Word on the street is that the Federal Government will now own General Motors.

General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

Mussolini would be proud.

Rich Galen says:

On the very day that Barack Obama announced new fuel efficiency and emissions limits for American cars, Reuters reported that when General Motors goes bankrupt it would be selling its best asset to … Barack Obama. 
Fair is fair. 
If Obama owns GM he can tell them what kinds of cars to build, at what prices they should be sold, how many seats the UAW should have on their board of directors, and just about anything else he thinks of while eating his morning bran flakes. 


Instead, start listening for the term “our deteriorating atmosphere”.

What makes you more likely to conserve energy: being asked to be “energy efficient”, or being reminded about “saving money for a more prosperous future.”?

Do you just hate it when people keep harping about “the environment”?  Prepare to hear, then, at lot less about “the environment”, and a lot more about “the air we breathe” and “the water our children drink”.

Someone apparently spilled the beans about new enviro-speak that will likely shepherd a lot more us into supporting the reduction in freedoms that would come with controlling “global warming”.  The New York Times reports that:

The problem with global warming, some environmentalists believe, is “global warming.”

The term turns people off, fostering images of shaggy-haired liberals, economic sacrifice and complex scientific disputes, according to extensive polling and focus group sessions conducted by ecoAmerica, a nonprofit environmental marketing and messaging firm in Washington.

Instead of grim warnings about global warming, the firm advises, talk about “our deteriorating atmosphere.” Drop discussions of carbon dioxide and bring up “moving away from the dirty fuels of the past.” Don’t confuse people with cap and trade; use terms like “cap and cash back” or “pollution reduction refund.”

But apparently we weren’t supposed to know yet:

A summary of the group’s latest findings and recommendations was accidentally sent by e-mail to a number of news organizations by someone who sat in this week on a briefing intended for government officials and environmental leaders.

Do you really think we weren’t supposed to know?  Or was the “accident” just part of the attempt to get people conditioned to reacting to the new words when they see them in print?

None.  It’s actually probably gained a bit.  Darn it.  Here’s what IBD had to say:

Al Gore’s apocalyptic full-length cartoon, “The Day After Tomorrow,” opened with an Antarctic ice shelf melting away. But a report by the Scientific Committee on Antarctic Research prepared for the recent meeting of the Antarctic Treaty nations in Washington notes the South Pole has in fact shown “significant cooling in recent decades.”

Australian Antarctic Division glaciology program head Ian Allison says sea ice losses in West Antarctica over the past 30 years have been more than offset by increases in the Ross Sea region, just one sector of East Antarctica. “Sea ice conditions have remained stable in Antarctica generally,” Allison says.

Can people just be honest here?

In addition to the inconvenient fact that the North Pole only has about 3% of the earth’s ice, enviro wackos only pay attention to that part of Antarctica that is melting, but not the part where ice is growing and thickening.  Are they stupid, or do they think we are?

The “uptick rule” was put in place to regulate the in 1937.  It was removed in 2007.  I still think that the Federal Reserve is the biggest problem we have on Wall Street, but re-establishment of the uptick rule could probably solve a lot of the financial problems that we’ve been having lately. MarketWatch.com says:

The uptick rule, which was removed in 2007 after 70 years, allowed short sales only if the preceding sale boosted a company’s stock price by at least a penny. The uptick rule was designed to make sure short sellers couldn’t dominate trading in a stock to drive its price lower.
Short sales allow investors to bet that a share price will go down, by borrowing and selling shares of a company in hopes of buying back the shares at a lower price. The original owner then gets the shares back, and the short-seller pockets the difference in the price as profit.
Short-selling is controversial. Many companies say short sellers spread false rumors to drive prices lower, but short sellers say they provide the necessary counterweight to the boosterism of market bulls.
Some critics say the elimination of the uptick rule was a major factor in the bear market that has seen major stock averages fall 48% since peaking in October 2007, just three months after the rule was abolished. In October 2008, the SEC barred short sales of many financial corporations.

The Death of the Dollar?

George Soros says the dollar’s days may be numbered.

Soros also said the U.S. dollar is under selling pressure and may eventually be replaced as a world reserve currency, possibly by the IMF’s Special Drawing Rights, a synthetic currency basket comprised of dollars, euros, yen and sterling.

“I think the dollar is now under question and I think the system will need to be reformed, so that the United States will be subject to the same discipline as is imposed on other countries,” said Soros, whose famous bet against the British pound earned his Quantum Fund $1 billion in 1992. “Being the main issuer of international currency, we have been exempt and we have abused that because we have effectively consumed 6.5 percent more than we have produced. That is now coming to an end.”

It sounds like China is getting sort of sick of holding all those dollars.

China recently proposed greater use of Special Drawing Rights, possibly as an eventual global reserve currency. “In the long run, having an international accounting unit rather than the dollar may, in fact, be to our advantage so we can’t splurge—you know, it felt very good for 25 years but now we are paying a very heavy price,” Soros said.

China is considering completely dumping the dollar.

Communities Begin to Issue Own Currencies

Have you ever heard of a “Detroit Cheer”?  How about a “North Carolina Plenty”?  A “Massachussetts Berkshare?”  These are some of the ersatz currencies that are cropping up around the country.

There are now around 30 U.S. cities and towns where people issue and use local money that is legal, and taxable, tender. Local money is based on the barter principle.

It’s a throwback to the Depression Era.

“We’re a wiped-out small town in America,” Lyle Estill, a participating Pittsboro [North Carolina] businessman, told USA Today. “This will strengthen the local economy. … The nice thing about the Plenty is that it can’t leave here.”

Gold Dumping

Why is the price of gold going down?  Because of the dumping practices of the International Monetary Fund.  While the IMF says that

April 2008: IMF Dumps 400 Tons of Gold.  April 2009: Talks with G20 to Dump More

April 2008: IMF Dumps 400 Tons of Gold. April 2009: Talks with G20 to Dump More

there have been no talks on selling more gold than the 400+ metric tons dumped a year ago, the G20 says there have been.   On the announcement that there may or may not have been more dumping talks, gold prices dropped 3%.

Spain has been at the forefront of environmental awareness from a public standpoint.  What happens when government gets involved?  Jobs are destroyed.  Western Business Roundtable, referring to the spanish study, states

that every renewable job created by the Spanish government destroyed an average of 2.2 other jobs. Each “green” megawatt installed in Spain destroyed 5.39 jobs in non-energy sectors, the study found.

Even worse, ninety percent of such  jobs were only temporary.

A collateralized debt obligation (CDO) is a high-sounding name for taking a bunch of low-rated mortgages or other investments from a pool and putting them together into a separate bundle and then giving it essentially a Triple-A rating.  In an effort to race each other to the top (more profits), but really ending up at the bottom (loss of investment rating integrity), Standard and Poors, Moody’s, and Fitch Ratings aided and abetted the investment firms by declaring that their investments were sound when they really  weren’t. 

This story on PBS Now explains not only how it was done, but how some financiers with integrity refused to participate.