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  • Rule of Law: Good for Retirees or Only Terrorists?

    Today President Obama stood on the world stage and demanded that suspected terrorists be treated under the “rule of law.” In fact, he used the phrase “rule of law” eight times. It is now time for him to use the phrase “rule of law” when it comes to Americans. In the next two weeks, the President will likely endorse a series of measures in his role as CEO of the car companies that may violate a number of U.S. contract laws, bankruptcy laws and financial rules and regulations.

    The United States is a nation of laws, and we must abide by these rulings.

    The President is quickly learning that running a car company isn’t easy, and neither is being responsible for the economic future of unemployed Americans. Since the President became chief executive of the Big Government Two many autoworkers, dealership employees, suppliers and others have lost thousands of jobs. And amidst these troubling economic times, the President is also potentially taking away the retirement futures of many of these workers. How? Many retirees in America are also GM and Chrysler bondholders.

    legal confusion

    Let’s back up and explain what we’re talking about: A bond is simply an “IOU” in which an investor loans money to a company in exchange for a predetermined interest rate. It has historically been a safer investment than stocks because your principle is generally guaranteed and if a company goes under, you are at the head of the line to get a return on that investment. Bondholders include pension funds, retired auto workers, non-profits, even your own grandparents. They also include workers in dealerships.

    …in line with the rule of law.

    So, say you are 54-year old retiree John Milne, and you bought GM bonds because you “live in a GM town, in a GM state, which helped influence [his] decision to invest in General Motors bonds.” With GM’s current problems, if they were to go into bankruptcy, John Milne would have certain protections as a bondholder, under the rule of law.

    It has to do with the rule of law.

    But not so fast. Unfortunately, GM’s bonds are different because they are investments in a company that is now controlled by big union bosses in the United Auto Workers and President Obama. The rule of law is apparently out the window. First, the UAW bosses need to be paid, and everyone else second. In fact, many of the individual bondholders are in fact retired union workers. So the UAW and President Obama are actually conspiring against the workers that paid their dues, in more ways than one.

    As the Wall Street Journal points out: “The funds paid a premium to buy ‘secured’ status, only to discover that they were politically outranked by the United Auto Workers in the White House hierarchy.

    I ran for President promising transparency, and I meant what I said. That is why, whenever possible, we will make information available to the American people so that they can make informed judgments and hold us accountable.

    The President is a man committed to transparency, so surely he negotiated these decisions in public and been forthright in describing the bondholders, right? Nope. On April 30, the President stood with his economic team and characterized bondholders as a greedy group of investment firms looking for “an unjustified taxpayer-funded bailout.” Well, frankly we don’t know what justifies a government bailout these days, but surely asking to be treated fairly under the laws of the United States can’t be unjust, can it? That day, a group of non-TARP lenders issued a statement saying: “…the government has risked overturning the rule of law and practices that have governed our world-leading bankruptcy code for decades.”

    And if we refuse to deal with these issues today, then I guarantee you that they will be an albatross around our efforts to combat terrorism in the future.

    If President Obama dismantles our nation’s laws to satisfy the UAW, what comes next? Are we prepared for the economic albatross of the future? The State of Indiana has said it will no longer buy bonds issued by anyone who received federal bailout money, and who can blame them? Indiana Treasurer Richard Mourdock said: “In the Chrysler bankruptcy, however, secured creditors received $.29 on the dollar even as non-secured creditors received higher values and ended up with a 55% ownership of the new company, which is fundamentally wrong and a dangerous precedent to the capital markets.”

    The United States is a nation of laws, and we must abide by these rulings.

    So what does this have to do with suspected terrorists? Today, the President stood in front of the founding documents of our democracy and demanded that the rule of law be followed in respect to suspected terrorists at Guantanamo Bay. He said: “And where terrorists offer only the injustice of disorder and destruction, America must demonstrate that our values and our institutions are more resilient…”

    If a speech can be given by the President about the rights of suspected terrorists under the laws of our land, why can’t it also be given in defense of retired school teachers, auto workers, dealership mechanics, pension funds and the American men and women who once invested in General Motors out of loyalty and pride. So who comes first? The only people standing in the way of American bondholders and suspected terrorists receiving the same fair treatment under the rule of law is the UAW, President Obama’s biggest campaign contributor. If only individual bondholders had that kind of power.

    Posted in Ongoing Priorities [slideshow_deploy]

    24 Responses to Rule of Law: Good for Retirees or Only Terrorists?

    1. Spiritof76, New Hamp says:

      Obama is a socialist and I am sure he thinks he determines the rule of law, just like his buddy in Venezuela.What he is parroting from a teleprompter is akin to the devil quoting the scripture. The sad aspect of it is that the American electorate voted for him. We are definitely going to reap the harvest not just in the next four years but for generations to come.

    2. Barb -mn says:

      whether he was born here or not, the president HATES AMERICANS that do for themselves. He incorporates the crisis'. While he takes freedom away daily.

      There's no difference between purse snatchers and terrorists. He cares for no one but his favorites. World wide. Terrorist or not.

      We will be open game for terrorists and his favorite criminals as he tells judges to EMPATHIZE! He is attempting to indoctrinate that terrorists deserve the same human rights of the INNOCENT LIVES terrorists KILL.

      TERRORISTS are not common criminals, but soon to be, I guess?

    3. debby, maryland says:

      Your observation was fantastic and so right on about the inconsistencies with President Obama in what he says and his actions.

    4. Joe Collins says:

      Rule of Law………The President, The House, The Senate, all took an oath to uphold the Constitution of the United States..Rule of Law you must uphold your oath and/or should be found guilty of breaking the law and be charged and punished……..Every State in the Union is a Sovereight state, to many times this has been violated……..The Federal government holds a very limited role in its duties. Rule of law, do not over step those assigned duties. The Federal government is and was established by the states and the states are in charge not the Federal government…….that is a union and one state does not dictate to another as each are indenpendent……….Let's step back and do it right or assign representatives that will.. "Read the Constitution" "Teach the Constitution" "Stand with the Constitution" otherwise we are no longer the country that was established by our fathers before us and have lost our way.. Thank you, Joe Collins

    5. fcwatson says:

      When is this country going to wake up?

      Stop asking dumb questions?

      This man plans to become a dictator. Get over it, or do something about it.

      Place your next vote for a very very conservative person, who "might" be able to change the course of this terrorist and his followers.

    6. Mike McLellen, Grand says:

      I believe you misunderstood President Obama, he didn;t say "rule of law" He said "rule o' flaw" (tapping into his Irish hertiage). We are a land o' flaws and consequently we have rules o' flaw.

      Part of the change President Obama is bringing is for all of us to realize how selfish, greedy, wasteful, mean and arrogant we are – hense we must examine all of our flaws.

    7. Ray Nations, Hampton says:

      Remember that all of this rhetoric is coming from a man, Obama, who has no experience running a business, an entity, nothing! Who voted "Present" more than one hundred times in the Illinois House on issues that mattered to the people of Illinois. We knew very little about Obama's core beliefs before the election, but we certainly are learning more and more each day. He has turned this country's laws upside down to satisfy his own thirst for power. He wants to make this country a socialist state, where everyone will worship at the altar of Obama. This is the worst crisis our country has been in since the Great Depression and Obama is making it worse! I sincerely hope all who voted for the "Messiah" are sitting back and smiling as he takes control of one industry after another – stealing the livelihoods of many decent, hard-working Americans!

    8. Dennis, Idaho says:

      Our constitution states that the president must be a native born citizen. Mr Obama has not produced his ling form birth certificate with the name of the Doctor and Hospital. It takes time to produce a properly aged forgery which will be found at the proper time. My guess is that the Doctor shown will no longer be living and his records unavailable and the same with the hospital. No way to track and verify.

      Rule of law -Verify that he is qualified BEFORE being sworn in.

    9. LW, Newport News VA says:

      Last night on a local PBS station, a round table of reporters (all liberal) agreed that what "this president does so well is disarm his opponents with his middle-of-the-road politics." What? Are you kidding me? Are they watching the same guy? If what we've gotten so far from this administration is "middle-of-the-road" i.e. government take-over of the auto industry, banks, salaries on Wall Street etc. then God help us when, according to MSM, he veers to the left. How can any of these MSM types have any credibility? Any didn't Congress just vote not to fund Guantanamo's (sp) closing? All we saw yesterday was a dictator having a temper tantrum like an impulsive child while the former vice-president acted and sounded like an adult who employs reason and logic toward solving a problem. Sadly, all the adults have left the building or in this case the White House.

    10. KJ Virginia says:

      "Experience has shewn, that even under the best forms (of government) those entrusted with power have, in time, and by slow operations, perverted it into tyranny."

      "Whenever the people are well-informed, they can be trusted with their own government."

      "Dissent is the highest form of patriotism."

      "When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps."

      "Every generation needs a revolution."

      Quotes by Thomas Jefferson-American 3rd President and author of the Declaration of Independence

      Let's wake up before we lose it all!!!!!

    11. Dan Bongiorno, York, says:

      Our Narcisist in the White House is an egomaniac. He has no clue as to what he's doing. He's being manipulated by a few people behind the scenes. He hates our country and is trying to destroy it. He hasn't even proven if he's eligible to be president. How can this happen? How many corrupt people are in control of our country? In every election we must clean out the vermin in the congress. We must bring to justice the thieves behind the crooked unions. We must band together to question and fight Obama and his puppeteers at every turn. We will not survive as a country if we don't!

    12. Dag, Denver says:

      This President has repeatedly shown that HE will be the one to decide the winners and the losers; the people whom the rule of law applies to an those to whom it will not.

      For all of his sniping at the previous administration for casting aside this country's values for the sake of expediency, he certainly is doing a fine job of this himself.

      I guess if HE is the one to make the decisions as to whether the rule of law applies, or if we will actually uphold our values, all is fine. Because, you know, HE won and we all lost.

    13. Tim Lenihan says:

      Where is the most needed conservative American who will take the heat and run for president without cowtowing to the liberal left or so called moderates of either party. Newt did it in '94 but even he is somewhat a centrist. Right is right and wrong is wrong and we need a person who knows the difference to lead us from the current utterly destructive bunch liberals ever to have the power to destroy our country.

      God Bless those who will sacrifice for liberty

    14. Jim, SC says:

      If the GOP can keep the kooks and wingnuts under control, I see significant Republican gains in 2010, including a possible takeover of the House and a Republican in the White House along with a GOP Senate in 2012.

      The country did NOT vote for the change Obama is giving us. The 2008 (and 2006) elections were an anti-Republican vote more than they were a pro-Democratic one. This is just like what happened in 1974 and 1976 after Watergate.

    15. Jackie, Missoula, MT says:

      I am 72 and sadly watching my country being taken away bit by bit. I was afraid of Obama when he was campaigning and now I know why. How can we get back to our values and pride in the greatest country in the world?

    16. Bill, Forney, TX says:

      Good only for terrorists

    17. Steve Burbank says:

      This is misleading, in that it represents only the government's proposed out-of-court settlement. GM bondholders can reject it, and probably will. In that case, GM will enter bankruptcy.

      This isn't to say the bondholders aren't getting screwed. They are, because debts owed to the gvt get discharged first in bankruptcy (by rule of law). So the recent debt incurred by bailout funds, which would have to be repaid in bankruptcy if the gvt doesn't get an equity interest, will have priority over bond holders.

      But this is nothing new. Bondholders get screwed this way all the time, when, say, corporations on the verge of bankruptcy, in order to stay afloat for awhile, fail to put aside funds to cover their tax liabilities.

    18. fight'n right says:

      Dennis, I have a feeling that the birth certificate issue is deliberately being held back, but will be employed by the Dems, for the Dems, quicker-than-this as their 'nuclear option' if the ZerO ever goes too far rogue and becomes a danger to the Democrat party. If Obama becomes a liability, the Dems will need an excuse to impeach Obama on Constitutional grounds, so as not to alienate their African-American base: "it's not our choice to impeach, it's the law".

    19. David, Cincinnati says:

      Obama told us what he would do during his campaign, and now he's doing it. The surprise is that so many people are surprised. My hope is that Americans will return to a mindset of being willing to die for freedom, rather than taking comfort by having it taken away a little bit at a time. These are indeed scary times. The guy came out of nowhere, having done nothing but run for office. His ascendency is creepy. Let's send him back to the nothing (or the Acorn) from whence he came.

    20. Jack, Due West, SC says:

      Obama is turning out to be the biggest disaster this nation has ever faced. What a total zero.

    21. Bob, Florida says:

      This country has commited political suicide by electing Obama. He is no experience to qualify to him deal with the problems we face. He has been trained to be an anti-american activist, which puts this country in grave danger of being transformed into a totalatarian state. He is systematicly nationalizing the commercial systems, which is only the begining. If he is allowed to continue down this road to totalatarianism we will get what we deserve.

    22. Marshall Hill MI. says:

      When is the next ELECTION???

    23. Whicket Williams Kin says:

      Who is going to lead the investigations that force accountability on the elected officials that blithly break our laws?

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