels are, much in the same way as Fisker Automotive, choosing to make their products overseas.

Switzerland

Cronyism

Swiss-Based Landis+Gyr Received Over $50 Million In Stimulus Contracts For Their Smart Grid Meters. Cathy Zoi, A Former Obama Energy Department Official, Held Over $250,000 Worth Of Stock In The Company As They Profited From Her Department's Policies. Zoi Had Previously Served As An Executive Director At Landis+Gyr Before Joining The Obama Administration.