Our Caudillo President

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Accountable

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Good article by Ben Stein

http://spectator.org/archives/2010/06/16/the-caudillo-president

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Our Caudillo President

By Ben Stein on 6.16.10 @ 6:10AM

As I write this on Monday night, there are rumors around that BP will agree to President Barack Obama's demand that the oil giant "voluntarily" put about $30 billion into a fund to be administered by the government to compensate victims of the Gulf of Mexico oil disaster.

Now, no one disputes that this is a real disaster and that BP acted irresponsibly in commissioning Trans-Ocean and Halliburton to drill for oil in waters so deep that if a failure occurred there would be no way to fix it -- at least until major damage had been done. BP, Trans-Ocean, and Halliburton, as well as the individuals involved, have much to answer for.

But the action of the President in demanding this immense transfer of the stockholders' wealth without any legislation or court decision is extremely worrisome.

We live in a Constitutional Republic. The President's job under the Constitution is to enforce the laws made by the elected Congress. His job is not to create new laws and enforce them all by himself. His job is as magistrate under the Constitution, not as Caudillo. He is not the law. He is supposed to enforce what Congress decides.

The BP behavior is reminiscent of how, immediately after assuming office, Mr. Obama, with no Congressional authority or administrative allowance, simply made a phone call to fire the head of GM. When I called the White House press office to ask under what law or regulation Mr. Obama was acting, I was told he did not need a law. If the government put a lot of money into GM, it could call the shots at GM, I was told. But under what authority, I asked. "None needed," was the final answer.

Without any new legislation, President Obama has used returned TARP money as a political slush fund to prop up favorite industries. This is the same problem: serious executive action without legislative authority.

The same goes for Mr. Obama's demand that BP pay the lost wages of oil and gas workers suspended from work because of the moratorium on Gulf of Mexico underseas drilling. There simply was no legislation allowing this kind of specific demand. Mr. Obama's demand was in the nature of a threat, more than a Constitutional act.

Of course, every President tries "jawboning" to restrain steel company price increases or something similar. But to create specific enactments and actions without any authority -- now Mr. Obama's specialty -- is so at odds with the law of the land that it terrifies me. These are not the acts of a teacher on Constitutional law. These are the acts of a big city boss or a third world dictator. If you want to know why business has pulled in its horns and hunkered down, and why people at tea parties and elsewhere are scared, look no further than Barack "I Am The Law" Obama.

Is there anyone in Congress to stop him? Is there anyone in a black robe to stop him? Or is everyone already too scared to challenge the Duce in the White House?
 
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Guyzerr

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Would it not have been possible for BP just to have said " Mr.President we're not going to do it that way". BP didn't have to agree to anything but they did because they know they'll end up paying anyway. By doing it this way they probably think they'll be better looking in the eyes of the world. Like I said before " BP will do what's best for BP".
 

Tim

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Would it not have been possible for BP just to have said " Mr.President we're not going to do it that way". BP didn't have to agree to anything but they did because they know they'll end up paying anyway. By doing it this way they probably think they'll be better looking in the eyes of the world. Like I said before " BP will do what's best for BP".

:homo:

BP does have rights under the law, and if they wanted to fight it, they had that power. This money was not taken by military might or by threat of force... So it's not an issue.

And as far as the CEO of GM... he was NOT fired by the president. The president didn't have the power or authority. He asked the CEO to step down and he did.

The president can make any demands he wants, there is nothing unconstitutional about that and to suggest that it is, is nothing more than playing politics.
 

Codrus

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a few things come to mind in regards to this

1) this probably gets BP off cheap
2) is this 30 Billion dollar fund going to wind up like social security (dipped into by everyone till there is nothing left)
3) i'm glad i sold my BP and Trans-Ocean stock when i did
4) how could anyone think 30 billion was enough to cover the immense long term damage and repercussions this will have not only for us but for our children
5) "Hope and Change".....i really Hope that things start to Change for the better soon
 

Tim

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a few things come to mind in regards to this

1) this probably gets BP off cheap
2) is this 30 Billion dollar fund going to wind up like social security (dipped into by everyone till there is nothing left)
3) i'm glad i sold my BP and Trans-Ocean stock when i did
4) how could anyone think 30 billion was enough to cover the immense long term damage and repercussions this will have not only for us but for our children
5) "Hope and Change".....i really Hope that things start to Change for the better soon

First, it's only a $20 billion escrow that was set up.
Second, it is an escrow so the government doesn't have access to it. The claims are paid directly from the escrow and not from the government, because the government doesn't have the money in it's possession.
Third, this is only a beginning. BP will need to put more money into the escrow as needed. The $20 billion wasn't any sort of cap or final number.
 

Tim

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From the White houses website.

FACT SHEET: Claims and Escrow
INDEPENDENT CLAIMS FACILITY
A new, independent claims process will be created with the mandate to be fairer, faster, and more transparent in paying damage claims by individuals and businesses.

  • To assure independence, Kenneth Feinberg, who previously administered the September 11th Victim Compensation Fund, will serve as the independent claims administrator.
  • The facility will develop standards for recoverable claims that will be published.
  • A panel of three judges will be available to hear appeals of the administrator’s decisions.
  • The facility is designed for claims of individuals and businesses who have been harmed by the oil spill; local, state, tribal, and federal government claims will continue to be handled directly by BP.
  • The facility will decide all claims as expeditiously as possible, and in any event within the existing statutory timeframe.
  • Dissatisfied claimants maintain all current rights under law, including the right to go to court or to the Oil Spill Liability Trust Fund.
  • Decisions under current law by the independent claims facility shall be binding on BP.
  • All claims adjudicated under this facility have access to the escrow account for payment.
ESCROW ACCOUNT
BP has agreed to contribute $20 billion over a four-year period at a rate of $5 billion per year, including $5 billion within 2010. BP will provide assurance for these commitments by setting aside $20 billion in U.S. assets.

  • BP has reaffirmed its commitment to pay all removal costs and damages that it owes as a responsible party. It will not assert any liability cap under OPA to avoid liability.
  • The creation of the escrow account will provide assurance to the public that funds will be available to compensate the injured.
  • This account is neither a floor nor a ceiling on liability.
  • The escrow account is to be used to pay claims adjudicated by the independent claims facility, as well as judgments and settlements, natural resource damage costs, and state and local response costs.
VOLUNTARY CONTRIBUTION FOR RIG WORKERS

  • BP will contribute to a foundation $100 million to support unemployed oil rig workers.
  • The Administration’s May legislative proposal would create a new program of unemployment assistance, modeled after the Disaster Unemployment Assistance Program, to provide benefits to workers who lose their jobs as a result of a spill of national significance.
ENVIRONMENTAL AND HEALTH MONITORING

  • BP has previously committed $500 million for the ten-year Gulf of Mexico Research Initiative to improve understanding of the impacts of and ways to mitigate oil and gas pollution.
  • As a part of this initiative, BP will work with governors, and state and local environmental and health authorities to design the long-term monitoring program to assure the environmental and public health of the Gulf Region.
 

Codrus

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im sorry Tim,...but until it actually happens and there isn't any monkey business i cant believe that all that will happen in my lifetime or at all.

and im still not sure if you even exist....this could be a part of a bad acid flashback or something:willy_nilly:
 

Accountable

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BP does have rights under the law, and if they wanted to fight it, they had that power. This money was not taken by military might or by threat of force... So it's not an issue.

And as far as the CEO of GM... he was NOT fired by the president. The president didn't have the power or authority. He asked the CEO to step down and he did.

The president can make any demands he wants, there is nothing unconstitutional about that and to suggest that it is, is nothing more than playing politics.
You keep deluding yourself that way, Tim. I'll be here when you can no longer disavow reality & will be quite civil about it. :D
 

Tim

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im sorry Tim,...but until it actually happens and there isn't any monkey business i cant believe that all that will happen in my lifetime or at all.

and im still not sure if you even exist....this could be a part of a bad acid flashback or something:willy_nilly:

You keep deluding yourself that way, Tim. I'll be here when you can no longer disavow reality & will be quite civil about it. :D

Do either of you actually know how an escrow works? And why an escrow is used?

Because if you did, you would know the money is 100% safe.
 

Codrus

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Do either of you actually know how an escrow works? And why an escrow is used?

Because if you did, you would know the money is 100% safe.


here is an S. Crow...it is used when they have soccer matches with very small balls :D

CrowSoccer3.jpg
 
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Guyzerr

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:homo:

BP does have rights under the law, and if they wanted to fight it, they had that power. This money was not taken by military might or by threat of force... So it's not an issue.
That's basically what I was saying. What I can't fathom is why so many people are fixated on the fact that Obama ordered it therefor it was done when that wasn't the case.
 

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Do either of you actually know how an escrow works? And why an escrow is used?

Because if you did, you would know the money is 100% safe.
The money's not safe because this administration doesn't respect the rule of law. They've proven it time and again, most notably when the auto manufacturers declared bankruptcy; Washington went against what the law requires and decreed that labor unions would get paid ahead of preferred stock holders.

Nothing is safe until we clean the urine stains off the Constitution and regain control of the bloated federal gov't.
 

Accountable

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The Economist calls him Vladimir Putin. :D
http://www.economist.com/node/16377269?story_id=16377269&source=features_box_main

After the macho rhetoric came the demands for cash. Mr Obama decided to “inform” BP that it must put adequate funds to meet all compensation claims into an escrow account beyond its control, although he has no authority to do so. Nancy Pelosi, the speaker of the House of Representatives, instructed it not to pay a dividend until all claims tied to the spill are settled. Her fellow Democrats in Congress are trying to raise BP’s liability retroactively—the sort of move America’s courts rightly frown on. Mr Salazar, on even thinner legal ice, suggested that the government would hold BP accountable not just for the harm directly done by the spill, but also for the jobs lost in the oil business thanks to the freeze on oil drilling in deep water that he himself has imposed.
 

retro

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I love the fact that the administration is wiping their collective asses with the Constitution... makes me absolutely fucking sick. On another forum right after Obama was elected, someone said that it was great because "the adults are back in charge". I haven't seen any "adult" behavior in the last year and a half... I see a school yard bully and petulant children that think that they can do whatever the fuck they want to do because they're in power. Chicago-style politics at its finest... I'm just glad that Obama's approval numbers are dropping like a rock and it looks like at the very least the Dems are going to lose the house. We need some checks and balances in place in order to bring this President and his bullies in line.
 

Peter Parka

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I love the fact that the administration is wiping their collective asses with the Constitution... makes me absolutely fucking sick. On another forum right after Obama was elected, someone said that it was great because "the adults are back in charge". I haven't seen any "adult" behavior in the last year and a half... I see a school yard bully and petulant children that think that they can do whatever the fuck they want to do because they're in power. Chicago-style politics at its finest... I'm just glad that Obama's approval numbers are dropping like a rock and it looks like at the very least the Dems are going to lose the house. We need some checks and balances in place in order to bring this President and his bullies in line.

Sounds like you're describing the 8 years before this of Bush and the Republicans to me. Why are you so indignant now because its Democrats? I dont remember much of you getting angry about 8 years of the same stuff before Obama came to power, on here?
 

Accountable

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Sounds like you're describing the 8 years before this of Bush and the Republicans to me. Why are you so indignant now because its Democrats? I dont remember much of you getting angry about 8 years of the same stuff before Obama came to power, on here?
nonplayer. Got something current?
 

Tim

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I'm still waiting for someone/anyone to explain why this is unconstitutional....

Any takers?
 

retro

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I'm still waiting for someone/anyone to explain why this is unconstitutional....

Any takers?

He doesn't have the authority to do so under Article II of the United States Constitution. This would fall under the Judicial Branch of the Federal Government, and not the Executive or Legislative branches. Though the Legislative Branch would have a better case than would the Executive Branch. This is quite frankly a Judicial issue, and the President doesn't have the authority to demand money from a private corporation.
 
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