Guest Post: Is American Justice Dead?

Tyler Durden's picture




 

Submitted by David Galland, via Casey Research,

Every nation-state has a body of laws woven into the fabric of society. As Peruvian economist Hernando de Soto has commented on extensively, the stronger the rule of law, the stronger the economy.

And by "stronger" laws, I mean laws that are impervious to tampering for personal or political gains. The connection between a sound judiciary and economic health is readily comprehensible, except maybe to a politician... businesses and individuals are far more likely to invest capital in a country with understandable laws that are impartially and universally enforced than if the opposite condition exists.

That's because the lack of a consistent body of law breeds uncertainty and adds a huge element of risk for entrepreneurs. That is the case here in Argentina, where hardly a week goes by without La Presidenta and her meddlesome comrades cooking up some new hurdle for businesses to overcome.

Which brings me back to the matter at hand – American justice on a slippery slope.

Few recent cases make the contention clearer than the announcement last week by the US Justice Department that it had settled its case against HSBC for acting as the bag men for Colombian and Mexican drug cartels. The fine, $1.9 billion, amounts to about five weeks of revenue for the bank.

And that was pretty much it.

Matt Taibbi of Rolling Stone magazine, who can run hot or cold when it comes to reporting, in my opinion, nails his column on the verdict, which you can read here.

The basic setup is that for years, at the highest levels of HSBC, the bank worked hand in glove with the drug cartels to launder their money. So smooth was their relationship that the drug gangs used special cardboard boxes for them to fill with cash – boxes that were designed to fit easily through the teller windows of the HSBC branches in Mexico.

Now, don't get me wrong – I am 100% against the so-called "War on Drugs." That there are hundreds of thousands of Americans in prison for the "crime" of voluntarily ingesting recreational drugs, or providing said drugs in a rare free-market transaction (there's a willing buyer and a willing seller and no regulations – at least none that anyone pays any attention to), is an abomination.

And so it is that the US has the highest prison population in the world, and by a wide margin: on a per-capita basis, it is 33% higher than the closest contender, Russia.

If you take into account everyone under "correctional supervision," 3.1% of the US population is either in jail or on probation (for blacks, it's a stunning 9.2%). According to Human Rights Watch, since 1980 the number of people in US jails for drug charges has increased twelvefold.

Yet, the money men for the murderous cartels that supply the stuff – the sort of fat-cat villains that serve as the centerpiece of every James Bond movie – get off with a hand slap.

How is this possible? The answer is that, just like the much-maligned "banana republic," the judicial system in the Anglo-Saxon world has been bifurcated into two systems – one for the politically favored and the other for the rest of us.

In the case of HSBC, the rationale for management being spared even a criminal trial, let alone years behind bars, is that the bank is too big to fail. And that should anyone within the bank be collared for their colossal crimes, it could provide the trigger for the widespread collapse of the global financial system.

To which an Anglo-Saxon from the UK might retort, "Bollocks!" This is rather a case of the politically connected and their equally politically connected, high-priced law firms twisting the judicial system to their purposes.

Another recent case is that of the LIBOR fixing scandal.

As you know, in this case a group of banks clearly conspired to rig the rates on the interest-rate index used to underpin over $300 trillion in loans. As the scandal was revealed, it was also revealed that top tax dodger and now US Treasury Secretary Tim "Timmy" Geithner was aware of the rigging as far back as at least 2007 when operating the Federal Reserve Bank of New York.

Yet Geithner's elevated position in the Obama administration meant that this inconvenient revelation quietly faded into nothingness. As did the clear implication that if Geithner knew about it, so did untold scores of others at the Fed and other institutions at the time.

Meanwhile, back in the present, instead of rounding up the heads of these institutions, it was announced this week that a handful of floor traders – the ever useful minions – have been fingered to take the fall. For the sake of the public show, I suspect the fall will be pretty hard.

Hell, the last time I checked, even Jon Corzine, who as a former senator and governor of New Jersey is the über-insider, is still a free man despite being the lead actor in the bankruptcy of MF Global and the subsequent looting of billions in customer funds. No one, except maybe Corzine himself, thinks that he isn't criminally complicit, yet, at this writing, there isn't even a hint he'll be prosecuted.

As David Webb has so thoroughly documented, a spate of cases over the last decade has set a clear precedent that financial institutions – at least those of a size to count with the political class – are pretty much free to lie, cheat, misrepresent, and even use their clients' funds to trade for their own book.

And if things go wrong, they can pass the losses on to the clients, or in the case of Corzine simply shrug his Savile Row-clad shoulders, and feign ignorance about where said funds went.

It Goes On… and On…

And the conniving and criminality doesn't stop at the judiciary but has infested pretty much every corner of the government.

A personal recent favorite was Hillary Clinton's oh-so-convenient bout of fainting that kept her from testifying about the truly bizarre attack on the Benghazi consulate, thereby skipping the direct damage to her career that would have resulted from having to answer the unanswerable in front of television cameras.

Then there's the sweetheart deal embedded in the soon-to-be-updated federal regulations related to mortgages. Given all the abuses leading up to the housing crash, John Q. might posit that there will be strong teeth in these new regulations. Sure, there's a couple – but lookie what else is in the new regs; this from the New York Times

As regulators complete new mortgage rules, banks are about to get a significant advantage: protection against homeowner lawsuits.

The rules are meant to help bolster the housing market. By shielding banks from potential litigation, policy makers contend that the industry will have a powerful incentive to make higher-quality home loans.

But some banking and housing specialists worry that borrowers are losing a critical safeguard. Industries rarely get broad protection from consumer lawsuits, and banks would seem unlikely candidates given the range of abuses revealed during the housing bust.

Mind-boggling.

Skipping across the pond, we have the truly incredible case of Julian Assange, who is now a prisoner, surrounded by upwards of 100 police officers, in the Ecuadorian embassy in London where he's been seeking asylum.

At one point, a senior British official suggested they were seriously considering throwing hundreds of years of diplomatic precedent out of the window by storming the embassy to get their man.

Yet his purported crime, having consensual sex with two different women without a condom (in one case, he had one, but it apparently broke) would, at most, be treated as a minor offense in pretty much any court, in pretty much every country in the world. Unless, of course, he knew he had AIDS and was deliberately trying to transmit it, which he wasn't.

Do your own research, and maybe you'll draw a different conclusion – here's one fairly thorough story on the charges against Assange – but that the UK government is willing to spend untold sums of money it can't afford keeping him penned up in the Ecuadorian embassy smacks of collusion and corruption.

What's really going on, of course, is that Assange's WikiLeaks organization embarrassed the power elite by doing what the media no longer does – getting to the truth, in this case releasing a stash of embarrassing diplomatic cables.

While Assange is fighting the good fight, it's a fight against entrenched political interests, and so it's a losing battle. Aided by the corrupt judiciary or, failing that, the malleable military, it's just a matter of time before he ends up in a cell next to Bradley Manning whose tortured corpus is now on trial for giving up state secrets that were really not all that secret.

In economic policy, too, the evidence of two different systems is glaring. Look no further than the Fed's recent decision to light the afterburners on over a trillion in new money creation each year.

Whom does such a policy help? The politicians, of course, by allowing them to claim they "fixed" the economy that they broke in the first place… when all they are really doing is replacing the capital formation and spending of a healthy private sector with the polluted effluence of government disbursements.

Whom does such a policy hurt? The population at large, by eroding the value of everything they own and eviscerating their ability to earn money on their money through a free market in interest rates… all the while fostering yet more malinvestment in the Potemkin villages of an uneconomic solar industry, electric cars, high-speed trains, etc.

Make no mistake, the Fed and the government are keenly aware of the damaging consequences of their actions – but, out of self-interest, take those actions nonetheless.

The enviro-socialists that have bought their way into the corridors of power provide another array of examples, using laughably bad science and arbitrary rulings to disadvantage key sectors of the economy such as energy and mining.

What's It Mean to You and Me?

There is little question that the vast majority of the public is ignorant or apathetic, or both, to the pervasive corruption of the political classes and their financiers.

But even if they were paying attention and outraged, the fact of the matter is that things have degraded to the point where there is next to nothing John Q. can do about it. Sure, you can write your Congressman; just be sure to be extra polite, or your letter will end up in the hands of zee Homeland Security.

Ditto if you write angry emails and send them to all your friends. Just don't make the mistake of thinking there is still such a thing as privacy or the right of free speech in the Anglosphere.

And heavens forbid you try to organize a physical protest. Next thing you know, you'll end up wearing a pair of these bad boys coming to your friendly police officer's belt soon.

(Not only do these next-gen cuffs restrain you, but they allow the arresting officer to remotely deliver electric shocks and, if that doesn't do the trick, even inject drugs into you.)

Of course, if your company or industry wants to fight it out in the courts, you have to be ready and able to spend millions in legal fees fighting a government with unlimited funds (provided, of course, by your taxes and money borrowed from the Chinese or ginned up by the Fed).

What I'm trying to say is that, regardless of what the popular corruption indexes show – and those are typically based on fairly suspect surveys on matters such as transparency in corporate reporting or whether bribes are required to do business – when you take into account the systematic skewing of the judicial and electoral systems to favor the entrenched politicos and their friends in high places, the level of corruption in the Anglosphere would make an African despot blush.

It's not an accident that the Republicans and the Democrats, two sides of the same coin despite all the rhetoric, are never remotely at risk of losing their collective grip on power – the system has been carefully and thoroughly rigged to prevent that from happening.

Logically, if there is virtually nothing the public at large can do about the rigged game they are forced to live with, then it comes down to decisions we make as individuals.

Some general approaches for your consideration.

  1. Suck it up. The Stoic approach is to recognize there are certain things you can't do anything about, so put the hypocrisy and self-dealing of officialdom and their enablers out of mind and live your life the best you know how.
  1. Profit from it. While it may seem counterintuitive, the more challenging the environment for business creation, the more money an especially hard-charging entrepreneur can make. This is why Asian shop owners open up in ghettos and why the margins for "war profiteers" are so high – because they literally have to risk life and limb to collect them.

    A successful acquaintance recently told me that, as the head of the Argentine branch of a major international electronics brand, his division was regularly able to pull down margins in excess of 40% while his counterparts in less volatile political environments were happy with less than 10%.

    It just takes an extra measure of patience and fortitude to overcome the challenges that scare less determined individuals away.

  1. Move West… or South, but probably not North. A combination of #1 and 2 above, the brave minority might want to consider taking the show on the road.
  1. If you can't beat them, join them. As Doug Casey has often pointed out, the effect of Pareto's Law operating over time on the large democracies has resulted in the worst sort of people controlling the levers of government at the federal, state and local level. If you happen to be a sociopath with control issues, then you might want to hop on the gravy train and worm your way into government, or into one of the many parasitic enterprises sucking the life from the body politic.
  1. Go outlaw. Yesterday, a flash mob gathered in the southern Argentine city of Bariloche for the sole purpose of looting a large store of electronics, food and booze, and sundry other items that will make the Christmas holidays all the more festive.

    When I heard of the incident, I mentioned to my wife that this could very well be the proverbial first shot in the breakdown of civil society in cities around the world. And sure enough, as I was writing, the news broke that spontaneous mobs have formed in a number of cities around Argentina for the sole purpose of looting stores.

    This is precisely the sort of thing one can expect in an economy laid low by political corruption, malfeasance and self-serving meddling. When people lose hope, and lose faith that the judicial system will protect them from the entrenched interests, then it is well within the range of some of those people to just say screw it and go outlaw.

I could be wrong, but I think what happened in Bariloche yesterday has the potential to be just as seminal as the self-immolation in Tunisia that set off the Arab Spring.

The implications of mobs deciding to come together to just take what they want are potentially huge. In the Anglo-Saxon world, it could provide exactly the excuse needed to bring down the stainless-steel curtain built with hundreds of billions of homeland security expenditures over the past decade.

In fact, while I am probably overstating it, the action of the mob in Bariloche yesterday could be the missing link between Neil Howe's Third and Fourth Turning, ushering in the next and most troubled era.

It's ironic that it's happening in here in my new retreat in Argentina, but it's of no personal import because our new hometown of Cafayate is rural, small and very successful, and the sort of place where everyone knows everyone else. And, besides, there are no large supermarkets to raid.

In addition, despite the dark era of military rule (or perhaps because of it), Argentina is not a violent culture, and the big cities are few and far between. The same can't be said of places like Chicago and Detroit, where flash mobs have been increasingly cropping up with the primary intention of committing violence.

How fast and how far things will spread from here is only a matter of conjecture, but the range of possibilities is wide.

Regardless of whether the rule of law continues to be diminished through the acts of corrupt politicians or a mob – or through the militarized arm of the politicos trying to control the mob – I fear the knock-on consequences on the economy and on society at large.

I really don't want to be a Chicken Little, but taking some basic precautions to protect yourself and your assets is only commonsense at this juncture.

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Wed, 01/09/2013 - 23:09 | 3139530 secret_sam
secret_sam's picture

There's no such thing as "justice."  There's only law enforcement, which itself is tyranny.

Wed, 01/09/2013 - 23:13 | 3139542 qqqqtrader
qqqqtrader's picture

<--- AGREE

<--- DISAGREE

Lets get some justice!

Perform an assayed public audit of all the Treasury's claimed 8,100 tons of gold and net of swaps, loans & sales.

https://petitions.whitehouse.gov/petition/perform-assayed-public-audit-all-treasurys-claimed-8100-tons-gold-and-net-swaps-loans-sales/rGyFTLwD

Thu, 01/10/2013 - 00:33 | 3139734 Richard Chesler
Richard Chesler's picture

Just-us not Just-ice.

Thu, 01/10/2013 - 00:58 | 3139797 Sockeye
Sockeye's picture

The verb 'to privilege' means basically 'to give, award, recognize or allow [someone or something such as a document] a privilege, or special status', usually in a legal or formal sense. The participial adjective privileged means 'having privilege', very often in the sense of having the advantages enjoyed by great status, wealth etc.
http://slb-ltsu.hull.ac.uk/awe/index.php?title=Deprivation_-_Private_-_p...

Thu, 01/10/2013 - 06:22 | 3139992 Supernova Born
Supernova Born's picture

Since when did politicians in black dresses dispense justice?

A centuries old sheepskin won't do a thing to protect you from a corrupt Chicago gangster and his FSA mob.

Join the NRA. They are here and now.

The Founders are mouldering in their graves. They would wish us luck if they could.

Thu, 01/10/2013 - 06:54 | 3140086 Boris Alatovkrap
Boris Alatovkrap's picture

TBTJ - "Too Big is to Jail"

Thu, 01/10/2013 - 08:14 | 3140135 markmotive
markmotive's picture

TMKF - Too Many Kids to Fail

http://www.planbeconomics.com/2013/01/09/welfare-mom-with-15-kids-wants-...

Welfare mom with 15 kids wants you pay for her mistakes.

Thu, 01/10/2013 - 08:27 | 3140141 GetZeeGold
GetZeeGold's picture

 

 

Meet the new sheriff - JON CORZINE aka Mr. Untouchable

 

http://www.reuters.com/article/2013/01/08/us-mfglobal-depositions-idUSBRE9070XB20130108

Thu, 01/10/2013 - 10:38 | 3140409 trav777
trav777's picture

gonna be some shooting sooner or later

Thu, 01/10/2013 - 11:02 | 3140470 SamAdams
SamAdams's picture

They are counting on that and is the reason for project "endgame". Its a real govt document you can obtain online.

There will be no justice at the late stage of the republic. The Masons take an oath to protect other masons from prosecution of all crimes less treason and murder. And at the highest levels, there are no exceptions. You see, they brainwash the public to be fair and not lie, steal; then do exactly the opposite to take advantage of the public. They have been doing this since before the colonies were said to be 13. Now that the empires wealth extraction process is broken, these psychopaths are becoming worried and desperate, committing increasingly bold and blatant crimes.

Thu, 01/10/2013 - 11:30 | 3140584 pods
pods's picture

Yep, the Masons.  Definitely the Masons.

Do they have a big presence in the City of London?

pods

Thu, 01/10/2013 - 05:41 | 3140061 Hobie
Hobie's picture

Whiskey and just-ice. What a beautiful combination.

Thu, 01/10/2013 - 04:59 | 3140038 Anasteus
Anasteus's picture

Very good petition!

Wed, 01/09/2013 - 23:38 | 3139605 yrbmegr
yrbmegr's picture

You are sort of right, but of course the truth is more complex. We can try to be just, but human justice is imperfect. Our "justice" system is really a law enforcement system, as you state, especially because laws are not per se just, and our system gives rise to laws that are less just than they could be.  In ignoring the justice of our laws, we violate the spirit of our constitution, the #2 objective of which is to "establish justice".

Thu, 01/10/2013 - 00:58 | 3139796 Anusocracy
Anusocracy's picture

Jury nullification would reduce the effect of unjust laws.

Thu, 01/10/2013 - 11:09 | 3140509 LongPAU
LongPAU's picture

True, but only in the case of jury trials.

Most people who go to PMITA prison succumb to plea bargaining.

Thu, 01/10/2013 - 11:34 | 3140603 pods
pods's picture

And even during a jury trial a defense attorney cannot challenge the law in question or inform the jury that they have the ultimate power in deciding law.

http://www.libertariannews.org/2012/07/02/new-hampshire-adopts-jury-null...

(this link is actually NH codifying that a defense attorney CAN inform a jury about it)

pods

Wed, 01/09/2013 - 23:58 | 3139660 DoChenRollingBearing
DoChenRollingBearing's picture

Peru is a country with many problems, but it DOES seem to have shaken-off the lefvty nonsense you see in Argentina.  I am reasonably familiar with Peru, having our business there over 20 years.

YES, their .gov is large and grasping (and at various levels), and there are the inevitable aggravations of dealing with local authorities and bureaucrats.  There is not much justice there either, teh way you get around that is to AVOID problems, and the ones you cannot (counterfeiting of Korean bearings for example), you just deal with it, as many of those problems are transient.

But, our company THERE is free from a lot of crap I see small businesses suffering through here.  You really CANNOT avoid some problems here, some of them are very damaging (lawsuits for starters).

Forget about borrowing money in Peru however.  The good thing about that is that it is almost impossible to go bankrupt if you do not owe any money...

Thu, 01/10/2013 - 00:03 | 3139662 Michaelwiseguy
Michaelwiseguy's picture

We need Defense Rifles like AR-15s to defend ourselves against the recent 1.8 billion hollow point bullet purchase made by the Federal Government through the TSA for the DHS.

Thu, 01/10/2013 - 00:21 | 3139713 Freddie
Freddie's picture

If it comes down to it - .308 and .223 are preferable to .40.  Reach out and touch someone.  Looks like they are getting around to assasinating AR15 gun buildings and youtube gun video makers.

Hope and Change.  Oh yeah red team - blue team but the lefty teams seems to be a lot worse now.

Thu, 01/10/2013 - 00:49 | 3139778 DoChenRollingBearing
DoChenRollingBearing's picture

I have NO PROBLEM AT ALL with Defense Rifles, I have an AK (7.62 x 39) myself.  Expecting more magazines for it by UPS any day now, and buying ammo every chance I get.

Nice recent video and commentary by a tough gal on our side:

barnhardt.biz

Thu, 01/10/2013 - 01:12 | 3139819 otto skorzeny
otto skorzeny's picture

I am having some issues with sites like Cheaper Than Dirt billing me for stuff like high cap mags(LMAO) I have ordered after saying they have the things in stock and then not coming through with the product. forget about getting 7.62 ammo right now. i like ann but her muslim bashing can be a little much.

Thu, 01/10/2013 - 01:37 | 3139876 salvadordaly
salvadordaly's picture

Reload your own. It is really simple, and a lot cheaper, and more reliable.

Thu, 01/10/2013 - 11:56 | 3140696 zuuma
zuuma's picture

"Reload your own"

Indeed. Except, of course, that all components - particularly primers - are now made of unobtainium.

Plus the cost has gone way up even if you could get the components.

Brass & lead are expensive, now. Not much cheaper to reload, especially vs. steel cased factory commie rounds.

 

Many other dudes and dudesses who noticed that ammo shelves were bare, bought out all the cases, powder & primers.

Hell. You can't even get DIES in common calibers.

Fortunately, I paniced very early, to avoid the rush.

Thu, 01/10/2013 - 09:12 | 3140194 Buckaroo Banzai
Buckaroo Banzai's picture

Her "Muslim bashing" is extremely well researched and reality-based. The more you look at the Muslim "religion" (it's really more of a political system than a religion), the more awful and horrifying it appears.

Thu, 01/10/2013 - 10:41 | 3140414 trav777
trav777's picture

most of it is indistinguishable from the talmud; that's because mo stole that religion to put his own stamp on it

Thu, 01/10/2013 - 12:35 | 3140853 donsluck
donsluck's picture

Or the Christians, who definetly hold the prize after incinerating many thousands in Japan (Bhuddist), Iraq (moslim), Afghanistan (moslim), and the rest. I will stick out my neck and, off the cuff, declare that Christians are the most deadly religion.

BTW, how do you "steal" a religion?

Thu, 01/10/2013 - 12:51 | 3140927 DaveyJones
DaveyJones's picture

the pocket bible

Thu, 01/10/2013 - 01:10 | 3139821 ACP
ACP's picture

And don't forget this - sorry for the repost, I posted this yesterday also - but it's pretty important (and fitting) seeing how we're just about to enter a new dark age.

Useful skillz, bitchez:

http://www.youtube.com/user/larsandersen23/videos?view=0

Thu, 01/10/2013 - 08:09 | 3140131 LongSoupLine
LongSoupLine's picture

I miss all my inventory and silver after my unfortunate boating accident.

Thu, 01/10/2013 - 11:20 | 3140538 DMac
DMac's picture

Barnhardt is a hardcore Zionist.  Anyone that claims to follow Christ, yet believes in Jewish supremacism, is not worth your time.

 

 

Thu, 01/10/2013 - 01:11 | 3139823 otto skorzeny
otto skorzeny's picture

there has been some weird stuff going on with those guys from FPSRussia going on.

Thu, 01/10/2013 - 01:22 | 3139849 A Lunatic
A Lunatic's picture

Yeah, stuff like being dead............

Thu, 01/10/2013 - 06:29 | 3140077 Seer
Seer's picture

"Oh yeah red team - blue team but the lefty teams seems to be a lot worse now."

Good to see an acknowledgement that it's a tango..

BTW - Would the "other" team be a "righty team?"

Thu, 01/10/2013 - 23:35 | 3143329 jerry_theking_lawler
jerry_theking_lawler's picture

remember, the constitution guarantees us a right to Weapons of Offence...aka Arms.

i want a 155 mm howitzer and patriot missle battery.

Thu, 01/10/2013 - 00:06 | 3139676 ACP
ACP's picture

Unlike here in the US, where the govt routinely designs laws specifically to put their enemies in the poorhouse...

Thu, 01/10/2013 - 01:02 | 3139802 Anusocracy
Anusocracy's picture

If you don't run the system, don't expect to benefit from it.

Something the workers in the Western nations will have to relearn.

Thu, 01/10/2013 - 16:56 | 3142045 rayduh4life
rayduh4life's picture

The trick is to write the rules in such a way as they don't apply to you.

Thu, 01/10/2013 - 00:34 | 3139739 ball-and-chain
ball-and-chain's picture

You've got guys who are too big to go to jail.

No shit.

The governmet is so worried about the health of the economy that financial crime no longer exists--if you're a member of the club.

It' mind-boggling.

http://www.angrysinner.blogspot.kr/2013/01/wednesday.html

Thu, 01/10/2013 - 10:44 | 3140426 trav777
trav777's picture

yes.  The system is a house of cards and so they're having to bend the rules.  And the little people are agreeing with it.  They only objected to TARP because it was G Busch.  When bama runs $2T deficits, it's ok, because he's "saving the economy."  And vice versa.

The little people are too stupid to understand any of the issues...they only know that the happy happy days aren't here now and they would go along with anything that someone promises will bring them back.

Thu, 01/10/2013 - 12:37 | 3140860 donsluck
donsluck's picture

Trav, I am little and I'm not stupid. May I speak for the 99% little guys and say fuck you.

Thu, 01/10/2013 - 00:49 | 3139775 SilverRhino
SilverRhino's picture

<-- "He's dead Jim" (Redshirt Ensign American Justice)
<-- Alive, well and ressurrected like Spock

Thu, 01/10/2013 - 01:28 | 3139861 secret_sam
secret_sam's picture

Interpretations of the word differ.  That's why efforts to formalize the concept are completely doomed to failure.

Thu, 01/10/2013 - 01:45 | 3139890 Dr. Sandi
Dr. Sandi's picture

We're not talking about justice. We are talking about rule of law. Contract law, specifically.

Without enforceable contract law, there is no property right.

Without property right, there is little reason to bust one's ass.

Without a lot of people busting their asses, their is no civilization.

Thu, 01/10/2013 - 08:44 | 3140159 shovelhead
shovelhead's picture

Important distinction.

Good law favors justice but justice is a relative term.

Thu, 01/10/2013 - 09:32 | 3140240 sessinpo
sessinpo's picture

You made an irrelevant reply. Here is why

You said:" Important distinction. Good law favors justice but justice is a relative term."

 

That was in response to: We're not talking about justice. We are talking about rule of law. Contract law, specifically."

 

Your post lacks critical thinking and logic. Thumbs up for Dr. Sandi and thumbs down for shovelhead.

Thu, 01/10/2013 - 12:30 | 3140472 DaveyJones
DaveyJones's picture

Well said but it isn't just contract law that has collapsed. Tort law and criminal law has as well. So has freedom of information and public access. All fundamental to democracy and capitalism. The government can kidnap you, torture you, realize you're the wrong guy, and then drop you back in another country. WHen you try to sue, the Supreme Court will (and has) dismissed the action because it might reveal vital "state secrets" in the war on terror. Even basic constitutional three branch structures are falling apart as the executive branch rises in the unitary theory and keeps the legislative out of war and killing decisions and the legislative creates super committees to make private decisions the rest of them should be doing in public debate.

Legal collapse is the symptom. Corruption and democratic collapse is the disease.  

Thu, 01/10/2013 - 12:03 | 3140699 MachoMan
MachoMan's picture

Kind of.  The rule of law also has checks and balances...  In other words, there are necessary safeguards for overzealous enforcement, e.g. prosecutorial discretion.  This isn't the proper medium to debate the merits, but I think it's obvious that this is a necessary hallmark of our legal system.

The problem?  Well, in the case of global settlements with the government for criminal or civil liability, the discretion of prosecuting individuals can be used the other way...  not to act as a check and balance against overzealous members of the executive branch, but instead to placate political desires of entrenched power when the executive branch does nothing but sit on its hands.  

In short, I'm not sure that the rule of law is completely perverted so much as prosecutorial discretion (and/or inept/corrupt executive branch enforcers).  In other words, if the cases were ever before the court, I think they're likely to reach the correct conclusion, e.g. the sea change of foreclosure defense.  I think you'll see this play out with private civil suits following settlements with the government.

Further, the courts are also bound by bad law (courts have to hold their noses and pass judgment, despite believing the underlying law is complete bullshit), e.g. changes to the bankruptcy code that give superpriority to derivative creditors ("corzined").  As a result, the "rule of law" is only as good as the law... 

I'll certainly concede that there have also been some bad decisions (e.g. the method/procedure utilized in the MFG case to derive different results, obamacare, citizens, et. al), but I largely fault many of the complicated financial cases on the prosecuting parties/plaintiffs...  one must presume the court is ignorant of virtually everything and a failure to persuade the court is largely a failure of effective communication (lawyering).  As a result, I think much of the financial world has actually become practically too difficult to prosecute...  the complexity of the system has reached the point where we are impotent to understand all of its innerworkings and make meaningful change to simplify it...  or, in this case, prosecute transgressions against it.  I fault the legislature for overly complicated laws...  (the judiciary's screwups are then merely moral hazard of unnecessary government intrusion).  However, there may be a failure of the adversarial system in some cases, especially overly complicated financial cases (that lawyers, especially prosecutors, avoid like the plague since the amount of prep time is exponentially increased and they're typically public servants).

In addition, the rule of law is more of a quaint notion than objective reality...  the simple fact is that the "rule of law" is always bent/broken for some and not others.  It has always been this way and will continue for the foreseeable future.  The only argument is that it is more "fair" sometimes than others...  benefiting more people sometimes.

[PS, as someone who enforces contracts on a daily basis, you're arguing the exception and not the rule].

Thu, 01/10/2013 - 07:41 | 3140108 Cloud9.5
Cloud9.5's picture

There is just us.

Thu, 01/10/2013 - 09:39 | 3140252 exi1ed0ne
exi1ed0ne's picture

Death: Humans need fantasy to *be* human. To be the place where the falling angel meets the rising ape.
Susan: With tooth fairies? Hogfathers?
Death: Yes. As practice, you have to start out learning to believe the little lies.
Susan: So we can believe the big ones?
Death: Yes. Justice, mercy, duty. That sort of thing.
Susan: They're not the same at all.
Death: You think so? Then take the universe and grind it down to the finest powder, and sieve it through the finest sieve, and then show me one atom of justice, one molecule of mercy. And yet, you try to act as if there is some ideal order in the world. As if there is some, some rightness in the universe, by which it may be judged.
Susan: But people have got to believe that, or what's the point?
Death: You need to believe in things that aren't true. How else can they become?

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