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All Hail Harry Reid

He just gets better with age:

Senate Majority Leader Harry Reid (D-NV) on Tuesday said that billionaires controlled American politics because of the lack of campaign finance laws.

“I’m here because of the flood of dark money into our nation’s political system poises the greatest threat to our democracy that I have witnessed during my tenure in public service,” he said during a Senate Judiciary hearing. “The decisions of the Supreme Court have left the American people with a status quo in which one side’s billionaires are pitted against the other side’s billionaires.”

“So we sit here today with a simple choice: Do we keep the status quo and argue all day and all night forever about whose billionaires are right, whose billionaires are wrong, or we can work together to change the system to get this shady money out of our democracy and restore the basic principles of one American, one vote,” Reid remarked.

via Raw Story

Scott Brown digs in

A couple of days ago I passed on the news that Scott Brown has been exposed as the grifting front man for a grifting penny stock company.

Well, that might not be fair. Scott might not be smart enough to even know he's grifting.

To recapitulate:

The Globe on Sunday reported the size of the stock grant that Brown received last year for his service on an advisory board for Global Digital Solutions, a tiny, publicly traded company based in West Palm Beach that says it is in the firearms business.

The stock was initially worth $1.3 million, though it has declined by more than half since then. Company officials did not respond to interview requests Monday.

The company, created 19 years ago to sell cosmetics before switching first to telecommunications and then to firearms, has only a “virtual office,” no current products, no revenue, no patents, no trademarks, no manufacturing facilities, and no experience developing weapons, according to its most recent corporate filings.

Financial professionals have said the stock is risky and the company’s changing business focus raises red flags for investors.

via The Boston Globe

Brown may not be in on the grift, as the value of his stock grant has declined precipitously (including about a 50% reduction from its already reduced value in the day since the Globe's original article) and there's nothing he can do about it, as he's barred from selling the stock for a while. So, in Brown's defense, maybe he was conned too, as have been all the investors who plunked down their money on the strength of his endorsement; investors who could otherwise have bought into whatever Glenn Beck is pushing lately.

In his own inimitable way, Brown is defending the company and his involvement, skillfully (well, not really) avoiding admitting that he did nothing in return for the stock grant:

“It’s a startup company that I’ve been on the board for, what seven, eight months, offering any type of advice when asked,” Brown said in a brief interview after a campaign event at a local gas station highlighting his energy plans.

“Yeah, it’s a legitimate company,” Brown said. “It’s filed the appropriate paperwork. It’s doing what every other startup company does.”

“If the company does well, then everybody does well,” Brown said Monday. “If it doesn’t, there are many companies that are in the startup process trying to come up with good ideas, trying to create jobs — ultimately — and we’ll see where it takes” us.

I guess that last paragraph makes sense, or could if Humpty Dumpty got to work on it, and maybe it's not a total non sequitur, though that's a harder case to make. I guess what Brown is trying to say is that his new bosses are “job creators”, which they may be, as sooner or later there's probably going to be work for a bankruptcy trustee.

The “legitimate company” that “filed the appropriate paperwork” is, alas, besides being without an avocation, homeless:

Global Digital lists a prestigious address in West Palm Beach with a majestic view of the water and the Island of Palm Beach as its headquarters.

A reporter who went to the address Friday found the company was not listed on any building directory. A receptionist in the suite listed as the company’s address told a reporter: “They’re not here. It’s by appointment only.”

The building directory lists another company at the suite: HQ Global Workplaces, which advertises that it provides clients with an address and access to furnished conference rooms as needed. Global Digital reported in a securities filing that it signed a 12-month lease last year for a “virtual office” in West Palm Beach for $299 per month.

via The Boston Globe

These are the folks, by the way, who were claiming that they were going to buy the Remington Arms Company.

It grieves me that Brown is a lawyer. Our profession may have become over populated, but I still cherish the notion that it takes a certain amount of brains to get to hang “Esq” after your name. Brown is living proof that a low IQ is no bar to entry into our profession.

Good news/Bad news

If Joe Costello, writing here at Naked Capitalism is correct, and I suspect that he is, the oil industry may be in for a period of decline:

Over the last year, some deep truths about oil and the oil industry have begun to bubble to the surface. Not necessarily that they were ever hard to see, but they were easy to obscure and maybe more importantly, without too much effort, ignore. No longer. Spread across the oil companies’ quarterly reports and the pronouncements of government agencies from the U.S. Energy Information Agency to the International Energy Agency are the hard facts that the era of cheap oil is over. It’s impacting the U.S. and global economies and forcing a fundamental rethinking and restructuring of our economic activities and thinking.

With the global recession, supply constraints gained a short reprieve as demand slackened, going down over 12% in the U.S. and over 20% in parts of Europe. Yet, after a brief dip, oil prices remained stubbornly high. For the past two years, even though the global economy remains lackluster, oil remains at $100 barrel. In the past year, the tightening supply and growing cost of any new oil began showing-up in the quarterly reports of the oil companies, who despite having plus a $100 barrel prices, revealed increasingly small profit margins, growing expenditures for all new oil and declining production. In the second quarter of 2013, the oil companies balance sheets became increasingly alarming led by Exxon’s 57% profit decline and eight consecutive quarters of production declines.

This disruption continues with the oil companies 2014 first quarter reports. All five top oil companies announced declining production numbers despite increased expenditures. At an oil conference last month, the Houston Chronicle reported Chevron CEO John Watson stated, “That new reality for our industry is that costs have caught up to revenues for many classes of projects. Essentially, for a company like mine and many others, $100 a barrel is becoming the new $20 in our business.”

This is an extremely important development, especially for an industry which for over a century printed money. The oil industry is now becoming ever more capital intensive, not a printer of a money, but a growing capital black hole. Yet incredibly, as shareholders begin to grumble, the old majors begin to cut their expenditures and divest of future reserves to maintain non-sustainable dividend levels. The Los Angeles Times reports, “Exxon’s capital and exploration expenditures fell 28 percent in the first quarter(2014), which helped deliver higher profits even though oil and gas production fell 5.6 percent.”

Obviously, not a long term strategy, but what is the oil industry’s long term strategy? Well for the last few years, we’ve heard a lot about the great “shale revolution,” even President Obama hailed it in his 2012 State of the Union speech. Yet, as oil analyst Chris Nedler stated, “Shale’s not a revolution it’s a retirement party.”

via Naked Capitalism

I confess I can't do the piece justice, and I really encourage you to read it. It will be interesting to see if the oil companies simply fade away, as the railroads did in the face of competition from gasoline powered vehicles, or whether it will legislate its way into long term relevance. That is, will we the taxpayer be forced by a bought Congress to continue relying on fossil fuels as the price ratchets ever upwards. Or, put another way, will our politicians stay bought and more faithful to their purchasers than their predecessors who were owned by the railroads?

Anyway, this is a mixed blessing for the rest of us. The oil companies will whither away into insignificance, one way or another. The only question is whether we'll survive their extinction.

Scott Brown, grifter

Unless you read the Boston Globe you've likely missed this one about rocket scientist Scott Brown, currently carpetbagging New Hampshire:

An obscure company in West Palm Beach that markets itself as a firearms manufacturer made a splashy announcement last summer: It was appointing Scott Brown, the former Massachusetts senator, to its advisory board.

Not revealed at the time was what Brown received in exchange for lending his name to the venture. But a report the company made to the Securities and Exchange Commission last month, which has not been previously made public, shows that Brown received stock that was worth $1.3 million at the time. Its value has declined considerably since then, as the stock price has fallen by half.

Global Digital Solutions Inc. does not yet sell or make guns. It has no revenue, no patents, no trademarks, no manufacturing facilities, and no experience developing weapons, according to its most recent corporate filings.

via The Boston Globe

Not to put too fine a point on it, Global Digital Solutions is a scam, which has used Brown to fleece potential investors. Or, am I being cynical?That's not what Global says:

His picture is prominently featured on the company’s website as an adviser.

Far be it from me to point out that Brown has zero expertise, although I suppose you could say that he does have experience scamming potential investors voters.

And, again, if the point was to attract fleece-able investors, Scott's appeal, once again, apparently stops at the Washington pundit class:

The company’s stock price did not move from 88 cents a share on the day Brown’s appointment was announced, and it has declined by 48 percent in the months since.

The truth is, that Scott Brown is the male Sarah Palin. He was briefly a Senator solely through a series of fortuitous events that, we can all give thanks, did not repeat themselves, and are unlikely to be repeated in New Hampshire. Like Sarah, every move he makes is designed to bring in the cash. He will not be terribly disappointed if he loses the election in November; in fact he may want to lose. The real money, as Sarah has shown, is in grifting.

Soylent? Really?

I make it a regular point to read the Times Tech Section, which appears every Thursday, the same day Apple posts a new free App on the App Store. Thursday must be a day favored by the tech gods.

Anyway, today it took a while for me to decide that today's column by Farhad Manjoo was not a belated April Fools Day edition:

I just spent more than a week experiencing Soylent, the most joyless new technology to hit the world since we first laid eyes on MS-DOS.

Soylent is a drink mix invented by a group of engineers who harbor ambitions of shaking up the global food business. Robert Rhinehart, the 25-year-old co-founder and chief executive of the firm selling the drink, hit upon the idea when he found himself spending too much time and money searching for nutritious meals while he was working on a wireless-tech start-up in San Francisco. Using a process Mr. Rhinehart calls “scientific,” the firm claims to have mixed a cornucopia of supplements to form a technologically novel food that offers the complete set of nutrients the human body needs for survival.

via the New York Times.

I took to my dictionaries. Could the term soylent have a generic meaning without reference to the Soylent Green featured in the movie of the same name? That substance, in case you missed the movie, consisted of reconstituted human bodies, fed to an unsuspecting populace in a dystopian future.

The answer is no, at least according to the Oxford English (Shorter) and the Merriam Webster dictionaries, as well as the Wolfram app that searches a number of databases. (I have not yet determined if it is accepted on Words with Friends)

Maybe I'm wrong, but I think the folks at Soylent really ought to give that moniker a re-think. There may have been worst product names in history, but the ones I've heard of usually involve a made up word that happens to be an offensive word in another language. This choice appears to have been deliberate.

Should this product fail, and I believe it will, I would really urge the folks at Soylent to offer their services to the Republican National Committee. I mean, we Democrats can use all the help we can get.

Things look up in Kentucky

Seems Mitch McConnell has a little problem; one many of us have seen coming for some time. The Kentucky version of Obamacare has been a huge and popular success there, so Mitch has to pass through the eye of a needle so small it would daunt the tiniest camel. He has chosen to do so by lying:

McConnell has recently begun arguing that while Obamacare should be repealed, the state of Kentucky should be able to keep the Kynect system as it is, even if the federal law the system is based on were to be uprooted completely.

“If Obamacare is repealed, Kentucky should decide for itself whether to keep Kynect or set up a different marketplace,” McConnell campaign spokeswoman Allison Moore told TPM on Tuesday.

That doesn't quite add up to the editorial board of the Lexington Herald-Leader.

“Repeal the federal law, which McConnell calls 'Obamacare,' and the state exchange would collapse,” the editorial said on Wednesday. “Kynect could not survive without the ACA's insurance reforms, including no longer allowing insurance companies to cancel policies when people get sick or deny them coverage because of pre-existing conditions, as well as the provision ending lifetime limits on benefit payments. (Kentucky tried to enact such reforms in the 1990s and found out we were too small a market to do it alone.)”

The editorial goes on to say that Kynect wouldn't be able to survive without the federal funding from Obamacare.

“Kynect is the Affordable Care Act is Obamacare — even if Kentuckians are confused about which is which,” the editorial continued.

via TPM

At Kos, they've urged McConnell's opponent, Allison Grimes (donate today) to aggressively call McConnell out. McConnell is counting on confusing voters; many oppose Obamacare and love Kynect. Propaganda does stuff like that. I've been saying (not on this blog, but to my long suffering spouse) ever since McConnell's initial blunder that the best person to make the argument against McConnell would be Kentucky's popular Democratic governor, Steve Beshear. Kynect is one of his greatest achievements. He would have instant credibility if he explained to the people of Kentucky that the program they love is the same program they've been taught to hate and that Mitch McConnell has sworn to destroy. Well, much to my disappointment (for purposes of this post), I discovered while writing it that Beshear is doing exactly what he should be doing. This is what comes of having a day job; I think of something in the morning, and by the time I get a chance to write about it, events have overtaken it.

But, I'll make a silk purse out of this sow's ear. This is my good news post for the week. The Democrats, at least in Kentucky, are learning how to fight. Personally, I think McConnell is toast, so long as the Democrats continue to milk this issue correctly.

Yet another false equivalency

In wandering around the internet today I came upon an article that directed me to this quite able takedown, by David Shorr of TPM, of yet another pundit who blames our current political dysfunction on both parties equally. I couldn't resist some low hanging fruit left un-plucked by Shorr. He quotes John Schindler, the plague on both your houses pundit, as follows:

[T]he Left pretends that [the ACA] is a radical step forward to justice, when actually it is a very modest reform of the existing – exceedingly, unsustainably expensive – system, based largely on onetime GOP proposals, while the Right is in high dudgeon mode over this allegedly vast expansion of state power, when really it’s a huge gift to the insurance industry (a Republican stalwart). Moreover, the ACA manages to do the nearly impossible, namely increasing access to healthcare only very modestly, at considerable taxpayer expense, while doing essentially nothing about controlling spiraling costs, not least because that would upset trial lawyers (a Democratic constituency).

Now, mind you, this is in an article about the inability of both sides to retreat from their absolutist positions. I won't argue with his characterizations of the ACA (except the part about the “Left” believing it's a radical, rather than a tentative step toward justice), but his description of the ACA proves beyond doubt the absolute eagerness of the Democrats (Obama first among equals on this score) to retreat from orthodox left/liberal/even moderate positions on Health Care Reform in the first place. What part of “based largely on GOP proposals” proves the Democrats are intransigent partisans? Was Schindler living elsewhere when Obama spent months vainly seeking the vote of even one Republican by offering compromise after compromise? Does he not recall how much the original House bill (which contained a public option) was eviscerated in the hope of attracting Republican support? We can argue about whether the Democrats should have ceaselessly sought compromise, but no one can honestly argue that they didn't. Can Shindler think of an example of the Republicans bending so much on any subject? We won't even stipulate that it has to be as politically significant as Health Care.

The fact that this meme will not die bodes ill for what's left of our Republic. One can't cure a disease unless one diagnoses it correctly. The doctors into whose hands we have largely given the task of diagnosing our ills, like Schindler, engage in serial malpractice of just this type.

Hey Joe, your 15 minutes are up!

Isn't it about time that the media let Sam Wurzelbacher slip back into the obscurity from which he came? Who cares what he thinks, and I use the word “thinks” advisedly.

Demagogues hard at work in Europe

This morning Paul Krugman warns once again about the rising of the right in Europe, the result of, ironically enough, conservative to right wing (in normal times) economic nostrums.

It’s hard to imagine war in today’s Europe, which has coalesced around democratic values and even taken its first steps toward political union. Indeed, as I write this, elections are being held all across Europe, not to choose national governments, but to select members of the European Parliament. To be sure, the Parliament has very limited powers, but its mere existence is a triumph for the European idea.

But here’s the thing: An alarmingly high fraction of the vote is expected to go to right-wing extremists hostile to the very values that made the election possible. Put it this way: Some of the biggest winners in Europe’s election will probably be people taking Vladimir Putin’s side in the Ukraine crisis.

via The New York Times

It's not the first time Krugman has written to this effect, though you may have read similar warnings here first.

I suppose it's a measure of how topsy turvy the world has become that we have now reached a point where the European far right is supporting Russia, but a larger point might be that the terms “right” and “left” are losing their meanings, or perhaps, more accurately, are being transmogrified beyond recognition. After all, if rightists in Europe are taking sides with Putin, they are by extension siding against the Ukrainian government, which is dominated by the right itself. These political movements are the European equivalent of the Tea Party, with no coherent ideology except opposition to whatever the democratically elected present governments may want. If France is against Putin, then the Far Right is for him. They are the very model of the modern reactionary. As Krugman points out, and as I said in my own post several years ago, since the established parties have closed ranks around an orthodoxy that grinds the mass of people into the ground, they have created a political vacuum custom made for the extremists. They can actually promise an economic program that might very well be superior to that provided by the establishment, at the low low cost of human rights, tolerance and democracy. It's a price many a frustrated voter will be willing to pay.

It doesn't help that both our politicians and our press appear to want to ignore these warning signs. It's good versus evil, with Putin as the monster. He may in fact be one, but that doesn't change the fact that the Ukrainian government, which took office after overthrowing a corrupt, but democratically elected government, is riddled with Nazis.

It’s graduation time, and the pundits are whining

It's graduation time, which means graduation speakers, which means controversy about graduation speakers, which means inevitable claims that protest against graduation speakers somehow implicates the right of free speech. The example that provoked this post is here (Open Season on Free Speech), but its brothers and sisters are legion.

The fact is that despite the yearly infliction of such lamentations, there is no free speech issue here, either legally or philosophically. As a legal matter we are protected from government infringement of our right to speak. In some cases, as a matter of public policy, we have protected otherwise defenseless people from being punished for the content of their speech. Connecticut, for instance, has a statute that provides protection to an employee from employer retribution for things the employee has said or written.

While the government may not control the content of my speech, neither it nor any private entity has any obligation to provide me a forum, podium or newspaper column from which to propagate my views. That's why I pay money to a web hosting service for the privilege of propagating said views. I also have no right to an audience, so if no one reads this blog, that is my tough luck (or maybe good luck, depending on your point of view). That's also why the New London Day can refuse to print my letters while printing every bit of right wing nonsense it receives.

But I wander. Let's focus on the graduation issue. What's going on here?

A small group of people makes the initial choice of speakers. Particularly in this age when university administrators are becoming ever more like CEOs, the decision quite often does not even involve meaningful input from the students, alumni and parents who will be the captive audience of the chosen speaker. Once the speaker is chosen, by the logic of those who make the “free speech” claim, the free speech rights of countless potential speakers have been violated by the selection committee, for they have been blocked from speaking every bit as surely as a potential speaker who is later blocked by an outraged student community. Yet, no one seems to feel any sympathy for Richard Dawkins, who year after year has been denied his right to speak to the graduates of Liberty University.

In many cases there is a philosophical and cultural disconnect between the student community (including the parents who have shelled out mega thousands in order to reach graduation day) and the administrators who make the initial decision on who will speak, and therefore the content of the speech to which the audience will be subjected.

To repeat: the speaker has no right to speak, the audience has little choice but to listen. In reality, the protests that often ensue are not about the expected content of the speech, but to the speaker him or herself. For instance, some people don't like it when one of the most important days of their life is spoiled because their corporate school administrators see fit to honor a war criminal as part of the graduation process. Remember that these people are not just giving speeches, they are being awarded honorary degrees, implying a seal of approval from the school, and by extension, the larger school community. So in reality, the protest is usually over the honor being extended, not the anticipated content of the speech, but even if that were the case, there would be no “free speech” issue here. Somewhat like Bartleby, the protestors are simply saying that they “do not choose” to listen.

Now, lets be clear. There are good reasons and bad reasons to oppose a proposed speaker. Just as the choice of a war criminal tells a lot about the initial selection committee, so the reasons protestors give for opposing a given speaker tells a lot about them. It's not just students of course, as the Globe columnist to whom I've linked above notes, there are often outsiders who oppose graduation speakers. As he points out, we learned a lot (mostly bad) about the Bishop of Boston who opposed Boston College's choice of the President of Ireland because Boston College had the “audacity to invite someone who chose to obey his nation’s Supreme Court and create an exception to Ireland’s prohibition against abortion when a woman’s life is endangered.”

The Bishop is a reprehensible toad, we can all grant that. But his opposition to the Irish Prime Minister did not threaten anyone's free speech rights. The Prime Minister was free to say whatever he liked, with no interference from the US government, unless BC chose to exercise its own right to withdraw its invitation. We can probably all agree that BC did itself proud by standing firm. We learned something about the Bishop and something about BC from that incident, but it tells us nothing about free speech.

So, it's not open season on free speech. In some cases, such as that of a certain former Secretary of State, it is righteous anger on the part of students at being forced to choose between attending their own graduation or being complicit in honoring a war criminal. Other proposed honorees have been opposed for less legitimate reasons, but rest assured that Jamie Madison rests easy in his grave, or, I should say, if his sleep is disturbed it is disturbed by the prospect of a nation he helped found being destroyed by a Supreme Court that equates money with speech.