GM Stock Buybacks, NAFTA, Trade War and Trade Deficit

The Word Politics

Bill Clinton passes NAFTA and it decimates American manufacturing over the next 25 years…

Up until present day when GM spent 10 billion on stock buybacks and now wants to cut 14,000 jobs and close 5 plants for a savings of 4.5 billion… This is after the tax payers bailed them out for 11 billion in 2016. 

but Trump is blamed by GM and the media, for trying to claw back the trade deficit from decades of Democrat and Republican sabotage.

 

Unlike 2008, GM cutting jobs, plants proactively

Restructuring plan met with anger, except on Wall Street

Michael Wayland December 03, 2018

…The most recent actions included plans to cut 15 percent of its 54,000 North American salaried jobs, including a quarter of its global executives, and to end production at five North American plants in 2019, when it will discontinue the Chevrolet Cruze and five other cars. GM said it also would close two unidentified plants elsewhere in the world by the end of next year….

Read More: http://www.autonews.com/article/20181203/OEM/181209962/gm-plans-future-workforce-makeup

GM bought back $10 billion in stock since 2015, double what job cuts will save

When General Motors announced it was cutting up to 14,000 jobs and idling five automotive plants, it justified the massive cuts by citing long-term savings. The cuts would free up $6 billion in cash, for a net savings of $4.5 billion in cash by 2020.

The move will “make General Motors more agile, resilient and profitable” while the economy’s still revving, CEO Mary Barra told investors Monday. Wall Street seemed to believe her, with GM’s stock rising nearly 5 percent and one analyst on the call congratulating her “on getting in front of the curve here.”

But GM hasn’t exactly been tightfisted in recent years. The company has spent $10.6 billion since 2015 buying back its own shares, according to filings with the Securities and Exchange Commission. Stock buybacks do nothing for a company’s productive capacity. But because buybacks reduce the number of shares on the market and thus make a stock more valuable, they can be popular with many investors as well as senior executives who are paid largely in stock.

GM is far from the only company to spend money goosing its stock price. This year alone, corporations have announced some $955.6 billion in buybacks, according to TrimTabs Investment Research, and the figure for the whole year could exceed $1 trillion.

But GM started its stock repurchasing program back in 2015, less than six years after a bankruptcy process that cost U.S. taxpayers $11 billion. (The United Auto Workers and a number of politicians have pointed to the bailout in a vow to fight GM’s planned cuts, though it’s unclear politicians can do anything to change them.)

Read More: https://www.cbsnews.com/news/gm-bought-back-10-billion-in-stock-since-2015-double-what-job-cuts-will-save/

Trump Seems to be Trying to Remove the US From the Globalist Death Cult

Enough is Enough Child Trafficking Ends Now

What Donald Trump is preparing

After having observed Donald Trump’s historical references (the constitutional compromise of 1789, the examples of Andrew Jackson and Richard Nixon) and the way in which his partisans perceive his politics, Thierry Meyssan here analyses his anti-imperialist actions. The US President is not interested in taking a step back, but on the contrary, abandoning the interests of the transnational ruling class in order to develop the US national economy.
The problem

In 1916, during the First World War, Lenin analysed the reasons which led to the confrontation between the empires of his time. He wrote – Imperialism, the Highest Stage of Capitalism. In this book, he clarified his analysis – « Imperialism is capitalism which has arrived at a stage of its development where domination by monopolies and financial capital has been confirmed, where the export of capital has acquired major importance, where the sharing of the world between international trusts has begun, and where the sharing of all the territories of the globe between the greatest capitalist countries has been achieved ».

The facts confirmed his logic of the concentration of capitalism that he described. In the space of one century, it substituted a new empire for the precedents – « America » (not to be confused with the American continent). By dint of fusions and acquisitions, a few multinational companies gave birth to a global ruling class which gathers every year to congratulate itself, as we watch, in Davos, Switzerland. These people do not serve the interests of the US population, and in fact are not necessarily United States citizens themselves, but use the means of the US Federal State to maximise their profits.

Donald Trump was elected as President of the United States on his promise to return to the earlier state of Capitalism, that of the « American dream, » by free market competition. We can of course claim a priori, as did Lenin, that such a reversal is impossible, but nonetheless, the new President has committed to this direction.

The heart of the imperial Capitalist system is expressed by the doctrine of the Pentagon, formulated by Admiral Arthur Cebrowski – the world is now split in two. On one side, the developed, stable states, and on the other, those states which are not yet integrated into the imperial globalist system and are therefore doomed to instability. The US armed forces are tasked with destroying the state and social structures of the non-integrated regions. Since 2001, they have been patiently destroying the « Greater Middle East », and are now preparing to do the same in the « Caribbean Basin .»

We are obliged to note that the way in which the Pentagon looks at the world is based on the same concepts used by anti-imperialist thinkers like Immanuel Wallerstein, Giovanni Arrighi or Samir Amin.

The attempted solution

Donald Trump’s objective thus consists both of reinvesting the transnational capital in the US economy, and turning the Pentagon and the CIA away from their current imperialist functions with National Defense. In order to do so, he has to withdraw from international commercial treaties and dissolve the inter-governmental structures which consolidate the old order.

Undoing the international commercial treaties

From the very first days of his mandate, President Trump removed his country from the trans-Pacific partnership agreement, which had not yet been signed. This commercial treaty had been conceived strategically as a means of isolating China.

Since he was unable to cancel the signature of his country on those treaties which were already in force, such as the North American Free Trade Agreement (NAFTA), he began to unravel them by imposing various customs duties which were contrary to the spirit, but not the letter, of the agreement.

Re-framing or dissolving the inter-governmental structures

As we have often written here, the United Nations Organisation is no longer a forum for peace, but an instrument of US imperialism within which a few states continue to resist. This was already the case during the Soviet policy of the empty chair (Korean War) and, since July 2012, it is once again true.

President Trump has directly attacked the two main imperialist tools within the UNO – the peace-keeping operations (which have taken the place of the observation missions which were originally planned by the Charter), and the Human Rights Council (whose sole function is to justify the humanitarian wars waged by NATO). He has deprived the former of their budget, and withdrawn his country from the latter. However, he has just lost the election for Director of the International Organisation for Migration, leaving the road open, for the moment, for the world traffic in human beings. Of course, he has absolutely no wish to destroy the UNO, but only to refocus its activities and bring it back to its original function.

He has just torpedoed the G7. This meeting, initially intended as a moment for the exchange of points of view, had become, as from 1994, a tool for imperial domination. In 2014, it transformed itself into an instrument for anti-Russian activity – thus conforming to what had become the new strategy of the Anglo-Saxon nations, aimed at « cutting our losses », in other words, avoiding a World War by limiting the empire to the borders of Russia and thereby isolating it. President Trump took great care during the meeting in Charleroix to show his confused allies that he was no longer their overlord, and that they would have to make it on their own.

Finally, after having tried to use France to dynamite the European Union, he turned to Italy, where he sent Steve Bannon to create an anti-system government with the help of US banks. Rome has already concluded an alliance with five other capitals against Brussels.

Reinvesting in productive economy

Via diverse fiscal and customs measures, rarely voted by Congress and usually adopted by decree, President Trump encouraged the major companies of his country to repatriate their factories back to the USA. There immediately followed an economic recovery, which is about the only thing for which the Press will recognise him.

However, we are a long way from noting a financial decline. World finance is probably continuing to prosper outside of the USA, or in other words, continuing to suck up the wealth of the rest of the world.

Read More: http://www.voltairenet.org/article201778.html