Blending of Blue and Red in Lobbying Color Guard

Big business sees the writing on the wall with an angry electorate determined to vote for change. As a result, ex-Clinton staffers now occupy top lobbying jobs, usually titled Vice President for Global Governmental Affairs. The Carlyle Group hired David Marchick several months back. This after adding Clinton Chief of Staff Mack McLarty years ago.

The Washington Post reported J.P. Morgan Chase snatched up Peter Scher as their new V.P. lobbyist. That would be the same J.P. Morgan Chase that acquired Bear Sterns for a song over a spring weekend. Peter worked for Senator Max Baucus, D-Montana, the esteemed Senator who accepted tens of thousands in donations from for-profit health care companies with no facilities in his state. Mr. Scher most recently headed up the D.C. law/lobbying firm of Mayer Brown. To show its credentials in serving the government industrial monstrosity, Mayer Brown recently advised Pennsylvania Governor Ed Rendell on the leasing of the Pennsylvania Turnpike.

Those bells you hear in the background aren't angels getting their wings, it's the sound of cash registers ringing. It's devils getting their due. Don't worry, while the cashier is pressing the D key more frequently, there's still plenty of business for R's.

Bush Minions Can't Provide Oversight

From intelligence to wartime contracting, President Bush continues to appoint ex-insiders to key "oversight" positions. Earlier this year, George W. tapped ex-Homeland Security Advisor Fran Townsend and ex-Joint Chief of Staff General Peter Pace for his Presidential Intelligence Advisory Board.

This past week President Bush appointed Grant S. Green and Dov S. Zakheim to the Commission on Wartime Contracting in Iraq and Afghanistan. Which departments spent the most money in those countries since the various wars began? It's the State and Defense Departments, prior employers of both nominees. Grant served as Under Secretary of Management for State while Dov labored as Chief Financial Officer of the DoD.

The latest audit of Iraq spending revealed virtually all of $8.2 paid to private contractors between 2001 and 2006 did not meet U.S. rules for preventing fraud. Both Mr. Green and Dr. Zakheim served from 2001 to 2004, over half the study period. Under their management tutelage these potential abuses occurred.

But it's not the first time George W. Bush placed the fox in an oversight or an investigative position over the chicken ranch. He charged Fran Townsend with conducting a robust study of the White House response to Hurricane Katrina. Like Bush's guitar strumming while levee's failed, Fran's report came in off key.

How does one complete an investigation without any mention of the hospital with the largest number of patient deaths post-landfall? The White House Lessons Learned report was a bust for the general public. However, it garnered a huge sigh of relief by LifeCare Hospital of New Orleans' new corporate owners, The Carlyle Group. I expect similar work from Grant S. Green and Dov S. Zakheim on wartime contracting. Let the corporate protection begin!

Bush Rewards Pioneer Durkin with Appointment

President George W. Bush nominated Patrick J. Durkin of Connecticut as a member of the Board of Directors of the Overseas Private Investment Corporation. The same name showed up on a list of stalwart Bush supporters. Patrick even achieved vaunted Pioneer status in 2000 and Ranger level for 2004. How much business can Patrick steer Credit Suisse First Boston's way in his new role?

At least George W. is consistent, rewarding his loyal supporters as his Presidency winds down. Let's hope it doesn't go out with an Iranian bang.

U.S. Chamber to Take Armed Sides in Fall's Political Fray

U.S. Chamber of Commerce CEO Tom Donohue plans to ramp up the political involvement of their business lobbying group. He hired ex-White House Homeland Security Adviser Frances Townsend as a senior adviser and consultant. The CEO told The Los Angeles Times, "I’m concerned about anti-corporate and populist rhetoric from candidates for the presidency, members of Congress and the media.” This translates into:

Corporations should pay ever decreasing tax rates, get regulatory and liability breaks, garner ever larger chunks of the federal government via privatization, and be allowed to finally jettison that pesky health insurance benefit.

That laundry list should help the Chamber in its efforts to constantly increase members' profits.

President Bill Clinton carved out part of the traditional Republican franchise with his entreaties to American businesses. Now numerous Democrats bear the privatization shield, wearing it proudly. Pennsylvania Governor Ed Rendell just leased out the Pennsylvania Turnpike for 75 years to Citi Infrastructure and its two Spanish partners. Citi stands to gross $160 billion in tolls in exchange for a $12.8 billion upfront payment and a promised $5.5 billion in capital improvements.

Clearly the Chamber, under Fran's wise consultation, will identify the good and bad players amongst the Democratic and Republican candidates. Then they'll put their money to work, likely in a most dastardly way. Everybody put on your life jackets. The Swift Boats are coming.

Saudis & Big Oil Not Responsible for High Oil & Gasoline Prices?

Last week, the Saudi Monarchy noted oil supply to be in line with demand. It defended then $120 a barrel oil saying, "none of our customers are asking for more oil". So what if U.S. President George W. Bush asked for lower prices. Does America getting 14% of our daily addiction from the Saudis mean we're not a customer?

OK, so a major oil producer begs off on its role in ever skyrocketing oil prices, now over $130 a barrel. That means the oil and gas companies play a role, right? Not according to oil execs testifying before Congress. Their ever rising annual profits have no impact. So what if Exxon Mobil's rose 17% from last year. BP is up 60 percent; Shell, 25 percent; ConocoPhillips, 17 percent; and Chevron profits rose 10 percent. Those are just the fruits of capitalism.

Does anyone remember the 2005 Energy Bill, signed to great acclaim? President Bush said the following:

The Energy Policy Act of 2005 is going to help every American who drives to work, every family that pays a power bill, and every small business owner hoping to expand.

The aforementioned oil executives first appeared as a group before Congress on Nov. 9, 2005 -- when oil had risen to $58.93 a barrel. Just four months later, they were back testifying before another committee. By then, oil had climbed to $63.10.

Since George W. signed the Energy bill to help every American, oil more than doubled. Why isn't the program working? Does that portend gloom and doom for the President's economic stimulus, the $600 per person tax rebate? If his comprehensive energy policy did little to impact oil prices over a multi-year period, what chance does his tax refund have? It looks like American families will spend it on gas, the power bill, and on the checked bag fee when they fly.

It looks like the Saudis and Big Oil are doing just fine, making hay in the sunshine. They'd best beware, I feel an ill wind blowing that could turn their fertile fields into a dust bowl.

Celebrate Privatization, Democrats & Republicans Onboard Train

Pennsylvania Governor Ed Rendell announced a $12.8 billion deal leasing the Pennsylvania Turnpike to Citi Infrastructure and its Spanish partners, Abertis Infraestructuras and Criteria CaixaCorp. The governor fawned over the deal and its positive impact on the citizens of Pennsylvania.

The current Pennsylvania Turnpike carries 190 million cars annually and generates $600 million in tolls. Using price increases in the Governor's press release, that number jumps to $750 million in 2009 and rises 2.5% a year from there. That means well over $160 billion will accrue to the partnership over the life of the lease. Don't believe me? It takes roughly 28 years for the annual toll to double to $1.5 billion a year, then another 28 to reach $3 billion annually. By the end of the lease, Citi and company are grossing over $4.5 billion a year. That's not a bad deal for $12.8 billion upfront and $5.5 billion in capital improvements. Of course, other hyenas are drawn to the scent of such a prize kill.

Governor Ed backs Senator Hillary Clinton for President. Her husband did his part to start the privatization ball rolling when he took the feds investigative arm and sold it as U.S.I.S. The Carlyle Group, an infamous politically connected private equity underwriter, acquired U.S.I.S. in 1999. It flipped it for Carlyle's normal huge gains. It looks like Ed wants to help Citi in a similar fashion. It may land him a VP slot on the Democratic ticket. Surprise!

Agent McCain Shows Programming Error in Democratixx

Sometimes the Democratix, a false fronted world juiced by people needed only for their extravagant spending and vote every few years, encounters glitches. Surveillance planes suddenly lose navigational awareness over an enemy country and insiders to key governmental leaders spill the beans about future attacks. But real problems arise when insiders accidentally show errors in the program, clues for those paying attention that they aren't living in a real world but one of programming.

Agent John McCain committed such a slip up when asked about the role of Supreme leader Ayatollah Khamenei in Iran's nuclear program and foreign relations. Like a deja vu in the Matrix, the U.S. Presidential hopeful provided a clue that something changed when he noted:

McCain: I mean, the fact is [Ahmadinejad’s] the acknowledged leader of that country and you may disagree, but that’s a uh, that’s your right to do so, but I think if you asked any average American who the leader of Iran is, I think they’d know.

Translated: "All you battery people know what I'm talking about..... Have I unwittingly revealed the program? Shit, you people don't know squat. You're the juice for the economy and not pulling your weight at the moment. I only put up with you to garner your vote, so give it to me, dammit!"

Another glitch in the Democratix. May the people wake up...