Liberalscum Buster

January 9, 2009

A COUP D’ETAT TOOK PLACE IN THE USA IN NOVEMBER 2000

THANK GOD THAT LONG NATIONAL NIGHTMARE IS OVER.

A Neoconservative think tank called The Project for the New American Century (PNAC) propped up an inexperienced, uninformed failed businessman as their standard bearer. Members of PNAC were embeded throughout the government including the Vice Presidency, his Chief of staff, Defense Secretary, Undersecretary of Defense for Policy, Deputy Secretary of Defense, Chairman of Defense Board Advisory Committee.

PNAC’s mission was to establish the USA as the undisputed dominant country in the world in the 21st century through a massive military buildup and agressive foreign policy. In a white paper entitled “Rebuilding America’s Defenses” written and published by Robert Kagan in August 2000 it was stated that the PNAC agenda would take years unless there were to be a “catastrophic catalyzing event- a new Pearl Harbor. ”

9/11 was that event and it enabled the PNAC agenda to go ahead. It made possible the invasion of Iraq.

The members of PNAC were in a position to tamper with our defenses for 8 months prior to 9/11. With the exception of the Vice President, all those PNAC members have left the present administration. The PNAC website is no longer on the Intenet.

The top foreign affairs advisor for the GOP candidate for President in 2008 was a member of PNAC and with Ahmad Chalabe pushed for the Iraq invasion. More recently he was a lobbyist for the Republic of Georgia while being a paid advisor to the GOP candidate for President, who was rather vocal about the dispute between Russia and Georgia.

Thank God that the long national nightmare is over and we can start cleaning up the mess created by the Project for the New American Century. For a while it was ruthlessly efficient but it certainly was not effective in the mission which carries its name.

PNAC members in order of their appearance

Vice President …. Dick Cheney
His chief of staff ….Scooter Libby
Defense Secretary…. Donald Rumsfeld
Undersecretary of Defense for Policy…. Douglas Feith
Deputy Secretary of Defense… Paul Wolfowitz
Chairman of Defense Board Advisory Committee…. Richard Perle.
Advisor for foreign affairs for McCain….Randall Scheunemann
Lobbyist Republic of Georgia….Randall Scheunemann

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December 10, 2008

Paul Begala called GW Bush “A high functioning moron”

Filed under: Bush, life, medicine, PROJECT FOR THE NEW AMERICAN CENTURY (PNAC), Psychology — gasdocpol @ 10:37 pm

“High functioning moron” is a good first approximation of GW Bush. He is not stupid. He has used what intelligence he has to be able to successfully fail gracefully with aplomb. His family resources have sheltered him from reality testing and the crucible of life in general. He has social skills and a fairly engaging personality. He was propped up by Neoconservatives as their standard bearer and has gone all the way to the White House where he is called on to perform far beyond his ability.

August 20, 2008

THE ENRON LOOPHOLE & AND OIL FUTURES TRADING AND PHIL GRAMM

The Commodity Futures Modernization Act of 2000 deregulated the market for energy futures. This is what is commonly referred to as “the Enron loophole.” It has led to malpractice and manipulation of these unregulated dark markets resulting in price spikes far beyond what the normal law of supply and demand would dictate.

Excerpt From The Star-Telegram:

The late, infamous Enron head, Ken Lay, realized in the eighties that he could make more money bidding up energy in the futures market than by actually creating and selling energy. But, under then-current rules, how much you could make swapping paper was limited. Fortuitously, Lay had excellent Texas political connections; and in November of 1992, the head of the Commodities Futures Trading Commission moved to exempt energy-derivative contracts and related swaps from any government oversight.

A vote was hurriedly put together before the Clinton White House would take over, and so Lay could finally start “dark” – unregulated – futures trading. The head of the CFTC was Wendy Gramm, wife of Texas Senator Phil Gramm; five weeks after she left, she became a board member of Enron in Houston.

Fast-forward to late 2000 and H.R. 5660, the Commodity Futures Modernization Act of 2000, sponsored by Republican Congressman Thomas Ewing of Illinois. That bill went nowhere, even though Tom Delay’s wife Christine was then working for a Washington lobbying firm, Alexander Strategies – which Enron had paid $200,000 to push through legislation for permanent energy deregulation in these “dark” markets.

Six months later came Senate Bill 3283, also named the Commodity Futures Modernization Act of 2000. This time around the sponsor was Republican Sen. Richard Lugar of Indiana, and now Phil Gramm was listed as one of the bill’s co-sponsors. Like it had in the House, this bill was destined to go nowhere until, late one night, it was attached as a rider to an 11,000-page appropriations bill – which was signed into law by President Clinton.

Now traders had an officially deregulated market for energy futures. Worse, that bill also deregulated many financial instruments – including the collateralized debt obligations that are at the center of today’s mortgage crisis, which may well cost us more than $1 trillion before it’s over.

Everybody Was Warned!

As USA Today wrote of this fiasco in January of 2002, “But, as a power marketer, [Enron] could buy enough energy-futures contracts in a region to create a virtual monopoly.” That’s right: As early as the winter of 2002, it was widely known that the 2000 Commodities Futures Modernization Act had created a monster, capable of running up energy prices outside of the normal law of supply and demand. Worse, our government had been warned this was going to happen. Representatives of the Federal Reserve, the Securities and Exchange Commission and the CFTC had already told Congress not to deregulate energy because “the market was ripe for manipulation.” Everybody was warned; that’s why this deregulation bill was stealthily inserted into that appropriations bill without a floor debate.

Phil Gramm’s office denied that he had anything to do with writing the section of that bill that actually deregulated energy. And yet Prof. Michael Greenberger, formerly a CFTC board member himself, said that Gramm’s wife Wendy, along with a few lobbyists and Wall Street attorneys, had rewritten it. When Robert Manor of the Chicago Times wrote about this situation on January 18, 2002, neither Gramm could be reached for comment.

Kill It Before It Multiplies

When Enron failed and took its private, unregulated energy exchange to the grave, another rose to take its place. The Intercontinental Exchange (ICE) was the brainchild of Morgan Stanley, Goldman Sachs, British Petroleum, Deutsche Bank, Dean Witter, Royal Dutch Shell, SG Investment Bank and Totalfina. In 2001 ICE purchased the International Petroleum Exchange in London; renamed ICE Futures, it now operates as an “exempt commercial market” under section 2(H)(3) of the Commodity Exchange Act. As the Senate hearings pointed out in the summer of 2006, “Both markets operate outside of any CFTC oversight.”

If you reread the quotes at the start of this story again, you find that many officials in the government warned against what would happen in a deregulated energy market, because it was so easy to manipulate. We already know this to be true thanks to Enron’s California misdeeds. And, as we pointed out last week, British Petroleum was busted for manipulating the propane market and fined over $300 million; and Amaranth Partners was caught manipulating the natural gas market, unconscionably causing the futures price for natural gas to raise every Texan’s electric bills. (It took two years for Amaranth to be exposed.) And yes, the manipulation happened in the new “dark” and unregulated exchanges, making it almost impossible to uncover. So it’s not a question of “if” some “theoretically possible” manipulation and distortion of the market will result from this bill, championed by Phil Gramm, his wife Wendy and Christine Delay’s employer, Alexander Strategies. The reason it is not theoretical is because we keep catching well-known companies doing it on a regular basis.

No Conscience in Congress?

All you hear daily is that the world has a severe shortage of oil, or you can buy only 200 pounds of rice at one time, or we will have a gasoline crisis this summer, etc. But it takes only a minute to find hundreds of quotes from highly respected oil and economic analysts, (not to mention CEOs of the major oil companies), that completely dismiss the claim of oil, gas or food shortages that have been headlining the news.

Even more troubling is that within months of the CFMA’s going into effect, we knew it had enabled easy manipulation of any energy market, but nothing was done to fix it. Nor was anything done when the Senate held its hearings on this matter in 2006, or in the House hearings last December.

Today we call this situation the “Enron Loophole,” but that’s untrue. It’s not a loophole: it was a new law passed in 2000 – and far more individuals than Ken Lay have used that law to line their pockets with hundreds of billions of American consumers’ hard-earned dollars. That’s not my opinion, that’s direct testimony by numerous experts before both the House and Senate.

Professor Greenberger warned about our “New American Economy” far better than I could:

“Should we have an economy that’s based on whether people make good or bad bets? Or should we have an economy where people build companies, create manufacturing, do inventions, advance the American society and make it more productive? We are rewarding people for sitting at their computers and punching in bets. That’s not the way our economy is going to be built, and India and China, with their focus on science and industry and building real businesses, are going to eat our lunch, unless the American public wakes up and puts an end to an economy that praises and makes heroes out of speculators.”

Greenberger’s statement explains why Detroit and other American manufacturers suffer while Wall Street speculators make a fortune — and your rapidly shrinking checkbook pays for it, every time you buy food, fuel or feed.

All because there is no shortage of these goods, you’re just being told there is because it’s more profitable – for a few – that way.

© 2008 Ed Wallace

Everybody was warned; that’s probably why this deregulation bill was stealthily inserted into that appropriations bill without a floor debate.

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