Thursday, 27 November 2008

'Gone To The Wall'


The car industry has been one of the worst hit by the financial crisis as consumers low on confidence and credit buying of any new cars, almost comes to a full stop. In the US automakers Ford, GM, and Chrysler have been going to Washington to declare that if they are not given a bailout (or a subsidy) of $25 billion they won’t survive beyond 2009.The automakers have until Tuesday to submit a plan on how they intend to use the money and get out of the mess that they, the capitalist economy and Wall Street have created.

They might have a difficult time, though, convincing an already skeptical Congress that they can survive, even with a huge cash infusion. General Motors Corp. and Ford Motor Co. have lost a combined $30 billion in the first nine months of this year and are rapidly using up cash reserves. GM faces its worst financial crisis in nearly 80 years. So the big three in Automakers in the US have gone to seek help from the government, for what would in capitalist’s terms been referred to normally as otherwise, failing companies. The US auto industry, characterized by GM has long been regarded as the pillar and icon of US manufacturing. The question is whether Washington under an outgoing Bush administration would turn a blind eye and let the three automakers go into bankruptcy. Those in favour of a bailout plan maintain action should be taken immediately. They insist that the breakdown of auto industry could affect other trades through the supply chain, finally leading to millions of workers losing their jobs and possibly bringing the unemployment rate up by ten percent.

US recession deepens

New economic data released in recent days indicate that in the US the unfolding recession is developing at a pace and scale unmatched since the 1930s. No one can preach or prophesies that which is likely to come, as often as some do. Capitalism is by its very nature ruthless in its pursuit of profit; after all, profit is another word for capitalism. The present Bush administration has some very influential capitalist captains, particularly people like Richard Bruce Cheney, the current Vice President of the United States. As Vice President, Cheney is also the President of the United States Senate. He is also still very well connected to capitalism, particularly the oil industry, he served as Chairman of the Board and Chief Executive Officer of Halliburton.
Halliburton Energy Services is a US-based multinational corporation with operations in more than 70 countries. It has been at the forefront of several media and political controversies in relation to its previous work for the U.S. Government, its political ties, and its corporate ethics. Halliburton's major business segment is the Energy Services Group (ESG). ESG provides technical products and services for oil and gas exploration and production. Cheney is but one representative member of an administration that has looked out for the interests of US oil, particularly well. It came with an agenda that led to war over oil. Thousands have been consistently lied too, thousands have been needlessly killed. The world is notably by far, a much worse place to live in, in the opening decades of the twenty-first century. And as this worldwide despised and most detested gaggle of geese prepare to leave the world stage to everyone’s relief, as if something burdensome has been reduced or removed from our shoulders – or has it? Will they bankroll the auto industry, or will they allow it to go to the wall, if so what will be its consequences?

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