The Enron Loophole

It is two years old, but very relevant today

The Enron Loophole Helps OPEC Serve Up a Hefty Helping of Oil-Price Baloney

Last week, the price of oil hit an all-time high of $78.40 a barrel, to the pious discomfort of the Organization of the Petroleum Exporting Countries (OPEC). In the words of Edmund Daukoru, the president of the oil cartel and Nigeria's Minister of State Petroleum, the world economy is 'hurting.'
"The latest shoot-up to the mid-70s and above is very uncomfortable," Daukoru told Reuters. As for the increasingly deadly clashes in the Middle East, the oil czar commented: "It is always unfortunate if we have to address issues outside the power of OPEC." And without skipping a beat, Daukoru went on to advise that OPEC had plenty of spare production capacity.

I found Daukoru's comment about spare capacity particularly interesting, given that the oil patch endlessly whines that oil production is stretched to the limit and high prices are its consequence. Yet, we know that inventories are generally larger than they were last year at this time, and now it seems that OPEC can add even more if it wants to. So why are prices heading for the moon when there is oil available to draw down from storage and spare capacity to pump if the market needs it? Sure the political turmoil is making the market anxious. But is that enough to propel prices to a new record when there is no evidence of shortages? Highly doubtful.

Something else, it seems, is happening. Not that many years ago, oil and other commodities were traded on a real "wet barrel" basis. Producers sold to buyers at posted prices. When the market got tight they might extract a premium, or more stringent payment terms, or loading or discharging terms to reflect given conditions on a given day for a given trade. Conversely, if storage tanks were full, there was always a willingness to discount or make other adjustments to move product.

Then, some years back, futures trading came along and prices were set in trading-floor shouting matches in New York, Chicago, London, and Singapore, and they fluctuated in realtime and volumes grew (now prices are set electronically as well.) "Virtual" barrels on the futures exchange rather than wet barrels of actual product came to determine the purchase and sale prices of oil and downstream products.

Last week, at a conference on energy, the economy, etc., a discussion ensued about the reasons for the very high price of oil and the ever-present perception of shortages. I heard the director of the services group for the Saudi government-owned Aramco Oil Co. say that Aramco had ample spare capacity, but no takers. He volunteered that the big oil producer was ready to load additional cargos at any time.

Donning my old trading hat, I asked a simple question: "Why don't you lower the price?" I reminded him that when you have too much product, traditional business theory suggests that if you cut the price a bit, you might be able to move it. The Saudi representative answered: "Why should we sell for less than the prices quoted on the futures exchange?" He went on to say that the refiners are making too much money as it is.

"So how much are you making on each barrel?" I cheekily responded. My follow-up question was met with an icy dismissal that Saudi profits were none of my concern. That's probably true, but I wouldn't have asked had he not brought up refining margins. It was quite clear that this issue was not open to discussion.

So there we have it, straight from the horse's mouth, as it were. The price of oil for the Saudis, the godfathers of the OPEC cabal, is based on trading of "virtual" barrels of oil, not on real-time product in storage or in the production chain. And in pointing to the futures market as the determinant factor of price, the obvious question becomes: Is the futures market a fair reflection of market forces? Or, is it a manipulated cipher behind which the Saudis and others can hide to rationalize away market price distortions, claiming that "the free hand of the futures market" is in control and the producers can only set their prices accordingly.

In my July 12 post, "Gasoline Over $3.00 Gallon, Why?. . ." I called into question, with specific example, the presumption that oil and product trading on the futures exchange is free of manipulation. I am not alone.

Senators Carl Levin (D., Mich.) and Norm Coleman (R., Minn.), the ranking minority member and chairman, respectively, of the Senate Permanent Subcommittee on Investigations, are urging Congress to enact legislation that would close major loopholes in federal oversight of oil and gas trades. The so-called Enron loophole put limits on the ability of the Commodity Futures Trading Commission (CFTC) to prevent speculative trading in energy and commodity markets. It's interesting to note that since the Enron loophole went into effect in 2000, the price of crude has risen by nearly 500 percent. Coincidence? Perhaps.

To quote Sen. Levin, "Right now there is no U.S. cop on the beat overseeing energy trades on over-the-counter, electronic exchanges or foreign exchanges. . . . Enron has already taught us how energy traders can manipulate prices and walk over consumers if they think no one is looking. . . ."

Sen. Coleman cut to the chase: "We need to explore legislative ideas to ensure that energy prices reflect the true market forces of supply and demand. . . ."

In the meantime, OPEC and the oil patch are munching their baloney sandwiches, salted with crocodile tears, as they lug their loot to the bank.

Bill Hicks on Iraq

Bo Diddley

"Bo Diddley, a founding father of rock 'n' roll whose distinctive "shave and a haircut, two bits" rhythm and innovative guitar effects inspired legions of other musicians, died Monday after months of ill health. He was 79.

Diddley died of heart failure at his home in Archer, Fla., spokeswoman Susan Clary said. He had suffered a heart attack in August, three months after suffering a stroke while touring in Iowa. Doctors said the stroke affected his ability to speak, and he had returned to Florida to continue rehabilitation.

The legendary singer and performer, known for his homemade square guitar, dark glasses and black hat, was an inductee into the Rock and Roll Hall of Fame, had a star on Hollywood's Walk of Fame, and received a lifetime achievement award in 1999 at the Grammy Awards. In recent years he also played for the elder President Bush and President Clinton.

Diddley appreciated the honors he received, "but it didn't put no figures in my checkbook."

"If you ain't got no money, ain't nobody calls you honey," he quipped.

The name Bo Diddley came from other youngsters when he was growing up in Chicago, he said in a 1999 interview.

"I don't know where the kids got it, but the kids in grammar school gave me that name," he said, adding that he liked it so it became his stage name. Other times, he gave somewhat differing stories on where he got the name. Some experts believe a possible source for the name is a one-string instrument used in traditional blues music called a diddley bow.

His first single, "Bo Diddley," introduced record buyers in 1955 to his signature rhythm: bomp ba-bomp bomp, bomp bomp, often summarized as "shave and a haircut, two bits." The B side, "I'm a Man," with its slightly humorous take on macho pride, also became a rock standard.

The company that issued his early songs was Chess-Checkers records, the storied Chicago-based labels that also recorded Chuck Berry and other stars.

Howard Kramer, assistant curator of the Rock and Roll Hall of Fame in Cleveland, said in 2006 that Diddley's Chess recordings "stand among the best singular recordings of the 20th century."

Diddley's other major songs included, "Say Man," "You Can't Judge a Book by Its Cover," "Shave and a Haircut," "Uncle John," "Who Do You Love?" and "The Mule."

Diddley's influence was felt on both sides of the Atlantic. Buddy Holly borrowed the bomp ba-bomp bomp, bomp bomp rhythm for his song "Not Fade Away."

The Rolling Stones' bluesy remake of that Holly song gave them their first chart single in the United States, in 1964. The following year, another British band, the Yardbirds, had a Top 20 hit in the U.S. with their version of "I'm a Man."

Diddley was also one of the pioneers of the electric guitar, adding reverb and tremelo effects. He even rigged some of his guitars himself.

"He treats it like it was a drum, very rhythmic," E. Michael Harrington, professor of music theory and composition at Belmont University in Nashville, Tenn., said in 2006.

Many other artists, including the Who, Bruce Springsteen and Elvis Costello copied aspects of Diddley's style.

Growing up, Diddley said he had no musical idols, and he wasn't entirely pleased that others drew on his innovations.

"I don't like to copy anybody. Everybody tries to do what I do, update it," he said. "I don't have any idols I copied after."

"They copied everything I did, upgraded it, messed it up. It seems to me that nobody can come up with their own thing, they have to put a little bit of Bo Diddley there," he said.

Despite his success, Diddley claimed he only received a small portion of the money he made during his career. Partly as a result, he continued to tour and record music until his stroke. Between tours, he made his home near Gainesville in north Florida.

"Seventy ain't nothing but a damn number," he told The Associated Press in 1999. "I'm writing and creating new stuff and putting together new different things. Trying to stay out there and roll with the punches. I ain't quit yet."

Diddley, like other artists of his generations, was paid a flat fee for his recordings and said he received no royalty payments on record sales. He also said he was never paid for many of his performances.

"I am owed. I've never got paid," he said. "A dude with a pencil is worse than a cat with a machine gun."

In the early 1950s, Diddley said, disc jockeys called his type of music, "Jungle Music." It was Cleveland disc jockey Alan Freed who is credited with inventing the term "rock 'n' roll."

Diddley said Freed was talking about him, when he introduced him, saying, "Here is a man with an original sound, who is going to rock and roll you right out of your seat."

Diddley won attention from a new generation in 1989 when he took part in the "Bo Knows" ad campaign for Nike, built around football and baseball star Bo Jackson. Commenting on Jackson's guitar skills, Diddley turned to the camera and said, "He don't know Diddley."

"I never could figure out what it had to do with shoes, but it worked," Diddley said. "I got into a lot of new front rooms on the tube."

Born as Ellas Bates on Dec. 30, 1928, in McComb, Miss., Diddley was later adopted by his mother's cousin and took on the name Ellis McDaniel, which his wife always called him.

When he was 5, his family moved to Chicago, where he learned the violin at the Ebenezer Baptist Church. He learned guitar at 10 and entertained passers-by on street corners.

By his early teens, Diddley was playing Chicago's Maxwell Street.

"I came out of school and made something out of myself. I am known all over the globe, all over the world. There are guys who have done a lot of things that don't have the same impact that I had," he said.

Young Hillary Clinton

Olbermann on Hillary

McCain rejects Parsley’s endorsement.

McCain rejects Parsley’s endorsement.
In February, Ohio televangelist Rev. Rod Parsley endorsed Sen. John McCain (R-AZ). McCain called Parsley — who once said Allah was a “demon spirit” — his “spiritual guide.” In an interview with the AP today, McCain finally said that he rejected Parsley’s support.

"I believe there is no place for that kind of dialogue in America, and I believe that even though he endorsed me, and I didn’t endorse him, the fact is that I repudiate such talk, and I reject his endorsement."

BUT:








You can't write this stuff!! Amazing!!

Paying for War at the Pump

By Robert Scheer

What’s it got to do with the price of gas? Would some reporter with access to the Republican presidential candidate please ask John McCain why he wants to continue President Bush’s Mideast policy when it has proved so ruinous for American taxpayers? Because McCain is determined to ignore our economic meltdown and shift the debate to foreign policy, shouldn’t he have to explain why an open-ended military presence in the Mideast will make us economically and militarily more secure when the opposite is clearly the case?

Let’s not waste too much time on the military side of the equation. The argument that troops on the ground have made us militarily more secure is absurd on its face. American resources and lives have been squandered in an inane effort that McCain aptly criticized before becoming a presidential candidate. As a Senate watchdog, he distinguished himself by sharply denouncing one defense contractor boondoggle after another in cases involving hundreds of billions for modern weapons that had nothing to do with fighting cave-based terrorists. But as a presidential candidate, McCain now unabashedly apologizes for every twist of the downwind spiral of the Bush administration foreign policy, from wasteful weapons to inhuman torture.

McCain’s strategy is clearly that of distracting attention from the calamitous economy by sounding the demagogue’s alarm about enemies at the gate. This week, McCain again blasted Democratic presidential candidate Barack Obama on the grounds that he underestimated the threat from Iran while ignoring the vast increase in Iran’s power—an increase actually resulting from Bush eliminating Iran’s only effective enemy, Saddam Hussein. The other winners in this folly have been the oil kingdoms that Hussein periodically threatened, led by the Saudi royal family. Seizing upon the opportunity presented by the 9/11 attacks, Bush knocked off not the Saudis, who had produced Osama bin Laden and 15 of his hijacker minions, but rather the royal family’s sworn enemy in Iraq, who had absolutely nothing do with 9/11.

And how did the Saudis thank us? Just check the price of oil, which has increased more than sixfold since 9/11. On Friday, Bush went to dine at Saudi King Abdullah’s bizarrely opulent horse farm and pleaded for an increase in oil production, but to no avail. Bush received the same rebuff in April 2005, when oil was selling for $54 a barrel. On Tuesday, it sold for $129, and the price rise is a good measure of Saudi gratitude for the Bush family’s unwavering support over past decades. Saudi Arabia’s oil minister, Ali al-Naimi, couldn’t have been more condescending when he turned down Bush’s request with the observation that “presidents and kings have every right, every privilege, to comment or ask or say whatever they want.” He added at a press conference, “How much does Saudi Arabia need to do to satisfy people who are questioning our oil practices and policies?”

Enough to get the price back down to where it was when we saved your sorry oil-well excuse for a country, you ingrate, Bush might have retorted. But our bold leader was too polite for anything like that. “He didn’t punch any tables or shout at anybody,” said Saudi Foreign Minister Saud al-Faisal. “I think he was satisfied.” Why? Instead of pointing out that the Saudis could easily open their spigots in gratitude for our keeping them in power, the president threatened the Saudi king not with an invasion but with a U.S. recession. “My point to His Majesty,” Bush warned in an interview with The New York Times before encountering the great man himself, “is going to be, when consumers have less purchasing power because of high prices of gasoline—in other words, when it affects their families, it could cause this economy to slow down. If the economy slows down, there will be less barrels of oil purchased.”

He’ll show them—we’ll have a recession, our families will suffer and, boy, will the Saudis be sorry. A regular Teddy Roosevelt. There is no better measure of the failure of Bush’s foreign policy than that, five years after we conquered the second-most important pool of oil in the world, the American taxpayers who paid for this grand imperial adventure are rewarded with skyrocketing prices at the pump.

At least when Bush first hyped his Iraq invasion plan, he had Paul Wolfowitz telling Congress that Iraqi oil would more than pay for it all. Not so McCain, who is so charged with imperial hubris that he is willing to commit to a 100-year lease on Iraq without expecting a penny in oil revenue in return.

Robert Scheer’s new book, ”The Pornography of Power: How Defense Hawks Hijacked 9/11 and Weakened America,” will be released June 9 by Twelve.

A Little Music for Ya!

Jamiroquai - Soul Education(Live at North Sea Jazz Festival)

John McSame and John Hagee

I wonder if the media will pay as much attention to this as they did Pastor Jeremiah Wright?

Lobbying for Armageddon

At the center of it all is Pastor John Hagee, a popular televangelist who leads the 18,000-member Cornerstone Church in San Antonio, Texas. While Hagee has long prophesized about the end times, he ratcheted up his rhetoric this year with the publication of his book, "Jerusalem Countdown," in which he argues that a confrontation with Iran is a necessary precondition for Armageddon and the Second Coming of Christ. In the best-selling book, Hagee insists that the United States must join Israel in a preemptive military strike against Iran to fulfill God's plan for both Israel and the West. Shortly after the book's publication, he launched Christians United for Israel (CUFI), which, as the Christian version of the powerful American Israel Public Affairs Committee, he said would cause "a political earthquake."

McCain Defends Hagee: ‘He Said That His Words Were Taken Out Of Context’
Hagee: McCain ’sought my endorsement.’
McCain Flip-Flops In 30 Seconds: Hagee Endorsement A ‘Mistake,’ But ‘I’m Glad To Have’ It

Police Acted Properly...Again.

Steve Winwood

I saw this guy on "The View" earlier. Don't ask. Just Enjoy!

What's the problem?

This man does not lie at any time. I enjoyed it!

Back on track

I know this is not going to be popular but...

I know this is not going to be popular but, here goes… Afghanistan is NOT a just or righteous or legal fight.

Why are we there? What did the people of Afghanistan do to the U.S.? Where is the proof of anything being done by anyone over there to anyone over here?

Before you say anything about Bin Laden Stop!

The U.S. is there to destroy the Taliban! Not because of their treatment of women, it couldn’t be because of their religion since a cornerstone of our “nation” is the freedom to worship as we choose…right? Oh, ask the folk in Texas that one!

We were there for one reason GREED!

To change a government to secure a route for a pipeline. Oops that has failed. And to renew production of Afghan Heroin to the world. Something the Taliban had virtually stopped.

A lot of folk seem to think the lying started with Iraq.

The lying started as soon as this group decided on a candidate to support. Plans were already in place and ready to be implemented.

Folk seem upset about Iraq, be upset about the WHOLE THING!

Why? Because we got played for suckers!

WTF

The Adolf Hitler doll which comes with a change of clothes - and a spare head with a kind face



Baghdad to get ‘Disneyland’ style amusement park.
At the cost of nearly $500 million, a Los Angeles-based company is “developing the Baghdad Zoo and Entertainment Experience, a massive American-style amusement park that will feature a skateboard park, rides, a concert theatre and a museum.” The park “is being designed by the firm that developed Disneyland.” The company’s owner says “the time is ripe” for profit and entertainment to collide in Iraq



What the Family Would Let You See, the Pentagon Obstructs
"Love you and miss you," he wrote. "I'll write again soon."

Except, of course, that he didn't. And yesterday, his family walked slowly behind the horse-drawn caisson to section 60. In the front row of mourners, one young girl trudged along, clinging to a grown-up's hand; another child found a ride on an adult's shoulders.

It was a moving scene -- and one the Pentagon shouldn't try to hide from the American public.



Six Suspects Will Be Tried a Third Time in Sears Plot
"We're gonna FRAME NAIL these patsies no matter how many times we gotta waste the court's time! -- Official White Horse Souse



Just a quick refresher course lest we forget what has happened to many 'friends' of the Clinton's.



The Queen of Pork
Nobody doles out taxpayer money like Hillary Clinton — or rakes in as much campaign cash from the companies she does favors for.
Hillary Wants To Obliterate Iran



McCain’s televangelist ally believes God damns America



McCain open to ‘tearing down’ Lower Ninth Ward.

A Little Music For Ya! - Lou Donaldson

A little Music for Ya!

'Why?': Remembering Nina Simone's Tribute to the Rev. Martin Luther King. Jr.

Nina Simone - My Baby Just Cares For Me (Live @ Montreux)

Nina Simone - Suzanne (Teatro Sistina 1969)

Nina Simone - See Line Woman (Montreal 1992)

Stevie Wonder - Free (Live at Birmingham NEC)
je jouis des oreilles!!! c'est trop le feu!!!



JettaVision Presents: "Stevie Wonder Live"
This man makes music just breathing in and out



STEVIE WONDER - LIVE- BBC LONDON -1996-PART 1



STEVIE WONDER - LIVE- BBC LONDON -1996-PART 2



STEVIE WONDER - LIVE- BBC LONDON -1996-PART 3
Now you remember!

I guess I could glean some hope from the Wal-Mart case but...

I have been watching the Wal-Mart story, Wal-Mart drops lawsuit against disabled woman, with keen interest.

You see, I am going through a similar situation.

In late October of 2006 I was injured from an automobile accident through no fault of my own. In Ohio, you are required to have car insurance. The state minimum is only $12,500, which we all know is not a feasible amount for property liability, let alone medical liability.

I happened to have been fortunate enough to have Under-Insured coverage on MY car insurance.

For the last six months, after settling with both insurers, now my health insurer, APWU, The American Postal Workers Union Heath Plan wants to subrogate against me for the cost of two serious neck surgeries. Surgeries they would have paid for as part of our coverage!

The gall of them to require and recieve premiums for a service and then to want money back. That provision of my (Auto) policy was not taken to provide money for a company but to take care of me and my family. We paid a premium for a service. Premiums that they still collect. I am currently not recieving much needed therapies for fear of what it could cost me.

So I guess I could glean some hope from the Wal-Mart case but...

The fact that the court has sided with the corporations is not a real surprise, the only help for folks like me is the shame that is brought on these insurers and corporations.

So shame on the American Postal Workers Union Heath Plan. Shame on the AFL-CIO and CIGNA for their part in this.

A little advice for all, pay special attention when choosing a health insurer to the clause in your benefit book called "When Others are Responsible for Injuries." It could leave YOU on the hook and responsible for things you thought you had paid for.

Funky Decompression

I have had just about enough for right now. I need to get away, if only mentally for a minute. Jazz creates to much thinking room. Some of the shit that continues out there mandates a break. I know if I'm tired I can only guess how some of the rest of you are. I If you can't guess what the thread is here it's Funk! Here, in one setting, are some of the world's Funkiest.




James Brown "Ain't it Funky Now", Paris 1971



Bootsy Collins - Funk From James to George



Bootsy Collins - I'd Rather be with you



Parliament Funkadelic Concert Mothership Connection



Parliament/Funkadelic -Dr. Funkenstein



One more...



Parliament Live -P-Funk/Funkin' For Fun