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December 27, 2006

Democrats ready to cash in on green biz

By Daryl Montgomery and Jack Kemp

Robert Novak reports that the Democrats (and bill co-author John McCain) in Congress are ready to push through Kyoto-like clean air penalty legislation, despite the objections of Detroit Congressman John Dingell who will become the chair of the Energy and Commerce Committee. The article states,

"According to industry sources, Dingell has privately advised auto industry lobbyists to prepare for the worst. House Speaker-designate Nancy Pelosi is making carbon emission legislation a priority, and Dingell has warned Detroit that she expects him to move a bill through his committee."
But the article offers a ray of hope in its conclusion. , a public level of understanding that might not occur until the environmentalists and their Democrat friends in Congress may not agree to adjust to until after a new environmental overkill creates its own set of problems. Mr. Novak concludes,
"Ultimate salvation from U.S. self-destructive behavior may come from the real world. Most European Union countries, suffering higher energy costs imposed by the Kyoto pact, cannot meet that treaty's emission level requirements. Furthermore, China is on pace to exceed U.S. emissions by 2010, meaning that unilateral U.S. carbon controls will have little impact on global emissions while driving American jobs to China. This downside of Pelosi's green determination ought to resonate in union halls and coalfields. However, American industrialists, while wringing their hands, are not making their case."
There is another aspect to this passion for environmentalism: green business and stock profits. We have experienced a sort of green stock boom, even with companies that have little in the way of new, competitively priced alternative fuel or solar power capacity in sales. In the Dot Com 1990s, computer companies that did this were called "story stocks" and their products were known as "vaporware." Recall DNC Chairman Terry McCauliff's profits in Global Crossing's undersea cable bubble stock. The Sierra Times recalls that
"On the other hand, the sleazy Terry McCauliff, chairman of the DNC made eighteen million from a hundred thousand dollar deal with the now bankrupt Global Crossing."
I believe we are experiencing much of the same game today, a slightly different form of old wine in new bottles - from Nancy Pelosi's political vineyard. The difference today is that a software company could not go to Congress and ask for a subsidy based on its non-existing product being good for the environment, for the children of Hillary's "It Takes a Village" to breathe.

On December 20, 2006, Former Clinton Sec. of Agriculture Mike Espy, who resigned that post in a mid-1990s scandal involving allegedly illegal gifts from Arkansas' Tyson Foods  , has been named to the board of Alternative Energy Sources, a startup ethanol producer.

According to Yahoo Finance, Alternative Energy Resources has no profits, no revenue, cash of $8.75 million, and a share price of $1.10 as of Dec. 26, 2006. The company, founded in 2006, hopes to build ethanol plants, according to its Yahoo Finance Profile.  It wants to compete with agriculture giant Archer Daniels Midland and other big players. As Zell Miller said at the 2004 Republican Convention, "With what? Spitballs?" 

What the company apparently plans to use is a Democrat with friends among the Friends of Bill and Hillary in the Congress. Perhaps they will create some plants at taxpayer expense in the future, but in the meantime a nice government grant which would boost the stock price and advance their "story" for shareholders would help. This could have the makings of another Enron.

To quote Novak's article again,
"Green extremists would prefer the severe legislation proposed by Sen. Barbara Boxer, the new chairwoman of the Environment and Public Works Committee."
Barbara Boxer was a stock broker before she was a politician. While a Senator, she made some quick profits in at least sixty six energy stock transactions during 2000, including shares of Halliburton.   

What a coincidence! Former energy stock trader Barbara Boxer has a new plan to change emissions and energy usage in the US.  I haven't seen such a coincidence since a guy named Doc wanted to play me in a friendly game of poker with a deck he "just happened to have on him." I declined and I would suggest the rest of you do the same with this Renewable Energy Stock Crusade. Wait. Can't say "Crusade" these days. Make that Renewable Energy Stock Questionable Project.
(The author is not the former politician of the same name.)