Posts tagged ‘Barack Obama’

April 8, 2011

The oil lobby and dirty energy

Modernity writes:

There is often talk about “the Lobby”, and those words have a certain resonance and conjure up an unpleasant mental picture for most of us, however, I am going to argue that the real lobby in the world is hardly ever discussed, in any meaningful way.

That is the extent of its power.

Clearly, we hear bits about it, in a broad sense, yet it is rarely analysed for its component parts, wider geopolitical influence and negative effect on human rights.

It spans the globe.

Nevertheless, much of the discussion relating to it comes across in a rather crude materialistic fashion, lacking subtlety and depth

There is seldom any piercing critique of the countries involved, the powerful players, the governments, the vested interests, the paid lobbyists, the various parliamentarians on the payroll, etc and above all, the oil companies.

Yes, that is the Lobby I am talking about, the oil lobby.

Dan Froomkin at HuffPost has a good article, which touches upon some of the issues.

The Froomkin piece, “How The Oil Lobby Greases Washington’s Wheels“, is quite hard-hitting.

Clout in Washington isn’t about winning legislative battles — it’s about making sure that they never happen at all. The oil and gas industry has that kind of clout.

Despite astronomical profits during what have been lean years for most everyone else, the oil and gas industry continues to benefit from massive, multi-billion dollar taxpayer subsidies. Opinion polling shows the American public overwhelmingly wants those subsidies eliminated. Meanwhile, both parties are hunting feverishly for ways to reduce the deficit.

But when President Obama called on Congress to eliminate about $4 billion a year in tax breaks for Big Oil earlier this year, the response on the Hill was little more than a knowing chuckle. Even Obama’s closest congressional allies don’t think the president’s proposal has a shot.

At an angle to this, read Ellen Cantarow on dirty energy. TomDispatch sets the context:

If BP’s Gulf of Mexico disaster was the elephant in the room, Japan’s Fukushima Daiichi Nuclear Power Station was a blue whale.  “Now, in light of the ongoing events in Japan, I want to just take a minute to talk about nuclear power,” the president began, before extolling its supposed virtues as a clean energy source.  “So those of us who are concerned about climate change, we’ve got to recognize that nuclear power, if it’s safe, can make a significant contribution to the climate change question.”  By the end, he left no room for debate about the future of atomic power in the United States, telling the audience: “[W]e can’t simply take it off the table.”

Ongoing events.  It was a curious and entirely disingenuous way to describe the ever-worsening disaster at Fukushima when, just the day before, Japan’s prime minister, Naoto Kan, told his Parliament, “The earthquake, tsunami and the ensuing nuclear accident may be Japan’s largest-ever crisis.”  He said this, it’s worth reminding ourselves, about a country that, within living memory, saw more than 60 of its cities reduced to ashes through systematic firebombing and two metropolises obliterated by atomic bombs, losing hundreds of thousands of its citizens in one of the most devastating wars of a conflict-filled century.  In fact, the very morning that Obama gave his speech, the New York Times quoted Tetsuo Iguchi, a professor in the department of quantum engineering at Nagoya University, about a subject that only a few outside observers had dared to previously broach: the prospect of a swath of Japan becoming an irradiated dead zone.  “The worst-case scenario is that a meltdown makes the plant’s site a permanent grave,” Iguchi said.

Between his soft-peddling of ecological and humanitarian catastrophes resulting from dirty energy and his advocacy of a variety of dubious strategies for freeing America from the chains of foreign petroleum, the president admitted that the U.S. would continue to import oil for the foreseeable future. “It will remain an important part of our energy portfolio for quite some time until we’ve gotten alternative energy strategies fully in force,” Obama told the crowd.  “And when it comes to the oil we import from other nations, obviously we’ve got to look at neighbors like Canada and Mexico that are stable and steady and reliable sources.”

Unlike offshore drilling and nuclear power, reliance on neighboring countries for a particularly dirty form of energy didn’t prompt any excuses or handwringing from the president, as if petroleum from Mexico (a place his secretary of state likened to insurgent-embattled Colombia of the 1990s) and Canada posed no problems.  If you believe that, then I’ve got an electric power company in Japan to sell you.

And here’s an extract from Ellen:

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September 14, 2010

Blog round up

capitalism

Will Davies: ‘predatory elites’

“Any society in which massive gains are privatised and massive losses are socialised is one which is suffering from a problem of predatory elites.”

Karel Williams speaking at Social Life of Methods this week. More thoughts on the conference in due course.

Dani Rodrik: (Some) economists’ topsy turvy world

Spain, where unemployment has risen to 20% and domestic demand has yet to recover, has just approved a labor reform law that makes it easier for employers to dismiss workers.

I hope someone from the IMF or OECD — the two institutions responsible for convincing the Spaniards that such a reform is an urgent priority — will explain to me how reducing the cost of firing workers can lower unemployment in the midst of a decline in labor demand.

capitalism 2

Chris Dillow: Rooney: norms, contracts and lemons

The allegations that Wayne Rooney paid £1200 a time for sex brings a well-respected profession into disgrace. I refer, of course, to prostitution. In selling her story, Ms Thompson has broken the code that prostitutes, like priests and lawyers, do not divulge their dealings with clients.
This raises two economic issues.[…]

Jesse Walker: The Ruling ClassScenes from the class struggle on the American right

Few essays attracted as much attention from right-wing readers this summer as “America’s Ruling Class—and the Perils of Revolution,” an extended argument that an incestuous social set “rules uneasily over the majority of Americans.” Written by Angelo Codevilla of the Claremont Institute and first published in The American Spectator, this very long article has now been expanded into a very brief book, called The Ruling Class. If you’re interested in the state of the American right, it’s an instructive document—a book that strives mightily to marry conservative cultural complaints to the libertarian case against an intrusive central government.[…]

capitalism 3

Reihan Salam: How State Capitalism and Illiberal Democracy Will Shape the Global Economy

Ian Bremmer and Nouriel Roubini have written an absolutely terrifying essay for Institutional Investor magazine, which resonates with Stephen S. Cohen and Brad DeLong’s arguments in their excellent book The End of Influence. Bremmer and Roubini carefully explain why the rise ofbeggar-thy-neighbor state capitalism will result in “an extended period of anemic, subpar growth.”

President Obama reportedly will propose two big corporate tax cuts this week.

One would expand and make permanent the research and experimentation tax credit, at a cost of about $100 billion over the next ten years. The other would allow companies to write off 100 percent of their new investments in plant and equipment between now and the end of 2011 at a cost next year of substantially more than $100 billion (but a ten-year cost of about $30 billion since those write-offs wouldn’t be taken over the longer-term).

The economy needs two whopping corporate tax cuts right now as much as someone with a serious heart condition needs Botox.[…]

April 23, 2010

NEWS/ANALYSIS: Goldman Sachs

NEWS

Goldman Sachs’s golden boys to testify [Telegraph]

The two Goldman Sachs traders who delivered a $4bn (£2.6bn) profit for the bank from betting against sub-prime mortgage bonds are to be grilled as a key Senate committee turns its focus on the bank’s trading pratices. Michael Swenson and Josh Birnbaum will testify on Tuesday as part of a Senate hearing where current and former Goldman employees will be questioned about their role in the mortgage-backed securities market and how it triggered the financial crisis. [READ THE REST]

Below the fold: the bank industry’s revolving door culture with the UK and US governments, Fabrice Tourre’s half a million bonus, Goldman Sachs’ fees bonanza from UK privatisations, insider trading allegations at Lloyds, the Raj Rajarathnam tip-off, and the continuing confidence of Warren Buffet and BayernLB.

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