By John Seiler

Surprise! The government-run company decided not to challenge the government tax increase. Government Motors, the leader of companies that were going to opposed the massive, $1 billion tax on out-of-state businesses called Proposition 39, has led a surrender.

The Contra Costa Times reported:

“The Yes on Prop. 39 campaign sort of declared victory today, announcing it would pull its television and radio ads after hearing that the companies once opposing the measure will do so no longer….

“The committee backing Prop. 39 today said it has been informed by General Motors, International Paper and Kimberly-Clark that they won’t oppose the measure any further. Chrysler and Procter & Gamble, the two other companies that once were part of a coalition opposed to closing the loophole, also recently stated that they would not oppose Proposition 39.”

More good reasons not to buy junkers from Government Motors, which still has $25 billion invested in it by the U.S. Government. Chrysler also got a massive government bailout, its second in 30 years (for now), but currently is not owned by the government.

This also shows how the whole election system is rigged. California is a banana republic with imported bananas.

By John Seiler

One reason the American economic “recovery” is so weak is that, when General Motors went bankrupt in 2009, President Obama stole the company’s assets from bondholders to give to the UAW union. Yes, he did steal them.

In long-established bankruptcy law in America, bondholders are the first in line to receive the assets of a bankrupt company. Obama changed that, putting the unions first. Bondholders got only about 5 percent on their invested dollars.

What that did was to weaken the value of all bonds in America, including bonds held by middle-class retirees, pension funds and mutual funds. Formerly one of the most secure investments, now nobody knows if the bonds might be de-vauled by Obama, or his successor in the Kremlin, just on a whim. American bonds now are as trustworthy as Venezuelan bonds or Albanian bonds.

The New GM also was supposed to pay back all of the $49.5 billion bailout money the taxpayers were forced to inject into it. But the Detroit News just reported:

“General Motors Co. stock fell 1.2 percent Wednesday, closing at $18.80, down $0.22, on worries about Europe — the first time the Detroit automaker’s stock has closed below $19 a share since its initial public offering.

“The Detroit automaker has seen its share price tumble by more than 52 percent since it reached a high closing price in January 2011 of $38.90, just after going public in November 2010. The company has shed more than $30 billion in market capitalization over the last 18 months, and now is worth about $29 billion….

“GM’s low stock price has prevented the Treasury from exiting the automaker. It still holds 500 million shares of stock in the company as part of its $49.5 billion bailout, or a 32 percent stake.

“It needs about $53 a share in order to break even on its GM bailout. At current prices, it would lose $17.25 billion on the bailout.

So we were totally ripped off!

And let’s not forget that Government Motors also perpetrated the flammable Chevy Volt car. For Obama and eco-freaks, it’s the future of electric cars. But each Volt sold costs taxpayers $250,000. That’s more than the price for a new Ferrari California!

What should have happened was that GM should not have been bailed out, and not forced to build the Volt. By now, the company long would have recovered under completely private ownership, saving tens of thousands of jobs instead of burning them.

Last fall, Government Motors assaulted the John and Ken radio show by pulling ads from the show because the talk show hosts favored restricting immigration. I wrote it about it then. If Government Motors had been a private company, that would have been no problem. Private companies can do what they want. But Government Motors, formerly General Motors, is owned 32 percent by the U.S. government.

Now, Government Motors is assaulting the Heartland Institute, a conservative think tank, because it’s a skeptic on global warming. Reported the Los Angeles Times:

“Citing its corporate stance that climate change is real, General Motors announced Wednesday that its General Motors Foundation would no longer be funding the Heartland Institute, a free-market think tank that has attacked human-caused global warming as ‘junk science.'”

Again, if GM were General Motors, a private company, no problem. But it’s Government Motors. It’s run by the fanatical “climate change” Obama administration.

It was just last month that global-warming fanatic Peter Gleick admitted he tricked Heartland into turning over to him internal documents, a clear violation of privacy laws.

GM even admitted its decision was based on the Gleick deception. The Times:

“The development is fallout from the release of Heartland Institute funding documents in February, which showed that GM contributed $15,000 to Heartland in 2010 and 2011. Peter Gleick, president of the Pacific Institute and a MacArthur “genius” grant recipient, revealed in February that he had assumed a false identity to obtain some of those documents.

“In a statement released to the press, Heartland Institute President Joseph Bast said: ‘The General Motors Foundation has been a supporter of The Heartland Institute for some 20 years. We regret the loss of their support, particularly since it was prompted by false claims contained in a fake memo circulated by disgraced climate scientist Peter Gleick.’”

It’s clear that the Government Motors action is payback for the Gleick scandal. The Obama regime is the head “climate change” advocacy regime in the world. It controls Government Motors. So it’s using Government Motors to undercut Heartland.

GM is the Yugo of American car companies.

If Government Motors is so concerned about “climate change,” it should go out of business and tell people to walk.

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Correction: The article was corrected on the percentage of GM owned by the government. Relying on Wikipedia, I originally posted it at 61 percent. It’s now 32 percent, as a reader (below) pointed out. However, GM also is partly owned by the UAW, now basically part of the U.S. government, and by the Canadian government. — John Seiler