Monday, February 9, 2009

Your Tax Dollars At Work Creating Jobs in Brazil: GM Invests $1 Billion in Brazil

US Taxpayers are creating auto jobs in Brazil as General Motors to Invest $1 Billion in Brazil Operati......

General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to "complete the renovation of the line of products up to 2012."

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil.

Told you so.

Is anyone really surprised that one of our major corporate welfare recipients is going to use their handout from the TARP program, not to create and maintain jobs here in this country, but to bolster investments in markets they feel they can get a better return?

Does anybody think that Obama's stimulus program is going to do more to create jobs and stimulate the economy than TARP or any of the other trillion-dollar interventions of the past two years?

When Obama's stimulus package fails, what will we do? Promulgate a bigger one? And how many more trillion-dollar interventions can we front without buckling under the load of public debt? What will this do to our currency?

Does anyone outside the Beltway really believe that we can keep adding to the public debt a trillion dollars at a whack without the treasury eventually collapsing when we reach the point where we can no longer service the public debt from shrinking tax revenues?

And when that happens, when the U.S. ends up like Argentina in the 70s and 80s, or like Weimer Germany, who is going to bail us out?


Anonymous said...

Paul Krugman begs to differ. He claims the current stimulus bill isn't big enough: http://www.nytimes.com/2009/02/13/opinion/13krugman.html?_r=1
and that we'll be back for 'stimulus 2.0'. http://www.msnbc.msn.com/id/3036677/vp/29227729#29227729

The North Coast said...

Oh, you can be sure that we'll be back for Stimulus 2.0, because this one is not only not going to work, but will create more economic problems by ratcheting our yearly deficit to 1.6 trillion.

If this bill doesn't create hyperinflation, they'll keep trying, because the whole idea is to print more money to inflate us out of this debt.

At some point, the whole tottering system is going to just buckle, and if you think we have a disaster on our hands now, wait till we default on our treasury debt.

Anonymous said...

Laura your analysis here is spot on. They say Ben Bernake is a student of The Great Depression. Too bad he missed that lecture on Weimar Germany.