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Tuesday, July 21, 2009

Auto Czar To Congress--BUTT OUT !!

Originally, the title Czar (derived from Caesar) meant Emperor in the European medieval sense of the term, that is, a ruler who claims the same rank as a Roman emperor. The title of Czar is being used by the President of the United States, to turn himself into a new Caesar.

Our founding fathers wanted the to protect the United States against too much power being placed in one person so they built checks and balances into the constitution.  Presidential appointees reported to the chief executive but with the advice and consent of congress. Appointees were approved by Senate, and once approved had to answer the questions of both houses.

While other president's have appointed "Czars" none have appointed the number of Czar's that Obama has named-at last count we are up to 38. And that doesn't include "special Ambassadors" such as George Mitchell who works directly with the President.


Make no mistake, the reason for all of the Czar appointments is to circumvent the Constitution and to create an imperial Presidency.  These Czars do not have to be approved by the Senate, nor do they have to answer questions posed by congress. Today Ron Bloom, the new car Czar was testifying before congress, and he basically told them to butt out of the auto buisness. So much for transparency:
Czar tells Congress not to meddle in autos
By Ian Swanson

The Obama administration's auto czar on Tuesday said political interference by Congress could jeopardize the bailouts of General Motors and Chrysler.

Ron Bloom, a senior adviser at the Treasury Department heading the administration's efforts on autos, warned members of a House Judiciary sub-panel that an intervention by Congress on behalf of auto dealers would set a "dangerous precedent" that could raise enormous legal concerns.
 

Bloom and the rest of the administration are worried about efforts in Congress to thwart plans by the two companies to close thousands of dealerships across the country. The House last week approved legislation to stop the closures, and a bill in the Senate is gaining sponsors after a heavy lobbying campaign by dealers, who are influential players in local communities across the country.

Members of Congress don't understand why seemingly successful dealerships in their districts, which sometimes are also seen as local community pillars, are being targeted for closure.

Rep. Steve Cohen (D-Tenn.), who chaired Tuesday's hearing, wonders why John Roy's Chrysler dealership in his district was terminated. Roy was the only African-American Chrysler dealer within a 300-mile radius around Memphis, and won business from four states. He was No. 1 in sales in the Memphis metropolitan area, but was still terminated.

"To me, it is unconscionable that Chrysler would treat a successful and loyal dealer in such a manner," Cohen said in an opening statement.

In testimony on Wednesday, GM and Chrysler will say they have too many dealerships and that this cuts into their costs. GM had roughly 6,000 dealerships in the U.S. compared to 1,240 for Toyota before its bankruptcy filing. It will still have more dealerships when it emerges, according to testimony to be offered on Wednesday.

Bloom said the actions by Congress could make if more difficult for the two troubled companies to emerge from their bankruptcies, specifically by making capital markets wary of offering them money for fear Congress might overturn "judicially approved business decisions any time that it disagrees with the judgments of the companies."

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