Supply Chain Extortion
I just watched a Real News segment with Paul Jay interviewing Greg Palast about an article he wrote that was published in The Nation. I'm not a fan of Palast but he does dig out and report on things that nobody else does - like computerized vote rigging. The title of the current article is: "Mitt Romney's Bailout Bonanza: How he Made Millions from the Rescue of Detroit".
Palast made the story about Mitt Romney but it's really more about Paul Singer, a billionaire hedge fund investor who also is the Chairman of the Manhattan Institute. The Manhattan Institute came to my attention years ago when I was working on outsourcing and the Mexican labor invasion of our country. The Manhattan Institute had an on-staff "expert" who lobbied for open borders and cheap labor. It should be noted that they now have Victor David Hanson on their staff so maybe that's changed now.
Apparently, the big chunk of money that Romney made was on an investment made by Elliott Management, a fund directed by Paul Singer. The investment was in Delphi Automotive, GM's subsidiary that supplied parts to the automaker.
According to Palast, Elliott Management bought a controlling interest in Delphi. They then did an analysis of the supply chain for GM's cars. The question, "what is the critical component in the supply chain that could shut down GM if they didn't get it". The answer was the steering columns. No steering column, no car. Paul Singer used that information to extort billions from GM. The U.S. taxpayers paid the extortion through the bailout of GM. After GM got the money, they used it to shut down all Delphi facilities in the U.S. except one and they moved those production jobs to China. This is the same kind of extortion the banks used to get money from the U.S. taxpayers on the alleged bank bailout that doesn't really appear to have been a bailout of the banks. (Side note: I have a theory that the shut down threat by the banks actually came from the utility companies because electricity is the ultimate supply chain weapon and a significant amount of bailout/stimulus money has gone to build the smart grid which will provide the utility companies - or whoever is running them - with absolute, total control over our economy).
Supply Chain Targeting
Supply chain analysis was the same strategy that the U.S. used against Germany during World War II:
Lubin was aware that the interindustry data and analysis that he had requested was already in the development process at BLS. Lubin had authorized BLS to create a small research unit at Harvard University in 1941; the unit, under the direction of Wassili Leontief, constructed the first official input-output table.23 Leontief’s new technique employed a system of double entry bookkeeping that tabulated the transactions of any one transactor group industry with all other groups. It included the flow of intermediate as well as final output.
The technique had proved useful to the Office of Strategic Services during the war, helping to pinpoint bombing targets of those German industries crucial to the war effort. Its earliest domestic application had been an estimate made in 1944 for the Planning Division of the War Production Board.24 Within months, BLS had prepared a table of 27 industry groupings by applying the 1939 American coefficients to German industry, that is, the proportion of each industry’s input to particular outputs. Detailed comment and analysis from German industrial experts accompanied the tables, thus modifying the methodology in light of what was known about German industry. Additionally, tables were prepared on consumer expenditures by German families. ~ BLS and the Marshall Plan: the forgotten story, Page 47 (4 of 9).
As everybody knows or should know, the OSS was the predecessor to the CIA.
The sick part of this is that the trail to the reason why large corporations spun off parts of their business to subsidiaries leads right to Congress and the thrashing of the tax code. Corporations respond to changes in the tax code to spin off or roll up subsidiaries. I know that because I worked on projects going both directions.
In the 1990's the "best practices" management techniques promoted by the large accounting and consulting firms was Total Quality Management - "focus on your core expertise and spin off auxiliary functions". The joke is that without the auxiliary or supporting functions, you can't do your core business - as GM found out.
Supply chain targeting is a weapon of economic warfare and when you understand how it works, then you know the probable reason why the billing functions America's phone systems are in Israel - and you might want to do some research to see if Paul Singer had anything to do with it.
Israel is Spying In and On the U.S.? Investigative story by Carl Cameron.
October 27, 2012
Related Research on Supply Chains
Input/Output Analysis and B2B Supply Chain Management
Global Supply Chain Management
Supply Chain Cartel in Action
Zomb eCon oMe
Charlatans, Dirty Little Secrets and the Engineered Decline of America