Posts Tagged ‘Tim Geithner’

Bill Clinton Says Rich Can Afford To Have Their Taxes Raised – But He Won’t Even Pay Hillary’s Campaign Debts

December 14, 2010

I don’t have the transcript for it, and the closest I could quickly find was this bit from Reuters:

“In my opinion, this is a good bill, and I hope that my fellow Democrats will support it,” Clinton said.

He admitted that as a high earner himself he would benefit from the Bush-era tax cuts for the wealthiest Americans that Democrats, including Obama, dislike. But with an extension of unemployment benefits and a cut in payroll taxes, Clinton said the package was the best bipartisan deal to help the country.

But I directly heard Slick Willy say that he could afford paying higher taxes.  And that even though he would personally suffer, it was the right thing to do for the country.  Because that’s just what a noble guy he is.

And Obama very definitely said it, as the Washington Times article entitled, “Obama: Rich can afford tax hike” should make abundantly clear.

But what Bill Clinton CAN’T seem to afford is wife Hillary’s campaign debts from now more than two full years ago.

The Clinton’s will eventually pay them, I don’t doubt.  With Other People’s Money, of course:

Bill Clinton is giving someone a chance to spend a day with him in New York City to help pay off his wife’s 2008 campaign debt.

The former president has sent out a new fundraising pitch on behalf of his wife, Secretary of State Hillary Rodham Clinton, who still owes her presidential campaign pollster.

Hillary Clinton owed Mark Penn and his firm more than $479,000 as of September, according to a campaign report filed with the Federal Election Commission.

Bill Clinton can pitch for raising income taxes on Other People.  Because he knows damn well he’ll weasel out of them with the help of accountants who are nearly as slick as he is.

He’s not interested in “paying his fair share.”  If he was, he’d write the check for his family campaign debts, instead of trying to sucker you into writing the check to pay off his wife’s debts for him.

Do you think Slick Willy’s going to be digging out his checkbook to pay off YOUR debts anytime soon?

Clinton and other wealthy liberals can say this kind of crap because they are unrelenting hypocrites.  Their souls swim in hypocrisy the way fish swim in water.  And so they know that they can raise taxes to whatever level they can manage, and that they’ll be able to afford every tax dodge and tax shelter and tax loophole that money can buy.

But most people can’t.  They’re forced to basically pay out the maximum rate, because they don’t have the money to afford the tax attorneys who can shelter their assets.  So they get screwed while the Slick Willy’s of the world keep getting other people to pay their debts for them.

And, of course, the Clintons and the Obamas have other little perks that honest people don’t have.  When Bill Clinton was elected as the attorney general for the state of Arkansas, his wife Hillary immediately got hired by the Rose Law Firm.  And when Bill was elected governor, suprise, suprise, Hillary suddenly made partner.  And there was that $1,000 Hillary turned into a hundred grand inside of a year with the painfully obvious benefit of insider trading tips.

And Michelle Obama benefited every scintilla as much from her husband’s political machinery.  Within months of Barack being elected state senator, Michelle Obama received a $195,000 pay increase from the “not for profit” hospital where she worked.  And at that same time, she was suddenly put on boards of companies for lucrative money – yes, including another huge stock payout.

Maybe you get money literally thrown at you on account of your spouse’s political connections.  I don’t.  Maybe the fact that I have to work hard for my money, rather than riding the coattails of a big money political machine and the businesses craving the opportunity to purchase influence makes me less willing to pay more taxes to the government.  Because I can’t tell my political patronizers, “The price just went up.”

And this liberal progressive hypocrisy on taxes and influence peddling with Other People’s Money  is as old as, well, liberal progressivism.

Barack Obama n0minated Tom Daschle to be the Secretary of Health and Human Services – and incredibly powerful position in the advent of the age of ObamaCare.  The only problem was that Daschle the Democrat hadn’t paid his taxes.

This happened again and again with a slew of Democrats who thought that their screed of “paying your fair share” only applied to Other People.  And how DARE you think that Democrats should be held accountable for standards that should only apply to Other People.

Ultimately, Obama’s nomination for Treasury Secretary went through, even though the man who would be in charge of tax enforcement hadn’t bothered to pay his own income taxes.  Because, by that time, it was apparent that finding an honest Democrat was just impossible.

And, of course, we now all know about the history of the Democrat in charge of writing tax laws for everyone else, Rep. Charlie Rangel, the now-disgraced former Chairman of the House Ways and Means Committee.

But, of course, if you think he should be criminally prosecuted for his abject failure to follow his own tax laws, well, you’re just a racist, aren’t you?

If the Congressional Black Caucus really believed that “the rich should pay their fair share of taxes,” they’d have hung Charlie Rangel up by his balls like he deserved, rather than labeling anyone who pointed out that he was a tax-cheating hypocrite fraud as a racist.

And in a way, the racist Congressional Black Caucus is completely right.  Because all Charlie Rangel did was act like a Democrat.  And if every Democrat was arrested for hypocrisy, I mean, there just wouldn’t be any Democrats walking the streets, would there?

Remember, Charlie Rangel is a good Democrat.  A GREAT one, in fact.  Because he was totally true to the Democrat philosophy: he wanted Other People to pay higher taxes, while he himself slept on the beach in front of his villa – which he hadn’t bothered to pay taxes on in SEVENTEEN YEARS.

Amazingly, Charlie Rangel – who was re-elected yet again in spite of the fact that he is a big fat criminal and a fraud, because that’s just the way Democrats roll – was one of the vocal Democrats spouting their opposition to “the rich” getting away with paying lower than communist-level income taxes.  Because, again, Democrats make up for their ignorance with sheer unmitigated chutzpah.

Rangel should do a lot less talking and a lot more shutting the hell up.

The same thing happened the LAST election, in 2004.  John Kerry was lecturing us in that snotty tone of voice of his on paying our fair share of taxes, and how the rich owed more.

Well, George Bush – the guy who believed in LOWER taxes – basically paid income taxes on the maximum federal income tax rate of 35% without taking deductions he qualified for.  What did the Kerrys pay? How double damn DARE you ask!!!

Kerry’s Wife Pays Less Taxes Than Median Family

“According to HUD, the median family income for the U.S. for 2003 was $56,500.  After applying the standard deduction of $9,500 for married filing jointly we end up with a taxable income of $47,000.  This puts the average family in the 15 percent tax bracket.  Kerry’s wife, using tax shelters, managed to pay only an effective federal tax rate of 11.5 percent, compared with the top federal income tax rate of 35 percent.  She paid $587,000 on an income of $5.1M.

“If Kerry wants the rich to pay more he should start with his wife.”

Despite the release of partial financial information, John and Teresa Kerry have not explained why, if it’s so important for the evil rich to pay more taxes, they didn’t add a voluntary addition to their check to the IRS.

So the arrogant and always snooty Kerrys – who demanded that Other People pay far more on their income taxes paid less than one-third (rhymes with ‘turd’) the tax rate they would have paid if they were honest people who WEREN’T full of hypocrisy over their eyeballs.

Because John Kerry and his rabid wife are Democrats.  And to be a Democrat is tantamount to being a vile pile of slime these days.

Has John Kerry learned the error of his ways and reformed from his hypocrisy?  I hate to tell you, but his yacht screams hell no:

Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.

All this to say that Democrats say “the rich should pay more” only because they are vile dishonest hypocrites who know that they won’t have to follow the rules that they afflict honest people with.

The facts are abundantly clear: allowing citizens – ALL citizens, not just the ones who pass Democrats’ Marxist class warfare test – to keep more of their own money which they earned and they deserve to keep is good for the economy, good for job-creation and even good for the government tax revenues.

Not that you can trust Democrats who are too damn dishonest to bother to pay their own taxes while railing at everyone else to pay more to admit that.

Every Democrat who says that “the rich should pay more” should be checking the box on their tax forms and donating whatever percent they want Other People to pay to the government.  That’s right, you hypocrite Democrats: why don’t you put your money where your mouths are for just once in your life and do what you are demanding that Other People do?

That goes for the more than half of you Democrats who don’t pay ANY federal income taxes at all.  You can file a tax form.  You can check that box.  You can give 39.6% of your money – or whatever you demand that Other People pay – to the government.  You’re just too damn full of hypocrite to do so.

So you just eat dirt, you Bill-and-Hillary Clinton John-and-Teresa Kerry Tom Daschle Timothy Geithner Charlie Rangel Democrats.  You can be as self-righteous – or as Barack Obama himself called you, “sanctimonious” – as you want.  But you know and I know that you’re really nothing but a bunch of lousy greedy hypocrites who want Other People to pay YOUR “fair share.”

Democrats Protect Taxpayer-Paid Tax Cheating Federal Employees

March 8, 2010

Does it bother you that Obama’s Secretary of the Treasury is a documented tax cheat?  Does it bother you that Charles Rangel, the Chairman of the House Ways and Means Committee who wrote our nation’s tax laws, is a big time documented tax cheat?

If you answered “no,” you are a Democrat.  And a hypocrite.

It is amazing how many wealthy Democrats there are – both in elected or political office and in the private sector – who think high taxes are great, and then do everything they can to avoid the very high taxes they want everyone else to pay.

What follows is a demonstration of the fact that Democrats want to shelter government employees – who are paid with YOUR money – from being responsible for the legitimate consequences which should follow from working for the very government you are screwing.

Why would the Democrats take such a repugnant stand?  Two reasons: 1) Most government employees are unionized; 2) these unions support and work for Democrats.

Provision to fire tax-delinquent federal employees pulled
By Robert Brodsky  rbrodsky@govexec.com  March 4, 2010

A legislative compromise that would have allowed agencies to fire tax-delinquent federal employees fell apart on Thursday.

The compromise softened an amendment to the 2009 Contracting and Tax Accountability Act that Rep. Jason Chaffetz, R-Utah, introduced earlier this week. The act already would prohibit companies that don’t pay their taxes from winning federal contracts; Chaffetz’s amendment extended that principle to “seriously delinquent” federal employees and congressional staffers.

Modified language that would have provided federal employees with due process protection and a hardship exemption won support from House Oversight and Government Reform Committee Chairman Edolphus Towns, D-N.Y. But, Rep. Stephen Lynch, D-Mass., chairman of the Oversight and Government Reform subcommittee on the federal workforce, and other Democrats, said the compromise amendment still was unduly harsh because it defined delinquency as the issuance of a lien by the Internal Revenue Service, which could be an early stage in resolving a tax dispute.

Chaffetz, however, argued that the amendment offered protection to employees who were working to settle the tax disputes.

Democrats also raised concerns about whether the amendment would overburden the Office of Personnel Management, which would be responsible for administering the provision.

As debate over the provision disintegrated and Democrats called for an opportunity to hold a hearing, Towns pulled both the amendment and the bill from the floor and postponed a vote.

A committee source said there was too much “confusion” with the amendment and lingering issues needed to be resolved.

“We wanted to take a break to make sure there were no unintended consequences with the bill,” the source said.

But, Republicans accused the Democrats of protecting federal employees.

“I am thoroughly disappointed that Democrats rejected the chairman’s compromise and stubbornly refused to work with him on an effort to hold federal employees to the same standard as the private sector,” said Rep Darrell Issa, R-Calif., ranking member of the Oversight and Government Reform Committee. “There needs to be consequences for both contractors and federal employees who fail to pay their taxes.”

“Chairman Towns’ compromise proposal on my amendment was a sensible approach, and it’s puzzling that members on the other side didn’t agree,” Chaffetz said. “The IRS already has a similar policy in place and they have demonstrated that it works.”

Chaffetz said the tax delinquency rate for the Treasury Department — which includes the IRS – -is less than 1 percent, compared to 3.4 percent for the rest of the federal government. He said the government fails to collect roughly $1 billion in taxes annually from about 100,000 federal employees.

The committee source said it was not clear if the issues with the amendment would require a hearing or if they could be worked out in a private meeting with the IRS.

Imagine that: the very same Democrats who rushed the stimulus through so quickly that not one single elected member of Congress had a chance to read the damn bills, and the very same Democrats who have repeatedly tried to rush ObamaCare through, suddenly have found legislation that requires “taking a break” and “making sure there are no unintended consequences.”  An $862 billion stimulus package didn’t require that kind of consideration; a complete takeover of our health care system doesn’t require that kind of consideration; but firing tax cheating government employees is something that must be studied to the nth degree.

A 2,700-page Senate health care bill monstrosity can be rushed through by any means possible; but please, oh please let us not rush into getting rid of taxpayer-paid tax cheats.

The explanation that Democrats care about all the various nuances of rights that government workers who haven’t bothered to pay their taxes supposedly have is a joke: if they wanted to do anything about these taxpayer-paid tax cheats, they would have wheeled and dealed to get a bill.  The simple fact of the matter is that they didn’t WANT a bill.

Taxpayer-paid unionized government employees who cheat on their taxes have more money to fork over to Democrats.  And the Democrats who would never even consider tort reform because their lawsuit-happy lawyers wouldn’t like it are the very same Democrats who won’t step on their union supporters’ toes.  Over anything.

That’s the bottom line.

Rampant Democrat Corruption Extends To Most Powerful Leaders

July 29, 2009

Right now, three of the most powerful Democrats are documented corrupt scumbags.

Charles Rangel, Chairman of the powerful tax-writing House Ways and Means Committee is a tax cheat.  Chris Dodd, the Chairman of the Senate Banking Committee, took corrupt mortgage loans from a corrupt mortgage lender at the epicenter of the mortgage meltdown crisis.  Kent Conrad, the Chairman of the Senate Budget Committee, also took such loans.

These men are incredibly influential in the writing of laws and legislation that will absorb most of the economy under their power.  And they are corrupt.

We were entertained at the beginning of the Obama administration as it became painfully obvious that it was hard to find an honest Democrat who actually paid the taxes that they hypocritically wanted everyone else to pay.  Many fell by the wayside, but “Turbo Tax” Tim Geithner’s personal dishonesty in paying his taxes didn’t stand in the way of his being Obama’s choice to become the Treasury Secretary in charge of enforcing tax laws.

Let’s start with the man who writes your tax laws but doesn’t want to follow his own laws and pay his own taxes: Charles Rangel.

The man has all kinds of issues, such as selfishly and greedily taking rent-controlled property meant for poor people.  It’s hard to say which is worse, but don’t forget to consider what he did in buying pricey beachfront rental property and then refusing to pay taxes on his substantial income:

JULY 27, 2009, 4:28 P.M. ET

Morality and Charlie Rangel’s Taxes
It’s much easier to raise taxes if you don’t pay them.

Ever notice that those who endorse high taxes and those who actually pay them aren’t the same people? Consider the curious case of Ways and Means Chairman Charlie Rangel, who is leading the charge for a new 5.4-percentage point income tax surcharge and recently called it “the moral thing to do.” About his own tax liability he seems less, well, fervent.

Exhibit A concerns a rental property Mr. Rangel purchased in 1987 at the Punta Cana Yacht Club in the Dominican Republic. The rental income from that property ought to be substantial since it is a luxury beach-front villa and is more often than not rented out. But when the National Legal and Policy Center looked at Mr. Rangel’s House financial disclosure forms in August, it noted that his reported income looked suspiciously low. In 2004 and 2005, he reported no more than $5,000, and in 2006 and 2007 no income at all from the property.

The Congressman initially denied there was any unreported income. But reporters quickly showed that the villa is among the most desirable at Punta Cana and that it rents for $500 a night in the low season, and as much as $1,100 a night in peak season. Last year it was fully booked between December 15 and April 15.

Mr. Rangel soon admitted having failed to report rental income of $75,000 over the years. First he blamed his wife for the oversight because he said she was supposed to be managing the property. Then he blamed the language barrier. “Every time I thought I was getting somewhere, they’d start speaking Spanish,” Mr. Rangel explained.

Mr. Rangel promised last fall to amend his tax returns, pay what is due and correct the information on his annual financial disclosure form. But the deadline for the 2008 filing was May 15 and as of last week he still had not filed. His press spokesman declined to answer questions about anything related to his ethics problems.

Besides not paying those pesky taxes, Mr. Rangel had other reasons for wanting to hide income. As the tenant of four rent-stabilized apartments in Harlem, the Congressman needed to keep his annual reported income below $175,000, lest he be ineligible as a hardship case for rent control. (He also used one of the apartments as an office in violation of rent-control rules, but that’s another story.)

Mr. Rangel said last fall that “I never had any idea that I got any income’’ from the villa. Try using that one the next time the IRS comes after you. Equally interesting is his claim that he didn’t know that the developer of the Dominican Republic villa had converted his $52,000 mortgage to an interest-free loan in 1990. That would seem to violate House rules on gifts, which say Members may only accept loans on “terms that are generally available to the public.” Try getting an interest-free loan from your banker.

The National Legal and Policy Center also says it has confirmed that Mr. Rangel owned a home in Washington from 1971-2000 and during that time claimed a “homestead” exemption that allowed him to save on his District of Columbia property taxes. However, the homestead exemption only applies to a principal residence, and the Washington home could not have qualified as such since Mr. Rangel’s rent-stabilized apartments in New York have the same requirement.

The House Ethics Committee is investigating Mr. Rangel on no fewer than six separate issues, including his failure to report the no-interest loan on his Punta Cana villa and his use of rent-stabilized apartments. It is also investigating his fund raising for the Charles B. Rangel Center for Public Service at City College of New York. New York labor attorney Theodore Kheel, one of the principal owners of the Punta Cana resort, is an important donor to the Rangel Center.

All of this has previously appeared in print in one place or another, and we salute the reporters who did the leg work. We thought we’d summarize it now for readers who are confronted with the prospect of much higher tax bills, and who might like to know how a leading Democrat defines “moral” behavior when the taxes hit close to his homes.

Charlie Rangel is a man who has been patently dishonest for his entire public life.  Not that it matters to Democrats.  If you’re a Democrat, you can be caught red-handed with $90,000 of FBI bribe money in your freezer like William Jefferson and actually get re-elected the following year.

That leaves Chris Dodd and Kent Conrad (at least, for me today).

AP IMPACT: Dodd, Conrad told deals were sweetened

By LARRY MARGASAK, Associated Press Writer Larry Margasak, Associated Press Writer – Mon Jul 27, 9:52 pm ET

WASHINGTON – Despite their denials, influential Democratic Sens. Kent Conrad and Chris Dodd were told from the start they were getting VIP mortgage discounts from one of the nation’s largest lenders, the official who handled their loans has told Congress in secret testimony.

Both senators have said that at the time the mortgages were being written they didn’t know they were getting unique deals from Countrywide Financial Corp., the company that went on to lose billions of dollars on home loans to credit-strapped borrowers. Dodd still maintains he got no preferential treatment.

Dodd got two Countrywide mortgages in 2003, refinancing his home in Connecticut and another residence in Washington. Conrad’s two Countrywide mortgages in 2004 were for a beach house in Delaware and an eight-unit apartment building in Bismarck in his home state of North Dakota.

Robert Feinberg, who worked in Countrywide’s VIP section, told congressional investigators last month that the two senators were made aware that “who you know is basically how you’re coming in here.”

“You don’t say ‘no’ to the VIP,” Feinberg told Republican investigators for the House Oversight and Government Reform Committee, according to a transcript obtained by The Associated Press.

The next day, Feinberg testified before the Senate Ethics Committee, an indication the panel is actively investigating two of the chamber’s more powerful members:

Dodd heads the Banking Committee and is a major player in two big areas: solving the housing foreclosure and financial crises and putting together an overhaul of the U.S. health care system. A five-term senator, he is in a tough fight for re-election in 2010, partly because of the controversy over his mortgages.

Conrad chairs the Budget Committee. He, too, shares an important role in the health care debate, as well as on legislation to curb global warming.

Both senators were VIP borrowers in the program known as “friends of Angelo.” Angelo Mozilo was chief executive of Countrywide, which played a big part in the foreclosure crisis triggered by defaults on subprime loans. The Calabasas, Calif.-based company was bought last July by Bank of America Corp. for about $2.5 billion.

Mozilo has been charged with civil fraud and illegal insider trading by the Securities and Exchange Commission. He denies any wrongdoing.

Asked by a House Oversight investigator if Conrad, the North Dakota senator, “was aware that he was getting preferential treatment?” Feinberg answered: “Yes, he was aware.”

Referring to Dodd, the investigator asked:

“And do you know if during the course of your communications” with the senator or his wife “that you ever had an opportunity to share with them if they were getting special VIP treatment?”

“Yes, yes,” Feinberg replied. […]

Countrywide VIPs, Feinberg told the committees, received discounts on rates, fees and points. Dodd received a break when Countrywide counted both his Connecticut and Washington homes as primary owner-occupied residences — a fiction, according to Feinberg. Conrad received a type of commercial loan that he was told Countrywide didn’t offer.

“The simple fact that Angelo Mozilo and other high-ranking executives at Countrywide were personally making sure Mr. Feinberg handled their loans right, is proof in itself that the senators knew they were getting sweetheart deals,” said Feinberg’s principal attorney, Anthony Salerno.

Two internal Countrywide documents in Dodd’s case and one in Conrad’s appear to contradict their statements about what they knew about their VIP loans.

At his Feb. 2 news conference, Dodd said he knew he was in a VIP program but insisted he was told by Countrywide, “It was nothing more than enhanced customer service … being able to get a person on the phone instead of an automated operator.”

He insisted he didn’t receive special treatment. However, the assertion was at odds with two Countrywide documents entitled “Loan Policy Analysis” that Dodd allowed reporters to review the same day.

The documents had separate columns: one showing points “actl chrgd” Dodd — zero; and a second column showing “policy” was to charge .250 points on one loan and .375 points on the other. Another heading on the documents said “reasons for override.” A notation under that heading identified a Countrywide section that approved the policy change for Dodd.

Mortgage points, sometimes called loan origination fees, are upfront fees based on a percentage of the loan. Each point is equal to 1 percent of the loan. The higher the points the lower the interest rate.

Dodd said he obtained the Countrywide documents in 2008, to learn details of his mortgages.

In Conrad’s case, an e-mail from Feinberg to Mozilo indicates Feinberg informed Conrad that Countrywide had a residential loan limit of a four-unit building. Conrad sought to finance an eight-unit apartment building in Bismarck that he had bought from his brothers.

“I did advise him I would check with you first since our maximum is 4 units,” Feinberg said in an April 23, 2004, internal e-mail to Mozilo.

Mozilo responded the same day that Feinberg should speak to another Countrywide executive and “see if he can make an exception due to the fact that the borrower is a senator.”

Feinberg said in his deposition with House Oversight investigators last month that exceptions for the type of loan Conrad received were not allowed for borrowers outside the VIP system.

“If there was a regular customer calling, and of course you say, ‘No, we’re a residential lender. We cannot provide you with that service,'” Feinberg said.

Feinberg also told House investigators that Countrywide counted both of Dodd’s homes as primary residences.

“He was allowed to do both of those as owner-occupied, which is not allowed. You can only have one owner-occupied property. You can’t live in two properties at the same time,” he said.

Normally, Feinberg said, a second home could require more equity and could have a higher mortgage rate.

Rep. Darrell Issa of California, the senior Republican on the House Oversight Committee, had his investigators question Feinberg as part of a broader investigation into Countrywide’s VIP program.

Other names that have surfaced as “friends” of Mozilo include James Johnson, a former head of Fannie Mae who later stepped down as an adviser to Barack Obama’s presidential campaign, and Franklin Raines, who also headed Fannie Mae. Still other “friends” included retired athletes, a judge, a congressional aide and a newspaper executive.

Conrad initially said in June 2008, “If they did me a favor, they did it without my knowledge and without my requesting it.”

The next day, Conrad changed course after reviewing documents showing he got special treatment, and said he was donating $10,500 to charity and refinancing the loan on the apartment building with another lender. He also said then it appeared Countrywide had waived 1 point at closing on the beach house.

Gaddie said Feinberg has previously made statements to the news media that Countrywide waived 1 point without the senator’s knowledge.

Feinberg testified that VIPs usually were not told exactly how many points were being waived, but it was made clear to them that they were getting discounts.

And, of course, Barack Obama has his own sweetheart mortgage deal with his own scumbag, Tony Rezko.  Not to mention all kinds of other skeletons in his “Chicago Way” closet that were never investigated by a clearly biased press.  A lot of the most obvious corruption occurs through his wife Michelle Obama, who kept getting paid more and more on hospital boards as Obama advanced politically.  On hospitals that did some really nasty things, such as patient dumping which she might have participated in.

Democrats cry day after day that what the world needs is more government.

But consider something: “Power tends to corrupt, and absolute power corrupts absolutely.”

No entity wields more absolute power, or is more corrupt, than government.

Democrats tell us every day that they are out to save us from evil big businesses.  But there is no one to save us from Democrats, or the intrusive giant octopus federal government behemoth they are seeking to create and empower to rule over virtually every aspect of our lives.

Obama Imposes Suicide-Pact Bankruptcy On Chrysler

April 24, 2009

The government is preparing the way for a “Dr. Kevorkian”-style bankruptcy for Chrysler.  A couple of paragraphs from the New York Times story should suffice:

U.S. Is Said to Push Chrysler to Prepare for Chapter 11

DETROIT — The Treasury Department is directing Chrysler to prepare a Chapter 11 bankruptcy filing that could come as soon as next week, people with direct knowledge of the action said Thursday.

The Treasury has an agreement in principle with the United Automobile Workers union, whose members’ pensions and retiree health care benefits would be protected as a condition of the bankruptcy filing, said these people, who asked for anonymity because they were not authorized to discuss the case.

You know, I’m old enough to remember a time way, way back when businesses were actually allowed to attend to their own financial affairs.

And they’ve got a guy who was either too dishonest or too stupid to pay his own tax bill organizing the thing: “Turbo Tax Tim” Geithner.

That’s bad enough, but then the snowball starts rolling straight to hell.

The government isn’t making its arrangements with Chrysler; it is rather making them with the United Auto Workers, and then imposing the conditions onto Chrysler.

This is tantamount to saying that Chrysler will never come out of bankruptcy, given the fact that the company needs to be able to escape its legacy costs if it is to ever have any chance of ever being viable.

Would Italian Fiat want this gold-plated turd?  Not very likely.  The Obama administration’s kissy-kiss with the UAW on a bankruptcy deal (and who ever would have seen THAT coming) is frankly akin to a bridal consultant pushing a bride-to-be to gain 500 pounds and have her face chewed off by a deranged chimpanzee in order to prepare her for her nuptials.  The bridal consultant, the chimp, and the bride; the Obama administration, the UAW, and the company: neither situation is going to end well.

Realize this: Obams imposing a suicide pack onto Chrysler.  There is no way the company will be able to attract private investment as long as the unions get to dictate terms.  And realize this: the green cars that the Obama administration wants to impose on the American auto industry aren’t profitable.  Which is why no American money wants anything to do with Barack Hussein’s GM or Chrysler (and very soon Ford).  That leaves us hoping that some foreign country’s investors are more stupid than ours are.

This is nothing less than a suicide pact.  There’s a spaceship hidden behind big labor’s version of the Hale-Bopp comet, and the Obama administration wants Chrysler and GM to prepare to board.

The NY Times article continues:

The only major question that remains unresolved is what happens to Chrysler’s lenders, who hold $6.9 billion in company debt. The government’s most recent offer, presented Wednesday, would give the company’s lenders about 22 cents on the dollar, or $1.5 billion, and a 5 percent equity stake in a reorganized Chrysler. Earlier this week, a steering committee of the lenders proposed that they receive 65 cents on the dollar, or $4.5 billion, and a 40 percent equity stake.

If no agreement is reached between the government and Chrysler’s lenders, a nasty legal fight could emerge in bankruptcy. The creditors’ claims are backed by most of the company’s collateral, including plants, brands and equipment, and the senior lenders will argue that they have first claim on those assets — even over and above the government’s debt….

Some analysts questioned whether the Treasury’s steps to prepare a bankruptcy case were an effort to put more pressure on lenders, with which it has exchanged proposals meant to reduce Chrysler’s debt. Chrysler faces an April 30 deadline from the Treasury, while G.M. faces a June 1 deadline in its own efforts to draft a new restructuring plan.

Let me put the first sentence of the last paragraph another way: “Some analysts questioned whether the father-in-law’s steps to prepare a shotgun wedding was an effort to put more pressure on the boyfriend…

This is an administration that is clearly hungry for power, and which clearly intends to use that power for political purposes.  Why won’t they allow banks to repay bailout money?  They want to be able to control the banks, and thereby control the banks lending policies.

As the Wall Street Journal’s Stuart Varney puts it:

Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can’t a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can’t special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit — until now.

Obama is paying unions back for supporting his presidency by putting the UAW at the head of the line in bankruptcy negotiations.  It is nothing short of political patronage.  Do you seriously think there’s even a chance that he won’t similarly use his power over the banking industry to impose liberal policies and reward liberal constituents?

Obama shares a number of the underlying characteristics that would tend to define one as a fascist, as Jonah Goldberg saw at least as far back as February of 2008.  But we’re not talking about mere “underlying characteristics” or tendencies anymore.  We’re talking about overt fascism.  Sheldon Richman defined fascism as follows:

Where socialism sought totalitarian control of a society’s economic processes through direct state operation of the means of production, fascism sought that control indirectly, through domination of nominally private owners. Where socialism nationalized property explicitly, fascism did so implicitly, by requiring owners to use their property in the “national interest”–that is, as the autocratic authority conceived it. (Nevertheless, a few industries were operated by the state.) Where socialism abolished all market relations outright, fascism left the appearance of market relations while planning all economic activities. Where socialism abolished money and prices, fascism controlled the monetary system and set all prices and wages politically. In doing all this, fascism denatured the marketplace. Entrepreneurship was abolished. State ministries, rather than consumers, determined what was produced and under what conditions.

What the hell else are you going to call what Obama is doing but fascism?

Fascism came out of the political left; and liberals are leading us right back into a fascist hell all over again.

Which leads to the last observation: the suicide-pact that the Obama adminstration is forcing onto Chrysler is a microcosm for the suicide-pact that our society and our country are going to experience.  This government takeover of the American way of life won’t just result in a fascistic redefinition of America.  The federal government and federal reserve have committed over $12.8 TRILLION so far in bailouts and stimulus.  And we’re nowhere near done with this madness, because our leaders believe they can sepnd their way out of debt.  Massive inflation – and a death spiral – will necessarily follow.