Barack Obama, Chris Dodd, and AIG for Dummies
By: Jim Byrd
First, in regard to the AIG executive bonus outrage expressed by Barack Obama: he is a liar. Same for Chris Dodd, Barney Frank, et al. All liars. This faux outrage about being outraged by AIG paying out $165 million in bonuses is being manufactured and orchestrated by the Democrat Party in unison with the sycophantic media as a diversion. A diversion to mask the Obama administration’s ever-manifesting deficiencies. Obama stated with his best acrimonious speech, from a teleprompter of course, “Under these circumstances, it’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat? In the last six months, AIG has received substantial sums from the US Treasury. I’ve asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole.”
Chris Dodd, Chairman of the Senate Banking Committee, chimed in with his outrage, and his outrageous plan to take punitive action against the recipients of the bonuses. Dodd wants to create a special tax just for the recipients of the bonus money from AIG. Dodd bleated, “It’s an idea very much at the embryonic stage; It will be a special tax; We have a right to tax. You could write a tax provision that’s narrowly crafted only to the people receiving bonuses.”
To continue the witless AIG dog pile by Congressional nitwits, Sen. Bill Nelson, D-Florida, believes that the executives of AIG who received the bonuses could be taxed as high as 90-95 percent. And perennial GOP vagabond, Sen. Charles Grassley R-Iowa stated, “I would suggest the first thing that would make me feel a little better toward them [AIG executives] is if they follow the Japanese example and come before the American people and take that deep bow and say, ‘I am sorry,’ and then either do one of two things: resign or go commit suicide. And in the case of the Japanese, they usually commit suicide.” And when stupid is being circulated within the chambers of the legislature, Barney Frank, one never to be behind the eight ball when stupid is involved, stated, “AIG should be sued to get those bonuses back.”
So what is the end result of Obama, the “constitutional scholar”, Chris Dodd, Barney Frank, and the rest of the Democrats with their feigning of anguish and knee-jerk reactionary remedies? Violating over two hundred years of U.S. contract law, three separate violations of the U.S. Constitution, and violating a law that was authored by none other than Chris Dodd in the $787 billion stimulus plan just a few weeks ago.
Who are to receive these bonuses? The Democrats would have you believe the top executives, sitting in their ivory towers, are randomly writing themselves bonus checks from the $173 billion in bailout money AIG received from the federal government. This is patently false, and a continuation of their lies. AIG CEO, Edward Liddy, is receiving only $1 for the next two years in salary; the top seven senior executives will receive no bonuses; and fifty more top AIG executives will receive no bonuses. Who does that leave? $165 million in bonuses have been paid to employees per their legally enforceable employee contracts, that is who. Liddy has stated that AIG’s hands are tied because of the contracts. Obama has ordered Treasury Secretary Tim Geithner to use his leverage to pursue every single avenue to block these bonuses. Ironically, two of the larger AIG bonus recipients are Barack Obama, $102,332, and Chris Dodd, $103,000, respectively.
But there are several impediments to the halting or taxing of the bonuses: Article 1 Section 9 of the Constitution states: No bill of attainder or ex post facto Law shall be passed. The retro taxing of the bonuses would violate the ex post facto portion of Section 9, and singling out only AIG bonus recipients would violate the attainder portion of Section 9. There is a strong case for violation of the equal protection clause of the 14th Amendment, also. Forcing AIG to rescind the bonuses would violate U.S. contract law, and would not be upheld in court. This is a country of laws and no one, not Obama, or his iniquitous Democratic led congress, can cause the arbitrary abrogation of contracts. The final impediment is a current law that was written specifically to allow AIG to give these bonuses and was written into the $787 billion stimulus bill by none other than Chris Dodd–who mysteriously added the amendment after meeting with the Obama administration, Pelosi, and Reid–which leaves Obama’s 102k finger prints all over it. The amendment, and bill, that NO ONE read, including Congress or Obama, states: “Bonuses can only be paid in the form of long-term restricted stock, equal to no greater than 1/3 of total annual compensation, and will vest only when taxpayer funds are repaid. There is an exception for contractually obligated bonuses agreed on before Feb. 11, 2009.” This amendment is now the law. AIG is following contract law and the law of the Stimulus bill.
The entire world financial recession, in a broad and elementary perspective, can be narrowed down to the U.S as the cause; which can be narrowed down to houses, the American Dream–which has been commoditized and traded on the open market with instruments no one understands except a narrow group of the esoteric; which can be narrowed down to fantastical lending criteria forced by Congress, and ACORN (Obama), on mortgage lenders; which can be narrowed down to a handful of Democrat legislators who suppressed the correcting of Fannie Mae, Freddie Mac, etc. for the past 8-10 years in spite of their forecasted implosion and the imminent cause of an apocalyptic financial crisis; which can be narrowed down to Chris Dodd, Charles Schumer, and Barney Frank. The very ones who are whining over AIG’s bonuses, which would not be in this position (they insured these loans), if not for Chris Dodd, Barney Frank and Charles Schumer, and every other like minded socialist in Congress. Dodd, head of the Senate Banking Committee, continually asphyxiated any attempt to control Freddie Mac’s and Fannie Mae’s lending practices, but he had good reason to do so–he has received $165k in donations from Fannie Mae and Freddie Mac.
This administration that has been drowning in mayhem since day one with a glaringly inept and understaffed Treasury Department, led by an authentic tax cheat, who knew of the AIG bonuses; a blunder prone Secretary of State that would rival Joe Biden; a Secretary of Home Land Security that seems oblivious to any threat to this country, and is on a mission to make sure that no immigration laws concerning illegal immigrants are enforced on her watch; a racist Attorney General who shares Obama’s disdain for the Constitution and the rule of law; and a president that, in defiance of the Peter Principle, has risen to many levels above his competency, beseeches the astute to ask: Can the Obama administration be spiraling out of control if it was never in control?
Jim Byrd's website is A Skewed View.