Government Sanctioned Extortion…and More!


extortion-for-dummies

Just a quick comment about all the hubbub regarding the bonuses paid out to AIG executives…THERE’S NOTHING TO SEE HERE!  First off, Chris Dodd wrote the language into the bailout bill that saw to it that these guys would get their CONTRACTUALLY OBLIGATED bonuses.  He tried to feign ignorance but ended up admitting that he knew about it but is apparently still shocked and outraged.  Give me a break!  Obama also knew about it beforehand but only claimed to be outraged when word started traveling.  Of course, few in the mainstream media have mentioned that these executives would have legal grounds to have sued AIG had their bonuses been withheld.  They likely would have won such a lawsuit and may have gotten at least twice the amount originally agreed to.

Now that that’s off my back…I’ve been out of commission, speaking only of this blog, for part of February and all of March, but was inspired to return to the blogosphere ala a KISS reunion tour by an article about government-sponsored extortion.  This is written by Judge Andrew Napolitano, FOX News Senior Judicial Analyst…

The Federal government committed extortion and they’re not being held accountable. What’s next? Listen to this: I recently met with the Chair and CEO of one of the country’s top 10 bank holding companies. His bank is worth in excess of $250 billion, has no bad debt, no credit default swaps, no liquidity problems, and no subprime loans. He told me that he and others were forced by Treasury and FDIC threats to take TARP funds, even though he did not want or need them.

The FDIC — with Treasury backing — threatened to conduct public audits of his bank unless his board created and issued a class of stock for the Feds to buy. The audit, which he is confident his bank would survive, would cost it millions in employee time, bad press, and consequent lost business.

He pleaded with the Feds to leave his successful bank alone. He begged his board to let him tell the Feds to take a hike. But they gave in. The Feds are now just a tiny shareholder, but want to begin asserting more and more control. This is a classic extortion: Controlling someone’s free will by threatening to perform a lawful act. (Blackmail is the threat is to perform an unlawful act in order to control someone else’s free will.) There are no exceptions in the statutes prohibiting extortion for government persons

This happened in September 2008, but the demands for more control are more recent. It sounds to me like Paulson, Geithner, Bernanke, and Sheila Blair have all read a biography of Benito Mussolini. I guess they skipped the last chapter.

There is simply no authority in the U.S. Constitution for Congress to exercise the level of control it now seeks over private industry. In fact, this level of control will wind up costing the businesses that took TARP (voluntarily or involuntarily) money since they will lose key employees who will go to work elsewhere and because the reporting requirements will take time and time is money. The Constitution basically says that if the government wants to take time or freedom or money from someone or something, it must sue for it. It cannot just give itself the authority to do so via legislation.

Our liberties are slipping away right before our eyes.

You can also view the article at http://foxforum.blogs.foxnews.com/2009/04/02/napolitano_fdic/.

[sarcasm on]Isn’t it just peachy to know that our wonderful government, under the leadership of President Obama, is providing such wonderful services to our nation’s banks and, by extension, our financial system?[/sarcasm]

OK…Despite the UBB code in the above paragraph, I think you would’ve gotten the nearly deafening sarcasm which I used to describe this pathetic situation.    I’ve really tried to give Obama as much credit as possible for his decisions since being inaugurated but it’s become almost like the relationship between normalcy and Michael Jackson.  The two just almost don’t coexist.

Truthfully, this quasi-socialist road we’re currently careening down was begun many years ago and President Bush really stepped on the gas over his last few months in office to help us ease down that debt and big-government laden highway but that doesn’t absolve Obama for the horrible decisions he’s made already in his brief tenure.  Unfortunately, the wheels are starting to come off and sparks may begin flying at any time.  At that point, it may only be a matter of time until we need to put out the fire.

OK…Now despite the previous reference to a KISS reunion tour, there will be no donning of extreme makeup, spitting of blood, high-heeled boots, squealing of guitars, or fireworks in association with this blog.  I’m sure the groupies will be lining up at my door…

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