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Law provides no protection for owners unable to pay mortgages

New York state has enacted an eviction law (see https://therealdeal.com/2020/03/15/new-york-halts-evictions-statewide-due-to-coronavirus/) and with almost no opportunity for public comment. New York state has also placed a moratorium on all civil cases that can be heard in its courts.

This so-called law — really an edict — provides no protection for landlords who become unable to pay their mortgages as a result of this moratorium. And then there are the lenders who have to pay out interest and principal to their investors; so what happens to them? Clearly this edict violates the following provisions of the U.S. Constitution:

Article 1, Section 10, Paragraph 1 (Contracts): “No State shall……pass any……. law…… impairing the Obligation of Contracts……”

4th Amendment (Due Process): “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated……”

14th Amendment, Section 1, Clause 2: “No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”

For redress, the 7th Amendment allows the aggrieved party to sue New York state in federal court:

7th Amendment (civil trials): “In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.”

There is an equation — oversimplified but illustrative — that relates the money supply to the production of goods and services: MV = PQ where M = money supply, V = money velocity, P = price of good/service and Q = production quantity. So when the $2.2 trillion of newly-printed money with nothing to back it goes into circulation with no increase in production something has to change — P will go up and that’s called inflation.

So, as we continue to see the rule of law go by the wayside coupled with the coming inflation from the recently-passed orgiastic $2.2 trillion spending bill I suppose one should buy argentum, aurum and plumbum to prepare for the inevitable maelstrom.

CHARLES F. HEIMERDINGER

Edinburg

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