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Thursday, September 23, 2010

Potentially the Biggest Stock Scam of the Century: The General Motors IPO II [Revised].

Edited 8.20.10 ReEdited 9.23.10

New comments: Some ‘analyst’ has calculated the price of shares to be sold to the public although pertinent and very necessary information is absent. If they own 66 bln to the government then this calculates out [my calc not theirs] to about 500 million shares. This is to be ‘split up’ before the IPO?? Okay, if we split 10:1 that gets the opening price down to about $15 per share right in the target zone of a common IPO. That is then a mere 5 billion shares or 1-3 times what the NYSE does in a good day. This is a Ponzi scheme or worse—a Madoff Scheme.

The mumbling begins here:

The price needed for a full recovery of the U.S. investment is far higher than shares of the automaker have ever reached, and some analysts and government officials have expressed doubts that the United States will be able to recover the money.”[1]-- GM must sell for $134 a share for U.S. to recover investment By Peter Whoriskey Washington Post Staff Writer Wednesday, September 22, 2010; 8:13 PM

“Last week, in fact, Morningstar analyst David Whiston issued a preliminary estimate setting the shares' fair value at $134.

"GM's cost structure is drastically improved," Whiston wrote in a Sept. 13 note to investors. "We think GM's earning potential is excellent because it finally has a healthy North American unit and can focus its marketing efforts on just four brands instead of eight. . . . We think it is critical for investors to know that GM now makes excellent car models as well as light trucks."-- GM must sell for $134 a share

Really? And the union labor costs, fully burdened are what compared to the prvious $73 per employee? Do the unions get their percentage out of this sale? If the unions own 17.5% of GM[2] for about 12 billion dollars. That is a real good deal for the unions and ranks up there with neat deals like the kind Warren Buffer to Bernie Madoff get.

And more hocus pocus:

Note however that when the GM IPO happens, the company's shares will likely be split ahead of time into smaller pieces, in order to provide a lower per-share price and attract retail investors. We weren't big fans of the bailout, but let's see how the IPO goes.”[3]-- Taxpayers Will Break Even On The GM Bailout... If The New Shares Hit $134 By Vincent Fernando, CFA

So, we, again, are left with no information. The number of shares proffered is unknown, the book value is unknown, We don’t even know how this $134 a share works out because the number of shares is not stated.

There is something very wrong here. This is Government Motors and they cannot seem to be open and honest about any aspects. They cheated the primary secured bond holders out of most of their money, gave the greedy and very expensive unions a hearty fraction of the wreckage and now they want to stick investors with this hokum.

No wonder we cannot trust our government at this time. They have obviously panicked and are broaching the limits of the law, decency and honesty to make this mess ‘a success’ so Obama can claim at least one victory in his vast and endless assortment of failures.

We must wait until the details of the IPO come out and get the book value, debt structure and sales revenue forcasts. This is a disaster and reeks of blundering inefficiency like we saw in HUD, Social Security and Medicade.

The previous two posts are shown below:



Previous Abstract: The GM IPO filing is out and it contains exactly nothing of substance. There are so many pitfalls and pungi stakes in this swamp that there is no way to suggest that anybody should buy these stocks. The current history of Tesla Motors shows us that their IPO surged and then crashed catching investors on the upswing to lose money [$30.42 down to 15 for a quickie 50% shellacking] My prediction is that the preferred stocks in this scam will be offered privately to insiders [like Warren Buffett] and they will convert to common before the bad news is released and the other stockholders take the loss. This is your government in action.

We are always interested in the growth of business and the purchase of equities of various flavor and, a few years back, the new and exciting IPOs that were offered in the Dot Com Era such as Ariba, Red Hat and more were popular and profitable and those are some that I participated in. I missed Google.[4] The IPO activity has been particularly quiet for the last few years [except recently in China] and many corporations merely hung on with their financial fingernails as the economy tanked and is still crashing under the massive weight of 14 trillion dollars in national debt, rising at 10% per year or more for the next several years.

GM was a sorry and particularly disgusting crash with liberal Democrats bawling over the wreckage and greedy unions hoping to get their jobs secured by federal laws.

From a previous blog on this subject Apr 23, 2010:

“This attracted political attention and the Obama organization decided to fix the problem by nationalizing the company. This conforms to my theory of ‘spreading around the wealth.’[5] GM was swamped by $80 billion in debt and was going bankrupt. Our current Neo-Marxist liberal/radical government now blends fascism[6][7][8] with socialism in an attempt to redistribute the wealth and they applied this in fact as we saw in the GM and Chrysler bailouts where bond holders and stock holders were wiped out [a 70% haircut in the parlance for the bond holders] and the shrunken remains given to the unions while the management was replaced by orders from the White House.[9] The unions retained some 17% of the company [for what?? Political reciprocity??] and the US and Canada lent them 6.1 billion to get restarted. From money lying around in sprawling government project accounts, they ‘repaid’ the ‘loan’ 5 years ahead of schedule and now celebrate. They intend to hire soon but at lower wages according to Mark Reuss who heads up GM of North America. Thus, their debt was wiped out by our government. The taxpayers are stuck with 45 billion in stock and now GM wants to offer an IPO, which will most likely dilute the shares and secure a loss for the taxpayers. This is all an illusion as their labor costs remain uncompetitive against other car manufactures that make profits in this country. We have substantially subsidized a failing company for a political return and we will have to perpetually rescue this monster from time to time. Wages and benefits must come way down before GM can be successful in a free market. “[10]

This was the picture in April 2010 and the number crunching that must proceed any new stock purchase on this second socialist exercise in the US are masked by the fact that they do not appear in the IPO filing. According to the New York Times, suspect in all matters, but this time publishing the raw truth, a surprise, are these:

“[1] In the filing, G.M. did not disclose the number of shares that it planned to sell or a price range,…

[2] …the total offering was expected to raise more than $10 billion and could approach $15 billion or more….

[3] G.M. said the offering will include preferred shares as well as common stock, though the company will not sell any additional common shares directly. The preferred shares would be converted to common stock in 2013 at a rate that was not disclosed.

[4] The registration also did not disclose how much of a stake that the government would sell immediately, but it said taxpayers would “continue to own a substantial interest in us following this offering.” People briefed on the matter said last week that the Treasury was expected to sell about a fifth of its shares, bringing the taxpayers’ stake in G.M. below 50 percent.

[5] In the four years before its bankruptcy, G.M. lost $88 billion. [higher than my estimate above. Ed.]

[6] Mr. Whitacre said he wanted the Treasury to sell off its full stake as quickly as possible.

“We want the government out, period,” he told reporters earlier this month after speaking at an automotive conference in Michigan. “We don’t want to be known as Government Motors.”[11]-- General Motors Files for an Initial Public Offering By Nick Bunkley Published: August 18, 2010 .[Emphasis is mine in all quotes.]

Edited 8.20.10

Some comments from the GM IPO filing:

GM said that as of June 30, "we concluded that our disclosure controls and procedures were not effective at a reasonable assurance level because of the material weakness in our internal control over financial reporting..." Thus, you might not be surprised to learn, GM can't promise to "report accurately our financial condition and results of operations in the future in a timely and reliable manner..."”[12]-- Quick read: What you need to know in GM's IPO filing Aug 19, 2010 .[Emphasis is mine in all quotes.]

“"In some cases, the technologies that we plan to employ, such as hydrogen fuel cells and advanced battery technology, are not yet commercially practical," and a for-instance, GM says, is the "Chevrolet Volt, an electric car, which requires battery technology that has not yet proven to be commercially viable. There can be no assurance that these advances will occur in a timely or feasible way...” -- Quick read: What you need to know in GM's IPO filing Aug 19, 2010

“"We cannot assure you that any of our contemplated restructurings will be completed or achieve the desired results, and if we cannot successfully complete such restructurings, we may choose to, or the directors of the relevant entity may be compelled to, or creditors may force us to, seek relief for our various European operations under applicable local bankruptcy, reorganization, insolvency" laws.” -- Quick read: What you need to know in GM's IPO filing Aug 19, 2010

Now, if that is not sorry work.

Apart and beyond telling us exactly nothing in this deal [except that GM is a losing game with idiots in control] we have no clue on what is happening. Note that if Treasury is selling stock and the public is buying stock and there are some convertible preferred shares involved [let me guess they go to ‘preferred’ buyers like Warren Buffett at a fat 10% guarantee[13][14][15]] there is no way for even GM to determine how much operating cash they can get from this sale. We don’t have a clue what the book value is as the current wreckage is not public. We, as taxpayers, only know that we own some 60% of this trash.

So, what does the Wall Street Journal know about this:

The IPO, expected later this year, will potentially raise $10 billion to $15 billion. An expected price range for the shares will be determined closer to the sale.

The 734-page registration filing outlines GM's business plan and potential risks facing the company, along with detailed financial statements.”[16]-- GM Files for Long-Awaited IPO By Sharon Terlep And Dan Fitzpatrick Aug 18, 2010

Here is a hint:

For the government to recoup its full investment GM must achieve a stock-market value of $70 billion—10 times GM's market capitalization before the company headed into bankruptcy-court protection in June 2009, and at least $30 billion more than the market value of Ford Motor Co.”-- GM Files

This is like an algebra problem where there is only one equation that has three unknowns and you get to plunk in a few numbers here and there and guess at what the result will be. If GM only picks up $10 bln then that is way short of the $70 necessary for the government to break even. It might be that if the government sells shares too soon then they might never recoup their ‘investment’ in this mess and if they wait too long and GM fails then we can go back to the Treasury and fix up this mess with more taxpayer monies and go for a retry. Selling and buying shares in the same company simultaneously usually leads to uncertainties and suspicion. There are scenarios for speculators to make sell numerous naked puts and calls in this mess.

More bad news:

To ready a return to the public markets, GM last week announced that Daniel Akerson, a former telecommunications executive appointed to the GM board by the Obama administration, will become the company's CEO on Sept. 1”-- GM Files

One thing is very clear in all this: our ‘government’ cares not a whoop or a holler how much tax money is wasted in this wreckage as they only care about retaining the votes and generous cash donations to liberal Democrats from the unions. That much ought to be clear.

This preferred stock gig here is disturbing me the most. There is a good chance that the conversion to common might be very generous [1.2 to 1.5 per share] and so generous that if the company crashes, as it should because it is not competitive in US markets, ignoring China with Buick sales, and that leaves the possibility that some wonderful person could buy those preferred shares with a 10% guarantee and take the interest and switch over to common as the company crashes and the government shares would plummet down toward zero value.

That is the kind of plan I expect from Washington. I bet we cannot know who buys the preferred shares. Since we do not know how many shares are in his pig in a poke we cannot know what the dilution factors might be.

This is a potential scam in the making with profits backstopped by your tax monies.

Detroit knows nothing of value.[17]

Intelligent questions:

How can anyone know whether they’d want to buy this or any other IPO without knowing what percentage of the company you would be owning and the asking price in relation to some reference point of valuation?”[18]-- Investor Insanity Regarding the Coming General Motors IPO .[Emphasis is mine in all quotes.]

Already established shares have clearly defined P/Es, price book value, price/cash flow relationships yet the rumored GM IPO has not addressed any of these factors. The question most heard has been… “Should the public be allowed to participate or will all the shares go to the privileged?”

If the public is allowed to buy it’s almost certain that they’ll be grossly overpaying for dicey future prospects after a couple of quarters with profits that were ‘manufactured’ along with the Chevy Volt.

If the public is excluded from the IPO, either through complicated bidding rules or other means, it’s likely that the newly issued shares will be ready to “jump and be dumped” onto them at highly inflated prices.”[19]-- Investor Insanity By Paul Price Aug 16, 2010. [Emphasis is mine in all quotes.]

All these fears are justified in the panic and gloom of the US auto industry. Obama has his own pet stooge in the head chair and we can be certain that the unions will get the best deal if and only if they can sell their shares. Or, the early baiting might be the opportunity to dump union ownership and get out before the IPO flips on the first day and then investors find out they bought a dead horse.

And the government and leftist media howl about Goldman Sachs!

The Tesla scam is outlined in this article by and the chart[20] is very interesting:

Priced at $19 it jumped quickly to $30.42 just in time to suck in those who couldn’t get shares on the offering. Within a few days TSLA was down to under $15 to give them a chance at capital losses or tax loss carry forwards for their trouble.

Caveat emptor on the GM offering.”-- Investor Insanity

As voters, we cannot subsidize this mess as it will only encourage more government takeovers of failing companies if they are union backed.

Do not buy GM or Tesla as that is only laying the foundation for more of your tax monies to be wasted. These products are not competitive in a free market.


Comments to:

[1] GM must sell for $134 a share for U.S. to recover investment By Peter Whoriskey Washington Post Staff Writer Wednesday, September 22, 2010; 8:13 PM

[3] Taxpayers Will Break Even On The GM Bailout... If The New Shares Hit $134 By Vincent Fernando, CFA

[4] Asleep

[5] The Phony Quest for More Jobs--A Prediction: Obama will Just Create and Transfer Debt for Jobs Funding.

[11] General Motors Files for an Initial Public Offering By Nick Bunkley Published: August 18, 2010

[14] He paid “$5 billion for Goldman Sachs (GS) preferred shares that pay a 10% dividend.” Isn’t that sweet! Another TARPIE Sweetie! [Emphasis is mine in all quotes.]

[15] [3] His company “agreed to buy $3 billion of preferred General Electric (GE) stock. This stock pays a generous dividend of 10%. On top of that, Berkshire gets the option to buy $3 billion of GE common stock at $22.25 per share, well under the current trading price of around $25 a share.”

[16] GM Files for Long-Awaited IPO By Sharon Terlep And Dan Fitzpatrick Aug 18, 2010 .[Emphasis is mine in all quotes.]

[18] Investor Insanity Regarding the Coming General Motors IPO .[Emphasis is mine in all quotes.]

[19] Investor Insanity By Paul Price Aug 16, 2010. [Emphasis is mine in all quotes.]

Wednesday, September 22, 2010

Krugman of the NYP Plays the Nazi Card as Times Become Desperate for Democrats.

Abstract: As the dog returns to its vomit, we can depend on the far left to demonize their opponents with first sarcasm, then ridicule and when the hope of beating them in some contest flees away they play the Nazi Card—their best weapon and last straw. At this article, Paul Krugman, associated with economics in some arcane way, has gone to the mat fumbling and frustrated and played his last card. His arguments are incoherent, based on half truths, omitting critical data on jobs and taxes and reads like a conversation between two drunks fighting over a bottle of Tokay in some alley in San Francisco.

How to best read my blogs:

[I offer extensive quotes in this blog so that the reader can view the exact language and can be confident that nothing was taken out of context or that nobody was misquoted. The easiest way to take in the salient points is to read the emphatic points in the quotes and then peruse my comments. Comments on my comments are always welcome:]

He foams this:

““The rage of the rich has been building ever since Mr. Obama took office. At first, however, it was largely confined to Wall Street. Thus when New York magazine published an article titled “The Wail Of the 1%,” it was talking about financial wheeler-dealers whose firms had been bailed out with taxpayer funds, but were furious at suggestions that the price of these bailouts should include temporary limits on bonuses. When the billionaire Stephen Schwarzman compared an Obama proposal to the Nazi invasion of Poland, the proposal in question would have closed a tax loophole that specifically benefits fund managers like him.”-- The Angry Rich By Paul Krugman Op-Ed Columnist Published: September 19, 2010

[1]-- The Angry Rich By Paul Krugman Op-Ed Columnist Published: September 19, 2010 [Emphasis is mine in all quotes.]

His rant begins with some isolated case where a few ‘rich’ have dim views of how Obama and his destruction of the economy of the United States is off the wall and Marxist [my assessment]. Many more than the ‘rich’ have seen Obama and his drooling Marxists try to control, micromanage and tax everything in sight. He has failed and now takes his party down.

From the recent past, He bangs his head to hear it rattle:

Austerity is self-defeating: when everyone tries to pay down debt at the same time, the result is depression and deflation, and debt problems grow even worse. And conversely, it is possible — indeed, necessary — for the nation as a whole to spend its way out of debt: a temporary surge of deficit spending, on a sufficient scale, can cure problems brought on by past excesses.[2]-- 1938 in 2010 By Paul Krugman

This is the Eternal Source of money to fund the left—spend, spend, and spend.

A peek at leftist propaganda history:

Krugman Hitlerizes his political enemies, but hypocritically condemns others for that exact usage:

“…that if you do, in fact, start making Nazi comparisons, you’ve lost the argument and can no longer be taken seriously. I’m all for that.”[3] Here, Krugman mangles Godwin’s Law a sacred precept in liberal journalism or so we are told in November 2009.

And more:

John Leo has documented a host of cases where the far left have cloaked their Republican opponents, even President Bush, in Nazi regalia and more.

Comments like “Tom Ridge was the new Himmler, “… compared Rove to Josef Mengele ,” “…Rumsfeld was the real Hitler , “George Soros said Bush reminded them of Herman Goering.,” … Al Gore used the term "brownshirts" (Nazi street thugs),” … to Bush that it is "best viewed as a fitting memorial to Leni Riefenstahl,"… depicted Bush as a Hitler figure, “…Bush's rise to power was reminiscent of the rise of Hitler and Mussolini,” and this list goes on and on. [See footnote below for exact quotes.][4]

There is no question about the left’s Demonization and Nazification of any major political player on the right and even some in the near middle when they sink to desperation and despair.

Krugman sacks his own argument using Krugman’s own specious Nazi Comparison Rule.

In this article, Krugman focuses in on the rich with slurs:

The ‘rich,’ never clearly defined by the left and also the elastic upper income limits of the poverty level, are attacked from all directions in a political frenzy as this gives them more freedom to criticize their enemies and allows them to deceitfully zero in upon key targets as this word ‘rich’ portends them as an even more hated substitute for conservative Republicans—the arch enemies of the rabid left.

Krugman attempts to truncate and box in the ‘rich’ with his rare use of numbers. He faithfully passes over the obvious when he fails to mention that many of these $400,000 plus people have businesses and their corporate status throws the tax burden upon them at their current individual tax rate and omits any need for investment or other expenses like employees.

Well, they don’t make as much as the government of Bell , California.

These days, however, tax-cutters are hardly even trying to make the trickle-down case. Yes, Republicans are pushing the line that raising taxes at the top would hurt small businesses, but their hearts don’t really seem in it. Instead, it has become common to hear vehement denials that people making $400,000 or $500,000 a year are rich. I mean, look at the expenses of people in that income class — the property taxes they have to pay on their expensive houses, the cost of sending their kids to elite private schools, and so on. Why, they can barely make ends meet.”-- The Angry Rich By Paul Krugman Op-Ed Columnist Published: September 19, 2010

Krugman whines about the poor.

And when the tax fight is over, one way or another, you can be sure that the people currently defending the incomes of the elite will go back to demanding cuts in Social Security and aid to the unemployed. America must make hard choices, they’ll say; we all have to be willing to make sacrifices.

But when they say “we,” they mean “you.” Sacrifice is for the little people”-- The Angry Rich By Paul Krugman Op-Ed Columnist Published: September 19, 2010

Hypocrisy surges forth here as it is Obama and the Democrats who want to cut Medicare to ‘pay for’ their socialized medicine follies. Social Security is a disaster now that will consume our entire budget if let to metastasize. Where is the charge that the old folk will have to eat dog food?

A simple scan of this article shows that it is absent of any meaningful economic numbers or estimates, a key feature of the NYT when they employ Paul for political abuse upon their enemies. Krugman employs what I call Cryptomisoxeny.[5] He omits any analysis and merely stands in as the daily feces chucker for the near bankrupt New York Times—aka the Walter Duranty Papers[6][7]--a turn-of-the-crank Marxian puppet stage where intermezzos and grand opera ring. This is a hateful, mindless rant.

We expect the liberals to explode with any threats or chum they can chuck as their chosen one descends in the polls down to about 41% and is sinking. Obama has made a mess of every single program he has endorsed and now is dragging his own party into the latrines. For this, we must blame the opposition and convince the voters that more spending and more welfare and more taxes and higher debt will benefit us in the long run. He employs chum-chuckers like Krugman to do his broadcasting and spins.



[1] The Angry Rich By Paul Krugman Op-Ed Columnist Published: September 19, 2010 [Emphasis is mine in all quotes.]

[2] 1938 in 2010 By Paul Krugman [Emphasis is mine in all quotes.] Published: September 5, 2010

Krugman Offers Us Canned Circular Revisionism: We Can Repeat the War Time Successes of FDR.

[3] Godwin’s Law — which says that in any sufficiently long online discussion, someone will compare his opponent to Hitler — is often interpreted to mean that if you do, in fact, start making Nazi comparisons, you’ve lost the argument and can no longer be taken seriously. I’m all for that. (Does this mean that we should no longer take any significant figure in the Republican Party seriously? Yes, it does.)” November 16, 2009, 10:59 AM Proposed extensions of Godwin’s Law

[4] Nancy's Nazi Shock: Did She Forget the Bush Years? By John Leo

Nancy Pelosi is shocked by the presence of some swastikas at protests against Obamacare. Who ever heard of such a thing? Well, any mildly alert American old enough to remember the anti-war protests of 2003-2007. Images of George Bush with a Hitler mustache and a Nazi uniform was everywhere at swastika-choked marches and rallies. "Stop the Fourth Reich-Visualize Nuremburg," said one sign at a Hollywood march. "The Fuhrer already in his bunker," said another. Lots of Nazi regalia appeared at protests in Pelosi's San Francisco as well.

On far-left Internet sites, where basic Bush-Is-Hitler commentary became too familiar to attract attention, Bush aides were quickly assigned Nazi roles; Tom Ridge was the new Himmler and Colin Powell became Nazi Foreign Minister Joachim von Ribbentrop; Ari Fleisher, Karen Hughes and Karl Rove were all Josef Goebbels figures. Some thought Vice President Cheney was the most important Hitler figure - he commands "storm-trooper legions," said famous crackpot Lyndon LaRouche.

One fevered lefty connected Bush to Nero as well as Hitler, saying "Nero burned Rome, Hitler burned the Reichstag and Bush burned the World Trade Center."

An even more inventive commenter managed to link Rove to Josef Mengele, the depraved Nazi doctor nicknamed the Angel of Death: "Bush made up stories about John McCain, just as Josef Mengele conducted medical experiments on children in Auschwitz." What?

Donald Rumsfeld was the new Rommel. The Action Coalition of Taos, New Mexico, however, thought Rumsfeld was the real Hitler, since, like Adolf, he had a mountain retreat. In an op-ed published in Florida, Air Force veteran Douglas Herman, disagreed, saying Rumsfeld was more like Goering, because both men had been fighter pilots.

Mainstream commentary featured Nazi references too. Both Senator Robert Byrd and billionaire Democrat George Soros said Bush reminded them of Herman Goering.

During the 2004 presidential campaign, Al Gore used the term "brownshirts" (Nazi street thugs) to refer to Republican computer teams assigned to respond to criticism of Bush and the Iraq war.

Vanity Fair magazine nominated Richard Perle for the Goebbels role, running photos of both men under the headline "Separated at Birth?"

New York Times columnist Frank Rich managed to work in a reference to a famous Nazi filmmaker. He said a Showtime program on 9/11 was so favorable to Bush that it is "best viewed as a fitting memorial to Leni Riefenstahl."

The Rev. Andrew Greeley, sociologist and novelist, depicted Bush as a Hitler figure who carried American over to "the dark side."

Federal appeals judge Guido Calabresi offered a comparatively mild Nazi reference, saying the Bush's rise to power was reminiscent of the rise of Hitler and Mussolini, with the Supreme Court pushing him into the presidency with the Bush v. Gore decision.

Bush reminded the left of non-Nazi villains as well. He was depicted as Attila the Hun, serial killer Ted Bundy, Mussolini, Ahab, Hannibal Lecter, the Anti-Christ and Frankenstein's monster (on the cover of the British edition of book by New York Times columnist Paul Krugman).

As far as we know, Nancy Pelosi never complained about any of this. Maybe she didn't notice.

[5] Cryptomisoxeny is a mental condition in which a person is compelled to enlist in a valiant crusade to ferret out and squash such human notions such as bigotry, racism and hypocritism. The person with this disease is completely unaware of its presence and control of his actions and is deluded with the false or reverse notion that his or her conduct is actually the exact opposite from the unacceptable targeted conduct in others. Hence, those who rail and rant and search for bigots frequently use overt bigotry in their sanctimonious quest for the offenders and employ bigotry in its strictest definition to condemn other persons or groups. All this proceeds unconsciously as the bigots, in this case, believes that they are far above such a social defect and are some form of cleansing device for our society. Sanctamonicity is the ultimate internal psychosomatic reward as it draws rave reviews and wild applause from peers and others also burdened with this affliction and offers comfort and camaraderie. The same argument holds for those who chase and attempt to correct racists using overt racism and, of course, this is hypocrisy, but a form hypocrisy that is buried deeply in the id. Cryptomisoxeny Explained by Theory and Examples II Posted by rycK on Sunday, December 06, 2009 8:48:28

[7] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

He said that these people had to be "liquidated or melted in the hot fire of exile and labor into the proletarian mass". Duranty claimed that the Siberian labor camps were a means of giving individuals a chance to rejoin Soviet society but also said that for those who could not accept the system, "the final fate of such enemies is death." Duranty, though describing the system as cruel, says he has "no brief for or against it, nor any purpose save to try to tell the truth". He ends the article with the claim that the brutal collectivization campaign which led to the famine was motivated by the "hope or promise of a subsequent raising up" of Asian-minded masses in the Soviet Union which only history could judge.”