Making an Offer Which Simply Cannot be Refused

Obama administration shows blindness to rule of law, penchant for thuggery

By Rick Saunders
America’s Right

The Contracts Clause of the United States Constitution can be found in Article 1, Section 10 and admonishes that no state shall enact any law “impairing the Obligation of Contracts.” That provision has served as one of the foundation stones for the Constitution’s respect for contractual agreements and the obligations thereunder between and among the parties to the contract, and reflect the Founding Fathers’ parallel respect for the rule of law. Indeed, the Contracts Clause is but one of many cited for the proposition that ours is–or until January 20, 2009, was–a nation of laws and not men.

Yesterday, George Mason University law professor Todd Zywicki noted, in The Wall Street Journal, that the Obama administration’s heavy-handed tactics in the Chrysler bankruptcy not only makes a mockery of the Contracts Clause, but also undermine in the worst way the principle of the rule of law that has guided this great nation for more than two hundred years. One particular point:

The Obama administration’s behavior in the Chrysler bankruptcy is a profound challenge to the rule of law. Secured creditors–entitled to first priority payment under the “absolute priority rule”–have been browbeaten by an American president into accepting only 30 cents on the dollar of their claims. Meanwhile, the United Auto Workers union, holding junior creditor claims, will get about 50 cents on the dollar.

The absolute priority rule is a linchpin of bankruptcy law. By preserving the substantive property and contract rights of creditors, it ensures that bankruptcy is used primarily as a procedural mechanism for the efficient resolution of financial distress. Chapter 11 promotes economic efficiency by reorganizing viable but financially distressed firms, i.e., firms that are worth more alive than dead. Violating absolute priority undermines this commitment by introducing questions of redistribution into the process. It enables the rights of senior creditors to be plundered in order to benefit the rights of junior creditors.

First, the term “browbeaten,” in this case, is a bit of an understatement. Second, I couldn’t help but notice the “R” word. Ah, redistribution — music to the administration’s ears.

Anyway, here’s a translation: first priority secured creditors of Chrysler will now, thanks to the Chicago machine tactics used by the Chosen One’s operatives, have their claims (i.e., dollars) redistributed to the United Auto Workers union. The less secured are allowed to plunder the monies of the more secured. The only thing missing is James Gandolfini and an ill-fitting pleather jacket. Hey, youse guys help me now, I help youse guys later on . . . bada-boom . . . bada-bing.

Even more troubling, however, are the circumstances surrounding the administration’s dictate that Chrysler sell its assets to the Italian automobile company Fiat. We now learn, in more detail, of the troublesome potential that the Obama-mandated sale of Chrysler assets to Fiat will result in a direct benefit to–wait for it–Libya and Libyan strongman Moammar Gadhafi.

Yes, Virginia, the same Gadhafi who made a speech glorifying the candidacy of Barack Hussein Obama at this time last year. That speech was carried by the Al Jazeera television network on June 11, 2008, and was later translated by The Middle East Media Research Institute (MEMRI) and found to include this following gem:

All the people in the Arab and Islamic world and in Africa applauded this man [Obama]. They welcomed him and prayed for him and for his success, and they may have even been involved in legitimate contribution campaigns to enable him to win the American presidency.

Really? Aren’t foreign nationals prohibited from contributing money to the campaigns of American presidential candidates? Isn’t that what the rule of law says?

Then again, what does Gadhafi know of our Federal Election Commission? By all accounts, however, it’s probably more than this administration knows of the Contracts Clause and the Constitution.

But when you’re Barack Obama . . . bada-boom! . . . bada-bing! . . . who cares!?!

Rick Saunders is a freelance writer who splits his time between endeavors in southern California and the American southwest. He began writing for America’s Right in December 2008. Jeff Schreiber started America’s Right in January 2008.



  1. Gail B says:

    Rick, you’re so good!

    For a man who TAUGHT Constitutional law, our liberal, socialist leader is either ignorant of the contents of the document or is skilled at tip-toeing through the tulips.

    Where are Congressional voices on this?

  2. Anonymous says:

    How do we know what he really TAUGHT. He has all his papers in lockdown. Won’t it be just a hoot of a miracle if his birth certificate shows up with a big fat NOT A CITIZEN OF THE UNITED STATES stamped on it. I and so many others will make the biggest noise. He is covering up a hell of a lot just to take this country down a path that we will never get off of. Maybe in his eyes it is “Get even with us time”. If you get my drift! IMHO!

  3. Linda says:

    This web just gets more and more wicked.


    We need to face it folks, this guy is a flaming Muslim. Allah Achbar!

  5. Dee says:

    Rick, good article. However, like you said, “who cares”. It appears that no one cares what is being done and those who express concern are laughed at, derided, or thought to be crazy. You dare not disagree with this administration. It’s HIS way or the highway. I keep HOPING for a CHANGE. Keep up the good work that you, Jeff, and the others are doing.

  6. Anonymous says:

    He is a manipulating usurper who will do anything for revenge upon our country, and as time passes, he is digging his heels in deeper and deeper in the “thug” mire.

    It is up to us to demand exposure of his birth records and other background documents. The problem is he never was qualified– birth certificate, or no birth certificate– as he is a British subject by way of his Kenyan (British subject-1948 British Nationality Act)father. Nothing can change that lineage no matter what the manipulation.

    The British Nationality Act 1948 was an Act of the British Parliament which established the status of Citizen of the United Kingdom and Colonies (CUKC), the national citizenship of the United Kingdom and those places that were still British colonies on 1 January 1949 (Kenya).


    WASHINGTON (AFP) – For the first time the US First Lady has made Maxim magazine’s annual top 100 list of “hottest women in the world,” with Michelle Obama making the grade at number 93.

    Billed as the “stimulus package America really needs”

  8. Anonymous says:

    respectfully, you haven’t spent much time in the bankruptcy court have you?

    This happens every day and has been happening for years. At least he’s giving them 30 cents.

  9. Claudia says:

    What I simply don’t understand is: WHERE are the CONSTITUTIONAL LAWS that are permitting this to happen and why hasn’t anyone stepped up to stop this from happening. There is a clear serparation between PRIVATE BUSINESSES and GOVERNMENT BUSINESSES, why isn’t that being enforced and even addressed??

  10. PattyW says:

    Dick Morris calls this “Thugocracy”.


    Since when does anybody care about The Constitution? That document is so old and it was written by white guys.

  12. CAL says:

    I hope everyone read the Newsmax article that is linked to in this piece. It goes into more detail about Obama’s relationship with Gadhafi. It is really scary and I can’t help but ask where is the MSM? With their ratings in the tank and their newspapers not selling, you would think the MSM would be all over this stuff.

  13. CarolinaNan says:

    You are joking of course? If not, then what is your point? You what nobama and his cronies are selling other than the constitution? I guess we will find out how well that will work out based on what nobama is doing with the support of the obamaniacs. It does not matter if your are black, white or pink with purple polka dots! We will all be screwed.

  14. Bobby K. says:

    I think and this is just me, but we need to boycott Chrysler and GM if we want to take care of this. The unions have been the downfall of the steel industry and now the auto industry and that is just the major ones, if the government is going to be involved in business. We need to boycott every business they are involved in. The gov can’t even run their own business.

    I am sick and tired of this, when are the conservatives going to do something, they have sit back and done nothing for to long, it is time to give every single politican their pink slip. Dems adn Repubs. And when the messiah said he would create jobs he didn’t say it would be in the IRS. More jackboot chicago tactics..

    I’m going back to work now have mochers to support..

  15. Rix says:

    Keep placing your hopes on 2010 elections, folks. What does he do, I wonder, to start a riot – publicly urinate on the Constitution? He’s done all but.

  16. PATRICK HENRY says:

    BOBBY K,

    right on. Boycott anything this government has its hands in. And I still think we should ALL change our deductions and quit paying taxes when due. Screw this government. I would lay down my life just to fight this STUPIDITY, LIBERTY be damned.

  17. Anonymous says:

    Please go to my site at, please. These stickers I feel better highlight the real nature of obama and his fraud. I dont’ care about the money if I had any I would print and distribute them free. I like so many are desperate to break thought the media trance around this unsurper. By people seeing these on cars and walls all over maybe it will get people talking and thinking.Please take time to look and at least comment to me. Gods Grace.

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