WHEN WILL SOMONE IN THE MAIN STREAM MEDIA GROW A SPINE?
May. 24th, 2009 | 11:05 am
A wise signer of the Constitution once said: “A strong an stable rule of law and governance, and a history of paying our debts. Fosters growth and expansion which keeps foreign and domestic investors investing their money in the public coffers”.
Unfortunately, the monetary base of this once great country has increased by 13 times under the last year of the Bush administration, but exponentially since Obama took office. This is the highest in our history, and I predict that prime interest rates will become double digit in three to four years. Reminiscent of the Carter years, only worse.Yet there is no clarion cry, not even a peep from the Obama adoring media!
No where can you read or see any warning news that the Obama administration is spending to much money that is the result not of tax income, but by keeping the Treasury printing presses on full bore.
Not only is Obama spending billions that are supposed to be for shovel ready projects, but are in reality to pay back groups that put him in the Oval Office.
His handling of the Chrysler debacle is an example of Obama’s pragmatic approach to the rule of law and our Constitution.
Congress gave President Bush the Sarbanes/Oxley law in 2002. This law has A provision called Section 363(b) that relates to the bankruptcy laws, that has allowed Obama to make an end run around Chapter 11 of the bankruptcy laws. He used this to rig the Chrysler “fast track” bankruptcy IN favor of the auto workers union despite the fact that normal chapter 11 dictates that secured lenders are entitled to first consideration.
Instead Obama gave the unsecured creditors, the union,!0 billion dollars and almost half of the new Chrysler stock.
This violation of a fundamental principle of our Constitutional government gives less than a quarter of a dollar on a dollar invested by teachers’ pension funds and other retirement funds. The UAW, while it has made some sacrifices in wages and benefits, will be given more than half ownership of the firm(New Chrysler) – a far larger share than it deserves under Chapter 11.
This lawness began with “The Emergency Economic stabilization Act”. This law gave the constitutional powers reserved to the legislative branch to the executive branch. This resultED in TARP, and the avalanche that followed that effectively became a “slush fund” to pay off Obama’s friends and allies!
This type of bankruptcy tramples on the constitutional provisions that have governed bankruptcy for decades, and will have a devastating effect on our economy if allowed by Congress, that can stop it, because this “new” bankruptcy deprecates the investor who would buy stocks and bonds normally. But if it is possible to give superior rights to unions or other unsecured participants. What will be the incentive to invest in companies? The lending and capital investment all across our economy will be adversely affected if the Congress allows Obama to strike down contractual rights!
And it is not over by any means. The Gm deadline is June 1st. They cannot possibly make the drastic changes to their administrative and union problems in a few days. I believe they will be handled by the Obama administration the same way Chrysler was . If Congress doesn’t stop the trampling of Constitutional rights of Contracts. The Federal government will first take over GM, and then a rapid bankruptcy with secured investors getting 28 cents on a dollar invested, and the UAW will receive $10 billion of the tax payers money besides getting up to 39% OF THE “New GM” for their unsecured 20 billion. Source for information: The Heritage Foundation