A bit OT, but there was a really interesting video clip of what the Big 3 are capable of once you get rid of hindrances like the UAW. This video shows a Ford plant in Brazil which is praised for it's efficiency and unique approach to vehicle assembly. At the end of the clip, the reporters say that Detroit would love to be able to introduce the model here, but sadly are not able to do due to intervention from the unions.
Originally posted by cliffw: Our Dollar used to be worth four million Pesos. No subsidy there.
quote
Originally posted by maryjane: Mexican Pesos? Not in my lifetime it hasn't.
heh, I obviously did not check my facts, just trying to make a point. I am not sure of the exchange rate for the dollar/peso but, when I used to go to Mexico (early 70's), we used to get a butt load of pesos for a dollar. The point I was trying to make was.....that per the link (http://www.autoyensubsidy.org/) it mentions that the yen appreciated in value. The article goes on to say.....
quote
linky A few facts: * With a yen valued at 118 to the dollar, ......
The article does allude to an artificially low yen, but gives no facts or even allegations on why it's value is artificial. In fact, the article gives no facts on an actual subsidy. The article also says.......
quote
linky .... U.S. to demand that the Japanese allow the yen to regain its undistorted value. Japan must be pressed to bring its currency into alignment and trim its excessive currency reserves.
Again, no facts to support a distorted value. I am also at a loss on why we would demand that Japan get rid of currency reserves. Saving is a good thing. We (the US) have to borrow because we have no cash reserves. Which may be the reason the yen is worth more than the dollar.
IP: Logged
07:11 AM
avengador1 Member
Posts: 35468 From: Orlando, Florida Registered: Oct 2001
When I lived in Mexico in the early 70s the exchage rate was twelve and one half Pesos to one Dollar. The last time I was there, about a year ago, it was ten Pesos to a Dollar. There are other countries besides Mexico that use "Pesos" as their countries currency.
quote
Peso,
the monetary unit of several Latin American countries and the Philippines; it is divided into 100 centavos. The peso was introduced into Spain by the monarchs Ferdinand and Isabella, who reformed the Spanish coinage system in 1497; it did not come into common use, though, until the time of Charles I (the emperor Charles V). Originally divided into eight reales, the peso subsequently became the basis of the silver coinage of the Spanish empire after the monetary reform of 1772–86. In the Americas it was called “piece of eight,” or “Spanish milled dollar,” and was, in fact, equivalent to the U.S. silver dollar. It was retained as the basic coin by most of the Spanish colonies in the Americas when they gained their independence. When these countries adopted the decimal system for their coinage, a local name was in several cases substituted for the term peso. Thus it was renamed sol in Peru, bolivar in Venezuela, sucre in Ecuador, colón in El Salvador and Costa Rica, balboa in Panama, lempira in Honduras, quetzal in Guatemala, córdoba in Nicaragua, and boliviano in Bolivia. Other countries, such as Argentina, Chile, Colombia, Cuba, Mexico, and Uruguay, continued to use the term peso. Even where the name was officially changed, peso often continued to be used in popular speech. Spain first adopted the peseta as a monetary unit in 1859 and, except briefly from 1864 to 1868, retained the peseta as the basic unit until 2002, when the euro, the monetary unit of the European Union, became the country’s sole currency.
Some of the currency in these countries may be worth far less than the Dollar, that could explain the 4 Million Peso to Dollar exchange mentioned above, but I doubt it. The closest exchange rate I found that would be close to something like that was the Columbian Peso which takes about 2000 of them to equal one Dollar.
[This message has been edited by avengador1 (edited 11-24-2008).]
Originally posted by cliffw: subsidized yen............
Not subsidized in the way you might imagine. It has a 'fixed' value. Fixed to the US dollar, just as the dollar's value used to be fixed to that of gold. China "subsidizes" it's yen (or "Yuan') by either buying up dollars--or selling them. Non-subsidized Yen, would mean it would be allowed to "float"--that is, find it's own true value. Because China buys and sells--holds or releases US dollars to maintain it's own currency at near or on par with America's, it is hardly ever at a trading disadvantage when the US dollar rises or falls in value against the rest of the world. China's primary reason for doing it this way is because it is an easy way to keep inflation rates down. Many many moons ago, the yen was 'fixed' to the Spanish Peso, since there was a lot of Spanish influence in that part of the world. As an ancient currency, it has been fixed to several different world currencies or other commodities, such as gold, silver, rice, wheat etc. At one time, parts of China tied thier currency to that of the British, which was Pounds Sterling.
IP: Logged
12:06 PM
Nov 30th, 2008
kevin Member
Posts: 2722 From: Elk Grove, CA USA Registered: Jan 2000
Geez, this is so easy. I understand economics resulting from my economic background. If GM, Chrysler, Ford go BK, LISTEN TO ME: They will continue to make cars! The assembly plants will not shut down. Chapter 11 filing is what they should do. If you understand the law, this is a legal method allowing one to restructure debt forcing creditors to get paid based on a sundry of parameters. Too ong a list for me to list here. If the management of big three fails to fix the dated labor contracts with the UAW, and the UAW knows thtis, this upside down economic picture will never change. The same thing will happen again, in a few years, if these absurd contract are not renogotiated. Doubt me? Take a look at United Airlines, Delta, American, etc, who also filed BK. As you know, they continued to fly and they continued to repair their planes. But, they fixed their labor issues. I can talk further about AMTRAK as well, but I will bite my tounge. Suffice it to say: LET THEM GO BANKRUPT. Forcing a change to common sense is the only realization they understand and comprehend.
Cordially, Kevin
IP: Logged
11:42 PM
madcurl Member
Posts: 21401 From: In a Van down by the Kern River Registered: Jul 2003
OK, Since the stock prices are so low for the big three, why aren' t the employees buying up stock to become employee owned? Then they could vote the high priced management out, and run the company from the floor. In my experience the people on the floor are who to talk to on cost cutting, and if they were the owners there would be a lot of incentive involved. Then they would see first hand how expenses worked and how they can affect the bottom line. When they retire they can sell their stock for their retirement. Of course they would have to work 40-45 years for retirement instead of 30, but I think that the company as a whole would be stronger. I know that if I was an employee I would be buying stock like crazy. Hell I'd even take stock options. Remember the " owners" have the final say.
/\ Because few of them want to be left holding worthless stock should the company go under--and it may very well do so. Not to mention, that there will be no dividends paid to stockholders until after 2012.
[This message has been edited by maryjane (edited 12-02-2008).]
They need to clean house starting with top executives making way too much money flying around in private jets while the company is in the toilet. 
