Pandering Politician Praises Profound Profits

House Minority Whip Roy Blunt (R-MO) gushed over ExxonMobile's record oil profits of nearly $12 billion in the second quarter of 2008. Roy noted small guy Exxon, "the 14th biggest oil company", had a "Little Engine that Could" quarter.

"So in all likelihood, the 13 companies bigger than them made a whole more money than that, and that all went somewhere besides the United States."

Bull Hockey! Roy purposefully mixed apples to oranges in relaying the corporate, focused-grouped line. Exxon may be down the list in size of reserves, but for three years it stood alone atop the worldwide profit mountain. Guess who has the most oil reserves? It turns out the target of American military might, Iraq is #3, with only a fraction of its fields under development. The current focus of Israeli bravado, Iran, came in #1.

One market has been cleared for Exxon, another awaits. Roy's compadre, VP Dick Cheney, indicated he wouldn't speak at the Republican National Convention. Want to bet, Shooter is busy containing Iranian blowback from Israel's pre-emptive strike on their nuclear facilities? If so, the able Sen. Joe Lieberman and Rep. Eric Cantor, with their Jewish roots, can speak on the Veep's behalf. Meanwhile, the "Drive Less, Pay More" public endures the political theater of Roy's counterparts promising "Drill Now, Pay Less." Even Rep.Tim Walberg (R-MI) called last Friday's stunt "a performance".

It Only Takes One to Tango Says Rowan Williams

The Guardian reported on Rowan Williams' effort to keep unity in the Anglican Communion at the Lambeth Conference. The 230 boycotting bishops might be happy Rowan's diagnosis of the church's schism.

The Archbishop of Canterbury blamed liberal North American churches yesterday for causing turmoil in the Anglican communion by blessing same-sex unions and consecrating gay clergy as he attempted to chart a way out of the crisis that has been engulfing the church.

In a Pilate like move, Williams ended the session with a call. Who do you want released, Barabus (win by might) or Jesus (love for all)? Tuned to the missing 230, Rowan chose Barabus in his call for a moratorium on both practices. The Archbishop perils Christ's lived message in his efforts to save the union.

Yet More Disaster Capitalism?

The thought of government using natural and economic catastrophes to enact laws that favor corporations is disturbing, to say the least. Naomi Klein writes of this pattern, and evidence of it emerged this week.

1) Private equity is trumped as the savior for failing banks. Only it requires fewer regulations, itself a major reason for the subprime crisis which sent financial institutions into a tail spin. Will the Treasury and Federal Reserve open up national banks for major investment by private equity underwriters (PEU's)? Ask SemGroup unitholders, Blue Wave Partners' investors, or Carlyle Capital Corporation shareholders, what they think of The Carlyle Group owning 25% or more of a bank, as opined by Carlyle financial chiefs in a Wall Street Journal editorial?

2) An advisory committee recommended the SEC only require earnings restatements for recent periods. They didn't address causes of the 9% restatement rate by American firms. Final accounting re-do's are much lower worldwide. Historically, they ran 2% in the U.S. After 1998, what happened? Corporate executives cheated to beat the band by backdating their stock option compensation. CEO malfeasance required massive multi-year restatements. What better way to hide the negative impact of long term unethical executive behavior, than not have it come out at all? Disaster capitalism, home of the free pass?

3) "Drill Now, Pay Less." Consumers paying $4 a gallon for gasoline became the motivation to open up large areas for oil company drilling. Never mind, those same oil companies reached record profits once again, continuing their three year run. The 2005 Energy Bill provided $6 billion in giveaways to big oil. It looks like Bush & company want to continue the trend. That 2005 bill laid the foundation for the second quarter of 2008, experienced by customers as "Drive Less, Pay More."

Update 11-5-25:  Luke Grommen noted after the election of a Socialist Democrat as Mayor of NYC:

Without Ben Bernanke, Hank Paulson, & Tim Geithner rolling out their ‘socialism for the rich’ programs to NYC in 2008, we never could have convinced New Yorkers that ‘socialism for all’ could work!”

Eric Cantor: NRCC Leader & McCain VP?

The Jerusalem Post story read "McCain campaign considers Jewish VP". However the picture wasn't John's BFF, Joe Lieberman, but a youthful looking Congressman from Virginia. The story said McCain's vetters requested personal documents from Rep. Eric Cantor.

I'm sure the topic of the National Republican Congressional Committee will be front and center. The investigative report shows NRCC Treasurer Chris Ward walked away with $725,000, although other accounts cite $500,000, much of it spent to improve his Maryland home. Representative Eric Cantor played a leadership role in the NRCC during the multi-year pilfering, 2003 to 2008.

A January 2007 press release highlighted Eric's Fundraising Chairman leadership role and importance to the NRCC:

"Eric Cantor has been a great ally and a committed supporter of the NRCC in previous cycles. He has the know-how and the contacts needed to help us raise the funds that will be vital in the next election cycle," Chairman Cole said.

As Chairman of the NRCC's Battleground fundraising effort, Republican Deputy Whip Cantor raised more than $30 Million for Republican candidates. Over the past 3 terms, Rep. Cantor has raised millions of dollars for the Republican Party and was the top contributor in the House to other Republican candidates last cycle.

In 2006 one of Mr. Cantor's peers, frustrated by the lack of any physical auditors, tried to get the NRCC Executive Committee's attention. The scandal was discovered some two years later.

Why does this matter to any member of Congress who served on the NRCC Executive Committee? Sarbanes-Oxley. Eric Cantor was one of 423 members of the House voting "aye" for the fraud busting bill on July 25, 2002. This bill changed audit firm procedures for all entities, for profit and nonprofit.

From 2003 to early 2008, no auditor showed their face at NRCC offices. No partner from a major accounting firm graced the doors of NRCC leadership. They never met with anyone on the draft audit, much less presented a clean opinion and management letter to the NRCC Executive Committee. This gross governance incompetence was not investigated by the forensic accounting firm.

The question is Eric Cantor's exact role, as he "has been a great ally and a committed supporter of the NRCC in previous cycles." Will he put that in his submitted documents?

The NRCC Executive Committee's membership over the last 3 election cycles is an elusive ghost. But rest assured those Representatives failed to live up to the very basics of nonprofit governance. Eric served at least a year on this fiduciarily dismal body. It quickly got up to speed to attack 50 Democrats, but couldn't plan and execute an audit for the 5th year in a row. One might expect someone with community board experience to note something amiss.

But money and connections can sweep such failures under the rug. Cantor's 2007 public financial disclosure, a full 23 pages, reveals a multi-million stock portfolio, a spouse on the Board of several major corporations, and two trips to Israel. While Republicans look to Counting Cantor, Democrats explore eerily similar Bayh's Buy.

Bush's Bush Entourage to Beijing

Under the guise of a Personnel Announcement, the White House published the Presidential Delegation to the Summer Olympics in Beijing, China. Not a surprise, it's a Bush family and friends affair. The President, Mrs. Laura Bush, and Miss Barbara Bush will attend the Opening Ceremony of the Olympic Games in Beijing, People’s Republic of China, on August 8, 2008. Official members of the Presidential Delegation include:

The Honorable George H.W. Bush, former President of the United States
The Honorable and Mrs. Clark T. Randt, Jr., United States Ambassador to the People's Republic of China
Mr. and Mrs. Marvin and Margaret Bush
Mrs. Doro Bush Koch
Mr. and Mrs. Roland and Lois Betts-fraternity brother, friend and fundraiser
Mr. Brad Freeman-loyal friend and fundraiser

Roland Betts and Brad Freeman attended the 2006 Winter Olympics in Turin as part of the Presidential delegation. That year President Bush took a number of ex-Olympic winners. Doro Bush Koch attended the 2002 Winter Olympics in Salt Lake as part of the Presidential delegation.

For the Beijing Closing Ceremony delegation, the White House issued a Statement from the Press Secretary stating members of the diplomatic entourage, far different from the list of family and friends. It came out a week before the personnel announcement. Which U.S. delegation represents "our nation's character", as promised by George W.?

Bush Loves King Salmon

President George W. Bush showed his support for Alaskan Senator Ted Stevens, currently under indictment for not reporting gifts from constituents. The White House indicated the President had not rescinded an invitation for Senator Stevens to travel on Air Force One.

“I changed your nickname from King Salmon to Duke Salmonella.”

Of course Bush uses his brief moments of creativity to impact the lives of Americans. Consider his likely Executive Order:

“Just as the great Ronald Reagan changed ketchup to a vegetable in school lunch programs, I, George W. Bush, proclaim salmonella a miniature form of the healthy fish so many of us need in our diets.”

Shifting Oil Market Sand Knocks Congress Off Its Feet!

A bi-partisan group of ten senators proposed a plan to break the legislative gridlock in the Capital. The dais shook as the "Gang of 10" discussed the rationale behind their collaborative effort, the Renew Energy Act of 2008.

Senator Kent Conrad said the plan would deal with the "fundamental supply-demand relationship" responsible for high gas prices. His problem, besides record oil company profits? Demand for refined products fell drastically as gas prices soared at the pump. If the relationship was fundamental, prices would have fallen with significant decreases in demand.

Fuel consumption in the past 12 months was the lowest since 2004-2005, according to the Energy Department. And how do prices compare to 2004-2005? Almost double. This fact is never mentioned by leftover Congressmen using new media from the hallowed halls of the Capital. "Drill Now, Pay Less" is a fiction. The second quarter reality has been "Drive Less, Pay More". Ironically, members of Congress may need to drive back to Washington during their five week break. The party of oil is encouraging their Chief Gas Man (President Bush) to call Congress back into special session.