Ghost of Enron

“Strike me down, and I will become more powerful than you can possibly imagine.” – Ken Lay

Well no, not really, but it might as well have been.

The Commodity Futures Trading Commission is investigating Enron’s role in setting up a regime to manipulate crude oil prices. A regime that still lives on some seven years after Enron’s collapse.

Enron and the complete collapse of the regulatory mechanisms in the 90s really apparently did a number. Not only did Enron cause the California Power Crisis, and through extension oust Gray Davis for the Governator™, but apparently they’re responsible for setting up a shadow market to manipulate the price of oil.

politics

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NewSpeak Until the End

National Security Advisor, Stephen Hadley called Bush skipping the olympic opening ceremonies “a cop out.” I just love the NewSpeak being spouted by him. Expressing displeasure is a cop out. Of course this administration has raised NewSpeak to a level that even George Orwell couldn’t have dreamed. But let’s focus on the real issue here, that “quiet diplomacy” works.

We won’t really count the years prior to the collapse of the Soviet Union since sino-us relations were primarily concerned with keeping the Soviet’s off balance. So let’s look at the past 20 years. After Tiananmen, the world withdrew from China. Normalized relations were disrupted. China was an outcast once again. Then something strange happened. The Chinese government opened itself up for multinational corporations to establish factories there. The Chinese economy grew. The multinationals, and their puppets in Washington, spread the line that by the Chinese people will get richer, buy our stuff, and then since they have things will want to exert political power along with purchasing power, and then China will transform itself into a modern democracy. Of course that didn’t happen. The Chinese people are now better better off materialistically than they ever have been, but political change hasn’t happened. The American people never got what they wanted, democratic reforms. Instead, we’re told to “be patient.” Meanwhile the United States continued to deindustrialize, leaving us with very few things to actually sell the Chinese. Those that are left, like tech companies, ironically shore up the very regime that selling products is supposed to undermine. Of course I’m talking about American companies constructing the Great Firewall of China. Great.

“Be patient.” As it has become clear that Free Trade is was bill of goods sold to the American people, we’re supposed to not believe that anything is wrong. That everything is going swimmingly. That we have the Chinese, right where we want them. We’re in such a position of strength, our government can’t do show any displeasure at all. As Hadley said on ABC this morning:

We have a lot of leverage on the Chinese. We are using it in a constructive, diplomatic way. And it’s a lot greater leverage than just the issue of whether he goes to an opening ceremony or not,” Hadley said. “The whole international community has leverage. They ought to be using it now, not letting themselves off the hook by simply saying, ‘Well, we won’t go to the opening ceremonies.”‘

To which I respond: HA!

politics

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Hoover Indeed

No matter what King George and the Republicans say, our economy sucks. It sucks hard. It’s been mediocre at best, no matter what Ed Gillespie or anyone else says. Iraq is wasting 15 billion a month, meanwhile our infrastructure is falling apart and our economy is teetering on collapse. Weak dollars is supposed to boost our exports, but that’s not happening. Why? The answer is obvious isn’t it. We’ve spent decades deindustrializing. There’s nothing to export.

Our economy has very real structural problems, and there’s no reason to believe that they’re going to be fixed soon, let alone in time to avoid a depression. Hell, given the flack that Obama has caught for stating the obvious truth that people are “bitter” about the loss of jobs and the state economy, there’s no reason to believe that anyone democrat or republican has the wherewithal to fix the economy. They don’t even want to admit that something is very very wrong here.

Our boat is sinking, and no one in charge even wants to take the time to rearrange the deck chairs.

politics

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JP Morgan’s Purchase in Perspective

The NY Yankees paid more for A-Rod than JPM paid for Bear Stearns

Alex Rodriguez: $275 million
Bear Stearns: $236 million

politics
qotd

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Best Economy Evah!

So Bush has finally come around to admitting that the economy sucks. The economy has been stagnant at best for his entire tenure, and now we’re in the midst of a recession, with all signs that the Bush’s lassie-faire policies, especially with regard to regulation, have come home. The amount of debt in this country is serious. Contrary to Bush and his supporters, we do not have a “fundamentally strong” economy.

Bush said that he wasn’t going help out homeowners who are going to lose their homes because they can no longer afford their mortgage. Now these people shouldn’t have ever been loaned that money, and I reluctantly agree with that position. Freezing foreclosures is a dumb idea, because all it does is delay the inevitable.

But just today, the Fed protects out JP Morgan’s buyout of Bear Stearns. That is stupid. The government shouldn’t be bailing out these banks. They took leave of their senses, and made very very very bad decisions. They screwed up, and now they’re failing. The Invisible Hand™ works its magic. Of course, those promoting lassie-faire economic policies, aren’t really lassie-faire proponents at all. They just want all regulation help them. “Don’t get in my way to screw over everyone for a but, when I screw up, bail me out.”

This is stupid, and bad economic policy, and completely expected from the Bush and the modern Republican party. Afterall, government bailouts for bad business decisions run in the family.

We are so fucked.

personal

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Déjà Vu All Over Again

Wow seven years, and at least two “stimulus” packages later (2001 and 2003), and it’s free money time again. What to do? What to do? Buy one $600 hooker bot, or 600 $1 hooker bots?

Great economy. Best economy evah. Way to run the economy. We’ve come full circle in one administration.

Pull that one lever that the republicans always pull, and get the same completely predictable tepid results.

Great Job.

politics

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