Graphic: Black Swan Insights
“It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grams a week. And only yesterday, he reflected, it had been announced that the ration was to be reduced to twenty grams a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it.”
George Orwell: 1984
In 2010, Obama assured the auto bailouts were correct by proclaiming, “American taxpayers are now positioned to recover more than my administration invested in GM“. Even General Motors Chairman and CEO Ed Whitacre upped the ante by promising taxpayers would make a profit on the $50 billion. ”I think the government’s investment is well placed and I think they’ll make a lot of money“.
With nothing more to offer then Propaganda of the higest order, the press penned their usual sycophantic charm aimed towards Obama Administration.
CNN: President Barack Obama trumpeted Thursday’s highly anticipated sale of General Motors stock, saying its success proved the wisdom of the automaker’s federal bailout last year that he claimed saved over a million jobs.
NPR: So as GM begins to pay the government back as the economy starts getting better, the White House believes they have a chance to get people to acknowledge that all of the unpopular decisions they made might have been the right thing.
USA TODAY: Trading the new stock is a milestone for both the corporation and for the Obama administration.
General Motors Chairman and CEO Ed Whitacre & Nancy Pelosi
In order for the Tax Payer to regain it’s investment, 500 Million shares of GM would need to be sold at $53 just to break even. Since GM stock was re-launched in November 2010 it has failed to break the above the $39 mark, when reports of a Government sell off emerged, GM closed today at $29.59.
Well may we say, is the failure of GM worth the $11 – $25 Billion dollars to say Told You So? As America races towards Government fueled economic meltdown, was Government Motors really worth our investment? Will it be enough for the public to lose favor with White House?
I hate to say it folks, but nothing will happen while continual puff like these words from The Washington Post on TARP keep coming, nor this Propaganda from the mouth of the Congressional Oversight Panel, (see You Tube below) as Sen. Ted Kaufman trumpets the success on TARP. Success I might add, that involved a $25 Billion loss on the Auto Makers according to their March COP’s Report.
On a side note, when I tried to download the Congressional Oversight Panel report , I found it had been removed from it’s server, however you can find an overview in the Washington Times.
We have seen how the Obama Administration reacts to bad news, when Standard & Poor’s ranked America’s triple-A rating a “negative” outlook, the White House attacked Standard & Poor’s then promoted Moody’s stable ranking. How will the White House spin this one? Not only that, but the upcoming Chrysler investment will most likely follow the form of GM.
Propaganda can only work when enough of the public are swallowing it. Lucky for the Obama Administration, the Press are not only swallowing the Propaganda, they are forcing it down the throats of the collective public. Sooner or later, enough people need to wake up to the fact, this chocolate ration isn’t working in your favor.