Private property rights and the rule of law are two essential bastions of liberty and civilization. Our chief executive is trampling on both. He justifies it in the name of averting an economic disaster. But the real disaster is the long term effect his policies will have on our future liberty and prosperity. You can not save the economy, or anything else of real value, by destroying the very foundations of civilized society.George Reisman also wrote about this deal in his post Injustice as Routine saying:
A further aspect of this same injustice is the government’s naked overriding of Chrysler’s contractual obligations to its bondholders in order to place the U.A.W. and its pension fund ahead of more senior debtors in the Chrysler bankruptcy. Those bondholders who stood up for their contractual rights were denounced by President Obama for refusing to make “sacrifices,” i.e., of their contractual rights. Many of them then gave in, fearful no doubt as to how the government might use its vast array of arbitrary powers against them if they refused, e.g., how the IRS would treat their income tax returns, how the EPA, SEC, FTC, et al. would treat their application for permissions of this or that kind.
Do you think they are exaggerating? Consider this ABC news report via Drudge. According to the report:
The brazenness of these attacks -- and the very muted protest they elicit -- suggest that full-blown fascism is a very likely possibility in the not too distant future.
I strongly suggest you make your voice heard before it's no longer possible.
A leading bankruptcy attorney representing hedge funds and money managers told ABC News Saturday that Steve Rattner, the leader of the Obama administration's Auto Industry Task Force, threatened one of the firms, an investment bank, that if it continued to oppose the administration's Chrysler bankruptcy plan, the White House would use the White House press corps to destroy its reputation.The White House denied the charges:
The White House and a spokesperson for the investment bank in question challenged the accuracy of the story.
"The charge is completely untrue," said White House deputy press secretary Bill Burton, "and there's obviously no evidence to suggest that this happened in any way."
However, despite the denial note the following:
President Obama singled out Lauria's clients for criticism when he announced the Chrysler plan on Thursday.
"While many stakeholders made sacrifices and worked constructively, I have to tell you some did not," the president said. "In particular, a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout. They were hoping that everybody else would make sacrifices, and they would have to make none."
President Obama also said of Lauria's clients, "I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out when everybody else is making sacrifices."
So the alleged chief executive, charged with upholding the Constitution of the United States, brazenly declares that he does not "stand" with individuals who assert their proper rights under the terms of a contract but instead stands with everyone and anyone who does not have a contractual claim. Why? Because, under the morality of altruism, sacrifice is the good and those who have legitimate claims under the contract have the most to lose. To the extent that they refuse to sacrifice - they are evil. This is why individual rights, the rule of law, and capitalism are incompatible with the morality of altruism. Logically, altruism must lead to injustice. The report ends with this frightening comment:
Lauria said the president saying he doesn't stand with his clients "kind of sounds like 'You're fair game.' In whatever sense. People are scared. They have gotten death treats. Some have been told people are going to come to their houses. God forbid if some nut did something, I'm just wondering how the president would feel."
Obama would feel what any fascist dictator feels when his thugs do his bidding - he would feel nothing.