Tag: politics

Sibel Edmonds claims bin Laden worked with US right up to 9-11

Seth Anderson0 comment

No wonder Sibel Edmonds got fired, and silenced, the Bush-ites would have been very embarrassed if this allegation had been made in the election of 2004, for instance.

Former FBI translator Sibel Edmonds dropped a bombshell on the Mike Malloy radio show, guest-hosted by Brad Friedman (audio, partial transcript).

In the interview, Sibel says that the US maintained ‘intimate relations’ with Bin Laden, and the Taliban, “all the way until that day of September 11.”

These ‘intimate relations’ included using Bin Laden for ‘operations’ in Central Asia, including Xinjiang, China. These ‘operations’ involved using al Qaeda and the Taliban in the same manner “as we did during the Afghan and Soviet conflict,” that is, fighting ‘enemies’ via proxies.

…

The bombshell here is obviously that certain people in the US were using Bin Laden up to September 11, 2001.

It is important to understand why: the US outsourced terror operations to al Qaeda and the Taliban for many years, promoting the Islamization of Central Asia in an attempt to personally profit off military sales as well as oil and gas concessions.

[Click to continue reading Daily Kos: State of the Nation]

Despite all sorts of pressure from the federal government, Ms. Edmonds refuses to fade away, she continues to try to get her understanding of the truth out.

Such as:

Last year, Sibel came up with a brilliant idea to expose some of the criminal activity that she is forbidden to speak about: she published eighteen photos, titled “Sibel Edmonds’ State Secrets Privilege Gallery,” of people involved the operations that she has been trying to expose. One of those people is Anwar Yusuf Turani, the so-called ‘President-in-exile’ of East Turkistan (Xinjiang). This so-called ‘government-in-exile’ was ‘established‘ on Capitol Hill in September, 2004, drawing a sharp rebuke from China.

Also featured in Sibel’s Rogues Gallery was ‘former’ spook Graham Fuller, who was instrumental in the establishment of Turani’s ‘government-in-exile’ of East Turkistan. Fuller has written extensively on Xinjiang, and his “Xinjiang Project” for Rand Corp is apparentlythe blueprint for Turani’s government-in-exile. Sibel has openly stated her contempt for Mr. Fuller.

from the Brad Friedman interview:

Sibel Edmonds: (interrupts) I have to jump in here and say that I have information about things that our government has lied to us about. I know. For example, to say that since the fall of the Soviet Union we ceased all of our intimate relationship with Bin Laden and the Taliban – those things can be proven as lies, very easily, based on the information they classified in my case, because we did carry very intimate relationship with these people, and it involves Central Asia, all the way up to September 11.

I know you are going to say ‘Oh my God, we went there and bombed the medical factory in the 1990s during Clinton, we declared him Most Wanted’ and what I’m telling you is, with those groups, we had operations in Central Asia, and that relationship – using them as we did during the Afghan and Soviet conflict – we used them all the way until September 11.

[Click to continue reading Let Sibel Edmonds Speak: Sibel Edmonds on Mike Malloy]

Food Safety Enhancement Act fails

Seth Anderson0 comment

The Food Safety Enhancement Act we mentioned yesterday failed, but isn’t quite dead yet.

Waste Not Want Not

The U.S. House rejected a bill to overhaul the nation’s food-safety laws amid complaints from Republicans that they weren’t given enough time to read the measure.

The legislation, which would give regulators more power to enforce tougher safety standards, fell seven votes short of the two-thirds majority needed for passage. The vote was 280 in favor of the bill, 150 against it.

The measure needed two-thirds support because it was considered under expedited procedures that bar amendments and limit debate to 40 minutes.

Democrats will bring up the bill again tomorrow under regular procedures requiring a simple majority for passage, said Katie Grant, a spokeswoman for House Majority Leader Steny Hoyer, a Maryland Democrat.

[Click to continue reading Measure to Overhaul Food-Safety Laws Fails in House (Update1) – Bloomberg.com]

I’m not sure why it was introduced under the expedited procedure, why not treat it as normal legislation?

You know conservatives like Frank Lucas are never going to support any such bill, why not just ignore them?

Representative Frank Lucas of Oklahoma, the top Republican on the Agriculture Committee, said the measure would add hundreds of millions of dollars in fees and taxes and burdensome regulations that “will increase the cost of food for consumers” and drive producers overseas.

Traders Blamed for Oil Spike

Seth Anderson1 Comment

Speculators like Goldman Sachs taking advantage of pliable politicians and regulators to change rules? Amazingly, this is what Matt Taibbi described a few months ago. Perhaps someone in the Obama administration reads Rolling Stone?

Don't Oil this index
[Do Not Oil This Index]

The Commodity Futures Trading Commission plans to issue a report next month suggesting speculators played a significant role in driving wild swings in oil prices — a reversal of an earlier CFTC position that augurs intensifying scrutiny on investors.

In a contentious report last year, the main U.S. futures-market regulator pinned oil-price swings primarily on supply and demand. But that analysis was based on “deeply flawed data,” Bart Chilton, one of four CFTC commissioners, said in an interview Monday.

The CFTC’s new review, due to be released in August, adds fuel to a growing debate over financial investors who bet on the direction of commodities prices by buying contracts tied to indexes. These speculators have invested hundreds of billions of dollars in contracts that were once dominated by producers and consumers who sought to hedge against oil-market volatility.

[Click to continue reading Traders Blamed for Oil Spike – WSJ.com]
[non-WSJ subscribers click this link]

and

The debate over speculators underscores the shifting nature of commodities trading in recent years. Before the mid-1990s, these markets were dominated by entities that had physical dealings with the underlying commodity, and “speculators” who often took the opposite position, providing liquidity to markets.

But a new group of investors has emerged in recent years. Those who want to bet on commodities prices have increasingly put their money in indexes that track the value of futures contracts, in which investors promise to pay a certain amount in the future for oil and other commodities. As of July 2008, financial investors had about $300 billion riding on these indexes, roughly four times the level in January 2006, according to the International Energy Agency, a Paris-based watchdog.

Separately, these investors may buy derivatives, not directly traded on futures exchanges, that let them make contrary bets to offset their risks.

Crude-oil prices surged in July 2008 to a record $145 a barrel, then dropped to about $33 in December. Oil now trades at around $68 a barrel.

Of course, Goldman Sachs is not mentioned by name in this article, why would they be? They are just one the single largest futures speculators

John Yoo Says It Is Ok

Seth Anderson1 Comment

If I ever had plans to do anything illegal, like break a law that has been on the books since at least 18781, I’ll just get John Yoo to write a memo saying it is ok. Law, hunh, what is good for, absolutely nothing. I’ll say it again.2

Torture, Posse Comitatus, does anything else have your bloody fingerprints on it, Mr. Yoo?

The Fourth Amendment bans “unreasonable” searches and seizures without probable cause. And the Posse Comitatus Act of 1878 generally prohibits the military from acting in a law enforcement capacity.

In the discussions, Mr. Cheney and others cited an Oct. 23, 2001, memorandum from the Justice Department that, using a broad interpretation of presidential authority, argued that the domestic use of the military against Al Qaeda would be legal because it served a national security, rather than a law enforcement, purpose.

“The president has ample constitutional and statutory authority to deploy the military against international or foreign terrorists operating within the United States,” the memorandum said.

The memorandum — written by the lawyers John C. Yoo and Robert J. Delahunty — was directed to Alberto R. Gonzales, then the White House counsel, who had asked the department about a president’s authority to use the military to combat terrorist activities in the United States.

[Click to continue reading Bush Weighed Using Military in Arrests – NYTimes.com]

and then cite the memo right before doing the illegal act:

Those who advocated using the military to arrest the Lackawanna group had legal ammunition: the memorandum by Mr. Yoo and Mr. Delahunty.

The lawyers, in the Justice Department’s Office of Legal Counsel, wrote that the Constitution, the courts and Congress had recognized a president’s authority “to take military actions, domestic as well as foreign, if he determines such actions to be necessary to respond to the terrorist attacks upon the United States on Sept. 11, 2001, and before.”

The document added that the neither the Posse Comitatus Act nor the Fourth Amendment tied a president’s hands.

I certainly do not understand why Berkley employs this Yoo character, he is such a stain on the legal profession.

The Wikipedia entry for Posse Comitatus Act:

The Posse Comitatus Act is a United States federal law (18 U.S.C. § 1385) passed on June 18, 1878, after the end of Reconstruction, with the intention (in concert with the Insurrection Act of 1807) of substantially limiting the powers of the federal government to use the military for law enforcement. The Act prohibits most members of the federal uniformed services (today the Army, Air Force, and State National Guard forces when such are called into federal service) from exercising nominally state law enforcement, police, or peace officer powers that maintain “law and order” on non-federal property (states and their counties and municipal divisions) within the United States.
The statute generally prohibits federal military personnel and units of the National Guard under federal authority from acting in a law enforcement capacity within the United States, except where expressly authorized by the Constitution or Congress. The Coast Guard is exempt from the Act during peacetime.

[Click to continue reading Posse Comitatus Act – Wikipedia, the free encyclopedia]

Seems clear enough. Except for John Yoo.

John Yoo and the so-called Torture memos, if you had forgotten the details:

You have to give John Yoo credit for chutzpah. The disgraced author of the so-called torture memo was back in the news last week, when the Obama administration released seven more secret opinions, all but one written in whole or in part by Yoo and fellow Office of Legal Counsel (OLC) lawyer Jay Bybee, arguing that the Bush administration had the right to override the Constitution as long as it claimed to be fighting a “war on terror.” Professor Yoo, who I am embarrassed to say holds a tenured position at the law school of my alma mater, the University of California at Berkeley, was already known as the official who provided a legal fig leaf behind which the Bush administration tortured inmates at Guantánamo and Abu Ghraib. His legal misdeeds are widely known, but now they have been exposed chapter and verse. Among the new memos is one written in 2001 [8.3 Meg PDF], in which Yoo and co-author Robert J. Delahunty advised the U.S. that the Posse Comitatus Act, which forbids the Army to be used for law enforcement, and the Fourth Amendment, which prohibits unreasonable searches and seizures, do not apply to domestic military operations undertaken during a “war on terror.”

In other words, bye-bye, Bill of Rights. This is a prescription for a police state, where not just the police but the Army can kick your door down without a warrant or probable cause, as long as the president says he’s fighting “terror.” If Barack Obama had solicited such an opinion from an obliging Justice Department lawyer because he wanted to sic the U.S. Army on a group of domestic terrorists, the right would be screaming about jackbooted federal thugs descending from black helicopters to haul off American citizens. Strangely, no conservatives have taken to the streets to warn us of the Big Government danger posed by this radical doctrine.

[Click to continue reading John Yoo Torture Memo | Salon ]

Footnotes:
  1. and arguably one of the reasons the United States broke away from Britain way back in 1776 [↩]
  2. sung in one’s best Edwin Starr voice [↩]

DeMint is a Christian Taliban

Seth Anderson0 comment

The Republican Party standard bearers are such a strange1 species. They would love to destroy our Constitution and Bill of Rights, and institute a theocracy in America. I call them the Christian Taliban2. To whit:

Family Planning protest w 50 foot Giant Virgin Mary
[50 foot Giant Virgin Mary, Chicago’s West Loop]

Senator Jim DeMint of South Carolina, who recently urged his fellow party members to dig in their heels and create a Waterloo for the president. “It would break him,” DeMint added appealingly.

DeMint is an increasingly influential voice in the Republican Party, and he is now regarded as a potential Republican presidential nominee in 2012. This is partly because of his new book, “Saving Freedom: We Can Stop America’s Slide Into Socialism,” and partly because almost all the other potential Republican presidential nominees have been sidetracked by lively sex scandals. At present, DeMint does not seem to have a sex scandal, although if he ever comes up with one, I promise to remind you that in his last campaign he said that openly gay people and unwed pregnant women should not be allowed to teach in public schools.

[Click to continue reading Gail Collins – The Health Care Sausage – NYTimes.com]

What century is this DeMint jerk-off living in? The 13th? Does he want to burn the unwed pregnant women at the stake? His Virgin Mary was supposed to be an unwed pregnant woman, would DeMint be happy burning his alleged savior on a cross?

Footnotes:
  1. to me anyway, I guess they convince enough people of their nonsense to get elected, somehow [↩]
  2. Pashto: طالبان ṭālibān, meaning “students” [↩]

Carbon Credit Market and Goldman

Seth Anderson0 comment

As I said earlier, I don’t whether the new Cap and Trade legislation is a good step or not, I don’t have enough knowledge on the details, yet. However, I’m suspicious as to who is going to take most of the profits, namely Goldman Sachs.

Midas Touch

As Matt Taibbi writes:

The new carboncredit market is a virtual repeat of the commodities-market casino that’s been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won’t even have to rig the game. It will be rigged in advance.

Here’s how it works: If the bill passes, there will be limits for coal plants, utilities, natural-gas distributors and numerous other industries on the amount of carbon emissions (a.k.a. greenhouse gases) they can produce per year. If the companies go over their allotment, they will be able to buy “allocations” or credits from other companies that have managed to produce fewer emissions. President Obama conservatively estimates that about $646 billion worth of carbon credits will be auctioned in the first seven years; one of his top economic aides speculates that the real number might be twice or even three times that amount.

The feature of this plan that has special appeal to speculators is that the “cap” on carbon will be continually lowered by the government, which means that carbon credits will become more and more scarce with each passing year. Which means that this is a brand new commodities market where the main commodity to be traded is guaranteed to rise in price over time. The volume of this new market will be upwards of a trillion dollars annually; for comparison’s sake, the annual combined revenues of all electricity suppliers in the U.S. total $320 billion.

Goldman wants this bill. The plan is (1) to get in on the ground floor of paradigmshifting legislation, (2) make sure that they’re the profitmaking slice of that paradigm and (3) make sure the slice is a big slice. Goldman started pushing hard for capandtrade long ago, but things really ramped up last year when the firm spent $3.5 million to lobby climate issues. (One of their lobbyists at the time was none other than Patterson, now Treasury chief of staff.) Back in 2005, when Hank Paulson was chief of Goldman, he personally helped author the bank’s environmental policy, a document that contains some surprising elements for a firm that in all other areas has been consistently opposed to any sort of government regulation. Paulson’s report argued that “voluntary action alone cannot solve the climatechange problem.” A few years later, the bank’s carbon chief, Ken Newcombe, insisted that capandtrade alone won’t be enough to fix the climate problem and called for further public investments in research and development. Which is convenient, considering that Goldman made early investments in wind power (it bought a subsidiary called Horizon Wind Energy), renewable diesel (it is an investor in a firm called Changing World Technologies) and solar power (it partnered with BP Solar), exactly the kind of deals that will prosper if the government forces energy producers to use cleaner energy. As Paulson said at the time, “We’re not making those investments to lose money.”

The bank owns a 10 percent stake in the Chicago Climate Exchange, where the carbon credits will be traded. Moreover, Goldman owns a minority stake in Blue Source LLC, a Utahbased firm that sells carbon credits of the type that will be in great demand if the bill passes. Nobel Prize winner Al Gore, who is intimately involved with the planning of cap-and-trade, started up a company called Generation Investment Management with three former bigwigs from Goldman Sachs Asset Management, David Blood, Mark Ferguson and Peter Harris. Their business? Investing in carbon offsets. There’s also a $500 million Green Growth Fund set up by a Goldmanite to invest in greentech … the list goes on and on. Goldman is ahead of the headlines again, just waiting for someone to make it rain in the right spot. Will this market be bigger than the energyfutures market?

“Oh, it’ll dwarf it,” says a former staffer on the House energy committee.

[Click to continue reading The Great American Bubble Machine : Rolling Stone]

Suspicious, indeed.

Satanic Gift

Why are we privatizing cap and trade and not just making a straight tax on carbon emission?

Instead of simply imposing a fixed government levy on carbon pollution and forcing unclean energy producers to pay for the mess they make, cap-and-trade will allow a small tribe of greedy-as-hell Wall Street swine to turn yet another commodities market into a private taxcollection scheme. This is worse than the bailout: It allows the bank to seize taxpayer money before it’s even collected.

“If it’s going to be a tax, I would prefer that Washington set the tax and collect it,” says Michael Masters, the hedgefund director who spoke out against oilfutures speculation. “But we’re saying that Wall Street can set the tax, and Wall Street can collect the tax. That’s the last thing in the world I want. It’s just asinine.”

Clear-cutting Tongass National Forest is a crime

Seth Anderson0 comment

Quite disappointed that the Obama administration gave the green-light to Orion North. If Bush was president, I’d understand, but expected better from Obama. When a forest is gone, it doesn’t come back.

Tongass National Forest Alaska
[Tongass National Forest Alaska]

The U.S. Forest Service agreed Monday to sell timber to a Ketchikan mill in a roadless area of the Tongass National Forest after the Obama administration’s approved the sale.

Orion North timber sale is the first such awarded since Secretary of Agriculture Tom Vilsack announced in May he would personally review all timber sales in roadless areas of national forests in the next year.

He’s doing that while the Obama administration takes some time to review the Clinton-era Roadless Area Conservation Rule, which banned road-building on about 58 million acres of national forest land nationwide but has been challenged since it was issued.

Pacific Log and Lumber, the Ketchikan mill, won the contract to clear-cut 4.4 million board-feet of timber – a relatively small sale – with the option of cutting another 2.4 million board-feet if it’s economical. The Ketchikan-area sale is on Revillagigedo Island in an area that borders Misty Fjords National Monument.

…

“Just building the road will cost four times as much revenue as the Forest Service is going to get from the timber sale,” said [Tom] Waldo of Earthjustice.

[Click to continue reading Ketchikan mill is awarded Orion North timber – Juneau Empire]

Rain Forest Path - Alaska
[Rain Forest Path, Tongass National Forest]

I’ve briefly been inside the Tongass National Forest, and it is a beautiful, almost magical place. The logging industry should grow their own damn trees on land they own, and stop mooching off of National Forests.

Federal Building 1936
[Federal Building, Ketchikan]

Tongass National Forest Alaska
[Tongass National Forest]

The logging industry depends upon corporate welfare for their profits, and it isn’t viable anymore. Either they need to change their business model, or go bankrupt, and let more forward-thinking companies take their place.

American taxpayers have not only watched as the Tongass has been picked apart by road building and logging, they’ve paid for the privilege. The tab extends beyond $750 million over 20 years. In a single year alone, the Forest Service spent $36 million on the Tongass timber program and got back in revenues only $1 million. Subsidies for logging roads account for nearly half of timber program costs annually.

[Click to continue reading The Wilderness Society]

$36,000,000 on hand-outs, receiving $1,000,000 back. Not good, not good at all.

Torture is Torture

Seth Anderson0 comment

As part of an instructive and interesting conversation between pro-torture NBC journalist Chuck Todd1 and Salon’s Glenn Greenwald

Greenwald: Let me ask you this question: The United States is a party to a treaty – I don’t know if you ever read it or not, it’s called the Convention Against Torture – and one of the things it does is it obligates all signatories to the treaty to prosecute any acts of torture. And it was signed by Ronald Reagan in 1988, and when he transmitted that treaty to the Senate, explaining what that treaty does, he wrote, quote, “Each state party is required either to prosecute torturers who are found in its territory, or to extradite them to other countries for prosecution.”

Do you think the U.S. should be bound, is bound by that treaty?

[Click to continue reading Salon Radio: Chuck Todd – Glenn Greenwald – Salon.com]

The audio file of the interview is also available here.

Complete text of the Convention Against Torture is here, the Wikipedia entry says:

Article 1 of the Convention defines torture as:
Any act by which severe pain or suffering, whether physical or mental, is intentionally inflicted on a person for such purposes as obtaining from him or a third person information or a confession, punishing him for an act he or a third person has committed or is suspected of having committed, or intimidating or coercing him or a third person, or for any reason based on discrimination of any kind, when such pain or suffering is inflicted by or at the instigation of or with the consent or acquiescence of a public official or other person acting in an official capacity. It does not include pain or suffering arising only from, inherent in or incidental to lawful sanctions.
– Convention Against Torture, Article 1.1

Actions which fall short of torture may still constitute cruel, inhuman or degrading treatment under Article 16.

Article 2 of the convention prohibits torture, and requires parties to take effective measures to prevent it in any territory under its jurisdiction. This prohibition is absolute and non-derogable. “No exceptional circumstances whatsoever” may be invoked to justify torture, including war, threat of war, internal political instability, public emergency, terrorist acts, violent crime, or any form of armed conflict. Torture cannot be justified as a means to protect public safety or prevent emergencies. Neither can it be justified by orders from superior officers or public officials. The prohibition on torture applies to all territories under a party’s effective jurisdiction, and protects all people under its effective control, regardless of citizenship or how that control is exercised. Since the Conventions entry into force, this absolute prohibition has become accepted as a principle of customary international law.

Because it is often difficult to distinguish between cruel, inhuman or degrading treatment and torture, the Committee regards Article 16’s prohibition of such treatment as similarly absolute and non-derogable.
The other articles of part I lay out specific obligations intended to implement this absolute prohibition by preventing, investigating and punishing acts of torture.

[Click to continue reading United Nations Convention Against Torture – Wikipedia, the free encyclopedia]

Footnotes:
  1. no, not really, I suppose the more precise term would be that Chuck Todd doesn’t believe in prosecuting Republican administration crimes that occurred last week, only prosecuting future crimes [↩]

Sinclair Broadcast Group nearing bankruptcy

Seth Anderson0 comment

Clear Channel is in a bit of financial trouble, and apparently so are their cohorts in “Republican-slanted news is the only news people want” category, Sinclair Broadcasting. Good, I hope they both become nothing more than a footnote to future histories of the George Bush administration.

Lonely Zenith

you’ll remember Sinclair Broadcast Group as the TV group that carried the anti-Kerry smear documentary in prime time, just before the November 2004 election. You may also remember them for the infamous “The Point” editorial segments during their stations’ newscasts — featuring the right wing rantings of corporate management.

Perhaps you even recall their experiment in “central casting” — firing most of the news departments at their local stations, and instead running “local” newscasts from all over the country out of a central studio in Baltimore.

Well, it now appears that Sinclair is on the verge of bankruptcy

…

Five years ago, Sinclair was also the darling of the right for running that anti-Kerry documentary on all 58 of their stations, and for conservative editorials on all of those stations as well. Those who saw ever greater consolidation as the road to maximizing corporate profits were enamored of Sinclair’s experiment with producing “local” newscasts for their stations from a central studio at corporate headquarters in Baltimore.

Unfortunately for Sinclair, viewers were unimpressed by “local” newscasts that were produced hundreds or even thousands of miles from home — and tuned out in droves. And the right wing editorials created negative publicity for Sinclair’s stations. Ultimately. the central studio for producing newscasts was shut down, and the right wing editorials were cancelled. And the group has, by and large, floundered in mediocrity ever since. So far as I’m aware, none of Sinclair’s 58 stations is a market leader, and few are even in the top three — when you run a group on the cheap and attempt to push a national agenda onto your local stations, the result is predictable: poor ratings and a weak identity in your local markets.

As a result, Sinclair was poorly positioned for dealing with the advertising downturn of the past 18 months.

[Click to continue reading Daily Kos: Sinclair Broadcast Group nearing bankruptcy]

Bwa-ha-ha! Couldn’t happen to nicer corporations1

Footnotes:
  1. and by nicer I mean of course the opposite. Sinclair Broadcasting is just scum, plain and simple. [↩]

3 Days of the Sotomayor

Seth Anderson0 comment

Gail Collins (humorously) summarizes the Judge Sotomayor confirmation hearings, including this exchange between Judge Sotomayor and David Brooks right-thigh man, Senator Lindsey Graham of North Carolina1

Oath

SENATOR LINDSEY GRAHAM: Judge, before I read a string of anonymous comments about your temperament problem, I’d like to make you repeat that wise Latina remark again just for the heck of it.

JUDGE SOTOMAYOR: Thank you, Senator, for the opportunity to revisit that matter. I appreciate that the man who once said he’d drown himself if North Carolina went for Obama has a special contribution to make when it comes to the importance of thinking before you speak.

[Click to continue reading Gail Collins – 3 Days of the Sotomayor – NYTimes.com]

zing!

Footnotes:
  1. well, probably, since David Brooks will never confirm nor deny, we might never know who took liberties with David Brooks’ inner thigh [↩]

The Great American Bubble Machine – Gasoline

Seth Anderson1 Comment

Matt Taibbi’s putdown of Goldman Sachs is finally online if you didn’t get a chance to read it yet. He places Goldman Sachs at the scene of several crime scenes, also known as stock market bubbles. For instance, the summer of 2008’s massive gas price increase. Reserves of crude oil were as high as they had ever been, demand was lower because of a world-wide economic slowdown, why then did gasoline prices exceed $4?

Gas At Last

Taibbi explains:

As is so often the case, there had been a Depression-era law in place designed specifically to prevent this sort of thing. The commodities market was designed in large part to help farmers: A grower concerned about future price drops could enter into a contract to sell his corn at a certain price for delivery later on, which made him worry less about building up stores of his crop. When no one was buying corn, the farmer could sell to a middleman known as a “traditional speculator,” who would store the grain and sell it later, when demand returned. That way, someone was always there to buy from the farmer, even when the market temporarily had no need for his crops.

In 1936, however, Congress recognized that there should never be more speculators in the market than real producers and consumers. If that happened, prices would be affected by something other than supply and demand, and price manipulations would ensue. A new law empowered the Commodity Futures Trading Commission — the very same body that would later try and fail to regulate credit swaps — to place limits on speculative trades in commodities. As a result of the CFTC’s oversight, peace and harmony reigned in the commodities markets for more than 50 years.

All that changed in 1991 when, unbeknownst to almost everyone in the world, a Goldmanowned commoditiestrading subsidiary called J. Aron wrote to the CFTC and made an unusual argument. Farmers with big stores of corn, Goldman argued, weren’t the only ones who needed to hedge their risk against future price drops — Wall Street dealers who made big bets on oil prices also needed to hedge their risk, because, well, they stood to lose a lot too.

This was complete and utter crap — the 1936 law, remember, was specifically designed to maintain distinctions between people who were buying and selling real tangible stuff and people who were trading in paper alone. But the CFTC, amazingly, bought Goldman’s argument. It issued the bank a free pass, called the “Bona Fide Hedging” exemption, allowing Goldman’s subsidiary to call itself a physical hedger and escape virtually all limits placed on speculators. In the years that followed, the commission would quietly issue 14 similar exemptions to other companies.

Now Goldman and other banks were free to drive more investors into the commodities markets, enabling speculators to place increasingly big bets. That 1991 letter from Goldman more or less directly led to the oil bubble in 2008, when the number of speculators in the market — driven there by fear of the falling dollar and the housing crash — finally overwhelmed the real physical suppliers and consumers. By 2008, at least three quarters of the activity on the commodity exchanges was speculative, according to a congressional staffer who studied the numbers — and that’s likely a conservative estimate. By the middle of last summer, despite rising supply and a drop in demand, we were paying $4 a gallon every time we pulled up to the pump.

[Click to continue reading about the gasoline bubble: The Great American Bubble Machine : Rolling Stone]

Read the entire article here

Palin knows more about energy policy than anyone else in America

Seth Anderson1 Comment

Sarah Palin knows more about energy policy than anyone else in America, or so claimed John McCain. Hmm, surprisingly1 Ms. Pal-Around Palin seems to have lost most of her knowledge since last fall.

Standard Oil Co of Ind

Sarah Palin, the soon-to-be-ex-governor of Alaska, has an opinion piece (a screed, really) in Tuesday’s Washington Post in which she shrilly blasts away at “President Obama’s cap-and-trade energy plan,” calling it “an enormous threat” to the U.S. economy.

…

Palin’s thesis comes loaded with plenty of rhetoric and zero facts. It offers nothing more than assertions about the emissions reduction part of the bill, ignores the energy investment and green jobs provisions, blames “Washington bureaucrats” for hampering oil development in the Arctic National Wildlife Refuge (not Congress, where elected lawmakers have repeatedly expressed the American public’s desire to keep ANWR off limits), and fails to even take note of the underlying issue—catastrophic climate change.

Couldn’t Palin’s ghostwriters have cribbed from any of the well-researched, highly technical criticisms produced by just about every conservative think tank in the land?

[Click to continue reading Palin eschews facts and economics in blasting cap-and-trade bill | Grist]

Laughable, really.

385 parts per million - Polapan Blue

Joseph Romm adds:

Amazingly, the Post has published an op-ed on climate change legislation by the governor of the state that is currently the most battered by climate change, without any discussion of climate change or its impacts on that state. Heck, even Alaska GOP Senator Lisa Murkowski pointed out in a May 2006 speech on climate change that the tremendous recent warming had opened the door to the “voracious spruce bark beetle,” which devastated over three million acres in Alaska, “providing dry fuel for outbreaks of enormous wild fires.”

In one of the most unintentionally humorous pieces of crap the Post has ever subjected on the public, Palin states:

Unfortunately, many in the national media would rather focus on the personality-driven political gossip of the day than on the gravity of these challenges. So, at risk of disappointing the chattering class, let me make clear what is foremost on my mind and where my focus will be:

I am deeply concerned about President Obama’s cap-and-trade energy plan, and I believe it is an enormous threat to our economy. It would undermine our recovery over the short term and would inflict permanent damage.

Seriously.

[Silver lining note: In a perverse way, perhaps we should be grateful to the Post. Probably the best thing that could happen to climate legislation is if Palin becomes the lead spokesperson attacking it.]

Let’s set aside the rather obvious fact that the bill that doesn’t even start imposing a cap until 2012, so it’s absurd to assert it will “undermine our recovery over the short term.” The reverse case is, in fact, stronger — see Nobelist Krugman attacks “junk economics”: Climate action “now might actually help the economy recover from its current slump” by giving “businesses a reason to invest in new equipment and facilities.”

Moreover, even in 2012, the total value of the allowances will be under $50 billion (in a $15 trillion economy) and all that money is going to be returned to the economy, so again, like all economic models show, the bill will have no significant negative impact.

No, what’s so laughable about this piece is that Palin wouldn’t even be considered by the Post as a suitable candidate for an op-ed on the climate bill if it weren’t for the national media’s focus on personality-driven politics.

[Click to continue reading Quitter-in-chief Sarah Palin attacks climate action and clean energy in falsehood-filled piece | Grist]

I echo the thought: the best thing for climate change legislation is probably having Sarah “Quitter” Palin as its lead opponent. More fact checking at Media Matters if you want a laugh (at Ms. Sarah Barracuda Palin’s expense). And at The Atlantic, The Huffington Post, Brad DeLong’s blog, John at Eschaton, and probably elsewhere.

For the record, I don’t know enough about the proposed Cap and Trade legislation to say whether it is something I support or not, but I do know that Sarah Palin is probably even more clueless.

Footnotes:
  1. not really [↩]

Speaking of Race

Seth Anderson0 comment

Speaking of race relations in contemporary America, Frank Rich writes:

The essence of Palinism is emotional, not ideological. Yes, she is of the religious right, even if she winks literally and figuratively at her own daughter’s flagrant disregard of abstinence and marriage. But family-values politics, now more devalued than the dollar by the philandering of ostentatiously Christian Republican politicians, can only take her so far. The real wave she’s riding is a loud, resonant surge of resentment and victimization that’s larger than issues like abortion and gay civil rights.

That resentment is in part about race, of course. When Palin referred to Alaska as “a microcosm of America” during the 2008 campaign, it was in defiance of the statistical reality that her state’s tiny black and Hispanic populations are unrepresentative of her nation. She stood for the “real America,” she insisted, and the identity of the unreal America didn’t have to be stated explicitly for audiences to catch her drift. Her convention speech’s signature line was a deftly coded putdown of her presumably shiftless big-city opponent: “I guess a small-town mayor is sort of like a community organizer, except that you have actual responsibilities.” (Funny how this wisdom has been forgotten by her supporters now that she has abandoned her own actual responsibilities in public office.)

…

The Palinist “real America” is demographically doomed to keep shrinking. But the emotion it represents is disproportionately powerful for its numbers. It’s an anger that Palin enjoyed stoking during her “palling around with terrorists” crusade against Obama on the campaign trail. It’s an anger that’s curdled into self-martyrdom since Inauguration Day.

Its voice can be found in the postings at a Web site maintained by the fans of Mark Levin, the Obama hater who is, at this writing, the No.2 best-selling hardcover nonfiction writer in America. (Glenn Beck is No.1 in paperback nonfiction.) Politico surveyed them last week. “Bottomline, do you know of any way we can remove these idiots before this country goes down the crapper?” wrote one Levin fan. “I WILL HELP!!! Should I buy a gun?” Another called for a new American revolution, promising “there will be blood.”

[Click to continue reading Frank Rich – She Broke the G.O.P. and Now She Owns It – NYTimes.com]

Palin is the hero to those same reactionary bilious few who celebrated George Wallace a scant few decades ago.

Vegas Thrills Chills and hopefully no Onanistic Spills

Seth Anderson0 comment

Yet another Republican family values freaky-deac(on).

One of Ensign’s roommates, Senator Tom Coburn of Oklahoma, was described by Hampton as being particularly vocal about the importance of cash contributions to “make these folks whole.” Coburn denies this, although he won’t say exactly what advice he gave to his erring colleague. Coburn told Roll Call that he talked to Ensign as a “physician and as an ordained deacon” and that he will therefore have the right to keep mum even if he’s dragged into court or a Senate committee hearing.

This makes me sort of hope that some kind of investigation takes place just so Coburn, who’s an obstetrician, can explain how exactly doctor-patient confidentiality figures into this.

…

We hardly need to point out that Ensign was one of the people who demanded that President Bill Clinton resign over the Lewinsky affair, that he votes against financing for education and contraception services to combat teenage pregnancy and that he supports a constitutional amendment banning same-sex marriage. In the world of politics, hypocrisy is a hard market to corner, but lately the Republicans have been making a Microsoft-like effort to do it.

Both of the Hamptons lost their jobs, and Doug was shuttled off to a Las Vegas-based airline, run by a friend of Ensign’s, where he is now vice president of government affairs. Unappeased, he hired a lawyer to demand that Ensign make financial amends for “evil and completely unjustifiable acts by one of our country’s top leaders.” He also tried to leak the story of the affair to Fox News, apparently under the theory that out of all the media, Fox would be most excited by the opportunity to humiliate a powerful conservative Republican senator.

[Click to continue reading Gail Collins – What Happened in Vegas – NYTimes.com]

AIG and you

Also, the payoff was a very precise number of dollars: $96,000, or as The Washington Monthly puts it:

$96,000 is a lot of money. Interestingly, it is precisely the amount you can give as a gift without having to report it to the IRS, multiplied by eight: one gift of $12,000 from each parent to Ensign’s lover, her husband, and two of their children. I wonder what the IRS will make of that? I certainly hope that neither of the parents has made use of their children’s money, or done anything else to suggest that this was all one big gift split up to avoid paying gift tax, or (more likely) having to report the gift. It’s bad enough asking your parents to cough up $96,000 to cover up your indiscretions; asking them to violate the tax code and risk prison is a whole lot worse.

[Click to continue reading: The Washington Monthly – O, What A Tangled Web We Weave]

Strange concept that, neatly avoiding investigation by the IRS by having your parents pay off your mistress, and her family. Hope there wasn’t any money laundering going on.

Reading Around on July 9th through July 10th

swanksalot0 comment

A few interesting links collected July 9th through July 10th: