Al-USA

Outsourcing Grows as a Business Strategy

Dirk McCoy wrote:

"Division of labor and specialization are two of the most powerful forces behind the rise in human living standards (along with cheap oil and technology), which is why you don't grow all your own food and do surgery on yourself (and are better off for it).

The bigger problem as I see it is that our government has interfered with market forces by putting a minimum wage in place that acts as a price control on entry level workers
"

With all due respect, you bought the capitalist propaganda "hook line and sinker" friend. Consider that a husband in 1973 now earns less, adjusted for inflation, then the husband and wife together earn today. This was true even before the Greater Depression hit. So, we have had a few decades of massive outsourcing and what does civil society have to show for it? The greatest recession, possibly Depression, since the 1930's... Not a very good historical record on which to shell out the same old capitalist propaganda now, is it?

For the record, I am a capitalist, but I'm not interested in seeing the USA devolve into a third world country, like Mexico, where the ones remaining with some wealth are taken hostage, held for ransom, or taxed disproportionately. The masses, once mobilized, are an unstoppable force, as the early 20th century showed. What's the solution? It's not more outsourcing, in my opinion.

Friday's Closing Update: Limping to the Close

The market held the breakout point at SPX (S&P 500) 875 so that is bullish. In fact, if the bulls are going to make a stand and get the rally going again, it is at 875, so, its better to be long although setting a stop either direction will stop you out if you get it wrong.

Good luck to all.

GM: Cuts and Outsourcing

[e-mail] wrote
"
Don't blame the unions as they have always had this countries people's best interest's at heart. They are the true fighters for your benefits,pay,insurance, work rules and conditions that you work in. Give it some thought and you might just agree.
"

That was one of the best comments in this discussion, although he erred by posting it three times.

For the record, I'm a capitalist, although I am concerned about reverting to a barbaric form of capitalism such as existed in the 1800's early 1900's: basically, existed everywhere and forever until the USA achieved superpower status after WWII.

Yes, give that some thought, folks, because it has been only very recently since one could genuinely say that capitalism is the best system there is... That has been true only post WWII but, as things are progressing, civil society will continue to deteriorate as long as the benefits accrue only to the top 10% or so which will open the door to a TRUE politician of CHANGE who will tell the populace, it can get better than this. You can have a guaranteed job, housing, health care, and retirement pension/plan so long as you "worship" at the altar of Marx, and not Adam Smith.

You don't think it can happen? It has happened before, and it most certainly will happen again. When the economic system which purports to have been the "best", can no longer provide a decent job, housing, health care, and retirement pension/plan to the masses of the working/middle class do you think the masses will waste any thoughts about Adam Smith and his "theories" of private ownership of capital? Think again.

Personally, I don't think the American Oligarchy, or capitalist ruling class of the USA will be like the capitalists which Lenin described: "The capitalist will sell the rope used to hang him." Ok, honestly, it is my hope...

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

I agree, the use of Barry O to refer to President Obama is disgraceful. I don't like President Obama, and of course I didn't vote for him, and I am very much against his support of the $trillions in Wall Street bailouts but, at the end of the day, he is President Obama of the United States of America, and, as such, deserves to be respectfully addressed; in print or otherwise.

By the way, I also did not like President Bush, but would think the same of him or any other President of the, as yet, greatest civilization in the history of the planet...

It's the Politicians, Not the Public

Good article, except it is not the politicians so much as the masters behind pulling the power levers: the American Oligarchy.

More information below:
Banks Counted on Looting America’s Coffers
tinyurl.com/bkezmt

The Quiet (American) Coup
tinyurl.com/dmspxm

Welcome to America, the World's Scariest Emerging Market
tinyurl.com/c8dpk8

Obama’s Ersatz(pseudo) Capitalism
tinyurl.com/csek3k

America the Tarnished
tinyurl.com/dy4gvt

Geithner plan will rob American taxpayers: Stiglitz
tinyurl.com/d564xq

Timothy Geithner's toxic plan
tinyurl.com/d8xsb5


"Fluke? Credit crisis was a heist"
tinyurl.com/cgugqm

"Following the A.I.G. Money"
tinyurl.com/d6xkbk

"Economic Fascism and the Bailout Economy"
mises.org/story/3333

"Behind the Financial Market Crisis?"
mises.org/story/3111

Hedge funds are the real AIG outrage
www.guardian.co.uk/com...

The Obama Deception Full Length
tinyurl.com/d4bnbk

Global Meltdown, Part III

It appears then that the only way American, indeed, Western civilization, can progress, in the forward direction, is by abandoning the decaying form of capitalism now in practice.

It has now been exposed that the ruling class of the USA is, in fact, no different from any other "banana republic", that is, an Oligarchy. How can Democracy work when its economic model, capitalism, has been hijacked to serve the maximum interests of a very small clique?

It appears Lenin was correct after all in his description of capitalism:
"The capitalists will sell the rope used to hang them." This fabricated financial crisis is analogous to that statement.

However, there is still hope. The corrupt American Oligarchy can still be defeated by the mobilization of the masses. In fact, that is the only force which strikes fear into the hearts of soulless rulers...

The Quiet (American) Coup
www.theatlantic.com/do...

America the Tarnished
www.nytimes.com/2009/0...

Welcome to America, the World's Scariest Emerging Market
www.washingtonpost.com...

The Obama Deception Full Length
video.google.com/video...

GM Wants Another $27B at a Minimum: What's the Use?

Very good writing, by the above two commenter's.

Recent Policy Decisions and a Greater Depression

Excellent article Mr. Kee, and completely sensible, to me.

Based on your analysis the USA is headed for about 16 years of this Greater Depression.

However, we are human beings, we don't have to descend into 16 years of barbarism, civilization does not have to end...

But that is precisely how it will feel to the 25% or 50% unemployed if, this Greater Depression comes about and stays for 16 years. Can an advanced civilization exist with 25% or 50% living under barbaric conditions? It hasn't happened yet, as history clearly shows in the period leading up to the two world wars of the last century.

So, if the choice is 16 years of barbarism for a large part of society or maintaining civilization, then the people will do what has to be done. If that means supplanting capitalism with an economic model that will allow continued civilization, then that is how it will be. I know most of us are trying our best under the capitalist system, but really, in the choice between barbarism or civilization, there is nothing "sacred" about capitalism.

Obama Insists Cars Improve Fuel Efficiency by 40%

I think it's a great idea.

By all means, increase the mpg.

Since private industry was soo "dump" and focused only on cars people wanted to buy, they were taken to the wall when the price of gas hit a national average of $4.11 (CA hit $4.5).

Then they taken off the wall and knocked unconscious by the present recession, perhaps depression, and now find themselves with no means by which to change strategy, even if the government was not forcing them to.

I mean, does everybody believe the current deep recession (depression?) will last forever and gas prices will remain at $2 per gallon ad infinitum?

No way, as soon as the economy recovers we'll hit $3 then $4 then who knows how much higher per gallon especially with the coming possible hyperinflation scenario as a result of "helicopter" Ben Bernanke printing $trillions of new dollars to bail out the corrupt financial aristocrats whose $trillions in derivative games brought the global economy to the edge of a cliff... And we might still fall of it so...

By all "means", bring on the increased mpg. "means".

Government Saves Beloved Banks, Shuns Automakers

Well, if you're talking about "black holes" , so is the $50 trillion in derivatives, at last count, which, as counterparties insuring against derivative defaults, almost brought down the financial system of the USA, and indeed, the world.

Now what is $700 billion going to do against the "black hole" of $50 trillion? Nothing... And yet, it was passed. Why? Because, it directly benefits the capitalist elites running this country.

Eventually, the derivatives will have to be canceled as illegal contracts, since there is no way to come up with the money, several times the global GDP. In the meantime, $700 billion from Secretary Paulson to his corrupt Wall Street buddies.

Yes, that is how this country is run folks.... If you're part of the capitalist elite, be proud, if you're not, tough, pull yourself up by your "bootstraps" as the saying goes.

By the way, very good article and a good read.