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To: architect* who wrote (31309)	4/25/2012 6:39:05 PM
From: robert b furman	4 Recommendations Read Replies (3) \| Respond to of 222671

HI architect, For 16 years I worked for GM and than for another 25 ran /owned a GM franchise. In my life the UAW has strangled the crap out of all Domestic auto companies. Ford was the first and best at getting rid of UAW workers through outsourcing. GM tried the patriotic death walk and kept high priced extortionist union worker till bankruptcy alomost got rid of them. Would have if our president hadn't paid back a political favor to the UAW.Illegal as heck but that doesn't stop Obama from politics. In The USA AS GM AND CHRYSLER WENT THROUGH PACKAGED BANKRUPTCY THERE WERE 27 PLANTS SHUT DOWN IN THE USA. All of this globalization is being done to chase cheap labor. What is not thought of enough is the excess capacity all of the new plants create. As you point out the chinese consumers are additional consumption if they can afford to buy the product and cretainl that has been helpful and will continue to be huge. Surely if it is now the largest car market - think what consumption can be drivenb by a mree 600.00 iphone. Unions are dinosaurs in the private world - a fitting end to unbridled greed from what I saw of it. The auto excess capacity in Euro land has never yet been addressed - fiat has closed down one plant. The need to right size their domestic industry. From what I've seen precious little returns from an outsource situation. Maybe if it can utilize cheap nat gas - there is a justification. Other than that if you see it leave - say good bye and something must shut down. That leaves us with a consumption based economy where manufacturing plays less of a role. Innovation in so far as resource harvesting continues to be a natural advantage for us. The cost of unions labor made people replacing equipment a necessity long ago. Another lesson the emerging markets will embrace later on well after wage inflation. Bob

To: architect* who wrote (31309)	4/26/2012 9:36:14 AM
From: Fiscally Conservative	3 Recommendations Read Replies (3) \| Respond to of 222671

Some general thoughts on GDP growth: At what point should one continue to consider the benefits of 2.5 - 3 % GDP if that growth is manufactured and subsidized by Federal deficit spending? Any GDP growth in and of itself is good but the costs associated with this growth need to also be considered when the costs far exceed that implied intended growth. Currently US GDP growth is manufactured by Federal deficit spending at 12% of GDP! Intended or not it is the way it is. Thats right. 12% of our GDP in dollars is borrow to sustain our current way of life. Congress is not willing to tackle this issue. The pain is just too great. What a bunch of pathetic hypicrites! But the Fed is willing! The Fed is willing to continue to provide impetus via QE's to sustain the available liquidity of credit which its greatest benefit seems distined for the Stock Market and not the greater economy as a whole. This is not good economics folks. This is fiscal chaos in a world dominated by South Pacific Rim Nations willing to continue to provide maufactuers more than willing to step up to the plate answering the call; " Who will 'outsource' our way of life", via cheap labor. We are killing ourselves from within. Its a cancer and its name is greed. You can't have your cake and eat it too. But this is exactly what we are doing. We can not continued to Financially Engineer our way through sustained economic prosperity and think the outcome will be positive. The Fed chairman continues to believe his grasp of the situation is viable. I think not! What we have created in the last 15 years is far more Debt than GDP growth. The debt/GDP growth rate,the rate at which our debt climbs above our GDP growth, is growing faster than its intended target. It is one thing to borrow money when the return on equity is measurable in the positive and quite another to do so when it is measured in the negative. But this is exactly what we are doing. This country better get its head out of its fat ass and but quick although I have serious doubts this will happen. I fear the worse. I fear our industrial leaders, who by the way actually do run this country via their lobby efferts, do not give a rats ass about our country but instead about their Global concerns and their vast wealth. I hope I am wrong here on this point but nonetheless remain doubtful.