Canada Follows the U.S. Terms for GM/Chrysler; Harper Still Worrying About the “Eased” ‘Buy-American’ Clause in Stimulus Package

~~By InsightAnalytical-GRL

About a month ago we posted on the subject of how GM and Chrysler were begging from bailout money from the Canadian government. (See: The SCANNER–International/Political Edition, 2/24/09 (Which Deficit is Obama “Halving”?; Canada Rubs U.S. Nose into Its Stable Banking System; GM/Chrysler Beg for Bailout Help in Canada, Too; Half of Foreign Criminals in Canada Are Fleeing to the U.S. [???]).

Here’s the relevant excerpt:

GM, Chrysler ask for billions in Canadian aid

General Motors has outlined a restructuring plan that would cut its Canadian workforce to 7,000 and seek as much as $7 billion from the federal and Ontario governments, while Chrysler is requesting around $2.8 billion in aid.

GM didn’t specify how much it will ask for, but Reuters quoted federal Industry Minister Tony Clement as saying the company is asking for between $6 and $7 billion.

The Canadian government doesn’t seem to want to bailout CAW pensions…time will tell.

MORE

Here’s an update on what’s going on now…right in tandem with what the Obama Administration is doing:

GM, Chrysler scolded but given more time to restructure

Canada, Ontario provide $4 billion in loans to troubled manufacturers

Political leaders on both sides of the Canada-U.S. border are giving General Motors and Chrysler extensions on deadlines to come up with viable restructuring plans, saying the auto manufacturers fell short in their first attempts.

(SNIP)

Disappointment in Canada

Canadian politicians also expressed regret that GM and Chrysler could not come up with viable plans.

Federal Industry Minister Tony Clement, along with Finance Minister Jim Flaherty and Ontario Economic Development Minister Michael Bryant, said GM has 60 days to come up with a plan for its Canadian division, while Chrysler has 30 days to reach a deal with the Canadian Auto Workers union and with Fiat.

At the same time, Clement said the first of the $4 billion in interim loans to the two companies is going out. Chrysler will get $250 million on Monday of the $1 billion allocated, while the first of $3 billion in funds for GM will begin to flow in early April.

“We are making this strategic investment to support an orderly restructuring of a critical industry with [the] goal of ensuring that Canada maintains its 20 per cent production share in the future,” Clement said.

(SNIP)

Canadian Auto Workers president Ken Lewenza said the union won’t reopen its collective agreement with GM Canada despite pressure from politicians that more cost restructuring is needed.

“We did it once 10 months ago and we did it again less than a month ago,” he said. “Opening up bargaining won’t resolve this problem.”

Lewenza said the union is still trying to work out a new collective agreement with Chrysler in advance of a March 31 deadline.

The email newsletter I receive from Radio Canada International sums it all up this way:

OTTAWA: GOVERNMENT OFFERS INTERIM HELP TO AUTOMAKERS

Two struggling Canadian automakers, Chrysler and General Motors, were offered help on Monday by the federal government and the government of Ontario. The two companies will receive bridge loans totalling CDN$4 billion to help them to survive. Chrysler would receive CDN$1 billion and General Motors would get $CDN$3 billion. Further government loans will depend on whether the two companies can present acceptable restructuring plans. Tony Clement, Canada’s industry minister, has rejected plans that were submitted earlier, saying that they fail to ensure the companies’ long-term survival. General Motors has until the end of May to present its new plan. Chrysler has until the end of April. Chrysler’s plan must include the company’s merger with the Italian carmaker, Fiat, that was announced on Monday. The plans will depend in large measure on negotiations with the company’s unionized workers. The Canadian Autoworkers Union welcomed the Chrysler/Fiat merger as long as it preserves the Canadian auto industry. CAW’s negotiations with Chrysler will continue, but the CAW refused to renegotiate a deal with General Motors that was arranged within the past month. The CAW also welcomed the government’s insistence that the two American-based companies commit to maintaining 20 per cent of their North American production in Canada. The government offer also requires that company executives agree to limits on their compensation.

Now, here’s another rather ironic bit from the same newsletter, considering how tightly bound together Canada and U.S. are.  (See: What’s Going On North of the Border: The Canadian Economy and Stimulus Plan & THE PROPOSED NORTH AMERICAN COMMUNITY/NORTH AMERICAN UNION: 2010 Is Just Around the Corner)

WASHINGTON: PRIME MINISTER EXPRESSES CONCERN OVER GLOBAL PROTECTIONISM

Prime Minister Stephen Harper says the danger of protectionism is one of his major concerns in the global economic crisis. He’s worried that if protectionism becomes a global option, the world could face a depression similar to the one in the 1930s when countries introduced trade barriers to save homegrown industries. The measures only accelerated and deepened the global economic downturn. Mr. Harper is concerned that the United States stimulus plan includes Buy-American clauses for recipients of government bailout money. Such a plan could hurt Canadian exports to the United States. Mr. Harper made his comments as he prepares to attend a Group of 20 summit in London this week.

In early February, the Senate “eased” the Buy-American” clause as Obama proclaimed he didn’t want a “trade war”…The EU, Canada, and Japan had protested; only the UK hadn’t complained at that point.

US Senate eases “Buy-American Provision in Stimulus Package”

(SNIP)

The measure had sparked fears of retaliatory measures by US trading partners and a possible spiral of protectionism in an already reeling global economy.

The requirement to favour US-made supplies to be used in infrastructure projects, included in a nearly 900-billion-dollar package being considered by the Senate, was softened to allow for exceptions as required by US trade agreements, broadcaster MSNBC reported.

Apparently, Harper isn’t completely satisfied with the changes to the clause. Maybe he doesn’t trust Obama or the U.S. Senate…probably a wise stance to take.

The Scanner–Politics March 18, 2009: (Taitz-Supreme Court; Sharia Law in Minnesota re: Home Mortgages; Stimulus Money Wanders from the States; Privatizing Vets’ Healthcare)

~~By InsightAnalytical-GRL

Where to begin? There are so many things out there to choose and I had to delete a few!

So here goes…

If  you missed the Monday night show (3/16) with Betty Jean Kling and Dr. Orly Taitz, check out the archived on demand program. If you don’t have an hour to do so, at least check out the post on the subject: Chief  justice publicly accepts WND’s eligibility petition which raises some very interesting question about what the heck is going on at the Supreme Court re: the justices “not knowing” about briefs about Obama’s citizenship issues and cases being erased from the docket.  Recall that Obama met with Roberts and other justices and start wondering…But, if you can listen to the show, which has much more information to ponder…

And, to really keep up to date, check out Attorney Taitz’s website at http://defendourfreedoms.us/.

***

From the more funny business department:

A HUGE hat tip to Deadenders for this story about mortgages and Sharia law unfolding in Minnesota.  And, for a news report on this, see this article from the Bismarck Tribune.

Minn. state agency offers Islamic mortgages

Mar 08, 2009 – 04:05:16 CDT

MINNEAPOLIS (AP) – For many Minnesota Muslims, it’s been virtually impossible to buy a home, because Islamic law forbids the paying or charging of interest. To help close the home ownership gap among Muslim immigrants, the state’s housing agency has launched a new program offering Islamic mortgages.

Now, recall the post we had up  just after the election about meetings at the Treasury Department: The SCANNER-Politics 11/7/08: Newsweek Editors on Charlie Rose in the SCARIEST Description of Obama So Far…(Video/Partially Transcripted); Sharia Hits the Treasury Department/HARVARD Alert!; Hill the Shill (UPDATE 1X) .  American Lassie had tipped me off to the meeting and I did a bit of snooping at the time:

Islamic financing by Sharia law has been in operation around the globe for quite awhile and is not necessarily a first step toward full Sharia Law being included in our legal code.  As far back as 2006, HARVARD LAW SCHOOL was running sessions by the “Islamic Finance Group” under name “Islamic Finance 101: Introduction and Career Opportunities” under the auspices of Harvard’s Center for Middle Eastern Studies.

So, we’ve got HARVARD UNIVERSITY/LAW SCHOOL, BUSHCO, and OBAMACO….all doing their thing on SHARIA INVESTING.  Coincidence?????  (UPDATE:  See Al-Mansour connection below)

Michelle Malkin (I can’t believe I’m citing her, but facts are facts!) put up a post on this Treasury event later yesterday/Thursday.)

I couldn’t find the story at Human Events when I tried yesterday, but I did track down it down at the Center for Security Policy. They may sound over the top, but…They were holding a press conference on all this…did you hear about this subject in the MSM?  Think not…

And now it seems the state of Minnesota is involved in Sharia Law…

***

Hey, seen any stimulus money yet in your state?  Well, some of it may be going out of the country… From the Albuquerque Journal:

Monday, March 16, 2009

N.M. Stimulus Creating Jobs Elsewhere

Will a batch of transit-related federal stimulus money help boost the Duke City economy? Or will people mainly be taken for a ride on a bunch of new city buses built in Canada and Minnesota?

The city was recently allocated about $11.3 million in federal stimulus money for ABQ Ride vehicles and equipment purchases. Of that total, $11.1 million will be used to buy about 20 new buses and upgrades to fare boxes.

ABQ Ride has been upgrading its fleet in recent years. Almost 40 new buses are being added, and they are built by Winnipeg, Canada-headquartered New Flyer.

About 40 percent of each bus is built in Canada, the other 60 percent in Minnesota, where New Flyer also has manufacturing facilities.

Transit Director Greg Payne said that, despite its Canadian operations, New Flyer qualifies as an American-made company under the rules of the Federal Transit Administration.

Lawrence Rael, executive director of the Mid-Region Council of Governments, said the stimulus rules require proof of job creation.

They just don’t have to be here.

MORE

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While the stimulus money wanders around, the American Legion is angered by Obama’s plans to charge wounded service people for their care. No improvement in care in Obamaland over Bush…

The American Legion Strongly Opposed to President’s Plan to Charge Wounded Heroes for Treatment

Mon Mar 16, 5:49 pm ET

Featured Topics:

To: POLITICAL EDITORS

WASHINGTON, March 16 /PRNewswire-USNewswire/ — The leader of the nation’s largest veterans organization says he is “deeply disappointed and concerned” after a meeting with President Obama today to discuss a proposal to force private insurance companies to pay for the treatment of military veterans who have suffered service-connected disabilities and injuries. The Obama administration recently revealed a plan to require private insurance carriers to reimburse the Department of Veterans Affairs (VA) in such cases.

“It became apparent during our discussion today that the President intends to move forward with this unreasonable plan,” said Commander David K. Rehbein of The American Legion. “He says he is looking to generate $540-million by this method, but refused to hear arguments about the moral and government-avowed obligations that would be compromised by it.”

MORE

“Moral and government-avowed obligations?”  Obama honoring them?   HAH!

The Hitchhiker’s Guide to the North American Union: A Layman’s Overview of the Coming New World Order

~~By Grail Guardian

As a follow-up to American Lassie’s excellent article last week I have expanded on a comment I made. As I stated then, I had just listened to a Blog Talk Radio show that had our good friend Diamond Tiger (from Logistics Monster) as the featured guest; use the link to the archive in the post. It’s well worth the listen! I also strongly recommend you check out this piece linking to clips from the movie Zeitgeist for an overview of the ties between today’s political climate and the events of the past. (Wikipedia notes that the term “Zeitgeist” refers to the ethos of an identified group of people that expresses a prevalent world view at a particular period of socio-cultural progression.) But one of the most important points Diamond brought out in the interview is that Barack Obama was chosen (and one could even argue created) by TPTB (The Powers That Be) as a distraction. We spend so much time focusing on his being a usurper and his buffoonery that we don’t watch what’s happening “over here”. She is 100% right, and I applaud her along with everyone at InsightAnalytical for not falling for the distraction. This excellent research is exactly what TPTB are hoping no one does.

I am convinced that Citibank is a huge player in this, and I was struck by their volte face last week (going from being nationalized to turning a profit in just about 2 weeks). Following the money will show just how much fiat currency is mixing and mingling between the 3 members of the proposed North American Union, and I predict that you will continue to see Citi mentioned in small bits buried in obscure places. Of course, Citibank (aka Citigroup, or just plain Citi) is the current rendition of National City Bank of New York (one of the early players in the Federal Reserve System originally run by protégés of John Jacob Astor), so we’re back to the same group of bankers doing the same thing they always do: pushing for global domination in an indirect way.

The plan is to take everything over quietly while they distract us with the Obama show, and by the time we realize what’s happened,  it will be too late. Our banks will be owned by Canada; our real estate will be owned by China; our jobs will be owned by Mexico, India, and Indonesia; and our souls will be owned by the central banks. We will have glass tracking chips implanted under our skin in the name of “National Security”; we will have video cameras recording every moment of every day in public and in private (think about the more than 10,000 public cameras located throughout London;  not to mention the way that webcams are now being built into every new laptop PC and will soon be standard equipment);  each mouse click or keystroke on our computers will be tracked by software that’s been perfected over the past few years disguised as viruses and spyware,;  our mileage will be monitored and regulated electronically via GPS systems built into our vehicles (why else would the government buy the automakers?);  our guns and ammunition will be monitored and eventually the attempt will be made to take them away (although I am convinced that this will fail and likely be their downfall–America will not give up her firearms or Second Amendment rights); and how many Americans will be caught playing with their Obama “Yes, we can” messages on cell phones and Ipods when the civilian police force comes knocking at our doors?

The real message to remember here is one I must again attribute to Diamond Tiger (and of course the late, great Douglas Adams):

Don’t Panic.

[For those of you unfamiliar with this classic, I highly recommend listening to the original BBC radio version in a darkened room with surround sound!] at:

http://www.sadena.com/BBC-Radio/H2G2/

That’s what will set us apart from the masses, and if we spread the word far and well enough, it might be what averts the pending disaster TPTB have planned for us. So in the style of H2H2, just remember a few basic points:

1. Nothing is what it appears to be. If something draws your attention left, look to the right for the real story.

2. “Zaphod Beeblebrox” Obama is just the dancing hot dog that’s there to entertain and divert you until the real show starts.

3. Don’t believe the media about how bad things are. They’ve been lying to us for years; why would they stop now?

4. Hope for the best, but plan for the worst. Be sure you and your family are prepared for whatever might happen. And don’t forget to bring a towel.*

5. You are not alone. No matter how much the Oborg tries to convince us otherwise, there are way more than a dozen PUMAs that are worried about America’s future. Hell, there are way more than a dozen countries that are worried about America’s future!

6. We are Americans. We will come through this, one way or another. That’s what we do.

***

*From The Hitchhiker’s Guide to the Galaxy: “A towel is about the most massively useful thing an interstellar hitchhiker can have”

Mexico Plans World’s Third Largest Seaport, Will Impact U.S. Ports on West Coast; Citigroup to Help Finance? (Updated 1X More on TARP $$ Going Overseas)

~~By InsightAnalytical–GRL

Breaking News…as I finish up this post Wednesday night (3/22) , I’ve just watched Dennis Kucinich with Greta on On the Record discussing the revelation that Citicgroup took part of its TARP bailout money and made deals with Chinese and Dubai companies, in effect, sending our money overseas.  The links are not up as of now, but I’ll post what I find tomorrow. In the meantime…read what follows and see if you don’t ask the questions we’ve been asking here at IA over the last few days…

***

Yesterday I mused about what’s going on in Canada and its ties to the U.S. financial crisis and a couple of days ago, American Lassie wrote about the North American Community.  Earlier, IA took a look at a possible U.S. role Mexico and today, I’m looking at Mexico again, specifically about a certain plan that has been brewing for quite awhile and which seems about to take off.

About a week ago I opened the Albuquerque Journal’s Business Outlook section and found a full page story entitled “Planned Seaport to be the third largest in the world”.  (The link is working as I write this, but because the ABQ Journal is behind a wall and available to subscribers-only, I don’t know for how long.  http://www.abqjournal.com/biz/0294376619biz03-02-09.htm)

The seaport, called Punta Colonet, will be built here:

Punta Colonet (Photo courtesy RE/MAX)

(More information on the location, including maps, at the end of this post)

A word about the columnist.  Back in 2003, Jerry Pacheco was running Gov. Bill Richardson’s newly-formed office dealing with Mexican trade (see press release at the end of this post). And here’s a bit more detail:

Pacheco is a recognized expert in Mexican affairs and has extensive business experience throughout Mexico. He established and ran the state’s first foreign trade office in Mexico City during the early 1990s, and is a syndicated columnist with regular international columns appearing in El Paso Inc., Ser Empresario magazine and most recently in the Albuquerque Journal.

Which brings us back to the ABQ Journal article in question…written by the guy in the know…

Monday, March 02, 2009

Planned seaport to be third largest in world

Albuquerque Journal–> By Jerry Pacheco
For the Journal Punta

Colonet is a small Mexican Pacific coastal village located approximately 150 miles south of Tijuana in Baja California. Historically, this area’s economy has relied on agriculture and tourism. For the past five years, excitement and speculation has centered on Punta Colonet, as the Mexican government has announced that it will build a new Pacific seaport at this site.

The scope of the project is enormous by world standards. According to Mexican government reports, the port will be designed to handle six million containers annually at final build-out. In terms of processing volume, it will be larger than the ports of Los Angeles and Long Beach combined. When completed, the site is projected to encompass an area of more than 27,000 acres, or slightly more than 42 square miles. It will be the third largest seaport in the world, behind only Singapore and Hong Kong. It is estimated that between 90,000 and 200,000 people, a small city, will be needed to operate the port facilities.

Punta Colonet is Mexico’s attempt to claim a larger share of the billions of dollars in merchandise shipments between North America and Asia, which are coming through ports farther north. It is estimated that this aggressive project will cost close to $2 billion in its initial phase, with a final build-out estimate of up to $6 billion. Multiple sources of public and private monies will need to be accessed. Citicorp has been meeting with high-level Mexican officials to discuss participating in the financing of this project.

SNIP

In the current world economic recession, many people question the timing for Punta Colonet. Previously, the capacity and the ability of the mature U.S. West Coast ports to handle increasing ocean cargo was a major concern, but the volume at the Los Angeles and Long Beach Ports has recently decreased by up to 30 percent because of the economic crisis, and the capacity issue has become less important. Many people, particularly players in the U.S. and California, are worried that bringing such a large port on line would further depress and dilute the ocean cargo business.

SNIP

Punta Colonet has been designed to begin construction in 2012 or 2013, with completion around 2020, and had developed a strong momentum. However, in mid-January of this year, Mexico’s Secretary of Communications and Transportation Secretary, Luis Tellez, for the second time issued a postponement of the construction bidding process. At that point, it was announced that the global financial crisis had put the brakes on the project, but by the end of January the Mexican government announced it would begin administering the registration for proposals in April, with the actual process to accept these proposals scheduled for June.

Whatever the time frame, it appears that the Mexican government has decided to proceed with the Punta Colonet port. If the Santa Teresa region remains the preferred crossing point into the U.S. for this project, it could bring a slew of new economic development activities to the southern New Mexico-west Texas region (Paso del Norte region).

MORE

Now what is the first question that pops into your mind??  Citigroup gets bailout money, it’s share price drops to about $1, now they proclaim that they are profitable and the market soars on Tuesday, 3/10. I don’t know if all that is related to this port project, but you have to wonder at the very least: If the U.S. government is “funding” Citicorp, then does that mean the U.S. taxpayer will be building this port if the deal goes through??

Remember this story from just a couple of weeks ago?

Citigroup gets new rescue, U.S. may own 36 percent

NEW YORK/WASHINGTON (Reuters) – The U.S. government will boost its equity stake in Citigroup Inc to as much as 36 percent, bolstering the bank’s capital base in the latest emergency effort to save the banking giant.

SNIP

While the latest rescue does not inject more money into Citigroup, it gives the government more of a voting stake and far greater influence over the bank’s operations, short of outright nationalization. The White House said a higher U.S. stake will help achieve a “better outcome” for the bank.

“The government is the new boss,” said Mike Holland, the founder of money manager Holland & Co in New York. “Every major decision is something that is not going to come out of Park Avenue, but is going to come from Washington, D.C.”

New York-based Citigroup in October and November received $45 billion of taxpayer money, as well as a government backstop to cap losses on $300.8 billion of toxic assets. More than two-thirds of these assets related to mortgages and commercial real estate.

SNIP

Pandit has split Citigroup into two: Citicorp, which has retail banking and other businesses that Citigroup wants to keep, and Citi Holdings, which includes troubled or underperforming assets it wants to sell or wind down.

A higher government stake could complicate Citigroup’s ability to operate in some of the more than 100 countries where it has businesses. Bank executives downplayed speculation that Citigroup might shed all or part of its ownership of Grupo Financiero Banamex, Mexico’s second-largest bank.

“We’re not open to the idea of offloading assets that we really want to keep,” Edward “Ned” Kelly, head of global banking and Citi Alternative Investments, said in an interview. “Banamex is a very important property to us, and we are intent on retaining it and maximizing its value.”

MORE

(Here’s more analysis of the situation at Citigroup from John Batchelor at The Real Barack Obama blog.)

And here’s more background on Asian investors who are also wanting in.  There has been a lot of behind-the scene negotiations and “intrigue” in lining up financial partners with political connections in Mexico, according to Pacheco.  Here’s some background you might find interesting from The Free Trade Alliance based in San Antonio, Texas. From April, 6,2006:

A Deck of Chinese Cards

Mexican and US officials and businessmen are stepping up contacts with China and other Asian nations in high-stakes bids to expand economic relations. Trade missions from Baja California, Chihuahua, Michoacan and Texas all have recently flown to meetings and tours in the emerging global economic powerhouses of the Far East.

SNIP

Their eyes fixated on the expanding Chinese star, Mexican officials are now considering opening an eastern-oriented Pacific port in Baja California to help handle the burgeoning trade volume. Located about 150 miles south of the US-Mexico border, Punta Colonet is emerging as a possible super port. Carlos Jauregui, the executive director of the port of Ensenada said construction of the port could begin in 2008 and be completed by 2012. Jauregui estimated the facility could cost about $5 billion dollars to build, including a rail link to the United States.

And what about the implications for U.S. ports?

The Cunningham Report, which describes itself as “an information source for the trade and transportation industry” commented on 89/31/08:

Although folks at both the Port of Los Angeles and the Port of Long Beach have downplayed the impact of the Punta Colonet project and noted that completion of the port would be years away, if it is developed, the Mexican port could at some point pose significant competition.

Also, from The Puget Sound Business Journal, August 29, 2008:

While Mexican planners hope the Mexican port will attract cargo from congested Southern California ports, that could have a domino effect in the Pacific Northwest.

The ports of Seattle and Tacoma are launching a joint marketing agreement to convince cargo owners to shift cargo from Southern California to Puget Sound, but that effort might have less success if Southern California congestion eases because of the Mexican port.

Otherwise the proposed Mexican port probably won’t take away too much cargo from Puget Sound ports, except for import cargo destined for Mid-Atlantic states, said Doug Coates, principal for TransSystems Corp. in San Francisco.

Puget Sound ports already are losing some cargo to the new Prince Rupert Port Authority in British Columbia, as well as to expanded East Coast ports including the Port of Savannah, Georgia. In July the Port of Savannah announced its volumes had increased 15 percent over the last year, while the Port of Seattle’s volume dropped 8 percent in the first half of this year.

The Portland Business Journal reports that Port of Portland officials “aren’t particularly worried about heightened competition,” but their article includes this tidbit:

Doug Coates, principal for TranSystems Corp. in San Francisco, said one attraction of the Punta Colonet port might be the promise of lower longshore labor rates, and the possibility that the Mexican port would be buffered from any labor issues with the International Longshore and Warehouse Union. While that union recently signed a new contract, owners of cargo plan far ahead to avoid the effects of union disturbances.

“The shippers are still worried about longshore unrest on the U.S. West Coast and what happens with agreements,” Coates said. “The carriers like the fact that it’s lower cost and more flexible labor.”

Do you hear the sound of American jobs going down the tubes as the new “community” here in North America takes shape?

By the way, RE/MAX  Baja Realty is gearing up to sell  property with the proposed port as a selling point and their contact form is already up and working:

Welcome to Baja California’s Official website  for the largest Mexican public works project ever.

The purpose of Colonet Real Estate website is to bring information about the new project developing in Baja California, prices of all the possible property’s for sale and questions referring to Punta Colonet.

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MAPS and More Information on Punta Colonet

Maps, Major Ports – US/Mexico Border Transportation Planning – FHWA.

Wikipedia Article on the Punta Colonet Area, port, and detailed map

More Background Information on Border Ties

Frontera Norte Sur, published by New Mexico State University (2006 edition)  Section of interest:

Banks Leap Across Borders

Given the green light by the Federal Reserve Board, a Mexican bank has finalized its majority-ownership purchase of the Texas-based Inter National Bank (INB). Luis Pena Kegel, director general of the Banorte Financial Group, said the INB will use its base from the city of McAllen on the Texas-Mexico border to expand into other regions of the United States.

“With this operation, Banorte has the intention of getting closer to families and businesses on both sides of the border with innovative financial products that nobody else is offering,” Pena said in an interview with the Mexico City daily La Jornada.

MORE

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UPDATE  3/13/09

Thanks to America Lassie for this link which has the video of the hearing mentioned by Kucinich on Greta:

http://www.businessandmedia.org/articles/2009/20090312104802.aspx

‘Nightly News’ Perplexed by TARP-Recipients Lending to Foreign Countries

NBC correspondent Lisa Myers investigates banking titans that made overseas loans in wake of congressional hearing.

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BACKGROUND on Jerry Pacheco, ABQ Journal columnist

Press Release from the State of New Mexico re: Jerry Pacheco

http://www.nmpartnership.com/press-releases/article.php?id=970&title=Pacheco+Heads+New+Mexican+Affairs+and+Trade+Division

Return to press release archive

Friday Jun 13, 2003

Pacheco Heads New Mexican Affairs and Trade Division

Contact: Cathy Ann Connelly: 505-476-3747
Santa Teresa, New Mexico – As part of Governor Bill Richardson’s efforts to improve commercial trade with Mexico, Jerry Pacheco, formerly deputy secretary for New Mexico Economic Development Department, is now director of the new Mexican Affairs and Trade Division. This office was created by the State Legislature to better oversee and coordinate the activities of the New Mexico Border Authority, New Mexico Economic Development Department, and the New Mexico-Chihuahua Commission.

Based in Santa Teresa, Pacheco believes the new office is a major, positive step toward increasing the trade and infrastructure interface with all Mexican states.

“State Senator Mary Kay Papen carried the bill that created this new entity, and it is one that will further our agenda of improving productive trade with Mexico,” said Pacheco.

New Mexico’s trade with Mexico is already a mainstay of the state’s existing economy to the tune of $106 million annually — particularly important in the southern part of the state. But although New Mexico shares a border with Mexico, the state is still ranked 39th out of all the states in the U.S. when it comes to its amount of business over the border.

MORE

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RELATED POSTS:

What’s Going On North of the Border: The Canadian Economy and Stimulus Plan

THE PROPOSED NORTH AMERICAN COMMUNITY/NORTH AMERICAN UNION: 2010 Is Just Around the Corner

Secy. of Defense Robert Gates Downplays Possible U.S. Role as Fears of Mexico Collapse Mount; Don’t Be Fooled, There’s A Bush-Era Agenda Still Going On Here…

What’s Going On North of the Border: The Canadian Economy and Stimulus Plan

~~By InsightAnalytical-GRL

Recently we posted information about how Canadian banks are moving into buy U.S. financial institutions (See: Canadian Banks On the Move Buying U.S. Banks While Bailout Recipient AIG Sells Canadian Life Insurance Business to Bank of Montreal (”Picking over the Carcasses”).

Things in Canada aren’t all rosy, of course. As of late January:

“The credit crisis and the global sell-off of commodities have started to hit Canada hard. The country lost more than 100,000 jobs in the last two months of 2008, and the central bank is predicting economic output will contract 4.8 percent in the first quarter.”

When Obama visited Canada last month (February 19, the two leaders pledged to work together:

Obama said the US and Canada were working closely together bilaterally and within the G8 and G20 – two blocs made up of the world’s largest economies – to see how to restore confidence in financial markets.

Like much of the world, both nations are battling a severe recession. In Canada, the world’s eighth-largest economy, the unemployment rate in January soared to a four-year high of 7.2 per cent. That rate was at 7.6 per cent in the US, the highest since 1992. Harper said he and Obama agreed that Canada and the US “must work closely to counter the global economic recession by implementing mutually beneficial stimulus measures.”He later said: “We know, as a small economy, we can’t recover without recovery in the United States.”

SNIP

NAFTA had threatened to become an acrimonious issue during this visit. On the presidential campaign trail, Obama had said that the US would threaten to pull out of NAFTA unless Canada and Mexico agreed to strengthen labour and environmental protections. But he has softened his stance since taking office.

Well, if you’re going to have a North American community, I guess some stances HAVE to be softened…

A few days before Obama hit town, The Hill Times, “Canada’s Politics and Government Newsweekly,” ran this story:

Canada needs whistleblowers to protect stimulus package

Given the $1-billion gun registry overrun and the sponsorship scandal, there’s little reason to trust that this unprecedented expenditure will be managed competently or even honestly.

Displaying start of article containing 755 words – Many Canadians rightly fear that the massive government spending recently announced may simply be wasted or the money end up in the wrong hands, without creating jobs or helping the economy. Given the track record of our corporations (with fiascos like Bre-X and Nortel) and past government waste and corruption (such as the $1-billion gun registry overrun and the sponsorship scandal) we have little reason to trust that this unprecedented expenditure will be managed competently or even honestly.

Sounds so familiar!

And the newsletter I receive from Radio Canada International had this tidbit one day:

TORONTO: CBC IN STRAITS

Canadian Broadcasting Corp. President Hubert Lacroix says the public broadcaster is considering reducing services in coming months to cope with budget problems. In a speech in Toronto, Mr. Lacroix says the CBC faces an advertising shortfall of as much as $65 million for the fiscal year ending March 31, as advertisers reduce spending amidst the ongoing economic crisis. Mr. Lacroix says that while the CBC will likely break even this year, the future is problematic. The president said the broadcaster may sell assets, consolidate local stations or introduce more U.S. television shows. Mr. Lacroix says he has asked for a meeting with the prime minister, Mr. Harper, not to ask for a bigger subsidy but possibly for a line of credit or an advance of funding allotted for future years. On Wednesday, a spokeswoman for Heritage Minister James Moore told The Globe and Mail newspaper that the government expects the CBC to manage with its $1-billion a year subsidy. Meanwhile, The Globe reported on Thursday that private broadcaster CTV plans to close money-losing television stations in Windsor and Wingham, ON.

Meanwhile,  Canadian Auto Worker union members will finish voting today on a tentative agreement which may or may not get the approval of the Canadian government. Although union negotiators have agreed to concessions, it’s not clear sailing:

The new deal is contingent on GM winning financial support from the governments of Canada and Ontario.

Federal Industry Minister Tony Clement has suggested the deal may not be acceptable to Ottawa, although he seemed more receptive today.

“I’m not here to pass judgment,” Clement said after a speech to the C.D. Howe Institute. “For government money to flow, there has to be the ability to be competitive in the new marketplace, there has to be a viable plan on a go-forward basis, there has to be the right kind of management decisions that have been made.”

Clement suggested that in the end, the only thing that will save the auto industry is the American consumer.

“If you’re asking me what will save the auto sector in North America, it’s what American consumers do and buy, not just what Canadians do and buy.”

GM and Chrysler have until March 31 to finalize restructuring plans to get access to Canadian government financial aid.

So, while Canada may not have the same problems with its financial institutions that we are  seeing  in the U.S.,  the spillover of the U.S. banking system’s crisis and our economic woes is unavoidable.  The condition of the Canadian financial system will have to be watched as Canadian banks assume more risk as they take over U.S. assets.

And, as of the moment, the Canadian government’s stimulus package remains hung up as the budget has still not passed the “Liberal-dominated Senate” as Opposition members demand “reports” on the details:

The reports, which detail the budget’s implementation and costs, are to be delivered this March, June and December ahead of opposition days in Parliament. This would give opposition parties the chance to move a no-confidence motion against the government if they wanted to trigger an election.

How about that? An opposition that could trigger a election.

Meanwhile, there was some fighting over the price tag in the bill to fund the government through September that passed yesterday. The $410 billion bill, on top of the $787 billion stimulus package approved in February is starting to bring out the rancor. But:

While most of the votes throughout the debate were along party lines, eight Republicans crossed the aisle to vote to end the weeklong debate on the legislation while three Democrats opposed it. The Senate approved the measure by a voice vote.

So much for a solid opposition here…

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More information on the Canadian stimulus plan and a comparison of the U.S. vs. the  Canadian situations and priorities

Canada’s Stimulus Plan–The Canadian plan focuses on infrastructure.  This article provides a list of measures and a chart of the action plan

Canada’s Fiscal Stimulus Package versus the Obama U.S. Plans