High crimes and misdemeanors by the Obamastration justify impeachment of the President
By Seth Richardson
The rule of law and the future of the Republic hangs in the balance as this is written. The Supreme Court will today consider an emergency appeal by three Indiana state pension funds to stop the juggernaut of President Obama’s bailout train and restore the rule of law to the federal government.
The issue before the Court is how the Obama administration has unlawfully meddled with well-settled bankruptcy laws in its attempt to force the Chrysler bankruptcy through the system without either due process or equal justice, purely for political advantage for Obama, and to the piratical advantage of the United Auto Workers, who stand to become owners, nay, masters of Chrysler if this fraud is not stopped by the court of last resort.
What’s happening is that the Indiana State Police Pension Fund, the Indiana Teacher’s Retirement Fund and the states Major Moves Construction Fund have been divested of their legal status as secured bondholders in Chrysler and have been relegated to the position of unsecured creditors in the bankruptcy proceedings through unprecedented interference by the government with private contracts and private property in order to place the UAW and the federal government in an advantageous financial and control position. This is an unprecedented and utterly lawless violation of the Constitution.
Bankruptcy law are well settled in this country, and the hierarchy of protection provided to investors is fundamental and essential to the entire economy. People buy bonds because they are secured financial instruments, which means that in return for paying a premium fee to purchase them, they receive specific protection in the event of bankruptcy that places them ahead of the more-risky common stockholders.
Bonds are a private contract and an oath by the seller that the money invested must (not may) be repaid on schedule, and that the company has reserved sufficient assets to guarantee that bondholders will get their money back. It’s more a secured loan than an investment in company stock. Bonds allow individuals to invest their money at much lower risk, and companies, not to mention municipalities and even the United States itself issue bonds to finance their operations on the contractual promise they will pay the money back, no matter what. The rating assigned a bond is a reflection of the strength of the organization the money is lent to, which indicates the potential risk of losing one’s investment in a bankruptcy.
Bondholders can lose out, but the law is quite clear that they have preferred status at the very top of the list for repayment in the event of bankruptcy. This has been the case for hundreds of years.
But what is happening today is that the Obamastration is subverting the rule of law by placing others above the bondholders without any legal authority whatsoever to do so. The Chrysler bankruptcy has been driven by the greed of the UAW and the liberal-fascist pretensions of President Obama to rewrite the law of the land in order to achieve power and control over Chrysler, it’s employees, and it’s suppliers, not to mention aggregating more fascistic power and control over the People by establishing a precedent that would allow the Executive Branch to seize control of virtually any company or industry without even a pretense of legal authority, if it first forces federal bailout money upon it.
Moreover, the Treasury Department appears to be illegally using federal TARP funds to pay for Chrysler’s bankruptcy protection without congressional authority or legal precedent.
In short, the Obamastration is making up the rules as it goes, with a callous disregard for the law and the Constitution, which says that private property shall not be taken for public use without just compensation and the federal government shall not interfere with private contracts. What Obama’s lackys have take from the Chrysler bondholders is their secured investment and their right to be first in line at the bankruptcy table.
And the danger to the Republic is that if the rule of law no longer obtains regarding private contracts and bankruptcies, investors will no longer buy bonds and if investors do not buy U.S. Savings Bonds, or municipal bonds, or private bonds, bankruptcies will become epidemic and businesses, municipalities, states and even the federal government will quickly become insolvent when investors refuse to risk their money because it would be subject to the whims and caprices of the Executive Branch rather than the law.
Nothing can possibly justify the abrogation of the rule of law regarding bankruptcy, private property and the right of contracts. If such constitutional violations are necessary to save Chrysler, then it is better to let Chrysler fail and disappear, because the precedent set by this lawlessness is a tremendous leap down the slippery slope towards a liberal fascist dictatorship.
If President Obama and his administration cannot abide by the rule of law, he, and they, are nothing more than tyrants who must be turned out of the government as soon as possible, lest the Republic fall to lawless totalitarianism.
Impeach President Obama!
UPDATE: The Supreme Court has issued a one-line temporary stay on the proceedings while it considers the case.