The first week of June 2009: Seven days that threaten to change history
Published: June 9, 2009
Updated: June 9, 2009
Perhaps historians will say that American life changed in the first week of June 2009.
In the summers of 1981 and 1982, Timothy F. Geithner was a student at Peking University but on Monday, June 1, 2009, he was there as the U.S. Treasury Secretary “to explore our common interest in international financial reform.” 1
“China, despite your own manifest challenges as a developing country, you are in an enviably strong position,” Geithner told his audience. But for the United States, “The fallout from these events has been brutally indiscriminant, affecting those with little or no responsibility for the events that now buffet them, as well as on some who played key roles in bringing about our troubles.”
“I believe,” announced Geithner, “that a greater role for China is necessary for China, for the effectiveness of the international financial institutions themselves, and for the world economy. China is already too important to the global economy not to have a full seat at the international table, helping to define the policies that are critical to the effective functioning of the international financial system.”
According to The New York Times, China’s monthly car sales have exceeded those in the U.S. since January, 2009. 2 GM filed for bankruptcy on the same day as Geithner’s speech. 3 This helps explain why, during Geithner’s visit, GM announced on June 2nd a sale of its Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery Co. 4
The price or terms have not been released, but the Shanghai Daily noted that GM had told the bankruptcy court that Hummer’s value was around $500 million. 5
In China, the Hummer is known as “Han Ma”, the “fierce horse.” The $200,000 sales price of a Hummer in China is definitely fierce. 6
One Chinese state-run newspaper described Tengzhong’s purchase of Hummer as a “snake trying to swallow an elephant.” 7 Marketing specialist Wang Yukun described the plan as “childish”. Financial commentator Ye Tan said it was “unpromising”. 8
GM CEO Fritz Henderson explained the reason Hummer was sold to a four-year old Chinese company with no history or experience in automobile production: “The potential buyer Sichuan Tenzhong offered the best overall alternative, and we did not have [a] broad portfolio of other buyers!” 9
China Daily reports “the forces behind Tengzhong’s move may actually be Sichuan Huatong Investment Holding Co. and US-based investment bank Morgan Stanley.” 10 Citigroup was GM’s financial adviser in the Hummer sale. 11
The sale, said a Los Angeles Times columnist, “underscores China’s growing economic might at a time when U.S. industrial prowess is flagging.” 12
Back at the White House, on June 1st, President Obama proclaimed June 2009 to be Lesbian, Gay, Bisexual, and Transgender Pride Month, stating: “At the international level, I have joined efforts at the United Nations to decriminalize homosexuality around the world. Here at home, I continue to support … enhancing hate crimes laws, supporting civil unions and Federal rights for LGBT couples, outlawing discrimination in the workplace, ensuring adoption rights, and ending the existing ‘Don’t Ask, Don’t Tell’ policy ...” 13
On Thursday, June 4th, in Cairo, Egypt, President Obama declared, “I consider it part of my responsibility as President of the United States to fight against negative stereotypes of Islam wherever they appear.” 14
To help the Muslim world, Mr. Obama said, “On science and technology, we will launch a new fund to support technological development in Muslim-majority countries, and to help transfer ideas to the marketplace so they can create more jobs.” 15
On Friday, June 5th, the U.S. Labor Department announced that 345,000 more American jobs were lost in May, pushing the unemployment rate up to a 26-year high of 9.4 percent. 16
And that was the end of the week that changed American life.
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Sharman’s column appears each Tuesday on the editorial page.
1 Speech by Secretary Geithner – “The United States and China, Cooperating for Recovery and Growth,” June 1st, 2009, Peking University - Beijing, China, http://www.treas.gov/press/releases/tg152.htm
2 Goodman, Peter S., “What Would Mao Drive? A Little Red ... Hummer”,
3 “GM Files for Bankruptcy with $215 Billion Debt”, June 02, 2009
http://www.news.com.au/adelaidenow/story/0,27574,25573322-2682,00.html
4 “Who Stands Behind Possible Buyer of Hummer?” June 05, 2009, http://www.tradingmarkets.com/.site/news/Stock%20News/2362300/
5 “Company in Sichuan to Acquire Hummer”, June 4, 2009
http://english.rednet.cn/c/2009/06/04/1771174.htm (Source: Shanghai Daily)
6 Pierson, David, “Chinese company buys a symbol of American affluence: But Hummer purchase makes little sense, analysts say” June 07, 2009
7 Kurtenbach, Elaine “Reports Question Chinese Hummer Acquisition” AP, Jun 5, 2009 http://www.google.com/hostednews/ap/article/ALeqM5hyv5NxsbvX7n7EbxXN4zddjXqb6AD98KE7700
8 Fangfang, Li “Hummer of a challenge for Chinese firm” China Daily June 4, 2009, http://www.chinadaily.com.cn/china/2009-06/04/content_8235629.htm
9 GM CEO Tackles Tough Questions on Sale of Hummer to Chinese, 06-05-2009, http://www.edmunds.com/insideline/do/News/articleId=149907
10 Fangfang, Li “Hummer of a challenge for Chinese firm” China Daily June 4, 2009, http://www.chinadaily.com.cn/china/2009-06/04/content_8235629.htm
11 Smith, Aaron “GM unloads Hummer to Chinese buyer: Bankrupt automaker discloses details of plan to sell truck line to China’s industrial company Sichuan Tengzhong” CNNMoney.com, June 2, 2009
http://money.cnn.com/2009/06/02/news/companies/gm_hummer/?postversion=2009060216
12 Pierson, David, “Chinese company buys a symbol of American affluence: But Hummer purchase makes little sense, analysts say” June 07, 2009
13 http://www.whitehouse.gov/the_press_office/Presidential-Proclamation-LGBT-Pride-Month/
14 Obama, Barack “REMARKS BY THE PRESIDENT ON A NEW BEGINNING”, June 4, 2009, http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
15 Obama, Barack “REMARKS BY THE PRESIDENT ON A NEW BEGINNING”, June 4, 2009, http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-at-Cairo-University-6-04-09/
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Reader Reactions
OW, I SAW it and heard it and I will allow that it unlikely that several “court officials” lied. You didn’t actually talk to them so I think once again we see you and the truth taking separate paths. BTW - I don’t recall you asking me which court house it was in.
TIPPs comments were clear and concise and I am surprised it took you this long to claim they were untruthful. You are pathetic and a little disgusting in your slavishness in defending Sharman’s innuendo.
Now come on and tell me again how I bash EVERY column the partisan hack writes.
ROGER WROTE: “He told you he had witnessed Sharman’s tactics. YOur response is to use the word lies and liar. You resort to these things when you know you’re wrong or cannot come up with a worthwhile thought. OW RESPONSE: And I told ELD that I am VERY CLOSE to several court officials there who would have working knowledge of Sharman, and NONE of them have ever witnessed any such language from Sharman. I think their word is just as credible if not more than ELD’s since I’ve seen him twist and embellish other people’s writings. ROGER WROTE: “Tipp’s comments were clear and concise. Yours ramble and are difficult to comprehend. Sometimes just plain gobblydegook.“
OW RESPONSE: Tipp’s comments were not clear and concise, they were off topic and flat out untruthful because of his own ignorance. But if that’s your opinion, without checking it out, then you have every right to your unfounded opinion both about Tipp and me. As for my words, I realized a while back that as you said, you just can’t comprehend. So I truly understand that it would be gobblydegook for you, and I hope you will be able to work through that in the future.
Keep on proving it sheep, I mean OW. I’ve been done with you for weeks.
ELD, we’re done. You already told everybody you didn’t read the other side. So trying to dribble out of it with more is not helping you.
OW, you are still the sheep. If I am biased against the ignorance that comes from your keyboard then I guess bias is what it is. For you to claim that Sharman isn’t insinuating tells anyone ALL they need to know about you.
ROGER, now it’s your turn…will you “bow” out as ELD did, or will you “cop out” this time?
Good for you ELD, exposing yourself as a biased reader and for exactly what you are finally happened here. One of your first name calling words to me was a “sheep”, now looks who’s the sheep.
OW, I stopped reading as soon as you claimed Sharman wasn’t insinuating anything. As long as you are that intellectually dishonest then reading further will, I’m sure, prove to be a waste of time.
Now prove me wrong ELD and ROGER.
Or is this when you “bow out” like you have in the past many months?
Page One of Two
Sharman wrote: “In the summers of 1981 and 1982, Timothy F. Geithner was a student at Peking University but on Monday, June 1, 2009, he was there as the U.S. Treasury Secretary “to explore our common interest in international financial reform.” (1)
My findings on what Tipp wrote: Nothing new. He agreed with Sharman that is was an “official transcript” as referenced. He insinuated nothing, other then Geithner is familiar with China and spent 2 summers there. It just so happened to be about the time our nation was “going global”.
Footnote is accurate.
Sharman wrote: “According to The New York Times, China’s monthly car sales have exceeded those in the U.S. since January, 2009.” (2)
My findings on what Tipp wrote: Nothing new. Sharman didn’t provide the link, and that could or could have not been his fault. He did provide the reference. From that Tipp provided the web link. So DUHHH? Sharman’s reference was for the amount of car sales, not what a gas-guzzler it is or that the Chinese are trying to be the world’s economic leader…we all know that. Com’n TIPP, we’re trying to talk apples to apples here.
Sharman wrote for footnotes 3 & 4: “GM filed for bankruptcy on the same day as Geithner’s speech. (3) This helps explain why, during Geithner’s visit, GM announced on June 2nd a sale of its Hummer brand to China’s Sichuan Tengzhong Heavy Industrial Machinery Co. (4)
My findings on what Tipp wrote: Sharman is making two points here, neither of which are lost or unproven in the footnotes. One, the coincidence that GM was “officially” filing for bankruptcy and willing to accept a China company purchasing Hummer, all at the same time Geithner was in China. I hope all our readers know that this could not possibly be a coincidence. Personally, I’m glad China wants the ugly looking Hummer and its problems, but that’s my personal opinion, just like TIPP gave us his personal opinion regarding these two footnotes with a bunch of history that we all already knew. This is an article, not a book.
Sharman wrote for footnote 5: “The price or terms have not been released, but the Shanghai Daily noted that GM had told the bankruptcy court that Hummer’s value was around $500 million.”
My findings on what Tipp wrote: He wrote what GM told the bankruptcy court the Hummer was worth. You and the rest of the world do not know what they will get it for until the bankruptcy is closer to being settled and the Chinese gov’ts decision.
Sharman wrote for footnote 6: “In China, the Hummer is known as “Han Ma”, the “fierce horse.” The $200,000 sales price of a Hummer in China is definitely fierce.”
My findings on what Tipp wrote: Please stick to the topic of Sharman’s sentence, it’s about the sticker price in China. You and the rest of the world do not know what will happen to the employees here in the U.S. either in the near or far future. But I have a good bet for you.
(I already disclosed you misleading of the footnote 7).
Sharman wrote for footnote 8: “Marketing specialist Wang Yukun described the plan as “childish”. Financial commentator Ye Tan said it was “unpromising”. (8)
My findings on what Tipp wrote: Here’s where you just don’t get the point, so I simplified it for you in another posting.
For footnote 9, your comments appear to agree with Sharman’s. And you have no dispute with its use.
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