I have a freind who follows Wall street carefully,hes an investment broker
who looks after my meagre portfolio.(I should have enough to live well when
I retire at 65,as long as I don't get older than 67)
Hes been predicting a major meltdown, on Oct 26 as a matter of fact.
I understand how bad things are for the big 3 auto companys, but as I work
for a US company, recent events are making me quite nervous.
The company I work for had 1200 employees up till one year ago.
Last December 500 were laid off,it seems pemanently.
Of the 700 left,a few have been axed (both staff and hourly) in dribs and
drabs untill were down to about 500.
The company announced the cancellation of the order of "center beam" cars
weve been working on a few weeks ago,due to a downturn in the building
market in the US (these rigs carry lumber)
When the remains of this order is completed in two weeks,all but about 100
will be laid off.
We have an order for 400 flat cars that is supposed to start up when they
get the line set up in January, but only about 300 people will be
reqired,and those 400 cars will be done by spring.
No more orders on the books.
Eveyday I read more company E-mails and there all bad, the high Canadian
dollar,increased fuel costs,slowdown in markets etc.
Now theres a rumour that even this flat car order is to be cancelled.
I don't see anything new being set up in the assembly shop.
As a power engineer,I think Ill be safe till spring,as surely they'll want
to heat the place, we have 27 acres of buildings under roof thats heated by
our steam plant. But Im starting to wonder,I sure don't want to go to
I know a lot of you guys know a lot about this stuff,and this post isn't
meant to start any wars(I hope it dosen't) but Id just like to get a feel
for what you guys think is going on.
1929 all over again?
The closest thing to 1929 since 1929 was 1979-81. Double digit inflation, a
Prime interest rate near 20%, and double digit unemployment. Many have
forgotten 1979-81. I won't.
Interest rates and inflation are both tame. And, I'd have died to have the
job opportunities that are available today, to me, when I graduated high
school in 1981.
The current housing adjustment is just that, an adjustment. After many
years of unbridled growth, the market is getting a reality check. Existing
home sales began increasing once again last month. 6-7% Mortgages are still
more reasonable than the first ones I signed up for. The market is not
going to crash.
If you are locked into working for a certain company, unable or unwilling,
whichever be the case, to change, the fortunes of that company control your
destiny. Individual companies can fail during the best of overall economic
times. Especially if they are in a maturing business that is oversupplied,
or becoming obsolete.
Studebaker survived the technological obsolescence of the horse and buggy by
becoming an auto maker. Then, Studebaker ceased making automobiles in one
of the best years ever to that date for the auto industry. Think about
for the last 4 years, since the dot-com bust, my commute down I-680 into
Silicon Valley has been a breeze - it went from almost 2 hours in the
morning ( 25 miles) to about 35 minutes. Instead of seeing traffic get
lighter in the summer, and get heavy again when school started in
september, it's been fairly steady... until this fall. Traffic has
gotten worse. Not quite as bad as 2000 or 2001, but still worse.
The economy is booming - this is a prime indicator.
some pre-announcements ( of lower revenues) by my company's competitors
in the semiconductor industry means that we're probably heading into a
recession next year, but for today, things are still hopping.
just my 2 cents.
Kevin Wolford wrote:
I hear the Chinese economy is doing well.
I predict that in 30 years we'll be peddling bikes to work for minimum wage
for a subsidiary sweatshop of WalMart (which will buy out everyone by then)
while the Chinese are driving gas guzzling SUV's into work from the suburbs.
December 17, 1992
Salinas, Bush, and Mulroney sign the NAFTA agreement.
Most China favored Nation:
"MFN status was restored to China in 1980 conditionally under Title IV
(including the Jackson-Vanik freedom-of-emigration amendment) of the
Trade Act of 1974 and must be renewed annually." It has been renewed by
every President since.
Michael - Roseland FL wrote:
Studebaker On the Net http://stude.com
Yeah, but it was not in effect until an intense campaign by Clinton,
Gore in 1993 or 1994. Remember the famous Gore/Perot debate??? Perot
Oh, and don't forget GATT, a 100% Clinton deed that followed..
Just goes to show that *all* politicians are bottom feeders...
Like I said, thank Clinton for NAFTA and sekking us out to the Chinese.
Read this and get back to me:
Not even the boldest booster can deny the bare facts: U.S. exports did
increase, by 36 percent to Mexico and 33 percent to Canada, between
1993 and 1996. But imports increased more--up 83 percent from Mexico,
41 percent from Canada--increasing the U.S. trade deficit by $39
Those import/export numbers presumably led the Clinton administration
to backpedal from earlier claims: Issued quietly a week past the July 1
deadline, the official report claimed NAFTA had generated only a
"modest positive effect" on the U.S. economy. The corporate-owned media
followed that lead, producing a handful of stories that mirrored the
administration's upbeat tone.
Most accounts noted perfunctorily that Clinton's evaluation was "likely
to provide ammunition for both sides in the NAFTA debate" (L.A. Times,
7/12/97), but the anti-NAFTA ammunition went largely undescribed:
Mainstream coverage overwhelmingly echoed Clinton's accent on the
positive and, in particular, the emphasis on total exports as the
measure of NAFTA's success, rather than balance of trade--even though
balance is considered far more important than volume in determining the
impact of trade on jobs.
Critics call the shift in emphasis an example of bait and switch.
"During the debate, they said the overall trade balance would improve.
Now that that hasn't happened, they've changed their tune," says Sarah
Anderson of the Institute for Policy Studies (IPS). Along with the
Economic Policy Institute, Global Trade Watch and other groups, IPS
issued its own report card, "NAFTA at Three Years: The Failed
Establishment media also left unchallenged the administration's
attribution of the disappointing trade balance results to internal
Mexican economic problems that had nothing to do with the pact. The New
York Times (7/11/97), for example, referred matter-of-factly to "the
deep financial crisis that engulfed Mexico in 1995 and turned a small
American trade surplus with the country into a deficit." A Washington
Post article (7/11/97) speculated on NAFTA's effect "if the impact of
Mexico's financial crisis is factored out."
But to "factor out" Mexico's peso crisis in assessing NAFTA is
disingenuous in the extreme, Anderson says, because the two are deeply
entwined. "The Failed Experiment" argues that the peso's fall was a
necessary part of Mexico's "aggressive export-led growth strategy"--a
strategy that was premised on NAFTA. The artificially high peso had
kept down inflation in Mexico, which was key to NAFTA's passage in the
U.S. and to the 1994 election of pro-NAFTA Mexican president Ernesto
In fact, mainstream media largely acknowledged this at the time; much
of their pro-NAFTA reporting depicted the pact as crucial for Mexico's
economic future. The L.A. Times declared in 1993 (3/25/93) that NAFTA
would "keep Mexico stable." And the Washington Post explained why: It
reported (7/1/93) that the Mexican economy "is supported by a heavy
flow of investment from abroad," and "a lot of that investment is based
on the assumption that the United States will keep its word in putting
the trade agreement into effect."
But that's all forgotten now: The Mexican crisis, which devastated that
country's economy, doubling the number of unemployed, dropping real
wages 27 percent in just two years and pushing millions of people into
poverty, is today just a sad story whose only connection to NAFTA is
that it "initially overshadowed any gains from" the pact (U.S. News &
World Report, 7/7/97).
Some outlets are categorical: "Analysts say the notion that NAFTA
caused the 1995 peso crisis is simply wrong-headed," asserted the L.A.
Times (7/9/97). "The crisis--and the slump that followed--were spawned
by mismanagement on the part of Mexican policymakers, who had kept the
peso artificially high to distract from domestic political problems,
Jobs! Jobs! Jobs?
In 1993 (5/11/93), the Washington Post declared without qualification
that NAFTA would "create twice as many jobs in this country as it will
threaten," while other outlets (e.g., L.A. Times, 5/29/93) limited
themselves to the claim that it would generate "many more U.S. jobs
than it will eliminate."
In 1997, however, the same outlets that were so confident in predicting
the future threw up their hands at the idea of reporting the present.
"For all the claims and counterclaims about NAFTA's impact on
employment, analysts have no good way to measure it," says the L.A.
Times (7/9/97). The New York Times is similarly stumped: "Officials
said there were largely unsolvable problems in generating an accurate
estimate of job losses," they declare (7/11/97).
NAFTA critics aren't buying that line. Economists routinely use trade
balances to reckon job creation and loss; the "Failed Experiment"
indicates that the quadrupling of the U.S. deficit with Mexico and
Canada works out to some 420,000 jobs lost to increased imports and to
companies shifting production to Mexico to take advantage of lower
Some articles did cite Labor Depart-ment statistics that, by July of
this year, more than 133,000 U.S. workers had applied for the
"transitional adjustment assistance" program set up to address job loss
connected to NAFTA. But most accounts left out facts that suggest why
that number isn't a very good indicator: It excludes all those who seek
help through other, more accessible programs, and it only includes
people employed directly in manufacturing--if a factory shuts down, the
secretaries and administrators who lose their jobs don't qualify (much
less other affected workers in the surrounding community).
NAFTA proponents often play down the numbers of people thrown out of
work by "free trade" policies, arguing that it's more important that
the jobs created are in export sectors that pay higher-than-average
wages. That analysis, supported by the White House, repeatedly found
its way into news reports; but readers had to find the occasional
"opinion" column to get any countervailing information, however
basic--like the fact that the jobs being lost to import competition
also pay higher-than-average wages (Jeff Faux, Washington Post op-ed,
5/20/97), or that even the much-ballyhooed NAFTA-generated exports can
wind up costing U.S. jobs, since "more and more, multinationals are
shipping components to Mexico, so they can be assembled by low-wage
workers, then sent right back as finished products to the United
States." (David Bonier, New York Times op-ed, 7/13/97) This kind of
"revolving door" export has more than doubled under NAFTA.
If disputes about the number of lost jobs were pushed to mainstream
media margins, discussion of NAFTA's impact on wages and workers'
rights was forced off the page entirely. Media overwhelmingly ignored,
for example, the compelling report commissioned by the U.S. Labor
Department on U.S. employers' use of the threat of "moving to Mexico"
to hold down wages and benefits. (According to Cornell University
researcher Kate Bronfen-brenner, who conducted the study, the Clinton
administration sat on the results for several months before they were
finally released--National News Reporter, 5/97.)
Employers have long used plant-closing threats to keep workers from
forming unions and to force concessions, but Bronfenbrenner found
(Multinational Monitor, 3/97) that between 1993 and 1995, employers
used this illegal maneuver in a whopping 50 percent of all union
certification elections; 15 percent actually did shut down within two
years of a union victory--triple the rate found in the late 1980s,
before NAFTA went into effect. "In fact, in several campaigns, the
employer used media coverage of the NAFTA debate to threaten the
workers that it was fully within the company's power to move the plant
to Mexico if workers were to organize," Bronfen-brenner wrote.
The threats aren't subtle: During a United Auto Workers 1995 organizing
campaign, Michigan's ITT Automotive parked tractor-trailers full of
equipment in front of the plant, bearing hot-pink signs reading "Mexico
Transfer Job." Another company posted maps of North America throughout
the factory, with an arrow pointing from the current plant site to
Mexico. Workers get the message; where employers used such threats,
unions' success rate dropped significantly.
Of course, whether something is a problem or a boon depends on where
you stand. U.S. News & World Report (7/7/97), for one, did acknowledge
that "a growing number of U.S. companies [have turned] to Mexico for
manpower and manufacturing capacity" as a direct result of NAFTA. But
they see that as a good thing, since it "may have helped ease the
bottlenecks that cause inflation during an economic expansion,"
providing what one source describes as a "relief valve" from
inflationary pressure. Readers familiar with media corporate-speak know
that "inflation" means higher wages; so U.S. News is telling us that
NAFTA gives employers "relief" from having to pay workers more.
In place of thoughtful analysis of the kind and quality of jobs
destroyed and created by NAFTA, the corporate-owned media offered a
gloss: Trade pacts, in the ubiquitous simpleminded phrase, produce
"losers" as well as "winners." While implicitly or explicitly arguing
that winners matter more, media have made occasional passing mention of
what might be done about those annoying losers.
"Congress should provide generous retraining and relocation assistance
to those who will suffer" under NAFTA, the New York Times (8/17/93)
suggested vaguely back in 1993. The Washington Post (3/15/93) agreed:
Govern-ment must "acknowledge an obligation to the people who get hurt
in the process," and that means "job training and adjustment
Critics like the Economic Policy Institute's Jeff Faux (Washington Post
op-ed, 5/20/97) point to obvious fallacies in the retraining
"solution." The ratio of U.S. to Mexican wages, Faux notes, is roughly
9 to 1. "Even if this administration and Congress were willing to
finance first-class retraining for American workers, which they are
not, it is impossible to make U.S. workers anywhere near nine times as
productive as Mexican workers in competing industries."
But you won't find such criticism taken up in mainstream news accounts.
Once they'd declared "retraining and education" the linchpin in
ameliorating any harmful "free trade" fallout, the establishment press
corps promptly lost interest in it. Recent NAFTA assessments offered no
information on the scope, success or even the existence of any such
In fact, establishment media won't even take up the issue of trade
pacts' disparate impact on different groups of people when they're
handed the opportunity. When more than 150 labor, environmental and
human rights activists protesting the proposed expansion of NAFTA to
Chile rallied in San Francisco on June 26, they were simply ignored by
the city's major dailies, the Chronicle and the Examiner (San Francisco
Bay Guardian, 7/2/97).
A group of mostly Latino members of Congress met similar media
indifference when they publicly protested the disproportionate burden
NAFTA puts on Latino, African-American and female workers, who often
work in especially vulnerable regions and industries. The Washington
Post (7/16/97), which ran a brief item on page C13, sidestepped the
protest's substance to frame it as most importantly a "blow to
President Clinton's trade agenda."
Another topic that somehow dropped off the media's radar between 1994
and 1997 was NAFTA's impact on the environment. It's a glaring absence
in the current discussion, says IPS's Anderson, "because that's been
perhaps NAFTA's most outrageous failure."
The disturbing information cited by Anderson and others would make for
gripping reporting: In NAFTA's wake, fewer than 1 percent of trucks
entering the U.S. each year are inspected--even though 50 percent of
those inspected are rejected for major safety violations. Or that much
Mexican produce is entering the U.S. with illegal pesticide residue due
to weakened food safety inspections.
Such complaints got a mention in some of the mainstream accounts of the
White House NAFTA report, but few outlets considered them worthy of any
actual investigation. One exception, a June 30, 1997 L.A. Times story
on pollution control efforts on the U.S.-Mexican border, provided a
pretty bleak picture of NAFTA's public health repercussions.
While including information on some NAFTA-produced improvements, like a
new water treatment plant in the Tijuana River Valley, the story found
much more evidence of broken promises and official indifference. For
example, "only 16 of 98 promised public utility projects have been
approved for financing through NAFTA; just one has been completed."
Forty percent of the Mexican population in the border area have no
sewers or drinkable water, likewise some 400,000 people on the U.S.
side. The notoriously toxic New River "still runs black on days when
Mexicali's inadequate sewer system is overwhelmed," and ground water in
expanding border cities is being depleted at alarming rates.
"As the trucks roll north carrying Zenith TVs, General Motors auto
parts, Sony computer monitors . . . and a host of other name-brand
products," wrote reporters Frank Clifford and Mary Beth Sheridan, "they
pass through communities with elevated rates of tuberculosis, typhoid,
hepatitis, salmonellosis and other diseases associated with bad water
and bad air."
NAFTA encouraged an explosion in industry in the already polluted
maquiladora zone, but "did not mandate a crackdown on polluters or a
cleanup of existing pollution." And while the pact outlined some
programs for infrastructure improvements, "lending policies and high
interest rates by NAFTA's financial arm, the North American Development
Bank, have made it difficult for many small border towns, especially in
Mexico, to qualify for assistance."
This kind of in-depth exploration of NAFTA's actual impact on real
communities is just what was missing from most of mainstream coverage,
which generally presents the issue as claims and counterclaims, facts
be damned. That it appeared in the L.A. Times is noteworthy; in 1993,
the paper argued in an outraged editorial (7/1/93) that calls for the
trade pact to include an environmental impact statement were "based on
dubious assumptions about NAFTA's negative effects on the environment,
especially along the U.S.-Mexico border," and gave "too much credence
to scare scenarios of extreme environmentalists."
If news reports ignored NAFTA's failures, or blurred them with
ostensibly neutral language, editorials made it clear that the
corporate-owned media are emphatically allied with "free trade"
boosters. Indeed, mainstream editorialists all appear to be reading
from the same primer.
NAFTA has been "a sweet deal economically" that President Clinton
"should have no hesitation in declaring . . . a success," said the L.A.
Times (6/30/97). The pact has been "good for Mexico," creating a
"bountiful trade family." There is no mention whatsoever of the trade
deficit, and the paper gives only a throwaway sentence to "legitimate
concerns" like "the jobs picture, environmental aspects, political
effects"; such questions, they allow, should be "heard out and
investigated where necessary."
The Washington Post was equally upbeat: "Free trade is good for the
U.S. economy," it declared (4/27/97); it "helps create jobs that tend
to be higher-paying than average," and promotes the exports that have
"helped revive the U.S. manufacturing sector." For workers who "lose
out" under the new policy, the Post's remedy is the same glib panacea
from 1993: "retraining" and "improved education to create the kind of
labor force that will attract long-term investment."
In a New York Times op-ed (7/13/97) that questioned the conventional
wisdom, a former member of a presidential commission on U.S./
Asian-Pacific trade, Kenneth Lewis, called for a "national dialogue" on
trade. We need to ask fundamental questions, like: "What is the purpose
of our trade policy and what do we want our domestic economy to look
like?" and: "What conditions must exist--concerning human rights,
workers' rights or environmental protections--for us to allow other
nations' goods to enter our country?"
Far from providing the space for such a dialogue, when it comes to
trade, mainstream media don't even pretend to present two sides: The
"debate" they offer is between a presumed consensus of economists who
"understand" the issue and a few stray "political Luddites" (L. A.
Times, 7/1/93) who don't. Even as their concerns are borne out,
organizations critical of NAFTA are portrayed as partisan--as in the
New York Times (7/11/97) formulation, "labor unions, environmentalists
and other Democratic constituencies"--or "protectionist." Trade policy
dissenters are presented as merely wanting to "kill" trade pacts,
instead of calling for open discussion of their implications and
offering alternative economic visions.
Most disturbing is that while establishment media's coverage of NAFTA's
effects sidestepped critics' substantive concerns and ignored myriad
issues that cry out for investigation, these outlets were also
clamoring for President Clinton to be given "fast track" authority to
negotiate even further-reaching trade pacts (involving Chile and other
countries) with limited discussion. But it's not surprising that
national media who are so unwilling to honestly examine the effects of
past trade pacts would be interested in squelching debate on future
Grumpy AuContraire wrote:
Holy crap a politician misled us, you got me, Clinton is responsible for
everything bad that happened since. After all he piled up the pesky
budget surplus so GW could piss it away on a bigger government and a war
without end. Let's bash Nixon or Carter for a while, that we can agree on.
Michael - Roseland FL wrote:
Studebaker On the Net http://stude.com
Now that I agree with.
"The inventor of the Mosaic Browser, Marc Andreesen, credits Gore with
making his work possible. He received a federal grant through Gore's
High Performance Computing Act. The University of Pennsylvania's Dave
Ferber says that without Gore the Internet "would not be where it is today."
Joseph E. Traub, a computer science professor at Columbia University,
claims that Gore "was perhaps the first political leader to grasp the
importance of networking the country. Gore never claimed that he
"invented" the Internet, which implies that he engineered the
technology. The invention occurred in the seventies and allowed
scientists in the Defense Department to communicate with each other. In
a March 1999 interview with Wolf Blitzer, Gore said, "During my service
in the United States Congress, I took the initiative in creating the
Internet. Could we perhaps see an end to cheap shots from politicians
and pundits about inventing the Internet?"
Lee Aanderud wrote:
Studebaker On the Net http://stude.com
I predict Al Gore will be the next face carved into Mount Rushmore... or
maybe they'll scrub the current faces and use the blank slate for Al. He's
already the father of the internet which produced the latest economic
revolution in this country. Next he'll be responsible for single-handedly
reversing global warming and saving the planet... that is after he
parachutes into Pakistan and retrieves the body (dead or alive) of Bin Laden
and bringing the fighting in Iraq and the rest the Middle East to an end.
Rambo is looking more and more like a Girl Scout compared to this guy. Or
maybe I'm just revealing the script from the next Michael Moore movie.
History will judge all the politicians, not us. We could keep a pissing
contest going over events happening 20 years or more ago. If GW turns
Iraq into the land of milk and honey, it'll come out one way, if the
coast is under water in 100 years, it'll come out another. Hell, I now
look back on Reagan as a conservative I could live with after seeing
GW's version of a small government and less foreign involvement.
Lee Aanderud wrote:
Studebaker On the Net http://stude.com
History written by whom? Here's a joke that's relevant.
George W. Bush is seen crossing the Potomac river on foot.
The Washington Post : "President Bush crosses the Potomac River".
The Washington Time : "Bush's conservative approach saves taxpayers a boat".
Mother Jones : "Bush can't swim".
Posted via a free Usenet account from http://www.teranews.com
Not to change the subject but the OT topic was, is our economy really going
to hell? The answers to THAT question is obviously NO, for anyone willing
to do a search on the subject. If you do you will find the facts are that
the current state of the economy is the highest it has ever been in our
history, based on GNP. The income to the treasury is the highest in our
history, even though everybody we given a tax rate cut to spur the economy
after 9/11. Unemployment is at the lowest in history. The number of
successful small business continues to grow. More people own their home
than at any time in history, and the US is still by far the largest
manufacturing.county in the world.
The biggest problem facing our economy is there is an ever growing shortage
of qualified people to do the work that currently is available in the US,
and it is aggravated by the growing number of boomers that are retiring.
Labor Department figures show there are only three qualified people
available to for every five job openings in the US! Employers are happy it
they can just find somebody who will come to work on time, stay the shift
and in trainable.
Although we currently are operating with a budget defect the county has
historically operated with a deficit during wartime. When FDR was asked
about the horrendous deficits during WWII his reply was; 'One does not worry
about the water bill when the house in on fire.' We have plenty of time
after our county is safe again to make up any deficit.
If this is a war, why don't we have a draft.
We've lowered the published standards to the level of people you
wouldn't let into your house, and the unofficial (end of month)
standards (which have existed since the end of the depression) even
I'm 67 years old, blind in one eye with glaucoma in both and a
trouble-maker to boot!
If I were ex-army instead of navy, I bet they could find a spot for me
if I offered my sevices.
Mike Hunter wrote:
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