Ten Most Corrupt Politicians In Washington DC
January 6, 2014 by Administrator · Leave a Comment
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Marriane Williamson, author of the book A Return to Love, announced this past fall her plan to run for Congress in the 33rddistrict of California to stop the “Culture of Corruption” in our nation’s capital.
Without a doubt, deep, systemic corruption thrives in our U.S. Congress. It flourishes in our White House. Thomas Jefferson, our third president, tried to pass term limits, but failed in the face of those who love power and expect to maintain it.
Judicial Watch, the public interest group that investigates and prosecutes government corruption, released its 2013
List of Washington’s “Ten Most Wanted Corrupt Politicians.” , the list, in alphabetical order, includes:
- Speaker of the House John Boehner (R-OH)
- CIA Director John Brennan
- Senator Saxby Chambliss
- Former Secretary of State Hillary Clinton
- Attorney General Eric Holder
- Former IRS Commissioner Steven T. Miller / Former IRS Official Lois Lerner
- Former DHS Secretary Janet Napolitano
- President Barack Obama
- Senator Harry Reid (D-NV)
- Health Secretary Kathleen Sebelius
Dishonorable Mentions for 2013 include:
- Former New York Mayor Michael Bloomberg
- Outgoing Virginia Gov. Bob McDonnell (R) / Incoming Virginia Gov. Terry McAuliffe (D)
- Former Rep. Rick Renzi (R-AZ)
- National Security Adviser Susan Rice
As a 27 year old staff attorney for the House Judiciary Committee, Ms. Hillary Clinton suffered firing by her supervisor, lifelong democrat Jerry Zeifman who said, “She is a liar. She was unethical and dishonest. She conspired to violate the Constitution, the rules of the House, the rules of the committee and the rules of confidentiality.”
If you remember the murders at the U.S. embassy in Benghazi that suffered a terrorist attack that killed four people, her reply, “What difference does it matter?”
Mr. Barack Obama continues his cover-up of his incompetence in fortifying the embassy and ignoring all calls for help. Good men died because of malfeasance and ineptitude.
Let’s start with Speaker of the House John Boehner (R-OH):
House Speaker John Boehner became a master at what Government Accountability Institute President Peter Schweizer calls the “Tollbooth Strategy.” As Schweizer explains in his new book, Extortion: How Politicians Extract Your Money, Buy Votes, and Line Their Own Pockets:
“You pay money at a tollbooth in order to use a road or bridge. The methodology in Washington is similar: if someone wants a bill passed, charge them money to allow the bill to move down the legislative highway.”
According to Schweizer, Boehner used the “. Reference:
Additionally, Boehner continues his blockade of the E-Verify Bill to force employers to check legal status of anyone seeking employment. I suspect the U.S. Chamber of Commerce, up to its eyeballs in promoting illegal immigration cheap labor, paid big bucks to keep E-Verify from passing into law. No doubt Marriott, Holiday Inn, Tyson Chicken, McDonald’s, Chipotle’s, Hormel, La Quinta, endless restaurant chains, construction, painting, landscape and other huge companies paid huge bribes to make sure they continue to hire illegal aliens rather than American citizens at a living wage.
Speaker Boehner does not stand-alone.
Attorney General Eric Holder lies so much, hides so much, aka, Fast and Furious, that he cannot tell the truth from a lie.
Senator Saxby Chambliss (R-GA) makes the “Ten Worst” list for what he actually did in 2012, but which was finally exposed in 2013. Just as with House Speaker Boehner, Chambliss’s misdeeds were revealed in Peter Schweizer’s book,
Judicial Watch said, “Chambliss is highlighted as one of the key abusers who used to convert campaign cash into lavish lifestyle upgrades for themselves and their family members.
The reported, “The book details the extravagant expenses of Senator Saxby Chambliss, Republican of Georgia, for instance, whose leadership PAC spent $10,000 on golf at Pebble Beach, nearly $27,000 at Ruth’s Chris Steakhouse, and $107,752 at the exclusive Breakers resort in Palm Beach, Fla. The amount Mr. Chambliss spent at the Breakers in the 2012 election cycle, the book reports, is three times what the senator gave to the National Republican Senatorial Committee during the same period.”
Former DHS Secretary Janet Napolitano may be one of the biggest liars of all. In August 2013 Department of Homeland Security Secretary Janet Napolitano stepped down from her post with “pride and regret” stemming from her failure to help push through the so-called “Development, Relief, and Education for Alien Minors (DREAM) Act.” The truth: Napolitano played a major role in doing an end run around existing immigration law by helping President Obama implement his Deferred Action for Childhood Arrivals (DACA) directive in lieu of DREAM Act passage.
by Judicial Watch in June 2013 revealed that Napolitano’s Department of Homeland Security (DHS) U.S. Citizenship & Immigration Services (USCIS) “Abandoned required background checks in 2012, adopting, instead, costly “lean and lite” procedures in effort to keep up with the flood of amnesty applications resulting from the DACA directive.”
The granddaddy liar of them all: Barack Hussein Obama.
President Barack Obama actually tops this “Top Ten Most Wanted Corrupt Politicians” list for 2013 as the driving force behind so many of the misdeeds.
This is Obama’s seventh straight year on the list, dating back all the way to 2007 (in 2006, he earned a “Dishonorable Mention”). He is a master at catch-me-if-you-can, corrupt politics.
“This year, he has again acted as a one-man Congress, rewriting entire sections of federal law on his own,” said Judicial Watch. “Not only is his administration secretive and ; its callous disregard for the rule of law undermines our constitutional republic. Examples include:
Perhaps Obama’s most outrageous actions over the past year were his continual lies about the ability of Americans to keep their own health insurance under Obamacare. According the Obama misled the American people a total of 36 times between 2008 and 2013 with his promise, “If you like your health insurance, you can keep it.” And according to , Obama knew, even as he repeated his lie, that “more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.”
Let us not forget Nevada Senator Harry Reid and all the senators that voted for the S744 Amnesty Bill that legalizes 20 to 25 million illegal aliens. They and he never stood up for enforcement of internal employment laws against employers of illegal aliens, or our borders, but they bend over for big business’ cheap labor interests—against American workers.
Last year, Harry Reid made the Judicial Watch Ten Worst list for his influence-peddling scandal involving ENN Energy Group, a Chinese “green energy” company for which Reid “” – and which happened to be a major client of the Nevada law firm in which Reid’s son, Rory, is a principal.
Power corrupts and absolute power corrupts totally. As Marriane Williams said, “We face a culture of corruption” in Washington DC that works against the interests of all Americans—but we continue voting them back into their power positions to screw all of us. Then we wonder why our country continues an 11-year useless war, $18 trillion debt, 14 million unemployed, 48 million subsisting on food stamps, endless immigration, falling wages and vanishing Middle Class.
Frosty Wooldridge has bicycled across six continents – from the Arctic to the South Pole – as well as six times across the USA, coast to coast and border to border. In 2005, he bicycled from the Arctic Circle, Norway to Athens, Greece.
He presents “The Coming Population Crisis in America: and what you can do about it” to civic clubs, church groups, high schools and colleges. He works to bring about sensible world population balance at his website: www.frostywooldridge.com
Frosty Wooldridge is a regular columnist for Veracity Voice
Cronyism, Intellectual Property And Government Subsidies To Hollywood
June 1, 2013 by Administrator · Leave a Comment
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Current scandals aside, when the history of the Obama Administration is written the topic of crony capitalism will need a section to itself. From the high profile failures of green energy projects to the bailouts of Wall Street and Detroit, handing out taxpayer dollars to private industry is a hallmark of the president’s economic policy. But President Obama is not alone responsible for approving these giveaways. Congress has played a critical role, especially when it comes to subsidies to Hollywood and the recording industry.
Instapundit.com creator, Glenn Reynolds, has done yeoman’s work connecting the dots. He has extensively documented how the “content industry” has taken advantage of the tax credits and subsides on the federal, state and local levels, to pad their bottom line. But Hollywood’s biggest giveaways don’t occur on the tax-writing committees in Congress but the Judiciary Committee — where copyright policy is written.
Using every means at their disposal, Hollywood has attacked the balanced approach inherent in our Constitution. Unfortunately, members of both parties have played the game that has stifled economic growth and competition and given the content lobby their near every demand. In short, Congress continues to look for more draconian ways to help copyright holders enforce their copyrights without regard to the impact on users and consumers.
That’s why it was a pleasant surprise to hear House Judiciary Committee Chairman Bob Goodlatte (R-VA) announce a comprehensive review of copyright law. Goodlatte’s “Copyright Principles Project,” is an effort to build consensus around copyright laws between consumers, the content lobby and technology. Yet supporters of free market reforms viewed the announcement with both optimism and skepticism. There have been few supporters of reform within both parties and Mr. Goodlatte does not have a good track record of support for free market principles on these issues. But one can hope.
There are a number of reforms Mr. Goodlatte can endorse that will benefit consumers and help re-balance the law. Among them:
Unlocking Your Phone — When you buy a phone it is married to a specific wireless carrier. You can’t take it and go to another one because the cost of it was subsidized by the carrier with which you signed a contract. If, when that contract expires, you decide to switch to another carrier, or if you decide to pay the penalty and end your contract early for whatever reason, you, as the owner of the phone, become the proud owner of a technologically advanced and expensive paperweight. Your phone won’t work with another service provider. It would be like buying a car that you can never paint or change the radio, it has to be kept the same way it was when you bought it or it won’t work. You own it, technically, but General Motors controls it. There’s really nothing else you can buy that you, as the owner, have so little control over. Millions have been spent on lobbying to create and maintain this system.
Internet Radio — Internet radio is booming in popularity but the royalty scheme makes the model unprofitable. Internet radio websites pay six times the royalty rates of other broadcast mediums because the Copyright Royalty Board imposes price-fixing on the industry with standards created by Congress. Determining what standard applies depends on whether or not the service was “preexisting” in 1998 when the Digital Millennium Copyright Act was enacted. New technologies are subject to a standard that results in much higher rates than those faced by “old” technologies like satellite radio. Rep. Jason Chaffetz (R-Utah) introduced in the last Congress the Internet Radio Fairness Act, which seeks to fix the royalty rate mess. It should be a high priority for the Chairman.
Politicians on both sides of the aisle constantly rail against cronyism, yet both sides engage in it hoping you won’t notice. The “safeguards” built into that cronyism to protect the patrons of it are set up in such a way that you, the consumer, will place the blame elsewhere rather than where it ultimately belongs – the government. Companies use government as a weapon against competitors and consumers, companies know it and embrace it, consumers are kept in the dark.
Like how a raise in the gas tax is blamed on “greedy oil companies” for raising the price rather than government because consumers only see the end price at the pump without knowing it’s higher because their elected officials want a bigger slice, cronyism impacts you elsewhere. The company that makes your phone isn’t keeping you from using it however you want, and if your favorite Internet radio station goes away it won’t be because they couldn’t compete on a level playing field, an entire system has been set up to make it difficult, if not near impossible for them to exist. It’s just the way it is, but it doesn’t have to be.
Source: townhall.com
Government Subsidizes And Bankrupt Companies
February 28, 2013 by Administrator · Leave a Comment
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There are many forms of government subsidies. Ambitious politicians ingeniously design schemes to expand their power and repay their donor patrons. Opportunist corporate enterprises beg for favor to fund projects or guaranteed loans. The role of government venture capitalism has produced a much-sordid record for the taxpayer. The sheer concept of picking winners and losers is a pure political play that defies pragmatic prudence. In spite of this, actuality, the rush to squander public money is one of the few growth industries. The pitiful results of the predictable bankruptcy are the common fate of this flawed business model.
The latest outrage has Buyers Circle Around Ailing Fisker Automotive. Yet, some critics of this assessment would have you believe that Fisker Automotive is in a sharp contrast to competitor Tesla Motors.
“But the fact that potential buyers are from China is already raising alarms about Fisker, which raised $1.2 billion in venture capital and spent about $192 million in federal loans to build a factory. “Technology developed with American taxpayer subsidies should not be sold off to China,” Republican senator Charles Grassley told Bloomberg. He compared it to the acquisition of A123 Systems by China-based auto parts company Wanxiang Group.
By contrast, Tesla Motors, which also received a DOE loan to build its factory, is crossing into higher volume production. Yesterday, Tesla announced that it expects to be profitable this quarter and is making its Model S at a rate of 400 a month, which will allow it to hit its annual target and meet demand for the electric sedan. (See, Tesla’s Explosive Revenue Suggests a Bright Future.)
One crucial difference between Tesla and Fisker, which is well known for its bold designs, has been Tesla’s manufacturing expertise. Fisker may well still go public and be a successful EV supplier. But for energy-related startups to go the route of Tesla rather than Fisker, they’ll need innovative technology, access to capital, supportive policies, and great business execution.”
The Obama environmental cult would argue that it is largely appropriate to spend public resources to fund private technological businesses. Some will be successful while others will fail. However, the partnership role with government in this new state/capitalist prototype is necessary to achieve the greater good of a fossil free ecosystem. Expensive cars, not designed for the commuter, are now joint venture public finance missions, in order to curtail gas fumes.
Henry Ford is rolling in his grave and Enzo Ferrari is searching for the electric switch.
The notorious “Green” sector has vivid examples of bribery, theft, incompetence and high-priced inefficient technology. The Foundry publishes a most informative list ofPresident Obama’s Taxpayer-Backed Green Energy Failures. “So far, 34 companies that were offered federal support from taxpayers are faltering — either having gone bankrupt or laying off workers or heading for bankruptcy.” Examine the specific site links for expanded details.
1. Evergreen Solar ($25 million)* | 12. Abound Solar ($400 million)* | 23. Thompson River Power ($6.5 million)* |
2. SpectraWatt ($500,000)* | 13. A123 Systems ($279 million)* | 24. Stirling Energy Systems ($7 million)* |
3. Solyndra ($535 million)* | 14. Willard and Kelsey Solar Group ($700,981)* | 25. Azure Dynamics ($5.4 million)* |
4. Beacon Power ($43 million)* | 15. Johnson Controls ($299 million) | 26. GreenVolts ($500,000) |
5. Nevada Geothermal ($98.5 million) | 16. Brightsource ($1.6 billion) | 27. Vestas ($50 million) |
6. SunPower ($1.2 billion) | 17. ECOtality ($126.2 million) | 28. ($151 million) |
7. First Solar ($1.46 billion) | 18. Raser Technologies ($33 million)* | 29. Nordic Windpower ($16 million)* |
8. Babcock and Brown ($178 million) | 19. Energy Conversion Devices ($13.3 million) | 30. Navistar ($39 million) |
9. EnerDel’s subsidiary Ener1 ($118.5 million)* | 20. Mountain Plaza, Inc. ($2 million)* | 31. Satcon ($3 million)* |
10. Amonix ($5.9 million) | 21. Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million)* | 32. Konarka Technologies Inc. ($20 million)* |
11. Fisker Automotive ($529 million) | 22. Range Fuels ($80 million)* | 33. Mascoma Corp. ($100 million) |
Now expand the creativity of the subsidy culture to the bankruptcy constituency. The report, Union That Bankrupted Hostess to Receive Generous Government Subsidies, will push you over the edge.
“Last year, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union refused to accept concessions that would have kept Hostess in business. The company had tried to cut costs as it faced high labor expenses, rising ingredient costs, and decreasing sales. The Teamsters union accepted the concessions, but the Bakery union would not, choosing to strike. Unable to continue operating, Hostess filed for bankruptcy.
Now those who helped bring down an American icon will receive generous, taxpayer-funded benefits from the Trade Adjustment Assistance (TAA) program. These generous benefits come in addition to existing unemployment insurance, job placement, and job training programs. TAA benefits include:
• Up to two years of job training in an approved training program,
• Up to 52 weeks of Trade Readjustment Allowances for workers in job training,
• Job search and relocation allowances,
• A refundable “health care tax credit” that covers 65 percent of a worker’s health insurance premiums in qualifying health plans, and
• A two-year wage insurance program that partly replaces workers’ earnings if they accept lower-paying jobs.”
The civic grant philosophy is not just for corporatists. Union goons prefer that their rank in file lose their livelihood, so that they can enjoy the welfare stipends of the state-run insolvent society. The prospects of a Mandarin logo on a Fisker vehicle are hardly on the same scale of transferring innovative technology to Cantonese creditors. However, the common practice of squandering national treasure for dubious purposes seems to be the primary product of the political careerists.
Leave it to the progressives over at The American Prospect, for an unintended analogy, in the essay The Twinkie Defense – the unions made us do it. “Hostess Brands is classic case of private equity engineers and executives looting a viable company, loading it up with debt, and then asking the employees to make up the difference.”
Regretfully, but with no remorse; the political class plays the role of private equity engineers, as the government plunders our economy, through crony spending and swelling of the debt, while saddling the taxpayer with the bill.
Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at:
Sartre is a regular columnist for Veracity Voice
A $14 Trillion Extortion For A Global Warming Scam
January 29, 2013 by Administrator · Leave a Comment
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The latest megalomaniacal threat from the financial globalists wants to saddle the world economy with a cost of trillions of dollars that benefits favorite corporatists. The phony global warming cult has a core purpose. Their objective is to drive down the standard of living for non-elites and prevent the use of fossil fuel energy. The fallacious science used to create a disinformation scare for politically unsophisticated “True Believers” is a direct result of transnational money manipulators. The Davos crowd sponsors the educational and media institutions that trump up junk research and manufacture idealistic solutions.
Make no mistake about it, the Davos Elites Enjoys the Global Depression, and love corporate welfare. They greatly profit from government subsidized “Green” ventures, which drive up energy costs and line the pockets of compadre companies, under the control of the financial barons. As the rest of us struggle to survive, pronouncements declare an every greater burden to bear. Note the ominous future in Davos Report Calls For Additional $14 Trillion To Restrain Global Warming.
“The world must spend an additional $14 trillion on clean energy infrastructure, low-carbon transport and energy efficiency to meet the United Nations’ goal for capping the rise in average global temperatures, according to a World Economic Forum report released on Monday.”
Former Mexican President Felipe Calderon states the globalist viewpoint.
“Economic growth and sustainability are inter-dependent, you cannot have one without the other, and greening investment is the pre-requisite to realizing both goals.”
What can be expected from these “greening investment” projects? In order to anticipate future plans, a comprehensive understanding of the past and present shady business practices is crucial.
Examine the industrial wind and solar model in detail. The Washington Post reports in, Sting operations reveal Mafia involvement in renewable energy, is just the tip of the iceberg.
“The still-emerging links of the mafia to the once-booming wind and solar sector here are raising fresh questions about the use of government subsidies to fuel a shift toward cleaner energies, with critics claiming that huge state incentives created excessive profits for companies and a market bubble ripe for fraud. China-based Suntech, the world’s largest solar panel maker, last month said it would need to restate more than two years of financial results because of allegedly fake capital put up to finance new plants in Italy. The discoveries here also follow “eco-corruption” cases in Spain, where a number of companies stand accused of illegally tapping state aid.
Because it receives more sun and wind than any other part of Italy, Sicily became one of Europe’s most obvious hotbeds for renewable energies over the past decade. As the Italian government began offering billions of euros annually in subsidies for wind and solar development, the potential profitability of such projects also soared — a fact that did not go unnoticed by Sicily’s infamous crime families.
Roughly a third of the island’s 30 wind farms — along with several solar power plants — have been seized by authorities. Officials have frozen more than $2 billion in assets and arrested a dozen alleged crime bosses, corrupt local councilors and mafia-linked entrepreneurs. Italian prosecutors are now investigating suspected mafia involvement in renewable-energy projects from Sardinia to Apulia.”
The in-depth analysis, Big Wind Energy Subsidies: A Hurricane of Carnage, Cronyism and Corruptionis a good primer on the way plungers game the system and pay off politicians at the taxpayers’ expense.
“Lewis “Lew” Hay, III is executive chairman of NextEra Energy, Inc., and it is estimated by Forbes, that CEO “Hay earns nearly $10 million in total compensation from NextEra.” Despite the fact that Hay was actually a “major political contributor to Sen. John McCain in 2008,” he quickly learned which side his power company could generate the title of the “Third Largest Recipient of DOE Risky Loans.” Hay too joined wealthy Democratic donorson Obama’s in 2011, along with the other two I have tackled in this series, “Spreading the Wealth to Obama’s Ultra-Rich Job Council” –– Jobs Czar, Jeffrey Immelt CEO of General Electric has raked in $3 billion and counting, meanwhile John Doerr, along with his “climate buddy” Al Gore’s, VC firm Kleiner Perkins is tied to at least $10 billion of stimulus funds. Both General Electric and Doerr were key contributors to what went into the 2009 Stimulus.
No matter how you slice it, whether we are sending money abroad or fueling corporate welfare here in the United States as well as the egregious practice of crony capitalism, the 2009-Recovery act is a lie, a travesty and a scam, favoring wealthy financial backers of President Obama and the Democratic Party as well as those with influential political connections to both. And with a president that’s dead set on pushing a fierce and radical climate change agenda and funding green energy with taxpayer money, no matter the long list of failures, there is no end in sight to this green corruption scandal.
Besides NextEra Energy taking full advantage of the federal production tax credit (PTC), we now can confirm that the Bank of Obama has rewarded this conglomerate of a power company, and his millionaire job council buddy Lewis Hay, with two large DOE loans ($2.3 billion); one large stimulus smart-grid grant ($200 million); and six 1603 stimulus grants totaling $398.5 million. Thus NextEra’s green tab is on its way to $3 billion of taxpayer money, and that’s not factoring in the PTC.”
With this background and sorry record of corruption to build upon, the World Economic Forum at Davos sets the agenda for the global economy.
Davos 2013: Green Governance To ’Save the World’ is all about enacting their Agenda 21 authoritarianism. Elizabeth Leafloor from RedIceCreations.com writes:
“The WEF suggests a crisis of leadership and debt are some of the biggest challenges facing the world, and that ’global governance’ is the key to stabilization. Pascal Lamy, director-general of the World Trade Organisation, said: ‘We need proper global governance that has the necessary tools, power and energy to create a more level playing field at the international level.’
At the end of the day, a push for increased global governance and an environmental agenda is on the table for Davos 2013, under the banner of ’Resilent Dynamism’:
“Mr. Klaus Schwab (WEF Founder and executive chairman) said that the world is seeing “a new reality of sudden shocks and prolonged global economic malaise, particularly in major economies experiencing economic austerity”. He also mentioned, “Future growth in this new context requires dynamism – bold vision and even bolder action.
Either attribute – Resilience or Dynamism – alone is insufficient, as leadership in 2013 will require both”.
The “Greening” leadership translates into forcing upon the world a “Cap and Trade” dictatorship. The Calderon bandits that sip champagne from their Swiss chateau want to extend their aristocratic bondage upon a gullible public. The proper dictum is “Save the World” from the New World Order elites.
Read the Lieberman-Warner Climate Security Act – S. 2191, for the vision of the controlled carbon-trading scheme.
“The L-W CSA allows covered facilities to satisfy up to 15% of their compliance obligation with specific domestic offsets. An additional 15% can be covered using international emission allowances. Unlimited banking is allowed and owners and operators of covered facilities can borrow up to 15% of their annual compliance obligation from future years. The L-W CSA also creates a Carbon Market Efficiency Board to monitor the carbon trading market and implement specific cost relief measures, including increased borrowing and use of offsets.”
What a boondoggle for the consumer and a windfall for organized crime. If you worry about mob infiltration into this extortion racket, you had better focus on the true mafia; namely, the globalist plutocrats.
If the disclosed goal is to extract $14 Trillion from the distressed world economies, one can only reasonably conclude that the surreptitious objective is to widen the income gap between the ultra-rich and the peons. People pay the costs of taxation exploitation. The privileged elites view the masses as useless eaters, destined to be herded into pens of servitude.
The fake global warming panic is pure political propaganda, used to bolster a guilt complex to justify insider theft. A Cap and Trade ploy is designed to push up the costs of fossil fuel with full knowledge that “Greening Dreams” are no substitutes to real energy.
Research projects into technological alternative sources, based upon efficiency and reliability standards are valid. However, allowing governmental cronyism to impose limits on cheap energy, distorts the marketplace. The Davos crews of corporatist gangsters fly into their feast on private jets. The sycophant media reporting by the business toadies that attend the gala celebration of global autocracy should be indisputable evidence that the globalist own the public relations spin.
Even so, such distorted coverage does not blind those who understand the true nature of the planetary struggle. The monopolist plan for adding unwarranted tolls on your family budget, sold as a noble necessity, will only accelerate the systematic impoverishment of your economic existence.
Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at:
Sartre is a regular columnist for Veracity Voice
Obama’s Vision Versus Economic Reality
September 10, 2012 by Administrator · Leave a Comment
It took less than 24 hours for Obama’s “inspiring” convention speech to be smothered by the reality of the job crisis. The August national jobs report showed that the U.S. economy failed to create enough new jobs to keep up with population growth. More importantly, in August 368,000 Americans completely dropped out of the labor force, meaning that they’ve given up looking for a job (this ironically “lowered” the unemployment numbers, since demoralized workers aren’t counted in the official rate).
Most of the jobs created in August were low paying, such as retail, hotel, and restaurant jobs. Higher paying manufacturing and government jobs were once again cut by the thousands. These statistics are in line with Obama’s tenure as president and will continue if he is re-elected. In fact, they are the result of a conscious policy that he is pursuing in the interests of the profits of big business, who are demanding lower wages from workers. As Obama has repeatedly said, the government is not in the job-creating business.
According to a study performed by the National Employment Law Project, 58 percent of all new post-recession jobs come with hourly wages between $7.69 to $13.83. A worker would need two of these jobs just to afford rent, food, and other basics.
The New York Times commented on the “new normal” of low wage jobs:
“The disappearance of midwage [living wage], midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the work force, though it has probably been accelerated by government layoffs.”
This “hollowing out” of the workforce is — along with high unemployment — the most striking feature of the “new normal” of the American workforce. A new generation of youth entering the labor market is not finding secure jobs and decent wages but unemployment and wage slavery. Republicans and Democrats are completely silent on this all important subject because they agree that it is necessary.
The Democrats attack on public employees confirms that this dynamic is being purposely done: over 600,000 public employees have lost their jobs since 2009. Most of these workers were paid a living wage and had health care and pension plans. Their private sector replacement jobs that Obama boasts about pay peanuts and more often than not have no additional health or retirement benefits. The Obama administration understands perfectly well that these public sector layoffs could have been prevented by government action, but undermining employment and the wages of public employees is one way to drive down wages for everyone else. Together these trends lower the need for taxes and raise corporate profits.
The attack on unions is yet more proof that the low wage syndrome is a self-induced illness: Democratic Party governors across the country have demanded major wage and benefit concessions from public employees. And while the Democrats blame the Republicans for being “anti-union,” the concessions demanded by the Democrats drastically weaken unions to the point that Republicans can finish them off. For example, the Democrats in Chicago are presently preparing to smash the Chicago Teachers Union, if they can, by demanding massive concessions. The teachers will have to fight, not only for their standard of living, but for the survival of their union.
One of Obama’s proudest achievements — “saving” General Motors — is yet more proof that the Democrats have a conscious plan to lower wages. The administration’s Auto Task Force helped in the layoffs of 35,000 autoworkers while slashing the wages of the new hires by half as well as deepening the cuts in health care and pension benefits. This action created a precedent that other corporations were eager to copy in order to remain “competitive.”
Another example of Obama’s push to lower wages is his purposeful lack of action to solve the unemployment crisis. Obama is perfectly aware that he could — like FDR before him — massively invest in a national jobs program rebuilding U.S. infrastructure, putting teachers back to work, and ideally transitioning to green energy sources. President Obama hasn’t done this, in part, because doing so would raise the wages of all workers, and it would need to be funded by the people who fund his campaign the most, the rich, since they are the only ones with money to spare.
The labor market works like every other market, according to the rules of supply and demand. When there is high unemployment the supply of workers outstrips the demand, and thus workers’ wages drop. The administration is using unemployment as a hammer against the wages of U.S. workers. Lowering the wages of public sector employees works the same way: if public employees have higher wages, the private sector must compete with the public sector by attracting workers with similar wages.
When unions are strong and demand higher wages, they are able to alter the national labor market so that it acts more favorably towards workers: non-union companies must compete for workers by raising wages. When the labor movement is weak — as it is now — the exact opposite dynamic takes hold.
Why is President Obama hell-bent on lowering wages for the U.S. workers? He was very clear about this in his acceptance speech, with his repeated reference to increasing U.S. exports for the world market. The rub, however, is that China, India, and other low wage countries also compete on this same world market, and the workers in those countries make horribly low wages. But in the last four years the U.S. corporations that aim to compete with these low wage nations have made spectacular “progress” in driving down the wages of their workers. Thus Obama can brag about his “achievement” of increasing U.S. exports.
Democrats and Republicans agree that no national jobs program should be implemented, that unions should be weakened or destroyed, that the public sector should be slashed and its workers’ wages cut. Both parties want U.S. corporations to compete better on the world market, requiring that U.S. workers make lower and lower wages. This is the fundamental economic issue being ignored in the mainstream media.
Workers must fight back in massive demonstrations to demand a federal jobs program and a consequent strengthening of the public sector, lest their issues be completely ignored in a national election that is promising them nothing. They should insist that taxes on the rich be raised, given that the rich are continually becoming richer while the rest of us are losing ground. They should demand no cuts to Social Security and Medicare and that the attack on public workers and their unions stop immediately. Workers can accomplish all this and more if they stop waiting and hoping for help from the Democrats and begin to build their own independent movement to fight for the interests of the majority.
http://www.nytimes.com/2012/
Shamus Cooke is a regular columnist for Veracity Voice
He can be reached at
The EPA an Out of Control Monster
April 2, 2012 by Administrator · Leave a Comment
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Government arrogance and pious hypocrisy reaches a new high when the sinister Environmental Protection Agency strikes out to save the children. The official position on the EPA website has one singing the Amerika version of “Don’t cry for me Argentina”. EPA Proposes First Carbon Pollution Standard for Future Power Plants
“Today we’re taking a common-sense step to reduce pollution in our air, protect the planet for our children, and move us into a new era of American energy,” said EPA Administrator Lisa P. Jackson. “Right now there are no limits to the amount of carbon pollution that future power plants will be able to put into our skies – and the health and economic threats of a changing climate continue to grow. We’re putting in place a standard that relies on the use of clean, American made technology to tackle a challenge that we can’t leave to our kids and grandkids.”
What is missing from this statement is that regular citizens are under direct assault from their utility companies that force “so called” Green electric generation into the mix. Soon people will be living like beggars in order to pay the overpriced schemes that impoverish the population.
The latest outrage from the EPA bootjack thugs is the EPA Emission Rules To Effectively Ban New Coal Plants. “The Environmental Protection Agency effectively banned new coal-fired power plants Tuesday, announcing emission rules that will make them uneconomical to build. This follows other recent rules squeezing coal. The actions show the administration following through on an earlier promise to crack down on the industry via regulation after the “cap and trade” carbon bill stalled in Congress in 2010.”The proof of Obama ‘All the Above’ Strategy Does Not Include Coal, is seen by his EPA policy.
“The goal of President Obama’s “all of the above” energy policy is to drive up the costs on traditional energy sources, leveling the playing field so green energy power can someday become competitive economically.
But if the White House energy policy begins to phase out coal power before green energy sources are ready to take over, how is President Obama going to charge the battery in his Chevy Volt?”
With the demise of the nuclear alternative after the Fukushima cover-up, where is the sensible acknowledgement that electric generation requires a reliable source of energy?
Investor Business Daily cites the crucial reality. “Coal is an essential part of a diverse, reliable and affordable energy mix, supplying nearly 40% of our electricity,” said Bruce Josten, the Chamber of Commerce’s executive vice president, in a statement. “It remains a cost-effective and secure source of power in a time of soaring energy prices.”
The video adds upon this analysis.Environmental whacks that hail shutting down electric generation from coal are utterly mad. Since this country has abundant and cheap coal deposits, powering generation plants just does not fit with their goal of turning the consumer into a subservient slave. Left out of this equation is that effective banning of new coal generation will simply divert coal sales for export to China and India.
With the intense use and continuous building of new coal facilities, the notorious record of the Chinese and India subcontinent to foster clear air standards is pale in comparison to the current emissions from U.S. generation. The EPA will do nothing to stop the use of coal oversea.
The Wall Street Journal writes in EPA Tips Scales Toward Natural Gas in Power Generation; Miners, GOP Cry Foul.
“Despite the EPA’s insistence that the new rule will still allow advanced coal plants to be built, many critics aren’t convinced. “This really is a ban on new coal-fired generation. The EPA knows that,” said Jeff Holmstead, a partner at Bracewell & Giuliani LLP in Washington and former head of the EPA’s air office under President George W. Bush.
With the new rule, the mining industry will look to the export market for relief. Asian coal demand more than doubled in the past decade, led by China and India. The U.S. Energy Information Administration expects Chinese coal demand to rise by 2.4% annually through 2035, almost ten times as fast as U.S. demand. However, U.S. miners are constrained by rail and port limitations, and exports will only partially offset declining domestic consumption.”
The You Tube of has a Congressional hearing worth viewing.The fundamental issue with the EPA is that it is an out of control agency. Accountability for its abuses is long overdue. However, recent Presidents and Congresses refuse to set a rational energy policy because the hidden objective is to destroy the domestic economy.
EPA CO2 Regulation Effectively Bans New Coal Facilities adds the details.
“Case in point: regulations subjecting existing coal plants that wish to make upgrades to costly and exhaustive New Source Review requirements, which actually discourage energy efficiency and safety improvements that plants would undertake on their own accord.
Congress should step up and stop the EPA from bypassing Congress’s sound rejection of cap and trade. The EPA regulations on CO2 are just one of those other ways to skin the cat, as President Obama famously promised.”
Such excess and high-handedness from the EPA is even more evident in the following example.
Bloomberg reports in EPA Enforcement Tool Blunted by High Court in Wetlands Case,
“The U.S. Supreme Court blunted a commonly used Environmental Protection Agency enforcement tool, siding with landowners and companies that said the federal agency was abusing its power.
The justices today unanimously ruled in favor of an Idaho couple blocked by the EPA from building a home on land the agency says is restricted wetlands. The justices said the couple can go directly to court to challenge an EPA order requiring them to restore property they had begun preparing for construction.
The decision weakens the force of so-called administrative compliance orders that the EPA issues on average 1,500 times a year to businesses and individuals. The orders demand an end to alleged violations, applying fines that pressure owners to settle. The government said those orders couldn’t be appealed to a court.”
The Environmental Protection Agency functions as a gatekeeper for the all knowing and powerful Wizard of Oz, the despotic State. The legal hurdles that forced a Supreme Court case just to obtain permission to file a court challenge against the EPA draconian rules are absurd. Likewise, the motivation to prohibit the use of coal for electrical generation solidified the rule of the tyrants.
Then again, do not place your faith that the Supreme Court gets it correct often.
An analysis by Steven F. Hayward in the American Enterprise Institute, applies today as it did when first published back in 2006.
“This is preface to a big story that is getting surprisingly little coverage in the media this week, namely, the design of the Environmental Protection Agency to double its budget, and to increase its number of employees more than tenfold, from the current level of about 18,000 to more than 230,000, over the next four years. And this just for one single program: the greenhouse gas regulations under the Clean Air Act. And all of this arises from the Supreme Court’s botched 2007 decision in Massachusetts v. EPA, which said the EPA could regulate greenhouse gases under the Clean Air Act, even though Congress never intended this, and even said so at the time during floor debate over the 1990 Clean Air Act Amendments.
Here’s the problem, long predicted by me and lots of other folks who know how the Clean Air Act works. The Act says any stationary source that emits as little as 100 tons a year of a pollutant must get annual permits from state agencies and the EPA. 100 tons is a lot if you’re looking at pollutants like volatile organic gases (unburned hydrocarbons) that contribute to ozone, but is a tiny amount for carbon dioxide. Your average fast-food restaurant or donut shop or apartment building easily emits 100 tons of CO2. Right now about 14,000 stationary sources have to get annual emission permits under the Act. By regulating CO2 through the Clean Air Act, the number of businesses that will require EPA permits will be over 6 million.”
The Federal executive branch has scores of agencies that act well beyond the intention, if not, the spirit of the law. Power hungry autocrats that lost the cover of “good intentions” decades ago, devise these governmental regulations. The ultimate goal is to synchronize a Cap and Trade policy through administrative ordinances. Congress needs to focus on repealing legislation that creates and funds rogue agencies like the EPA. Clean air is important, but singling out coal for replacement by “Green” alternative energy is simply suicidal.
Soon the EPA will impose a tax on your own breathing, since you are a CO2 exhaling machine.
Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at:
Sartre is a regular columnist for Veracity Voice
Gas Prices as an Indicator of Energy Costs
February 29, 2012 by Administrator · Leave a Comment
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The consumer does not need more reminders about the pain experienced with every fill up at the pump. The drain on your pocketbook is growing. During economic dislocation and diminished vitality any prospects of a turnaround dim as gas approaches $4.00 a gallon and beyond. Been here before and the idea that this time the economy will be less effected is unreasonable. The cost for all energy is rising but the impact of gas prices has a personal burden on everyday budgets. The Price of Fuel provides a useful synopsis.
“While crude oil is traded in a global market, gasoline is part of a regional market . . . The price of crude oil may account for over half the price of a gallon of gasoline.
Transitions in supply can also affect the short-term availability of gasoline. Going into the peak summer driving season, refineries are adjusting their gasoline formulas . . . and many states are switching to ethanol-blended gasoline.
Many states require specific formulations of gasoline – there are currently 18 separate gasoline formulas for different regions of the country-and it is often difficult to import gasoline supplies from one region to another.
Each gallon of gasoline also is subject to numerous taxes and fees, which vary by state.
After the crude oil is processed through the refinery, the finished gasoline product is transported to a terminal, where it may be sold to a wholesaler for distribution to the wholesaler’s retail network or delivered to the retail location. There the retailer sets the “street price”.
Now these factors are the industry’s explanation that establishes the price. But, we all know that there are few commodities that are more manipulated than crude oil. The Business Insider adds this viewpoint in Here’s The REAL Reason Gasoline Prices Have Been Surging In The US
“You may have heard that the price of a barrel of oil is around $109, but actually that’s the US domestic West Texas Intermediate price of oil. A better international benchmark is probably Brent Crude, and that’s now well over $120/barrel, having surged all year.
The problem with judging the global pace of oil demand growth is that the epicentre of that growth has most definitely moved away from the US to Asia, and China in particular. Yet, due to the lack of prompt alternatives, the more readily available oil data from the US is still used as a global guide to the health of the oil markets.”
Another article in BI suggests the worse, Gas Could Easily Go To $5 And Crush The National Economy.
“The USA has evolved into a two-tier gas market. The supply of crude from Canada and the Bakken fields has created a lower cost of supply for the central portion of the country. This differential is most notable in the market spread between WTI (a futures contract that settles physical delivery in Oklahoma) and LLS (Louisiana Light Sweet Crude) – the pricing of crude for the big Gulf refineries.”
The conclusion from these factors suggests that the domestic retail price of gas varies for the reasons stated. The level of hurt is based upon needs to use individual transportation; however, the added cost for moving consumer goods is experienced by all in the added charged at the register. Published government inflation rates are skewed to tap down actual increases.
Anyone buying into replacing gasoline for personal vehicles as the most efficient cost form of energy denies the practical. Diesel as a fuel for over the road eighteen-wheelers may be the most promising for conversion to natural gas. Honda has a CNG version for automobiles. Gasoline will be around a lot longer than any hybrid or electric car. The reason is unmistakable, the lowest cost fuel that equates to identical vehicle performance, wins the battle in the marketplace.
In spite of this aspect of business, the government and their corporate partners are pushing to force a conversion away from gasoline. No better example of the “Yugo Syndrome” is the Government Motor’s Volt. The failure to sell consumers on a ridiculous car is clear.
Chevy Volt Fleet Sales Rise, Government GM Purchases Increase
“According to GM, 992 of the Volts sold were to retail customers while 537 went to fleet purchasers.
Government purchases of GM vehicles rose 32% from last year. This represents yet another conflict as the Obama Administration has a vested interest in GM’s success as it spends more taxpayer dollars to help support the company as 2012 elections near.”
Even the favorite Obama corporate collaborator, General Electric, uses its muscle to cover-up the botched venture. GE “Forcing” Employees Into Chevy Volts reports,
“A memo leaked to Green Car Reports lays out GE’s plans for their new fleet of Volts, and as expected, it has some people crying foul.
The memo, sent to employees of GE Healthcare Americas team explains that all sedan, crossover, and minivan purchases in 2012 will be replaced by the Chevy Volt. Only field engineers are exempt from having to drive a company Volt.
GE will offer estimates for installation Level 2 Charging Stations, though all-gas use will be allowed when there is no electric option. Any employees who opt out of the Volt program will not be compensated for their expenses.”
One cannot ignore the economic cost of failed and foolish “Green Energy” projects. The idea of forced buying expensive and government subsidized vehicles in the future borders on irrational paranoia. The environmental “true believers” in the global warming hoax would have you pay a price for gasoline that only the rich could afford.
Opposition to building the Keystone pipeline will only reduce addition oil supplies. This is lauded by the Peak Oil charlatans because they seek higher gas prices to compel the consumer to convert to their anti fossil fuel existence. Reduce energy costs by abolishing the Obama green energy tax. Lower gasoline prices foster dynamic economic growth. As long as the policy wonks are determined to bankrupt the public with high gas costs, you will experience a fallen standard of living.
Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at:
Sartre is a regular columnist for Veracity Voice
Corporate Cronyism: Solyndra and Evergreen Solar
September 27, 2011 by Administrator · Leave a Comment
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If pleading the “Fifth” smells, the Solyndra drama will prove the stereotype applies in this instance. A good old-fashioned scandal in an election year pumps up the media juices. The timeline on Solyndra tells only part of the history. The linkage of corporate cronyism dodges the real world result of “Green Energy” frauds. These shams can be traced back to the Enron schemes, especially their industrial wind model that defrauds the public.
The miserable record from the shovel ready stimulus spending should alarm every American. The distorted idea of using public funding as seed money for private startup companies goes against every aspect of free enterprise. Heretofore, such government nepotism for campaign and climate change supporters was reminiscent of a fascist economy. Now it is sold as a post-industrial initiative to save the planet.
Popular climate expert Paul Driessen laments in Climate Prostitutes, Charlatans and Comedians, about the nature of the favoritism corporate welfare game.
“Rather than developing our nation’s own vast natural resource and human resources, America is wasting billions on politically correct technologies and companies, like Evergreen Solar, which got $486 million in taxpayer subsidies before going belly-up this month. As Al Gore likes to say, that is unsustainable.”
The corruption in the Obama administration needs dissection under a microscope.
Andrew C. McCarthy in National Review sets the stage on the continuation of this insidious pattern of bipartisan abuse of the taxpayer.
“The Solyndra debacle is not just Obama-style crony socialism as usual. It is a criminal fraud. That is the theory that would be guiding any competent prosecutor’s office in the investigation of a scheme that cost victims — in this case, American taxpayers — a fortune. Although Solyndra was a private company, moreover, it was using its government loans as a springboard to go public. When the sale of securities is involved, federal law criminalizes fraudulent schemes, false statements of material fact, and statements that omit any “material fact necessary in order to make the statements made . . . not misleading.” And we’re not just talking about statements made in required SEC filings. Any statement made to deceive the market can be actionable.” With the FBI raiding the offices of Obama’s crony capitalist financiers atSolyndra, we may finally be moving toward acknowledging the obvious: “green energy” is a multi-$billion swindle warranting criminal prosecution. From the Wall Street Journal:”Congress has been investigating the company, which received a $535 million government loan guarantee in March 2009 and announced August 31 that it is filing for bankruptcy. Yesterday’s FBI raid is the first hint of a larger government probe, which is being conducted in cooperation with the Department of Energy’s Inspector General.” Obama apologists use their standard playbook excuse as ABC News reports. “By the time the Obama administration took office in late January 2009, the loan programs’ staff had already established a goal of, and timeline for, issuing the company a conditional loan guarantee commitment in March 2009,” said Jonathan Silver, who heads the Energy loan program.” Climate Progress publishes this timeline (during the Bush years provided below) — verified by Department of Energy officials — that shows how the loan guarantee came together under both administrations. May 2005: Just as a global silicon shortage begins driving up prices of solar photovoltaics [PV], Solyndra is founded to provide a cost-competitive alternative to silicon-based panels. July 2005: The Bush Administration signs the Energy Policy Act of 2005 into law, creating the 1703 loan guarantee program. February 2006 – October 2006: In February, Solyndra raises its first round of venture financing worth $10.6 million from CMEA Capital, Redpoint Ventures, and U.S. Venture Partners. In October, Argonaut Venture Capital, an investment arm of George Kaiser, invests $17 million into Solyndra. Madrone Capital Partners, an investment arm of the Walton family, invests $7 million. Those investments are part of a $78.2 million fund. December 2006: Solyndra Applies for a Loan Guarantee under the 1703 program. Late 2007: Loan guarantee program is funded. Solyndra was one of 16 clean-tech companies deemed ready to move forward in the due diligence process. The Bush Administration DOE moves forward to develop a conditional commitment. October 2008: Then Solyndra CEO Chris Gronet touted reasons for building in Silicon Valley and noted that the “company’s second factory also will be built in Fremont, since a Department of Energy loan guarantee mandates a U.S. location.”
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Objective analysis must acknowledge that the race to paint the landscape “Green” has done little more than burn greenback notes in a ceremonial ritual to the climate warming gods. The Solyndra prototype for disaster is not an abnormality. Reuters point to the similarities of another solar company that took the public for a ride with government backing.
“Prior to Solyndra, Evergreen Solar was the most high-profile U.S. solar company to collapse. Evergreen was once at the forefront of U.S. renewable energy technology and had planned to produce its solar wafers in Massachusetts. Ultimately, even a plan to shift manufacturing to Asia could not save it.”
Jarrett Skorup from the Mackinac Center for Public Policy states,
“The bankruptcy of “green jobs” darling Solyndra is in the news because it could potentially cost U.S. taxpayers $535 million due to a federal “stimulus” program loan guarantee. The Silicon Valley solar-panel maker’s failure comes on the heels of another “green” corporate welfare beneficiary also going under, Evergreen Solar (with a factory located in Midland). These deals were big losers for Americans.
Both businesses repudiated claims that company management or the current market for “green” energy products were the cause of their failure. Instead, company officials cited intense competition from lower-cost Chinese manufacturers: “The solar power market is intensely competitive and rapidly evolving,” wrote Evergreen Solar’s chief executive officer, Michael El-Hillow.”
Mr. Burns of “Evergreen Solar |
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Brian Caffyn of First Wind Infamy? |
The Boston Globe adds the sorry details.
“Evergreen Solar Inc. will eliminate 800 jobs in Massachusetts and shut its new factory at the former military base in Devens, just two years after it opened the massive facility to great fanfare and with about $58 million in taxpayer subsidies.
Evergreen itself has a factory in Wuhan, China, built in collaboration with a Chinese company, Jiawei Solarchina Co. Ltd., and with money from a Chinese government investment fund. The company had previously said it would shift some production from Devens to the Wuhan plant but yesterday was the first time it said Devens would be closed.”
The State of Massachusetts wants answers. The Boston Globe reporting continues in Auditor to look at Evergreen incentives. “State Auditor Suzanne Bump intends to review public subsidies for Evergreen Solar, the energy company that recently announced plans to shutter its Devens plant and move more 800 jobs elsewhere despite receiving millions of dollars in public funds, as part of a broader review of the state’s entire system of tax incentives.”Will the Obama administration seek the same in the Solyndra episode?
Ms. Skorup concludes,
“Those favoring these energy subsidies may disagree, believing that sending taxpayer money to politically connected select companies is actually a “jobs creator.” Disregarding the mountains of evidence that government is notoriously bad at picking economic winners, just looking at these two solar companies should show that this is a bad argument: The companies combined to employ about 1,500 people at the time of their bankruptcies (a few hundred for Evergreen Solar and 1,100 for Solyndra). On top of the federal funds, Evergreen Solar received $58.6 million from the state of Massachusetts and millions more from Michigan sources, while Solyndra got $535 million in federal aid and more from California. This is, in the words of my colleague Michael LaFaive, an expensive game creating the illusion of jobs.”
What is the lesson from these two defunct ventures? Mixing public subsidies as a source of venture capital is obscene. Allowing green industry swindlers involvement in writing the rules for the government programs guarantees that only the insiders will benefit. Accepting campaign contributions from slick promoters that seek government funding for their projects is out right criminal. The blame game between the two political parties of the same tree begs the real issue. The parasitic diseases that infect the party political system is like a heart rot. Heart rot in living trees is caused by fungi which have the ability to decay wood. These fungi gain entrance to the wood of the tree through wounds, branch stubs, etc., which expose the bare wood. The fruiting bodies, mushrooms or “conks,” are common on trunks of decaying trees.
The Enron culture underpins the “Green” corporate cronyism that wastes public money, drives up the cost of energy and perverts the entire political process. Industrial Wind and the Wall Street Cap and Trade Fraud is the step elder sister of the Solyndra and Evergreen Solar failures. Scam rackets between corporate/government partnerships breed new generations into the corrupt system of heart rot. The financial fungi are spreading because the parasites are using public monies to pay for high price lawyers, so their Solyndra clients can take the Fifth!
As long as “Green” subsidies exist, the sun will not shine on the tree of life, in a country of climate prostitutes.
Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at:
Sartre is a regular columnist for Veracity Voice
Efficiency and Jobs
November 28, 2010 by Administrator · Leave a Comment
Almost everyone concerned with the future of humanity and concerned about the usage of the resources the earth can provide to humanity in the future assumes that environmentalism and technology will reduce the resources used by humanity in the future. They are just plain wrong. Environmentalism and technology will not cause a reduction in resource usage. In fact, it is highly likely that every technological advance will cause an increase in the usage of resources.
Assume that instead of getting 20 miles per gallon an automobile gets 40 miles per gallon. Based on that assumption there are two possibilities—a) Drive the same number of miles and save money due to using less gas (say save $500.00 for the year): b) Since it is now cheaper to go some place due to better gas mileage, increase the miles driven to offset the increase in miles per gallon. I will not discuss a combination of the two possibilities (save some money, but less than $500.00 and drive more miles, but less than the amount necessary to offset the gas savings cost) as the combination doesn’t change the analysis below.
If the car were driven twice the number of miles, the total gas usage would be the same, but the usage of other resources would be increased—the car would wear out sooner, more tires would be used, more pollutants would be put into the atmosphere, roads would wear out sooner, etc. If the same number of miles were driven and $500.00 were saved, what could the owner of the car do with the $500.00 saved? The car owner could either save the money and put it into the bank or spend the money. (Again, a combination of saving some of the money and spending some of the money doesn’t change the points set forth below.) If the car owner spent the money by buying something, say a few additional shirts, that purchase would increase the usage of resources—grow more cotton or make more artificial fabric to make the shirts, build a factory to make them. buy sewing machines, use electric to run the sewing machines, transportation to transfer the shirts from the factory to the store, etc. If the car owner saved the $500.00 and put it into the bank, the bank would lend that money out. The bank could not keep that money for an extended period of time without lending it out to earn money and pay the depositor interest. The bank would lower the interest rate it charged its customers until someone borrowed that $500.00. The borrower would not borrow that money to put it under his mattress. The borrower would borrow that money to build something or expand his/her business. If the borrower used that money to build something or expand his/her business, that would expand the economy as a whole and would use more resources. The only way for resources to be saved would be for the owner of the car to flush the $500.00 saved down the toilet and the car owner is not going to do that. In simple terms and after considering all the choices, increasing the miles per gallon will not reduce the total amount of resources used by humanity and in fact will probably increase the total amount of resources used–drive some additional miles and spend some of the savings on new purchases which would expand the economy as a whole and thereby increase the usage of resources.
What I have described in the paragraph above is known as the “Jevons Paradox” (also known as the “Jevons Effect”) or something very similar, the “Khazzoom-Brookes Postulate”. ( Both of these items can be researched on the internet by the use of any research engine.) Increased energy efficiency tends to increase energy consumption by two means–a) Increased energy efficiency makes the use of energy relatively cheaper, thus encouraging increased use; and b) Increased energy efficiency leads to increased economic growth, which pulls up energy use for the whole economy. While in its original form the Jevons Paradox was limited to energy efficiency, the concept can be applied, as indicated above, to the increase in efficiency in any resource.
Let us now look at the addition jobs the economy of the USA and the entire world will have to provide by the year 2050. According to the best estimates the population of the USA will go from the current (2010) population of 308 to 430 million in 2050, an increase of 122 million. If we make the reasonable assumption that on average a family unit will consist of four people, there will be an increase of 30,500,000 family units. If we make the further assumption that each family unit will require, on average, 1 and 1/2 jobs, then 45,750, 000 jobs will have to be created in the USA between 2010 and 2050. The monthly average increase in jobs (40 years equals 480 months and 45,750,000 divided by 480 equals 95,312.5) which the economy of the USA will be required to produce is in excess of 95,000. Applying the same type of logic to the entire planet, the population is expected to increase by 2.4 billion from 6.8 to 9.2 billion; if we assume for the entire planet that on average a family unit will consist of five people, 480 million family units will be created during the period of 40 years from 2010 to 2050; and if we assume that only one job per family unit is required, then 480 million jobs will be necessary. This works out to one million jobs per month, on average, over the next 40 years will be required. While we can argue about the assumptions I made in this paragraph, I don’t believe that anyone can dispute that the assumptions are in the “reasonable’ range and the results I obtained are in the “ball park”.
If either the USA or the entire world’s economy cannot provide the number of jobs set forth in the previous paragraph (and they must be jobs that permit a family to survive and provide a certain standard of living), then substantial social unrest will occur. The number of jobs provided will determine the level of social unrest or if the social order is destroyed. The question becomes how many jobs can the USA and the entire world’s economy provide over the next 480 months? I personally do not feel optimistic, but I leave the answer to that question to the economists. However, to date, I have not read anything written by a reputable economist that the required number of jobs can be produced nor have I read anything that the earth can provide the resources necessary for that number of new jobs. The US election of November 2, 2010 showed the social unrest unemployment can cause.
Jason G. Brent is a guest columnist for Novakeo.com