Monday, September 17, 2012

Obama Accuses China Of Backing It's Auto Industry!

Isn't this rich?  Obama accuses China of backing it's auto industry!
Obama will announce during a campaign tour of Ohio on Monday that he is initiating a case against China at the World Trade Organization over allegedly illegal subsidies for automobiles and auto parts, the official said. 
Later today in some upcoming campaign stop, Obama will re-iterate it's campaign talking point that the US Government's bailout of GM, Ford and Chrysler in 2009 was one of their great successes!  I believe that's called "backing our auto industry!"

I believe that this is a tit for tat retaliation as China had previously slapped tariffs on US auto exports due to this US government impending action [more details when available].  The claim is that China subsidized auto part suppliers to the tune of $1 Billion from 2009 to 2011.  This just so happens to be when the US was "subsidizing" our auto industry with a more substantial package.

We have a little trade war underway!

I'm no friend of China and their mercantilist trade practices.  The Chinese are among the world's worst cheaters and liars.   But I couldn't help but comment on the irony of it all!

Incidentally, the treasury will lose $25 Billion on the GM bailout, something that the Obama administration doesn't want to talk about.   It's even worse than that.  GM gets sweetheart tax breaks going forward.  This means that the Government loses even more than that due to loss of revenue.   Add General Motors to General Electric to the list of companies not paying any income taxes.   Did you realize that GM didn't pay any taxes on $7.6 billion in profits last year?

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