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Keep This On The Front Burner

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June 26, 2008

For the past few weeks, the Senate Commerce Committee has been hearing testimony about the impact of the so-called “Enron loophole” in the Commodity Futures Modernization Act of 2000, 7 U.S.C. §2(h)(3) and (g), which existed throughout Bill Clinton’s tenure in the Oval Office.  This “Enron loophole” is what has made it possible for speculators to drive the price of gasoline beyond $4 per gallon. Consider the Senate Commerce Committee testimony of Michael Greenberger, former Commodity Futures Trading Commission (CFTC) Director of Trading and Markets.  Mr. Greenberger testified that if the “Enron loophole” were closed, we would see “overnight” a 25-percent drop in the price of crude oil and as much as a 50-percent drop in the price of gasoline.  The Senate Commerce Committee hearing featured testimony by hedge fund managers and other market experts, concerning how the skyrocketing price of gasoline, diesel and heating oil are “breaking the back” of the American economy.  Some of these experts (knowing that their testimony would be falling on the “deaf ears” of bought-off lawmakers and friends of the oil industry) were nearly at the point of tears in describing how the rest of American industry is getting killed for the benefit of the oil industry.  Let’s revisit Mr. Greenberger’s point once again:  if the “Enron loophole” were closed, we would see “overnight” a 25-percent drop in the price of crude oil and as much as a 50-percent drop in the price of gasoline.  “Overnight” may be an exaggeration, although I’m sure he means a lot quicker than waiting for unbuilt and unplanned oil wells to start having an effect on the price of a barrel of crude.  (This turnaround time is considered by most experts to be a 10-year period.)

Our old friend, the Former John McCain, whom we once knew, voted with the Democrats to close the “Enron loophole” in 2002 and 2003.  His comments in the February, 2002 issue of The New Yorker told us much about how we got to where we are now, six years after he gave that interview:

Enron made a sound investment in Washington.  It did them a lot of good.  Where they really do well is around the edges, the insertion of an amendment into an appropriate bill.

McCain is no longer so strident about the sleazy origins of this “Enron loophole”.  This is probably because the loophole owes its existence to Phil Graham and his wife, former CFTC Chair, Wendy of Enron.  Phil is now McCain’s “economic advisor”, so don’t hold your breath waiting for McCain to repeat what he said to The New Yorker in 2002.  He has yet to speak out against this loophole as his new self: McCain 2008.  Nevertheless, a very loud, “hard” right-wing voice, that of Bill O’Reilly, has spoken up on this issue.  A visit to the website: http://closeloophole.org/ recites this quote from O’Reilly on his Factor show:

I want those SOBs [speculators] taken down…let’s work together to save the American consumer at the pump.

My favorite issues are those where “liberals” and “conservatives” can work together to solve the crucial problems faced by society.  It appears as though we have one right here.  If we address it, we may solve it “overnight” according to one expert.  If we do solve it, we will be helping more than the individual consumer.  We will probably save the entire roster of Russell 2000 “small-cap” companies from swirling down the toilet.  Most experts believe these companies are the hardest-hit by the uncontrolled cost of petroleum products.

For his part, Barack Obama has spoken on the record numerous times about his opposition to the “Enron loophole”.  This should come as no surprise since his fellow Senator from Illinois, Dick Durbin, is a key advocate for closing this loophole.  Obama supporter, New Jersey Governor Jon Corzine, has a bit of “street cred” on this subject, having served as the former chairman of the investment firm, Goldman Sachs.  Corzine is on the record for blaming this unregulated speculation for the outrageous pricing of petroleum products.

The American public has a notoriously short attention span.  It seems unbelievable that something this important, that erases “discretionary spending” and limits what food can be placed on one’s table, could be overshadowed by the latest celebrity scandal.  Americans must stay focused on this fundamental problem.  A visit to http://closeloophole.org/ will give you the opportunity to send e-mails to your Senators, expressing your opinion on whether our government should perform one of its most important missions:  to save us all from sleazebags.



Women To Watch

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June 19, 2008

Most of the eulogies about Hillary Clinton’s Presidential campaign have focused on the theme that she was a “groundbreaker”, who proved that a woman could make it to the Senate and become a serious contender for the highest office in the land.  Meanwhile, there are a number of women presently in the Senate, who got there without having been married to a former President (whose surname could be relied upon for recognition purposes).  In fact, two of these women are presently working on closing the so-called “Enron loophole” in the Commodity Futures Modernization Act of 2000, 7 U.S.C. §2(h)(3) and (g), which existed throughout Bill Clinton’s tenure in the Oval Office.  This “Enron loophole” is what has made it possible for speculators to drive the price of gasoline beyond $4 per gallon.  Surely, the increased demand for oil by China and India has explained part of the soaring cost of gasoline here in the United States.  However all authorities on the subject agree that unchecked speculation in the American markets has greatly facilitated the skyrocketing increase in gas prices.  That speculation owes its existence to the so-called “Enron loophole”, which is once again coming under attack in the Senate.

There is abundant interest focused on whatever Hillary Clinton’s mission will be when she returns to the Senate after her month of R&R and what role she might play if Barack Obama is elected our next President.  I suggest that we turn our sights to the Senate right now, to witness what other women are doing there and find out for ourselves who the real “trailblazers” are.  We should also consider these pioneers when looking toward the day when a woman finally makes it to The White House.

Our first potential future candidate is Senator Amy Klobuchar of Minnesota, whose role on the Senate Commerce Committee has found her fighting against the “Enron loophole”.  Looking on Wikipedia.org we learn:

She received her bachelor’s degree magna cum laude in political science from Yale University in 1982, where she was a member of the Yale College Democrats and the Feminist Caucus.  …  Klobuchar served as an associate editor of the Law Review and received her J.D. in 1985 at the University of Chicago Law School.

Bam!  She has made the prerequisite pilgrimage to Iraq (March, 2007) and voiced her frustration with Prime Minister Nouri Al-Maliki upon her return.  She is a member of the following Senate Committees:  the Agriculture Committee, the Environment and Public Works Committee and the Commerce Committee.  She is also a member of the Congressional Joint Economic Committee.

Our second potential future candidate is Senator Maria Cantwell from the State of Washington.  She is also currently working to close the “Enron loophole”. Senator Cantwell received a Bachelor’s Degree in Public Administration from Miami University of Ohio.  She has served in the Senate since January of 2001.  Although she supported the Joint Resolution for the Use of the Armed Forces in Iraq, she explained the qualifications for her support in an extensive press release the day before the vote on that Resolution.   She is a member of the following Senate Committees:  Finance, Indian Affairs, Finance and Entrepreneurship, Energy and Natural Resources, as well as the Committee on Commerce, Science and Transportation.

At this juncture, it remains to be seen whether Hillary Clinton will join these two sister Senators in their efforts to close the “Enron loophole”.  It never bothered her husband during his eight years in the White House and she never spoke up about it during that time.

For our third potential future candidate, we can’t forget about Governor Kathleen Sebelius of Kansas.  Although she is being promoted as a possible running mate for Barack Obama, her five years as Governor of Kansas are considered by many as a bit short for the position of Vice President.  (She faced that criticism when she had served only one year as Governor and was considered as a possible running mate for John Kerry in 2004.)  She earned a Master’s Degree in Public Administration from the University of Kansas after earning a Bachelor’s Degree from Trinity Washington University in Washington, D.C.  (Trinity Washington University is not associated with the late Jerry Falwell, who died and went to hell.  It is a Catholic – affiliated University.)  As Governor of Kansas, she has an established record as an advocate of environmental protection.

As the pundits watch Hillary Clinton’s political future, some of us will be looking toward other American women, one of whom may turn out to become the first female President of the United States.


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