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GM Posts Profit: Smoke Mirrors and Government Lies

GM, or Government Motors as they have come to be known, has finally made a profit. Today, the Government owned auto manufacturer reported a profit of $865 million.

Really?

We were recently told that GM paid off it’s debt to the US Government, in full, with interest and ahead of schedule. As we now know, this was a lie perpetrated on the American people by the Obama Administration. GM received $52 billion from the US government and $9.2 billion from Canada. During their bankruptcy, most of this debt was either forgiven, or converted to stock owned by the US Government. In the end, GM supposedly only owed the US $6.7 billion, which was the amount repaid. Ten cents on the dollar.

But GM did not repay the loans with profits, or even money earned. They repaid them with another TARP loan!

According to Senator Grassley, the ranking Republican on the Senate Finance Committee, in a Fox News story:

“The bottom line seems to be that the TARP loans were ‘repaid’ with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the administration have claimed in their speeches, press releases and television commercials,” he wrote.

And from PolitiFact:

“Therefore, it is unclear how GM and the Administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way,” Grassley wrote in an April 22, 2010, letter to Geithner. “In reality, it looks like GM merely used one source of TARP funds to repay another. The taxpayers are still on the hook, and whether TARP funds are ultimately recovered depends entirely on the government’s ability to sell GM stock in the future. Treasury has merely exchanged a legal right to repayment for an uncertain hope of sharing in the future growth of GM. A debt-for-equity-swap is not a repayment.”

Grassley’s claim about the origin of the money used to repay the loan was acknowledged by company and government officials.

And in December of 2009, GM sold controlling interest of it’s China company to China’s SAIC for “a large amount of money” – just as the company enters the India market.

The news release announcing the “profit” also failed to mention that GMAC has financed most of the sales of GM vehicles. The fact that the government owns 56.3% of GMAC and has poured billions in TARP money into the failed financial company is a dirty little secret the Obama Administration does not want you to know.

And the “cash for clunkers” and “bash Toyota” government programs didn’t hurt GM.

This is nothing more than a government operated, taxpayer funded ponzi scheme.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

One Response to “GM Posts Profit: Smoke Mirrors and Government Lies”

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  1. […] This post was mentioned on Twitter by Tom Editor. Tom Editor said: #TCOT #GOP #IAMTHEMOB GM Posts Profit: Smoke Mirrors and Government Lies – http://tinyurl.com/276g8bm […]


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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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