The General Motors Bailout: When Corporate Fiscal Responsibility Collides with Black Interests

Paul Kersey, SBPDL, August 15, 2012

Reading Steve Rattner’s Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry  brought about a politically explosive revelation that has been completely ignored in the whole TARP narrative. With the bailout of General Motors by the US tax payer continuing to grow in cost (the Detroit News reports the cost will now put the bailout of GM in the red to the tune of $25 billion), Rattner’s revelation regarding a plan that would have potentially kept GM from receiving TARP money–that was shot down because of a devotion to political correctness–must enter the discussion.

But first, a quick history lesson.

GM, the company that was bailed out with your tax-dollars through the Troubled Asset Relief Program (TARP), is headquartered in the GM Renaissance Center (RenCen), which at 73 stories is the tallest building in Detroit. Built in 1977 as part of the effort to revitalize the downtown area amid growing urban decay after the disastrous Black Riots of 1967 led to the abandonment of the city by white people (white flight had rebuilt Detroit in the suburbs, with the remaining Black population under Mayor Coleman Young busy bringing ruin to what was left behind), the Renaissance Center complex never lived up to its name. Built for $350 million, but sold for a mere $76 million to GM in 1996 (The New York Times reported there were absolutely no takers at $125 million) was an abysmal failure from the start.

With the white abandonment of Detroit to the suburbs (which thrived, while Black-run Detroit slipped into a coma–kept alive by generous infusions of cash by the white tax-payers) the RenCen was built as a “fortress of solitude” for whites commuting to the city, where they could be safe from ‘scary Black people’. Francis Desiderio, writing in the Michigan Historical Review noted (“A Catalyst for Downtown”: Detroit’s Renaissance Center):

The Renaissance Center’s development was the result of private interests working to create a built environment in downtown Detroit that was comparable to the malls and office parks offered by the suburbs. Businesses that supported the development wanted to create a private space that could easily be controlled and monitored to fashion a safe, crime-free place for shopping, work, and nightlife. People could park, work, eat, shop, and see a movie all at one site, and the result was the creation of a minicity within Detroit. It was not only physically separated from the rest of the city–making pedestrian access difficult-but also the stores inside catered to a middle- to upper-class clientele. Some critics came to see the center as a “fortress” for the middle- and upper-class whites who still wanted a downtown experience. Symbolically, the center brought the suburbs to downtown Detroit. It was not only physically separated from the rest of the city–making pedestrian access difficult-but also the stores inside catered to a middle- to upper-class clientele. Some critics came to see the center as a “fortress” for the middle- and upper-class whites who still wanted a downtown experience. Symbolically, the center brought the suburbs to downtown Detroit.

Even this minacity within the dying Black-run city of Detroit wasn’t enough of a “Fortress of Solitude”–quickly, the building depreciated in value but still remained a viable tax-revenue producer for the terminally ill city.

Before the TARP was passed, a conversation took place where the COO of GM, Fredrick Henderson, discussed moving out of the GM RenCen and having all operations be based out of the Tech Center in suburban Warren. It should be pointed out that Warren was one of the first Whitopias where the fleeing white population from Detroit set up shop:

In 1970, whites made up 99.5% of the city’s total population of 179,270; only 838 non-whites lived within the city limits. Racial integration came slowly to Warren in the ensuing two decades, with the white portion of the city dropping only gradually to 98.2% in 1980 and 97.3% as of 1990. At that point integration started to accelerate, with the white population declining to 91.3% in 2000 and reaching 78.4% as of the 2010 census.

The Black population of Warren is now 13 percent; in time, as that percentage grows, the city will come to resemble Detroit.

The move would have saved billions for GM and helped restructure the company, potentially keeping GM from receiving TARP money and becoming known as “Government Motors.”

But this couldn’t happen in Black-Run America (BRA); though terminally ill, 90 percent Black Detroit can’t be allowed to die.

As stated, Overhaul reported this conversation Fredrick “Fritz” Henderson, then COO, initiated about the possibility of moving from the GM Renaissance Center to a suburban location. On p. 237-238:

The politics around GM, with its great size and complexity, not to mention its iconic status, promised to be even more intense. Our loving to-do list was full of pitfalls. One day Fritz called me to propose moving GM headquarters from the Renaissance Center to GM’s Tech Center in suburban Warren, where we had driven the Volt back in March.

The move would cuts costs, he said, as well as symbolize the leadership’s determination to become more to down-to-earth and hands-on. I thought the idea was great, just the kind of action I was hoping to see from Fritz. But when I described it to [Brian] Deese (who served on President Obama’s Economic Policy Working Group), he went nuts. “Are you out of your mind?” he said. “Think what it would do to Detroit!”

Though small in financial implications for the company–the headquarters was worth perhaps $165 million–compared to the $626 million that GM had paid for it just a year earlier [Ed: Sic . . . GM spent only $76 million to buy the building in 1996, but spent $500 million renovating the complex]–GM’s departure would be a major blow to Detroit. In a one-year period, the once proud city was already suffering with one of the worst unemployment rates in the country, and among the worst murder rates, would see two of its biggest employers go bankrupt, its flamboyant ex-mayor Kwame Kilpatrick convicted of perjury, and its NFL franchise, the Detroit Lions, become the first in football history to go 0-16.

Deese had some people analyze what a mostly vacant RenCen would mean to Detroit real estate. The estimate: a double-digit hit on already deflated real estate prices. Fritz proposed donating the RenCen to the city- though who actually would use it was unknown.
Leaving the RenCen made strategic sense, however, and was supported by Harry and David. The Tech Center had lots of empty space and much larger floors, so more departments and people could sit near each other, improving teamwork and communication in a culture that desperately needed more of both.

The debate, not surprisingly, soon moved beyond Team Auto. Gene Sperling was one of the many to fight the move. “It’s over for Detroit if you do this,” he yelled in a meeting at [The United States] Treasury. “Don’t do this to Dave Bing” – the city’s new mayor, a former NBA star and successful auto-supplier entrepreneur. “He’s a good man trying to do a good thing.” The city relied on GM for $20 million a year in tax revenue, Gene pointed out, and the blowback would be fierce. Deese checked with Larry, who in turn spoke to Rahm [Emmanuel], and word came down that the move would be a bridge too far.

Fortunately, this unique intervention into a specific GM matter was never leaked to the press, saving us from having to explain how it comported with our policy of letting GM and Chrysler manage their own affairs.

Rahm Emmanuel is now the mayor of Chicago, who pleads with the middle class to stay in what many believe to be the most violent city in the world. For those wondering, Chicago is on pace to be Detroit-ed as well.

Why does any of this matter? Because Investors Business Daily reported this on August 14, 2012 (Obama’s $25 Billion Government Motors Lemon):

As the Obama campaign continues to tout the GM bailout as an industrial policy success, the Treasury Department continues to revise upward the staggering losses inflicted on U.S. taxpayers.

On the day Government Motors, aka GM, announced it was recalling at least 38,000 of its vehicles — Impalas used by police nationwide and in Canada — due to a crash risk, a new Treasury report said it now expects to lose $25 billion on the bailout, $3.3 billion more than forecast earlier.

As the Detroit News reported, this loss was based on GM’s stock price at the time of the report, which was 15% higher than the previous report. Because the stock price has fallen since then, the latest report likely understates taxpayers’ real losses.

“A bridge to far.” That’s how Rahm described the move from the RenCen Tower to the Tech Center. Though it would have saved the US Treasury–ahem, tax-payers–billions, it would have killed 90 percent Black Detroit (which, ahem, requires billions in federal and state aid each year to fester in a deep coma).

So yes, a “racist” site must be the only outlet for broadcasting this important news, which clearly shows that the government was more than willing to lose billions of tax-payer money to keep alive a terminally ill city that loses billions in tax-payer yearly (remember, they must bribe students with Nike shoes so state and federal money can remain flowing to the city) to merely be kept running as it is.

This is the awesome power of Black-Run America (BRA).

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  • 1911ThePunisher45

    Wait till the (global)economy finally collapses ….. when the U.S. dollar goes, so goes civilization.

  • brew730

    Nothing to see here folks…keep on moving along.

  • Defiant White

    Black-Run America?

    There’s no such thing.  There’s just a socialist, mixed race, son of a whore sitting in the White House  surrounded by like-minded socialists.  If America was truly “black run” then the fried chicken would be the national bird, the watermelon would be the national fruit and Michael Jordan would be on Mount Rushmore.

    • The__Bobster

      They can’t even run a city. How could they run America?

    • Although I like Kersey’s SBPDL, his BRA phrase is annoying. It simply discredits much of valuable material one can find on that site. We’re dealing with complex processes of decadence & malign growth of suicidal ideologies in broad European culture, and he writes on “BRA”.

      Grow up, read anything from Spengler to Sam Francis, C. Murray or Tomislav Sunic ..

      • Barrack Osama

        Yes, blacks could not have created such a mess on their own. “BRA” is just a symptom of a very serious problem.

        On the other hand, PK is a man of the people, and his message and way of presenting information seems to resonate with many.

        On the other other hand, there’s an issue with all of these race realist groups. VDare focuses on immigration. Amren loves its genetics. PK goes on about BRA. Another group focuses on internet comment activism. Another reports everything from the lens of southern/confederate pride and provides many analogies to the civil war. There’s some overlap, but everyone is just kind of off doing their own thing. People are obviously upset, but there’s nothing to unite under, and definitely nothing mainstream.

    • Puggg

      BRA is verbal irony. It describes white racial pandering, not literal black run, unless he uses ABRA, in cases where blacks are actually running things, like Detroit.

  • refocus

    Big 3 Auto, A Little History on Modern Civilization

    From the beginning of time and up until the early 1900*s and the development and mass production of the automobile by Henry Ford, the founder of The Ford Motor Company,  the vast portion of the population walked from here to there and worked barefooted like draft animals on farms.

    If the reader will do a little traveling to the interior of Mexico, Russia, China, Vietnam, Rumania, Poland, Turkey, Brazil and Kazakhstan to name just a few places he will see real live people walking barefooted and working like draft animals.  This is pointed out to show the curious how modern people live when they do not have a domestic automobile manufacturing industry.

    The first mechanized transportation came with the railroads in about 1850.  Railroads did not serve a statistically significant portion of the population.  By 1875 street cars were coming into use in the largest cities, being first pulled by horses.

    With the advent of Henry Ford*s Model T automobile regular men of normal intelligence had for the first time in the history of the earth the ability to get their own goods to market. The importance of this simple fact cannot be overestimated, it is the linchpin, the main spring of our American material well being.  It is how the Americans became the richest people on earth, and why everyone wanted to come here: they could open a shop and make something useful and get to market.

    General Motors is a copy of Ford by a consortium of American investors.  So was Chrysler.  The synergy of these three businesses and the developments of Thomas Edison created and made manifest everything that we love about modern America.

    Simultaneous with the development of the automobile, The Ford Motor Company also invented and put into place the device called a tractor.  This machine liberated hundreds of millions of men and women from the incomprehensible drudgery of subsistence farming world wide.

    These tractors were also used to power portable lumber mills, water well drilling and some mining equipment. With this tool it did not take long for the intelligent segment of the population to start making things and get them to market.   In a few short years, other men built machines that could fly, wash clothes, cook meals and weave socks.

    When we hear talk in the media of  Ford or GM going bankrupt or being bought out by the Communist Chinese Government …. and the ignorant commentary eructed by the stupid and uneducated American talking heads, bipeds who never made so much as a wooden candle holder in junior high school, then it is necessary for those of us who know something about this subject to attempt to shed a little light on it.

    Here goes:
    It is an easily demonstrable fact that everything good about modern America was created by The Ford Motor Company.  This includes every industrial device ever manufactured and all the benefit this has brought our families and country.  Every little girl playing piano is the direct result of good parents and the industrial activity created by The Ford Motor Company.

    The global steel industry was created by The Ford Motor Company.  Prior to autos, steel in limited amounts was used for the railroads and the making of guns and shrapnel for war.  Ford can be credited with supplying the demand for enough steel of the many shapes and grades to build the America the reader sees when he looks at the skyline of any city.

    Ford can also be credited with causing the glass industry to expand exponentially.

    With the manufacture of millions of cars comes tens of millions of rubber tires and a demand for copper wire and the beginnings of electrical controls.

    Gears and rivits provided a hundred thousand good jobs and sent thousands of young men and women to medical school.

    The machine tool industry and everything that spun off from it was a creation of The Ford Motor Company.

    Edison developed the cement that is used make the concrete used to build our roads. Without the Ford cars there would have been no roads.  The reader would be accustomed to walking on dirt…

    Ford also created the airline industry and the planes to support it.  The first airliner was the Ford Tri Motor.

    It is not a stretch to note that every manufactured item anyone surfing the Internet can see was a direct result of the industry created around The Ford Motor Company. 

    It is also a demonstrable fact that in just 120 years more people have had their lives made livable as a direct result of the operations of The Ford Motor Company than all the religious figures, politicians, doctors, do gooders and wars for peace combined since the beginning of time.

    The great Bill Gates could not have done anything without the foundation laid before by The Ford Motor Company.

    Because the high technology product of The Ford Motor Company liberated mankind from the status of draft animals the super rich quickly realized that their monopoly on power was beginning to wane.  The super rich, who profited handsomely from doing business with the Ford Motor Company, began to make war on it.  Now, after 110 years of concentrated war the super rich are about to kill The Ford Motor Company which is also the America the reader knows and gets his meals and shelter from and has his future with.

    Hillary Clinton described campaigning and politics before the Americans as: people who like simple stories with happy endings.

    The basic concept of economic war with all of its nodes, networks and gateways is probably too difficult for most people to be interested in comprehending.  The typically ignorant as well as the  extremely stupid, with considerable provocation from the news media, have managed to equate the US auto companies with other businesses like phone or carpet installation companies, but obviously not as important as a stock brokerage firm.  Imagine that.

    Here are some of the elements of the war against Ford (and the rest of the USA heavy manufacturing):
    enormous taxation
    nightmarish employee health care requirements
    unconscionable union demands backed by the full force of the military of the USA
    restriction of bank credit
    government forced design changes, ie: plastic bumpers, but not the good stuff
    takeover and subversion of the Ford Foundation into the antitheses of The Ford Motor Company
    destruction of the family of Henry Ford
    destruction of the dealership network established by Henry Ford
    installation of an Egyptian as President of Ford whose every move lost money, wrecked the product and helped to ruin the dealer network
    the forced outsourcing of manufacturing to third world locations
    the hobbling of the engineering staff of The Ford Motor Company who could, if they were allowed to, build UFO’s and cars that never needed any fuel at all…

    Early in the 1990*s GM was ordered by elements of the US government to open manufacturing plants in China of face a bankrupting recall of every car it had ever built. The GM Board of Directors protested, to no avail or relief, that such would lead to a weakening of their domestic operations, America.

    Those in control of the labor unions, protected by the government, piled on and forced unconscionable elements like $75 per hour wages into their contracts but still Ford and GM survived, so powerful was the economy they created.

    Perhaps the reader remembers this exchange between Larry King of CNN and candidate for president George W. Bush during the 2000 election theatrics:

    King: *So, what you are saying is that no one ever lost money underestimating the intelligence of the American People?

    Bush: *Well Larry you know I cannot give you a direct answer to that and be truthful but yea, I know what you are saying.*

    This, the situation with the Big 3 Auto Makers, is one of the moments they were talking about.

    The American people, damnably fat and lazy with all these creature comforts, and bamboozled with negative subliminal programming in the open air mind control arcade cannot now see or understand what is about to happen.

    This is what is about to happen:
    If America loses the domestic ownership and operations of The Ford Motor Company, GM and Chrysler then the people can expect to return to draft animal status in short order.

    It is that serious.

    Here is how you will return to draft animal status:
    The new foreign owners will not use American suppliers for even one screw, nut, or bolt much less, paint, engines or transmissions.  You will not be paid for Internet surfing and even the naked girls will have to go back on the streets to peddle their goodies.

    The demonstrable fact that not one American politician holding high office comes forth and says the bankrupting of The Ford Motor Company cannot, shall not and will not happen is proof that they are in an organized conspiracy with the owners of the major news media to dehumanize the American People back into draft animals. 

    That most people, especially those in Congress, do not understand that the basic economic driver for our economy is AUTOMOBILE MANUFACTURING is perhaps proof that most Americans are already dehumanized draft animals. I hope not…

    Think about it and know:
    Nothing can do as much damage to America, and the American People, as the bankruptcy of The Ford Motor Company.  Such would be worse for the country than nuclear obliteration. With The Ford Motor Company and the other USA heavy industries the country could rebuild.  Without them there is no possibility of any recovery from anything.  Do you not understand?

    Without The Ford Motor Company you dear reader will be a real slave.

    The indisputable signal that America is down for the final count, bullet in the head and rope around your neck will be if and when the Big 3 American Automakers are acquired by foreign owners and all of their manufacturing operations removed to other markets.

    Protest this with as much vociferation as you can, the life you love depends upon it.

    Recommended reading:
    My Life and Work by Henry Ford
    Edison as I know Him by Henry Ford
    From Double Eagle to Red Flag by Peter Krasnoff

     
     

    • The Worlds Scapegoat

      Jesus drives a Ford, because if he drove a Chevy he would be here by now.

      OK, I don’t like nor believe in Jesus, but I use him to take a dig at Ford.

    • The__Bobster

      installation of an Egyptian as President of Ford whose every move lost money, wrecked the product and helped to ruin the dealer network
      __________

      This was the same dune coon who declared war on the older White workers at Ford.

    • anarchyst

      Henry Ford also realized that the banksters were capable of destroying not only a company, but a country . . . however, speaking out did him no good . . .

  • Ed_NY

    They rob the lemonade stands.

  • The Worlds Scapegoat

    They can’t balance their check book , or follow a recipe either.

  • Howard W. Campbell

    Detroit 1945: The arsenal of democracy
    Detroit 2012: Hardcore Pawn

  • Yes, but it created tons of jobs for the construction unions which is the point of these projects.

  • Oberon Oberoff

    Instead of “black run America,” I’d recommend the term “minority supremacist America.”