G.M. Closing 4 Plants in Shift From Trucks Toward Cars

Problem: Managers asleep at the wheel when a change hits that should have been obvious for at least the last 5 years. Consumers respond in logical, predictable fashion.

Solution: Fire people working for said managers, close plants, blame the consumers.

Responding to a consumer shift to more fuel-efficient vehicles, General Motors said Tuesday that it would stop making pickup trucks and big S.U.V.s at four North American assembly plants and would consider selling its Hummer brand.

The moves, announced Tuesday by the company chairman, Rick Wagoner, will slash 500,000 units from the automaker’s overall production, and pave the way for increased investment in smaller cars and passenger vehicles. Within three years, he said, trucks will account for less than 40 percent of the vehicles that G.M. produces in North America, down from about half today.

Mr. Wagoner said that rising gasoline prices had forced a “structural shift” by American consumers away from truck-based vehicles built by G.M.

“These prices are changing consumer behavior and changing it rapidly,” Mr. Wagoner said in announcing the cuts before G.M.’s centennial shareholders meeting in Wilmington, Del. “We don’t believe it’s a spike or a temporary shift. We believe it is, by and large, permanent.” NY Times

Here in Germany people will probably like this though. Even more German/European cars to be sold to America.

Guess which country has world-record exports, while the other has the world´s biggest trade deficit?

Judge critical of Guantanamo war crimes case dismissed

A judge hearing a war crimes case at Guantanamo Bay who publicly expressed frustration with military prosecutors’ refusal to give evidence to the defense has been dismissed, tribunal officials confirmed Friday. LA Times

Rice defends Bush policy on Iran as ’successful’, said same about Iraq in 2001

“‘I think this is called a successful multilateral coalition of states that have the same view’ that Iran should be rewarded for its cooperation or isolated for its defiance, Rice said.

She added: ‘I would like to see what other options there are for the international community, given that this policy is one that I think is the best course for us.’”AFP

This can only mean one thing: because everything is working, there needs to be war.

Why? Because she said the same about Iraq:

US postpones first Guantanamo war crimes trial

A military judge on Friday postponed the first war crimes tribunal at Guantanamo Bay, saying he wants to wait until the Supreme Court makes its highly anticipated ruling on the right of detainees to challenge their confinement in civil courts.

Navy Capt. Keith Allred ruled the trial for Osama bin Laden’s former driver should be delayed seven weeks, until July 21, in case the Supreme Court ruling affects his case. He scheduled pretrial hearings to begin a week earlier.

A Supreme Court ruling is expected by June 30.”AP

And of course it’s only a mere coincidence that after witnesses attested the timing of the trials was political in nature, they will now postponed and occur even closer to the US election in November. Mere coincidence, I tell you.

Bush vs World on Dollar

President Bush’s world:

President George W. Bush, under fire from Democrats who say he’s doing too little to help homeowners facing foreclosure, said he won’t be stampeded into “bad policy decisions” that might harm the economy.

“The market now is in the process of correcting itself, and delaying that correction would only prolong the problem,” he said today in his weekly radio address. “I believe the government can take sensible, focused action to help responsible homeowners weather this rough patch.”

Bush’s remarks echoed a speech yesterday, when he said the economy is going through a “tough time'’ and that the Federal Reserve and the Treasury Department will take “appropriate steps” to stabilize the financial system after a bailout of Bear Stearns Cos., the fifth-largest U.S. securities firm.” Bloomberg)

The real world:

“Sao Paulo, Brazil - Antique store owners in lower Manhattan, ticket vendors at India’s Taj Mahal and Brazilian business executives heading to China all have one thing in common these days: They don’t want U.S. dollars.

Hit by a free fall with no end in sight, the once mighty U.S. dollar is no longer just crashing on currency markets and making life more expensive for American tourists and business people abroad; its clout is evaporating worldwide as foreign businesses and individuals turn to other currencies.

Experts say the bleak U.S. economic forecast means it will take years for the greenback to recover its value and prestige.

Negative dollar sentiment is growing in nations where the dollar was historically accepted as equal or better than local currency - and dollar aversion is even extending to some quarters in the United States.

At the Taj Mahal, dollars were always legal tender, alongside rupees, for entry into the palace. But because of the falling value of the dollar, the government implemented a rupees-only policy a month ago. Indian merchants catering to tourists have also turned bearish on the dollar.

‘Gone are the days when we used to run after dollars, holding onto them for rainy days,’ said Vijay Narain, a tour operator in the city of Agra where the Taj Mahal is located. ‘Now we prefer the euro. It gives us more riches.’

In Bolivia, billboards feature George Washington’s image on a $1 bill alongside a bright pink 500 euro note, encouraging savers to turn to the euro to tuck away money earned abroad or sent home in remittances.

If the dollar’s going down … save it in Euros!!!’ say the signs popping up around La Paz for Bolivia’s Banco Bisa.” AP)

weak US Dollar makes EU world’s number one economy

The U.S. economy lost the title of “world’s biggest” to the euro zone this week as the value of the dollar slumped in currency markets.

Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro. Reuters

Arrested for ‘walking while buddhist’

More than 100 Tibetan refugees who were detained in India while attempting to march to the Chinese border have been placed in custody for 14 days.

The marchers, protesting against China hosting the Olympics, were detained near Dharamsala town, headquarters of the Tibetan government-in-exile.

The walk began on Monday as part of a global pro-independence protest.

It coincided with the 49th anniversary of the Dalai Lama’s escape from Tibet after a failed uprising against China.

India has in the past been sympathetic to the Tibetan cause but in recent years Delhi’s relations with Beijing have improved and India has not allowed large-scale public protests for fear of embarrassing Beijing. BBC

White House BS on Venezuelan troop movement

This is the stuff that used to drive me insane. From today’s White House press gaggle:

Q Venezuela is saying today that it’s deploying tank battalions and air and sea forces toward the Colombian border and its crisis there. What’s the level of U.S. concern on that? And is there any chance that the U.S. would be offering military assistance to it’s ally, Colombia?

MS. PERINO: I think that’s a little bit premature. I don’t — we do not have independent confirmation of that claim of the troop movements down in that area. So I’m not able to say. I think it’s premature to say that there would be any need for military help. We do believe that Colombia and Ecuador should be able to work this out between themselves. We don’t see any need for a country that wasn’t involved to be a part of it. We do think it’s curious that a country such as Venezuela would be raising the specter of military action against a country who was defending itself against terrorism. I think that says a lot about Venezuela. White House

To review: Venezuela mobilizes its troops and moves them to the border of Colombia, a US ally, yet the White House says “we don’t know what’s going on.”

Spies, satellites, etc not working, I take it? How else can it happen that such an obvious intelligence failure can occur?

Or could it just be Perino was feeding bullshit to the mainstream press to avoid having to give a substantial comment, yet the press still has no idea when and how question should be asked?

It’s probably the latter. Again.

Rice asks Plaestinians to come back to the table

US Secretary of State Condoleezza Rice has called on Palestinians to resume peace talks with Israel, on the eve of her latest Middle East visit. BBC

Right. Because the US has never taken a side in this before:

Benefits to Israel of U.S. Aid
Since 1949 (As of November 1, 1997)

Foreign Aid Grants and Loans
$74,157,600,000

Other U.S. Aid (12.2% of Foreign Aid)
$9,047,227,200

Interest to Israel from Advanced Payments
$1,650,000,000

Grand Total
$84,854,827,200

Total Benefits per Israeli
$14,630 link

And some newer numbers from Dec 2002:

Since 1973, Israel has cost the United States about $1.6 trillion. If divided by today’s population, that is more than $5,700 per person.

This is an estimate by Thomas Stauffer, a consulting economist in Washington. For decades, his analyses of the Middle East scene have made him a frequent thorn in the side of the Israel lobby.

For the first time in many years, Mr. Stauffer has tallied the total cost to the US of its backing of Israel in its drawn-out, violent dispute with the Palestinians. So far, he figures, the bill adds up to more than twice the cost of the Vietnam War.
Christian Science Monitor

That’s about 1/3 of all foreign aid spend by the US.

U.N. Security Council urges end of Gaza violence

The U.N. Security Council on Sunday urged Israel and Palestinian militants to cease all violence in Gaza after the U.N. secretary-general condemned what he called Israel’s “excessive” use of force. (…)

“Members of the Security Council are deeply concerned about the loss of civilian life in southern Israel and Gaza and condemn the escalation of violence,” the council said in a statement read by Russian Ambassador to the United Nations, Vitaly Churkin, the council’s current president.

“These events underscore the need for all parties to immediately cease all acts of violence,” the statement said. Reuters

US cuts aid to poor nation due to soaring prices, biofuels

The U.S. government’s humanitarian relief agency will significantly scale back emergency food aid to some of the world’s poorest countries this year because of soaring global food prices, and the U.S. Agency for International Development is drafting plans to reduce the number of recipient nations, the amount of food provided to them, or both, officials at the agency said.

USAID officials said that a 41 percent surge in prices for wheat, corn, rice and other cereals over the past six months has generated a $120 million budget shortfall that will force the agency to reduce emergency operations. That deficit is projected to rise to $200 million by year’s end. Prices have skyrocketed as more grains go to biofuel production or are consumed by such fast-emerging markets as China and India. Washington Post

It probably doesn’t help that the Dollar keeps falling either.

Plaestinian leader Abbas breaks contact with Israel citing mass killings

Palestinian leader Mahmoud Abbas has suspended contact with Israel in protest at an assault on Gaza which has killed about 100 people, an aide says.

The suspension came amid angry demonstrations in Gaza and clashes with Israeli troops in the West Bank.

Israeli PM Ehud Olmert vowed to carry on the assault, which came in response to militant rocket attacks on Israel.

The violence intensified on Saturday, when nearly 70 people were killed in one of Gaza’s bloodiest days in years.

This all “started” because a rocket fired from what is jokingly called Palestine into Israel, killing a 40-year old jewish man. So the going rate apparently is one 44-year old jew against 100 Palestinians, including women and children.

Kremlin handpicked Medvedev ‘heading for clear win,’ Putin to ’serve’ as PM

Not exactly shocking:

Vladimir Putin’s chosen successor, Dmitry Medvedev, is set to win Russia’s presidential election by a wide margin, exit polls indicate.
Mr Medvedev, a first deputy PM, was the clear favourite from the start and enjoyed generous television coverage. (…)

Mr Putin has pledged to serve as Mr Medvedev’s prime minister. BBC

Scores die in raids on Gaza

Israel’s military killed at least 54 Palestinians yesterday - almost half of them civilians, including four children - in its most violent assault on the Gaza Strip since the Islamic militant group Hamas seized power last June. The latest deaths bring to more than 80 the number of Palestinians killed since a rocket fired from inside Gaza killed a 44-year-old Israeli in the town of Sderot last week. Two Israeli soldiers also died in the fighting.

The latest bloodshed comes as an Observer investigation revealed how Israel is again deliberately obstructing the transfer of urgent medical cases for treatment outside Gaza in the latest extension of its policy of collective punishment of Palestinians.Guardian

Guardian: Putin to rig election

The Kremlin is planning to falsify the results of this Sunday’s presidential election in Russia by compelling millions of public sector workers to vote and by fraudulently boosting the official turnout after polls close, the Guardian has learned.

Governors, regional officials, and even headteachers have been instructed to deliver a landslide majority for Dmitry Medvedev - Russia’s first deputy prime minister, whom President Vladimir Putin has endorsed to be his successor.

Officials have been told they need to secure a 68% to 70% turnout in this weekend’s poll - with around 72% casting votes for Medvedev. However, independent analysts believe the real turnout will be much lower - with between 25% and 50% of the electorate taking part.

The Kremlin is planning to bridge the gap by the use of widespread fraud, diplomats and other independent sources have told the Guardian. Local election officials are preparing to stuff ballot boxes once the polls have closed with unused ballots, they believe, with regional officials also giving inflated tallies to Russia’s central election commission. Guardian

Israel warns of invasion of Gaza

Israel’s deputy defence minister has said it will be left with “no choice” but to invade Gaza, if Palestinian militants step up rocket attacks.

Matan Vilnai said the Palestinians risked a big disaster - using the Hebrew word for the Holocaust.

Mr Vilnai said Israel would use all its might to defend itself, after rockets hit the city of Ashkelon, 10km (six miles) from Gaza. BBC

Turkish troops pull out of Iraq, both sides declare victory

The Turkish version of “mission accomplished”:

Turkey says its troops have been withdrawn from northern Iraq after an offensive against Kurdish PKK rebels.

In a statement on its website, Turkey’s military said it had achieved its goals, and there was no question of any foreign influence on the decision. BBC

Update: The PKK responds via Al Jazeera:

Ahmed Danis, a spokesman for the PKK, confirmed the Turkish troop pull-out.

He said: “We are observing military movements like empty military trucks coming from Turkey. The trucks are being loaded with troops and returning to Turkey.

“If they [Turkish troops] withdraw completely it would be a victory for Kurdistan and for the PKK.” Al Jazeera

US sends warship to Lebanon

Signaling impatience with Syria, the United States has sent its USS Cole warship off the coast of Lebanon in a “show of support” for regional stability, U.S. officials said on Thursday.

(…) “The United States believes a show of support is important for regional stability. We are very concerned about the situation in Lebanon. It has dragged on very long,” said the senior official, who spoke on condition he was not named. Reuters

Watch stability sprout up at gunpoint.

Army: Nation building as important as combat missions

The Army on Thursday rolled out the first revision of its operations manual since the Sept. 11 terror attacks, putting stability operations - nation-building - on par with combat.

Army officials said the revision reflects a focus on fighting terrorism.

“The field manual is our Army’s blueprint for an uncertain future,” said Lt. Gen. William Caldwell IV, commander of Fort Leavenworth, where the document was produced. “It does provide the blueprint for how we, as an Army, will operate over the next 10 to 15 years.”

The new manual reflects Army experiences over the past six years of fighting the Taliban and al-Qaida in Afghanistan and insurgents in Iraq, as well as with relief efforts after hurricanes Katrina and Rita.

Caldwell said the U.S. will focus on building its influence in nations plagued by conflicts so that it can make them stable and secure. AP

Now all we need is a time machine to send this back to 2000. That can’t be harder than what the US Army is facing in Iraq, so I say we go for it.

Bush 2000

Seeing the Democratic debate reminded me of something. And it still blows my mind. Bush actually said this in his second debate with Al Gore in 2000:

MODERATOR: The use of the military, there (Columbia) — some people are now suggesting that if you don’t want to use the military to maintain the peace, to do the civil thing, is it time to consider a civil force of some kind that comes in after the military that builds nations or all of that? Is that on your radar screen?

BUSH: I don’t think so. I think what we need to do is convince people who live in the lands they live in to build the nations. Maybe I’m missing something here. I mean, we’re going to have kind of a nation building core from America? Absolutely not. Our military is meant to fight and win war. That’s what it’s meant to do. And when it gets overextended, morale drops. I strongly believe we need to have a military presence in the peninsula, not only to keep the peace in the peninsula, but to keep regional stability. And I strongly believe we need to keep a presence in NATO, but I’m going to be judicious as to how to use the military. It needs to be in our vital interest, the mission needs to be clear, and the extra strategy obvious.
Debate transcript, October 11, 2000

Turkey army launches land offensive into Iraq

Turkish troops have crossed into northern Iraq in their hunt for Kurdish PKK guerrillas, the military said on Friday, but the United States and the European Union urged Ankara to keep the campaign limited.

The White House said the United States had been informed in advance of the incursion and urged Turkey to limit the operation to “precise targeting” of the PKK rebels hiding there.

Turkish TV said 3,000 to 10,000 soldiers had entered Iraq, but Iraq’s foreign minister and a senior military official with coalition forces based in Baghdad denied it was a major operation, saying only a few hundred troops were involved. Reuters

Don’t worry, they will no doubt be heralded as liberators and greeted with flowers. This is a cakewalk.

I mean, come on, this is Iraq. Nothing ever goes wrong there.

And even if something should go wrong, I am sure we will get very objective reports from the Turkish army, just like the US has done in Iraq. Use of internationally banned phosphorous optional, of course.

US inflation continues to rise

Bush gave the world freedom, now he keeps giving us wealth:

Inflation rose more than expected last month, the government reported on Wednesday, adding to worries about the economy and sending a reminder to central bankers that rising prices remain a threat.

Meanwhile, the housing crisis continued to take a toll on residential home construction. Groundbreakings for homes rose slightly but remained near their lowest levels since the early 1990s, and permits for new home projects fell again.

The inflation report raised concerns among some investors that the Federal Reserve will back away from cutting interest rates again at its next meeting, on March 18, and stocks declined at the opening bell. NY Times

I had a condo in Florida and the rest of my money in Apple stock. Looks like I sold both just in time. (Apple will rebound, Florida, probably not so much.)

John Kerry is only 3 1/2 years late

I have to admit, I didn’t expect reading a story about how President Musharraf says he will bow to the election results in Pakistan and go quietly was going to make me laugh out loud. But the Times just gave me the giggles by first enumerating how truly remarkable this is, then following up with this paragraph that contains the first quote in the story. Who did they choose to quote, you ask?

Mr. Musharraf was “accepting of the reality of the election,” Senator John Kerry, Democrat of Massachusetts, said in Islamabad, the capital, after he and two other American senators met with Mr. Musharraf. NY Times

Here’s what made me laugh: John Kerry telling us that a hated leader is about to leave office because of the “reality of the election.” And it’s only 3 1/2 year late.

It’s either that, or John Kerry is now the guy you quote when someone looses an election against all odds.

Election outcome in Pakistan offers best chance for reform in years

The party of Pakistan’s late former PM Benazir Bhutto - the biggest winner in Monday’s election - says it is ready to form a coalition with the PML-N party. BBC

If this goes through it could single handedly reform Pakistan from a dictatorship to a more or less functioning democracy.

Just wait for Bush to herald this as one of his triumphs even though it has absolutely nothing to do with him. On the contrary, Bush kept backing Musharraf, even though it was crystal clear he is a dictator who imposed marshal law in an over-reaching power grab and largely ignored al-Quaida operatives within Pakistan’s borders.