Lynn Tilton Vs the Treasury – Hear No, See No, Do No Good
America is in trouble, bad trouble, to think otherwise now is simply delusional. What’s more, America’s economic woes affect the entire world – bad practices and mediocre leadership are leading to the virtual collapse of world economic systems. Bad news, we know, but news the human race needs to wake up to. It’ Sunday, two weeks exactly since American Independence Day, an appropriate dawn for some real change, don’t you think?
Let’s get right down to it, shall we? The system of politics and business is just not working. The climate of investment and business around the world in the last decade plunged us all into this abysmal state, yet the course has not been stayed. Wall Street “casino” investment, political action committees, lobbyists, corrupt politicians – business practices, and on, and on. It seems no one, let alone the individual American, can see the “dead end” these systems are headed for.
Two Wrongs Never Equal One Right
I was reading a recent article by Patriarch Partners’ Lynn Tilton today, we have covered Tilton’s innovative style before. In this piece Tilton shines light on the United States Treasury, key aspects as to why America and the world is still stymied, governmental structures basically determined to maintain the status quo – but why? Tilton emphasizes the virtual collapse of the heart of American business – the SME, or mid to small sized businesses which employ 80 percent of the country’s people. Eighty percent! Not General Motors, not Goldman Sachs, not a string of insurance companies and banks, but the companies right next door to your home – where real enterprise and growth stem from.
According to Tilton, there are $70 billion dollars sitting around collecting dust while you or your neighbor’s business enterprise lays waiting for the ax to fall – for the dieing economy to finally – painfully – put America out of business. No one can see this. The reasons can be as mundane as stupidity on the part of officials, or as dynamic and sinister as Machiavellian plans for a new world structure – the end result is the same thing – shifting the United States of America (and the world) into a completely different climate. Even if Tilton is full of sheep dip, her ideas tend to lead toward a better stimulus package for American workers. If you think the homeless people in Tom Stone’s black and white images have no effect on you, you may be joining them.
Seven Thousand Struggling Businesses
That $70 billion dollars could create 70 thriving $1 billion dollar enterprises – think about that for a moment. Then think of 700 $100 million mid sized businesses, then 7000 $10 million ones, and so on. And you may be on unemployment, in the street, or at the very best tightening your belt instead of building a future. Add in the nearly $50 billion in TARP funds given to GM, then confound that picture with whether or not GM actually paid anything back, and you see a massive misinformation picture too. Bean counters juggling numbers – the public listening to sound bits – “Hey, GM is solvent again, we are going to be okay!” You now own 61% of General Motors people, and you cannot even get a good deal on a pickup truck!
It’s a shambles. America is a shambles. Just because your lawn mower still has gas, the BBQ grill will fire up, the hot dogs from Walmart are plentiful on July 4th, says little about “how long.” But the situation is worse than that, much worse. Just think about what Tilton (a Wall Street tycoon who rescues dieing businesses) is saying, the layman’s version. Your government is basically withholding $70 billion dollars from the “little people” and forking over 20 times as much to big business. This is the long and short of it. Who is pulling the strings in America – the world? You can answer that can’t you?
Tilton’s “rescue plan,” which she submitted to your government, can be read here. Her approach is correct, if not complete. Jobs are the way to stimulate a sustainable American (or any other economy), but we have to look at what jobs really are – little engines of sustainable growth for people – powered by products. Goods and services are what make the wheels of commerce turn. America simply does not produce the spectrum of them any more. It became more profitable for huge businesses to ship manufacturing and many services overseas. Even according to Tilton, this is not for the reasons you might think – it’s not about salaries as much as it is tax and other incentives.
Whatever the reasons, Americans (much of the world) are hurting because of the ultimate distribution of wealth and assets. It was bound to come to this. Let’s just look at one scenario for the “elimination” of early entrepreneurship – the sinking of SME’s. I feel like picking on, let me see, Procter & Gamble – maybe the world’s most powerful company.
Let’s say you are a mid-sized, but very innovative potato chip company in Ohio. Your company makes some kick-ass, super high quality potato chips and other snacks. Let’s use Shearer’s as an example. This company, founded in 1974, probably makes the best potato chips in the world. For the sake of argument (maybe a reality) your new plant in Ohio is about done, you are ready to add another 200 employees to your existing 450 staff. The plant is designed to be state-of-the-art, using 1/3 the energy of conventional plants – made of 1/4 recycled materials – but there is a problem. The economic situation has sapped capital, cost over runs, whatever, have put an obstacle in place – you need $50 million in new capital. Is it in Procter & Gamble’s best interest to see Shearer’s have another win? Decidedly not.
Good old Mr. Robert J. Shearer, founder of one of America’s great success stories needs some cash. After just having acquired Snack Alliance, Inc., he just forked over $66 million for the new plant, things can go forward as normal – but the lending climate is anything but normal. Now superimpose atop this, the potential for a company like Procter & Gamble to exercise unfair influence. Then multiply this times thousands of smaller businesses – as the “underneath” aspect of Lynn Tilton’s (upper left) ongoing mission.
The Source of American Prosperity – You
This, of course, is not the perfect comparative company, Shearer’s is actually primarily owned by Mitral Equity Partners, but imagine a new Shearer’s emerging. In fact, Shearer’s has one of the most successful and profitable corporate ideologies and methodologies in America, but you get the idea. American entrepreneurs, American workers, cannot even look forward to opportunity making potato chips – if Procter & Gamble could, they would ship that capacity to Lithuania – or Mars if there were a tax write off. Then there is the creation of new markets, another ball of wax. The reader can begin to see the complexity of a “unified world” where market structures are concerned. But the important thing is, as Tilton suggests, the hurdles to growth in America.
A last note. Many will argue that developing manufacturing in China, even India, is the future of the global village. This is perhaps the biggest lie ever perpetrated upon humanity. From any viable standpoint that can be argued, turning China and India into economies like that of the United States and the rest of the West is – ridiculous.
Those systems, natural resources to ecology and the environment – to workforce stability and derived economic growth are a fictitious dream. For the people of China, India, and the world, recreating an industrial revolution amid already delicate systems – is unsustainable. The corporate growth machine has done the world no service here – this will play out in the years to come – mark my words.
So what can you do? Well, first off, don’t come here an argue the same old system. That’s like saying Germany won the 2010 World Cup, a nice fantasy, but their plans did not work out. If you have read this far, can imagine my suggestions (or those of Lynn Tilton) are not hogwash, I suggest you write here or to Lynn Tilton herself at Patriarch Partners. I can forward or otherwise help you, but a billionaire can do a lot more than that with your questions and desires. I suggest Congressional committee hearings spurned by 100,000 requests – full transparency and coverage on CNN (whoever) – the will of the people heard louder than the will of huge businesses – the ones doing nothing what-so-ever for you. The government can be forced to act you know.
Forwarding Your American Dream
Contacts: Richard White, Director of Communication, Patriarch Partners – Lynn Tilton’s Facbook profile – Lynn Tilton’s Twitter profile – email me from our corporate pages – write (or call – (202) 622-2960) the Secretary of the Treasury via Deputy Assistant Secretary, Jenni LeCompte at Jenni.LeCompte@do.treas.gov – mention Lynn Tilton – or comment here, and hell, I will call Lynn Tilton for you. The point is, do something, you have more power than you think