GENERAL MOTORS ANNOUNCES PLANS TO CLOSE NINE NORTH AMERICAN FACTORIES, LAY OFF 30,000 WORKERS

NOTE: With the recent news concerning the closure of yet another GM facility in Oklahoma City,
this CCW item from May 2005 should be of renewed interest. CCW On-Target!


What if we told you General Motors' demise was planned years ago, would you believe us?

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

The 1994 passage of NAFTA was a boon to GM and other manufacturers. We predicted
a massive loss of US manufacturing jobs, but we were one of only a few lone
voices in the wilderness. In 1999, Mexico was running an $11.9 billion trade
surplus in autos, supplying the US with 560,000 cars while importing only
46,000. Soon we won't export Mexico any cars as cheap Russian imports flood the
Mexican market, thanks to GM.

Free trade and globalization is the tactic being used to implement world
government. Part of the groundwork of which was laid in 1965 in the Canada-US
Auto Agreement. This was a precursor to NAFTA. Next are CAFTA and FTAA designed
to bring about economic and political merging?

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

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

Don't you people get it . . . you are being enslaved!

SOCIALISM = INSOLVENCY = SURRENDER

The Fed is creating money to offset the money destroyed by defaults in an effort
to hide the inflation in the money supply, as it manipulates gold and the
commodities in the futures markets to hide inflation. The bond yields have been
suppressed by Caribbean buying of Treasuries and agencies. Are the Fed and the
US Treasury doing the buying or is it US corporations repatriating capital
freed-up by the one-year window of a 5-1/4% tax? This is why Bush and the
Treasury want the other tax cuts to be permanent. That will help the US
economy, but it will primarily be of use to encourage repatriation of US
company offshore profits and US foreign-held investments to hold up the dollar.

As we mentioned in the last employment report, illegal aliens filled most of the
jobs that have been created recently. America, which is forming a new colonial
empire, has a pattern of real job growth so far in this new century that
mirrors that of a third world country. The economy is not creating jobs in the
high-tech sectors and in the export-import sectors. Offshoring and outsourcing
of manufacturing and engineering and professional services is dismantling the
ladders of upward mobility that made the American dream possible. We are only
capable of creating third world jobs for Hispanic immigrants, 97% of which are
illegals. Hispanics make up 13% of the workforce but they are gaining 60% of
the new service jobs. They are on construction sites, in fast food restaurants,
waste services and in hospitals and insurance. Low wage foreign labor is pulling
the income underpinnings out from under our society. As we have said over and
over, we cannot and will never be about to compete on a wage basis and anyone
who says we can lives in a fantasy world. Even jobs such as domestic services,
schoolteachers and nurses are being imported via work-visa programs. Yes,
corporations save money and make more profits, but in the process they are
destroying our economic superstructure. Corporate America and its politicians
will eventually destroy the US consumer market and reduce US corporations to a
brand name with a sales force selling foreign products to Americans employed in
third world jobs. Unlike comparative advantage, absolute advantage produces
winners and losers and we are the losers. This just did not happen this way. It
was planned to happen this way.

The public still does not have a clue to what is happening to American pensions.
The latest fiasco was UAL, which defaulted on $9.8 billion owed to 134,000
employees and retirees, the largest pension disaster in history. Worse yet, the
rest of the airlines are soon to follow. Their combined pension debt is $11.4
billion. Those who receive Pension Benefit Guaranty Corporation pensions get
varying payoffs. At 65, if you are in a failed plan, in 2005 the most you can
receive is $45,615 per year. If you are retiring at 55 and your plan failed in
2000, your maximum benefit is $17,397 per year. There are no health benefits.
You do not recover severance, vacation pay and life insurance. This is bare
bones and that is the way it was set up. The PBGC already is burdened with
3,496 failed plans. As PBGC takes over the UAL pension plan, it is $25 billion
in debt. The future sure does not look good with 362 S&P 500 companies having
problems. Eighty-five percent of them are in deficit. If the US stock market
goes to DOW 7268 or lower, you can kiss many pensions goodbye. The unfunded
plans are approaching $100 billion and at DOW 7268, the unfunded portion would
be $200 billion. Now you can see why there is such an incentive to file for
bankruptcy. If they do not file, their liability grows and they cannot compete
in their industry. In that exercise, only the company executives win, everyone
else loses. The pension bomb will be big... in the hundreds of billions of
dollars.

Your new driver's license - national ID will track you everywhere. If you go to
purchase a gun your dealer will pull your ID-license through a scanner
containing a radio-frequency ID chip. Your purchase will instantly be recorded
in your state driver's license registry. The federal government is not allowed
to keep a gun registry. That is not a problem; they will just access state
records. That means many people authorized and unauthorized can access your
records. The government wants to know who is buying guns and ammo. Then comes
registration followed by confiscation. That is when you have a choice; you
either turn them in or become an outlaw. If you do not think this will happen
you are sadly mistaken. This is what George Orwell told us about and it is here
and now. Americans do not have a clue about where this is all headed.

Fascism will come at the hands of perfectly authentic Americans, as violently
against Hitler and Mussolini as the next one, but who are convinced that the
present economic system is washed up and that the present political system in
America has outlived its usefulness and who wish to commit this country to the
rule of the bureaucratic state; interfering in the affairs of the states and
cities; taking part in the management of industry and finance and agriculture;
assuming the role of great national banker and investor, borrowing billions
every year and spending them on all sorts of projects through which such a
government can paralyze opposition and command public support; marshalling
great armies and navies at crushing costs to support the industry of war and
preparation for war which will become our greatest industry; and adding to all
this the most romantic adventures in global planning, regeneration, and
domination all to be done under the authority of a powerfully centralized
government in which the executive will hold in effect all the powers with
Congress reduced to a debating society. There is your fascist. And the sooner
America realizes this dreadful fact the sooner it will arm itself to make an
end of American fascism masquerading under the guise of the champion of
democracy.

The foregoing items are Excerpts from the May 21, 2005 edition of International
Forecaster!

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