If the White House can demand money back from AIG, despite the fact that AIG is only fulfilling contractual obligations, then I can demand the money back I have paid in taxes for unconstitutional purposes.
President Obama, Congressman Frank and Andrew Cuomo are outraged that AIG, in fulfilling contractual obligations, are paying out millions in bonuses. This is the same President that in previous weeks signed spending bills and stimulus plans totaling trillions of dollars, with an unspecified number of worthless, useless, and unconstitutional programs. Oh, I failed to mention the earmarks that President Obama campaigned against (John McCain, why are you not screaming about false campaign promises used to defeat you?)
Contracts and legally binding agreements no longer have any value. Courts are being given the authority to change legally binding documents to allow homeowners to owe what they can afford to pay(each to their ability). The Constitution cannot be far behind in becoming worthless because of the circumstances. (We shall see when those that are losing their rights in these cases challenge their legality)
Well, President Obama, if you can express outrage over misspent funds(misspent in your eyes, of course), than I too have the right to express outrage over the misspent tax dollars I have paid over the years. And believe me, I am outraged. I may be a minority, but I am not alone.
If President Obama can demand that those funds be returned, then I too shall have the right to return my funds I have worked so diligently to earn and save.
Part of me hopes you succeed President Obama. Because if just of the scrutiny upon AIG is turned upon your plans and operation of the Federal Government, the outrage of the American people will be heard loud and clear. Whatever measure of performance you hold up for AIG, we need to hold up for your performance with the Federal Government.
But the rest of me knows you need to fail, (Rush Limbaugh is not alone) President Obama. You are playing a shell game, and you are excellent at distracting us from the real issues while introducing one red herring after another. You are keeping the ignorant masses occupied while you pursue your true objective.
I would suggest that with the largest spending and stimulus plans in US history, that both you and Barney Frank had better start returning your salaries immediately. We all know that is not a possibility. You are probably angry that you cannot earn such bonuses while your job is so much more important. The audacity of the private sector!
Have you noticed? We have gone from discussing whether or not government should have been into AIG's business (and other financial institutions) to demanding that something be done about their bonuses...we have lost this crucial philosophical battle. No one even seems bothered that the Federal Government is deciding AIG's bonuses today. Your salary will be decided soon (based on what you need).
Fascism is here, with a heavy dose of socialism and being welcomed by the masses. It's about time someone did something, right?
Armed guards have been posted at AIG to protect employees from the growing outrage of the public. Politicians are calling for AIG employess to commit suicide. The government is turning the people against the private sector. How long will it be before mob behavior exacts revenge against these evil capitalists? Did you ever think you would see politicians calling for people to kill themselves? Not I.
Tell me people, is this what you want your Federal Government doing? Running businesses based upon popular sentiment? John Galt, where are you? Many of us are ready to go with you. We are ready to get the Galt out of here.
©2009 EJ Moosa, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Tuesday, March 17, 2009
Last modified: Tuesday, March 17, 2009
The views expressed in this article are those of EJ Moosa only and do not represent the views of Nolan Chart, LLC or its affiliates. EJ Moosa is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
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Reader Comments:
Posted By: gene
Date: 2009-03-17 09:19:51
Hi EJ, have to agree, income taxes certainly aren't fair.
You have noted AIG's great integrity in upholding their execs contracts. Where was that sense of fortitude when they owed a couple of hundred billion in Credit Default Swaps and came whimpering to the US Treasury to pay them off for them?
A Credit Default Swap is simply a legal contract requiring action upon a specified default. They entered into those contracts under deceptive premises since they never had the backing or if you will, insurance. The execs receiving the bonuses are the exact same employees who engineered their fraudulent situation which resulted in them gorging themselves at the federal corporate soup kitchen. Problem is, they don't like soup they like sushi.
We haven't even touched on the fact how a corporation, which as you know is privileged with "limited liability" can take on other's liability? We have an entire economy full of limited liability entities, trading and swapping each other's limited liabilities, who do you think is going to get stuck with the tab? Do you think that possibly the "nature" of these organizations had something to do with this mess the government wrongly thinks it has to right?
Posted By: EJ
Date: 2009-03-17 11:49:18
Hi Gene,
Thanks for the feedback.
I cannot differentiate with AIG what part of the mess they are in because of their own doing, and what part has been due to government meddling. You see, the money they have transferred to banks to pay off on insurance claims, and those claims may have never arisen had government had stuck to their true calling: The Constitution.
Had the government not changed the accounting rules, had the government not tried to get the last 5% of society into homes(which they could not afford), isn't it just possible that AIG would not have had to pay off on (just for the sake of this discussion) 1/2 of the claims they have received.
We will never know, because government was meddling where they should not have been, all for our own good, of course.
EJ
Posted By: Jonathan
Date: 2009-03-17 13:58:12
Good article, some points that I would add:
1) Unless a person works for AIG or PERSONALLY has stock in AIG, then it's not their business how the company runs. If AIG goes out of business by poor business decisions then so be it. The government was WRONG to be involved to begin with. Complicating it now with more involvement does not make it any better. The role of government here is to protect the people. If AIG is involved in illegal actions, then press charges or investigate, otherwise, get out of the private sector. It's called the "private sector" for a reason
2) The administration continues to use the term "democracy" to describe the United States. We are not, nor have ever been a democracy. That is a very decisive move by our government to want people to think we are something we are not. If we think the people have control then we can go after these "dirty" capitalists. But unless they are violating the laws in place, poor business men are not procecuted for incompetance.
Posted By: EJ
Date: 2009-03-17 14:10:06
Thanks for the feedback Jonathan.
The government likes the idea that we are charged with this notion of "social responsibility". And they have convinced the majority of Americans that is something companies and we, as individuals, must be concerned with. I call BS on that notion. Not in my copy of the Constitution.
Now we are going to see threats of laws passed to tax only those individuals at AIG who were paid bonuses. What happened to the notion of treating ALL of us equally?
Sorry-each according to their ability-to pay---that is the new mantra!
Yet we are going to push public obligations, such as taking care of those wounded in the military in this nation into the private sector to cover their medical costs? What in the world is going on here?
Daily K Os....just like they want.
EJ
Posted By: Capitaf
Date: 2009-03-17 19:01:00
Right on! We can all go John Galt in our own way. If you smoke, roll your own and buy the tobacco and papers in bulk online. $1 to $2 per pack depending on the brand. Less tobacco tax revenue for the government. If you drive a car, buy a scooter - 30% of a gallon of gas is taxes. If you live inside city tax borders, move to the country and pay lower property taxes. If you are a 2-income family, consider one of you stopping working to stay home with the kids. Unfortunately, there is still not a better country for us to practice our various talents. That is, unless the government does actually over-rule contractual obligations of AIG and their ilk. Then, we might as well be in Mexico because it completely undermines one of the basic responsibilities of government and the main source of our prosperity - the enforcement of contracts.
Posted By: Chris H
Date: 2009-03-19 17:57:14
This issue here isn't that a majority shareholder (e.g. US Treasury) cannot effect compensation. One in such a position certainly can, however that leaves the company open to civil suits for breach of contract; from what I've read elswhere, the branch of AIG in question is incorporated in CT where such a breach, if the suit wins, the damages are 2x the original compensation owed.
Secondly, and far more important in my view, is that the US Constitution Article 9 under restrictions of Congressional power states that a) No bill of attainder nor b) ex post facto law shall be passed. Bills of attainder are writs or laws constructed explicitly to punish an individual or select class (seems the case here); Ex post facto is roughly translated as "after the fact". Is it blatently unconstitutional to pass laws that criminalize or provide for civil penalties (e.g., retroactive taxes or fines) actions that, when they occurred, were completely legal. This is also blatently the case.
Should this AIG bill that panders to much to the Fasists and National Socialists among our population pass, it shouldn't take much of a challenge from those who have recieved these bonuses to make their case.