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Eamonn Fingleton gives a stunning account of how the elite press – the Wall Street Journal, The Economist, the New York Times and Washington Post - pilloried US autworkers while systematically concealing the hidden subsidies which have allowed Japan and Korea to destroy Detroit. All this with the connivance of the US government. Also in our latest newsletter: Michelle Obama comes to Merced. Bill Hatch, the Balzac of the Central Valley, gives an uproarious account of Michelle’s state visit to UC’s new campus. Get your new edition today by subscribing online or calling 1-800-840-3683 Contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! CounterPunch books and gear make great presents.
How the U.S. Press Helped Destroy the Auto IndustryOrder CounterPunch By Email For Only $35 a Year !
Meet & Debate (Perhaps Even Date) CPers Online at CounterPunch's New Facebook Page!
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Today's Stories June 4, 2009 Arno J. Mayer June 3, 2009 Paul Craig Roberts Kathy Kelly Alan Farago Franklin Lamb Bill Hatch Nadia Hijab Dean Baker Binoy Kampmark Manuel Garcia, Jr. Remi Kanazi Behzad Yaghmaian Website of the Day June 2, 2009 Uri Avnery Robert Weissman Conn Hallinan Gideon Spiro Roger Burbach Dylan Quigley Dave Lindorff Ray McGovern Belén Fernández Martha Rosenberg Willie L. Pelote, Sr. Website of the Day June 1, 2009 Pam Martens Yitzhak Laor Mark Weisbrot Ramzy Baroud Saul Landau Eugenia Tsao Afshin Rattansi Debra Sweet Abdul Malik Mujahid Bill Quigley John Wright Website of the Day May 29-31, 2009 Alexander Cockburn Patrick Cockburn Vijay Prashad Gary Leupp Ray McGovern Rannie Amiri Bill Hatch Chellis Glendinning, Stephanie Mills and Kirkpatrick Sale Phyllis Pollack David Yearsley Jean-Christophe Servant Dave Lindorff James McEnteer Missy Beattie James C. Faris David Macaray Harvey Wasserman Adam Federman David Ker Thomson Mark Seth Lender Stephen Martin Joseph Nevins Sophia Mihic Lorenzo Wolff Poets' Basement Website of the Weekend May 28, 2009 Joan Roelofs Paul Craig Roberts Ralph Nader Mouin Rabbani Joe Bageant James McEnteer Dedrick Muhammad Richard Morse David Macaray Harvey Wasserman Website of the Day May 27, 2009 Joanne Mariner Paul Craig Roberts Walden Bello Dave Lindorff Brian M. Downing Carlos Villarreal Nadia Hijab Adam Federman Laray Polk Isabella Kenfield David Michael Green Website of the Day May 26, 2009 Manuel Garcia, Jr. Mike Whitney Sharon Smith Marjorie Cohn Dean Baker Deepankar Basu Fred Gardner Jordan Flaherty Josh Ruebner Brian Cloughley Website of the Day May 25, 2009 Diane Christian John Ross Kenneth Hartman Uri Avnery Fred Gardner Cindy Sheehan Sen. Russell Feingold Sibel Edmonds Franklin Lamb Dave Lindorff Daniel Wolff Website of the Day May 22-24, 2009 Alexander Cockburn Michael Teitelman Mike Whitney Ray McGovern Sonia Cardenas / Clive Hamilton Conn Hallinan Fred Gardner Carlo Cristofori Dean Baker Rannie Amiri Andy Worthington David Macaray Nadia Hijab Franklin Lamb Ted Newcomen David Ker Thomson David Rosen Mark Weisbrot Robert Fantina Heather Gray Farzana Versey Chris Genovali Ron Jacobs Jay Diamond Dr. Susan Block Ben Sonnenberg David Yearsley Lorenzo Wolff Poets' Basement Website of the Weekend May 21, 2009 Jeffrey St. Clair / Paul Craig Roberts Chris Floyd Gerald Paoli Zach Mason Uri Avnery Andy Worthington Niranjan Ramakrishnan Norman Solomon Dave Lindorff Website of the Day May 20, 2009 Michael Hudson Gary Leupp Michael D. Yates Jonathan Cook Peter Lee Binoy Kampmark Peter Zinn William Loren Katz Gary Lapon Trudy Bond Website of the Day May 19, 2009 Kristoffer Rehder Mike Whitney Ray McGovern Vijay Prashad Mirjam Hadar Meerschwam Mustafa Barghouthi Andy Worthington Binoy Kampmark John Walsh David Macaray Website of the Day May 18, 2009 Dave Lindorff Abdul Malik Mujahid Jonathan Cook Ben Rosenfeld Patrick Cockburn Ralph Nader Stephen Soldz Eugenia Tsao Walter Brasch Roberto Rodriguez Charlotte Laws Website of the Day May 15-17, 2009 Alexander Cockburn Jeffrey St. Clair David Rosen Mike Whitney Bruce Page Jeremy Scahill Fred Gardner Tom Barry Mats Svensson Ramzy Baroud Mark Engler Mark Weisbrot Farzana Versey Ron Jacobs Hannah Wolfe Cal Winslow David Macaray Christopher Brauchli Mark Seth Lender Robert Fantina David Ker Thomson Stephen Martin Charles R. Larson Chase Madar Kim Nicolini David Yearsley Lorenzo Wolff Poets' Basement Website of the Weekend May 14, 2009 Michael Hudson Andy Worthington Paul Craig Roberts Jonathan Cook Ray McGovern Lance Selfa David Green Dave Lindorff Frida Berrigan Sue Udry Website of the Day May 13, 2009 Brian M. Downing Gareth Porter Robert Sandels Ricardo Alarcón Eric Walberg Dave Lindorff Deepak Tripathi William S. Lind Kevin Zeese Franklin Lamb Website of the Day May 12, 2009 Gary Leupp Richard Neville Wajahat Ali Dean Baker Franklin Lamb Norman Solomon Paul Craig Roberts Lisa M. Hamilton Bob Fitrakis / David Macaray Website of the Day May 11, 2009 Andrea Peacock Michael Hudson Patrick Cockburn Ralph Nader John Kelly Saul Landau Dave Lindorff David Michael Green Anthony Papa Paul Krassner Website of the Day
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June 4, 2009 The Path Not Taken, the Choices Down the RoadGM NationalizationBy ROBERT WEISSMAN Whatever the woes of General Motors -- and they are substantial -- it does not follow that the government needed to drive the company into bankruptcy. With at least $50 billion in government supports undergirding the new GM, the Obama administration auto task force deciding GM's fate could have steered the company away from bankruptcy court. If it had so chosen, it could have acquired the company outright -- a much better course to advance the legitimate public interest in rescuing GM. The purported rationale for bankruptcy was to deal with the problem of recalcitrant bondholders, owed $27 billion by GM and rejecting the GM/government offer of exchanging that debt for a 10 percent share in the New GM. It has been apparent for weeks that the bondholder problem could be addressed with some creative negotiations. By the end of last week, the government had found a way to be creative; having sweetened the pot, an accommodation with the bondholders was at hand. But GM, under the aegis of the auto task force, filed for bankruptcy anyway, setting in motion a series of likely excessive factory shutdowns, needless dealership closings and anticipated cancellation of the rights of victims of defective GM cars. Given the deal with the bondholders, the bankruptcy declaration was wholly discretionary and avoidable. But the government had available a much better alternative to avoid bankruptcy than just cutting a deal with the bondholders. It could have simply taken complete control of the company. Instead of declaring bankruptcy on Monday, the government could have announced the taking of GM through eminent domain. The government could have paid shareholders the market price for their shares -- worth less than $1 billion. It could have paid bondholders the market price for their bonds; trading at about 8 cents on the dollar, that would have totaled a little more than $2 billion. The UAW, which needs cash not equity to fund its healthcare benefit pool, could have been given preferred stock paying a substantial interest rate. (Assuming it could reach agreement on a shared vision for the restructured GM, the U.S. government could have decided to work in concert with the Canadian and Ontario governments -- which will control 12 percent of the New GM.) This would have been an aggressive approach -- but less so than the administration's maneuvers in bankruptcy. With complete control of the company, the government could have explicitly set out to manage General Motors in the public interest. As Ralph Nader has said, this would not require micromanaging the company, but it would require managing it. There are many different public management options. Consider the U.S. Postal Service as one example. It operates independently but under government supervision, and with some affirmative mandates and obligations. USPS is required to deliver on Saturdays, for example, even though it may be more profitable to cut Saturday service. It must deliver to the entire country, with a flat-rate first class stamp, even though it would likely make more money with limited service or differential rates. A GM under public management would aim for a return to profitability -- or at least breaking even. But it would take into account other public priorities. And it would focus on medium- and long-term objectives rather than short-term profitability. A publicly managed GM would take pains to avoid excessive layoffs and would not needlessly close dealerships. A publicly managed GM would abandon GM management's desire to move production for the U.S. market to low-wage countries. It would maintain decent wages, benefits and working conditions. It would not maneuver to deny victims of defective GM cars their day in court. It would prioritize safety in its new vehicle design. Above all, a publicly owned and managed GM would invest heavily in new ecologically friendly technology. As part of a government plan to remake the nation's transportation infrastructure, it would retool plants to meet growing demand for buses and trains. Having decided not to pursue the full public ownership route, the Obama administration still finds itself about to own 60 percent of the New GM. This majority stake comes with some important limitations; with a significant portion of the company still trading publicly (10 percent immediately after bankruptcy, and more over time), the government will have legal duties to the minority shareholders. Still, the government as majority shareholder will have ultimate control, and the long-term and socially appropriate investment practices can all be justified as in GM's long-term interest. The biggest problem is that the Obama administration explicitly disdains a desire to manage the company to advance the public interest. Even worse, the administration has stated its desire to begin selling off the government-held shares in GM in six to 18 months after the company emerges from bankruptcy; that posture puts a premium on measures to achieve short-term profitability … exactly the orientation that landed GM in its present predicament. Robert Weissman is editor of the Washington, D.C.-based Multinational Monitor and director of Essential Action. .
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