NEWS2U
Politics, Finance & Resources

Thursday, July 30, 2009

The Legalized Theft That Is High Frequency Trading


TrueSlant
July 25, 2009


Another day, another incredibly questionable Wall Street practice. And this one is particularly galling.

Basically, some of the stock exchanges allow companies to see trades 3 milliseconds before they hit the market. It’s called “flash” trading, and the only folks who can take advantage of such information are the ones who pay a fee (of course) and have computers powerful enough to parse the data and make automatic trades of their own before the first trades hit the market.

From NY Times:

It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets.

Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense.

These systems are so fast they can outsmart or outrun other investors, humans and computers alike. And after growing in the shadows for years, they are generating lots of talk.

Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer.

Now, the exchanges that take part in this practice argue that it’s about transparency, but who are they kidding? Showing a trade for 3 milliseconds only allows a computer to check it out and I think it’s pretty obvious what this was always intended to do. You think investment firms were calling for this information for a long time because they had powerful automatic trading algorithms developed that could utilize the data? Naw…

Understandably, politicians are raising their eyebrows and Chuck Schumer is already calling for a ban

Senator Charles E. Schumer, the New York Democrat who is chairman of the Senate rules and administration committee, said in a letter to the S.E.C. Mr. Schumer wrote that he intended to introduce legislation barring the technique, if the agency failed to act.

“The hallmark of our markets are that they are open and above board and the little guy has as much of a chance as the big guy,” Mr. Schumer said in an interview. “This takes a dagger to the heart of that concept.”

Do know that this is BIG business and is said to be part of the reason why we’ve seen a 164% bump in the trading volume since 2005 and one of the reasons why a firm like Goldman Sachs continues to post profits during the downturn. In fact, firms that take part in this practice made $21 billion in profits in 2008 and high frequency trades accounted for half of their transactions.
Here’s the question: How much of the wealth we created in the past 8 years is real?

Sources:
http://www.nytimes.com/2009/07/24/business/24trading.html
http://trueslant.com/justingardner/2009/07/25/the-legalized-theft-that-is-high-frequency-trading/
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Lightning takes down 127-foot wind blade


July 23, 2009
Great Falls Tribune


(Montana) Lightning knocked out two wind turbines and sent a massive tower blade crashing to the ground at the Judith Gap Wind Farm last month, the company said July 22.

Repairs began earlier this month and will continue into September, said an Invenergy spokeswoman.

No workers were on the site at the time of the accident, which occurred at 6:20 p.m., she said.

“There are lightning strikes on a regular basis,” she said. “This one just happened to be pretty severe.”

The 90 towers at the 135-megawatt wind farm, located on 8,300 acres of private and public land 125 miles southeast of Great Falls, are 262 feet tall.

The blades are 127 feet long. Lightning struck Turbine No. 88’s three blades and one disengaged and fell to the ground, she said.

The blade struck and dented the steel tower during the drop, she said. All three of the tower’s blades and its rotor will need to be replaced, she said.

Each wind tower can produce a maximum of 1.5 megawatts for a total potential output of 135 megawatts. Since the storm, both towers have been idle, she said.

Source:
http://www.greatfallstribune.com/article/20090723/NEWS01/907230301
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Colorado Interstate Gas agrees to resolve Clean Air Act violations in Utah


July 23, 2009
U.S. Department of Justice


(Utah) Colorado Interstate Gas Company (CIG), the operator of the Natural Buttes Compressor Station located on the Uintah and Ouray Indian Reservation near Vernal, Utah, has agreed to pay more than $1 million and install environmental controls at its facility as part of a consent decree that resolves violations of the Clean Air Act, the Justice Department and U.S.

Environmental Protection Agency (EPA) announced today. Under the terms of the decree, CIG will pay a civil penalty and back fees totaling $1,020,000 and will fund for one year the operation of two ambient air monitoring stations on the Uintah and Ouray Reservations.

According to a complaint filed along with the consent decree, CIG installed engines at its Natural Buttes Compressor Station but failed to obtain a permit and control and test emissions sources at its facility on the reservation.

The violations of the Clean Air Act were discovered through EPA inspections and EPA-required emission testing at the facility.

“This is the fourth Clean Air Act case this year alone, brought by the Department against companies operating natural gas production facilities on the Uintah and Ouray Indian Reservation,” said the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

Source:
http://www.usdoj.gov/opa/pr/2009/July/09-enrd-716.html
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Yemeni forces foil tanker hijack


July 23, 2009
Maritime Global Net


(International) According to the Yemeni news agency SABA, the country’s armed forces have foiled an attempted pirate attack, the fiercest ever, on a Yemeni-flag oil tanker when 14 pirate boats approached the tanker in the Red Sea, attempting to hijack it.

The tanker, Yemen Oil 7, was sailing from Aden to Hodeidah port when pirates attacked it on July 21 at noon. Yemeni marines surrounded the pirates and clashed with them forcing them to flee out of Yemeni regional waters, the report says.

The tanker is reported to have continued its voyage safely, while the marines patrolled the area to prevent further attacks.

Source:
http://www.mgn.com/news/dailystorydetails.cfm?storyid=10109
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Thursday, July 23, 2009

Buy to Last


by Ellen Ruppel Shell
The Atlantic
July/August


Everyone loves a bargain, as long as we believe it’s in good taste. And nobody does low-price, high-style better than IKEA, the world’s largest furniture retailer. IKEA passes as the anti-Wal-Mart: a company where value and good values coexist.

It uses design as a proxy for quality, and its brand—embodied by all those smiling, white-teethed Scandinavians standing next to smooth, shiny modular furniture with unpronounceable names—as a passport to a guilt-free world of low prices.

But put down your 59-cent Färgrik coffee mug and ask yourself: Can we afford to keep shopping at places where an item’s price reflects only a fraction of its societal costs?

IKEA designs to price, challenging its talented European team to create ever-cheaper objects, and its suppliers—most of them in low-wage countries in Asia and eastern Europe—to squeeze out the lowest possible price.

By some measures the world’s third-largest wood consumer, IKEA proudly employs 15 “forestry monitors.” Eight of them work in China and Russia, but illegal logging is widespread in those vast countries, making it impossible to guarantee that all wood is legally harvested. (The company declines to pay a premium to ensure that all timber is legally harvested, citing costs that would be passed along to the consumer.)

IKEA furniture made of particleboard and pine is not meant to last a lifetime; indeed, some professional movers decline to guarantee its safe transport. But to be fair, creating heirlooms is not IKEA’s goal. Nor, despite a lot of self-serving hoopla, is energy conservation: the company boasts of illuminating its stores with low-wattage lightbulbs but positions outlets far from city centers, where taxes are low and commuting costs high—the average IKEA customer drives 50 miles round-trip.

Cleverly, IKEA transfers transport and energy costs onto consumers, who are then handed the additional burden of assembling their purchases. Designed but not crafted, IKEA bookcases and chairs, like most cheap objects, resist involvement: when they break or malfunction, we tend not to fix them. Rather, we buy new ones.

Wig Zamore, a Massachusetts environmental activist who was recently recognized for his work by the Environmental Protection Agency, is working with IKEA and supports some of the company’s regional green initiatives.

But as he put it, “IKEA is the least sustainable retailer on the planet.” And in real costs—the kind that will burden our grandchildren—that also makes it among the most expensive.

Source:
http://www.theatlantic.com/doc/200907/ideas-ikea
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Thursday, July 16, 2009

Franken Highlights Net Neutrality at Sotomayor Hearing


By Holiday Shapiro
Free Press
July 16, 2009


WASHINGTON -- Today, Sen. Al Franken (D-Minn.) asked about the importance of Network Neutrality and the future of the open Internet during the Senate confirmation hearing for Supreme Court nominee Sonia Sotomayor.

Franken raised questions about Internet service providers’ ability to speed up and slow down traffic, and he asked whether there is a “compelling First Amendment interest in ensuring this can’t happen and the Internet stays open and accessible.”

Judge Sotomayor responded that the Internet is “revolutionary” and affects all areas of the economy and society. She said it is the courts’ role to respond to policies made by Congress.

Josh Silver, executive director of Free Press, made the following statement:


“We applaud Senator Franken for raising important questions at today’s hearing about the future of the Internet. Building a 21st-century democracy is not possible without the free-flowing exchange of ideas. Today, Senator Franken and Judge Sotomayor both acknowledged that the Internet is undeniably essential to building our nation’s future. As our newest senator said today, our legislators have some work to do.”

Watch the full Franken - Sotomayor exchange on the Internet: http://www.youtube.com/watch?v=TMxiMX0QTD0

Free Press is a national, nonpartisan organization working to reform the media. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media, and universal access to communications.

Source URL:
http://www.freepress.net/node/66913
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Sunday, July 12, 2009

Palin: How she gained control and then lost it




by Donald Craig Mitchell
Alaska Dispatch
Palin Watch
July 9, 2009


OPINION: It has been almost a week since Sarah Palin rocked the news cycle by announcing her intention to quit her job as Governor of Alaska. Since then, pundits from Karl Rove on the right to Mark Shields on the left have offered diverse answers to the two questions that every Alaskan has been asking every other Alaskan: Is Sarah Palin really the Whack Job that Tina Fey made her out to be? If she's not, then What Could the Woman Have been Thinking?

Here is what Sarah had to say last Friday at the news conference she held on her lawn in Wasilla about her decision to be the first sitting governor in United States history to walk away. The incoherence is worth the length of the quote:


As I thought about this announcement that I wouldn't run for re-election and what it means for Alaska, I thought about how much fun some governors have as lame ducks . . . And then I thought, "That's what's wrong." Many just accept that lame duck status, hit the road, draw the paycheck, and milk it.

I'm not putting Alaska through that. I promised efficiencies and effectiveness. That's not how I'm wired. I am not wired to operate under the same old politics as usual. I promised that four years ago - and I meant it. It's not what's best for Alaska.

I am determined to take the right path for Alaska even though it is unconventional and not so comfortable. With this announcement that I am not seeking reelection . . . I've determined it's best to transfer the authority of governor to Lieutenant Governor Parnell. And I am willing to do so so that this administration - with its positive agenda, its accomplishments, and its successful road to an incredible future - can continue without interruption and with great administrative and legislative success.

My choice is to take a stand and effect change. Not hit our heads against the wall and watch valuable state time and money, millions of your dollars, go down the drain in this new environment. Rather, we know we can effect positive change outside government at this moment in time, on another scale, and actually make a difference for our priorities. And so we will. For Alaskans and for Americans.

No wonder the pundits are confused.

After watching Sarah think for the past three years, my view it is that her big decision to quit was the logical result of several smaller decisions. Like a Slinky flopping methodically down a flight of stairs, each of those decisions flowed one after the other from Sarah's realization at the conclusion of the 2008 presidential campaign that she had transcended politics. That thanks to media like People Magazine and the National Enquirer, she now is playing way above the rim with cultural icons like Paris Hilton and the recently deceased Michael Jackson, rather than below it with common vote-grubbing politicians like Mike Huckabee and Mitt Romney.

After watching the Friday news conference, Washington Post columnist Michael Gerson said that he thought Sarah "seemed more like a spoiled celebrity than a serious public official."

What Gerson got wrong is that Sarah is a spoiled celebrity.
But it's not entirely her fault that she's spoiled. Because the media attention that has swirled around Alaska's governor-girl for the past ten months has altered the brain chemistry of a narcissistic personality that somewhere way back along the line was damaged decades previous.

An Australian friend of mine has theorized that Sarah's odd behavior suggests that she has been afflicted since childhood with Reactive Attachment Disorder, a rare psychological condition that is described in volume four of the American Psychiatric Association's Diagnostic and Statistical Manual of Disorders. Many of the symptoms do seem to fit: superficially engaging and charming, lacks cause and effect thinking, inappropriately demanding, engages in lying, lacks a conscience, has poor impulse control, has abnormal speech patterns, etc. But I am not a psychiatrist. So I don't know if that's Sarah's problem.

What I do know is that in 2002 when she began her statewide political career, Sarah Palin already was a legend in her own mind whose it's-all-about-me sense of entitlement already was pathological.

One morning early in the winter of 2001-2002 I bumped into a woman named Judy Patrick at Sagaya City Market, Anchorage's version of Whole Foods where the (mostly white) neighborhood locals (many with graduate degrees) drink coffee with each other and read The New York Times. Judy, a wonderful woman who I had met on an airplane several months earlier when we both were flying to Washington, D.C., was reading a book. When I asked what she was reading, Judy said that it was a book about how to run a political campaign that she had checked out of the library because her best girlfriend was going to run in the Republican primary election for Lieutenant Governor. When I asked who that was, Judy said her girlfriend was Sarah Palin, the mayor of Wasilla. I had been active in Alaska politics for 25 years. But until Judy Patrick said her name, I had never heard of Sarah Palin.

Because she was a political unknown who had no statewide name recognition, during the 2002 Republican primary election Lieutenant Governor candidate Palin was able to raise only $50,000, as compared to the $250,000 that Loren Leman, a state senator from Anchorage who was favored to win, raised.

Since four years later she would be elected Governor by campaigning as the anti-corruption candidate, it is noteworthy that when she began her campaign for Lieutenant Governor the first people candidate Palin put out her hand to for money were Bill Allen and other executives of VECO, the oil field services company that for more than 20 years had been the oil industry's bagman conduit to the Alaska Legislature.

In 2007 Bill Allen would confess to having bribed numerous members of the Legislature, after which he would start a second career as a government snitch by testifying, first against the legislators he bribed, and then against his purported longtime friend, former Alaska Senator Ted Stevens. Sarah knew who she was dealing with. But in December 2001 she had no problem kicking off her political career by depositing eight VECO checks totaling $4,000 in her campaign bank account.

Having little money for TV and radio commercials, candidate Palin spent the spring and summer of 2002 mostly driving around on the south-central Alaska road system campaigning at each stop along the road one-on-one and before small groups. In August her world-class talent as a campaigner enabled Sarah to startle the professionals by losing the primary election to Loren Leman by less than 2,000 votes and defeating Gail Phillips, a former speaker of the Alaska House of Representatives who was a popular figure in conservative Republican political circles, by more than 5,000 votes.

Seeing Sarah as a new, young and attractive, if still raw, political talent, Randy Ruedrich, the chairman of the Alaska Republican Party, suggested to Alaska Senator Frank Murkowski, who had won the Republican gubernatorial nomination, that he ask Sarah to team up with Alaska Senator Ted Stevens to campaign during the general election for Frank.

By all accounts Sarah did a journeyman job of that, which meant that in November when Frank was elected Governor she was entitled to a patronage position in the Murkowski administration. But what Sarah thought she was entitled to was not a job, but Frank Murkowski's seat in the United States Senate.

In December 2002 when Frank was sworn into office, Alaska's election law allowed Governor Murkowski to appoint Senator Murkowski's replacement. Sarah had enough juice to get on the long list of Republicans Frank interviewed. During her interview she came off as vapid and uninformed. But that's not how Sarah saw it. Several weeks later Frank astounded Alaskans by giving his Senate seat to his daughter, Lisa, who had never been publicly mentioned as a candidate for the seat and who had not been interviewed.

Sarah, a 38-year-old former small town mayor who had never won a statewide election, reportedly was livid and reportedly never fully forgave Frank, because in her self-absorption she was certain that she should have been the obvious choice.

Which brings me to why Sarah decided, as the conventional political wisdom in Alaska had been predicting for months, that she would not stand for reelection as Governor of Alaska in 2010.

When Greta Van Susteren asked Sarah less than a week after the 2008 election whether she would be a candidate for the Republican presidential nomination in 2012, Sarah answered: "If there is an open door in 2012 or four years later, and if it is something that is going to be good for my family, for my state, for my nation, an opportunity for me, then I'll plow through that door."

When Sarah voiced that ambition the advice she received from Republican Party professionals was that the way for her to preposition herself to plow through the door if it opened was to return to Alaska, stuff her celebrity in a sack, and establish the track record she doesn't have as a competent and effective Governor. And when he was asked to handicap her chances, Ed Rollins, who is as seasoned a Republican political operative as seasoning gets, predicted that for 2012 Sarah's "not starting at the top but starting at the bottom." Rollins also said that before Sarah could be taken seriously as a top tier presidential candidate she would have to spend years campaigning in Iowa and New Hampshire.

And there's the disconnect.

Any and everyone in Alaska who has watched her handle herself knows that this winter Sarah is not going to start spending her spare time driving for months on end without a media entourage from small town to small town in Iowa and New Hampshire attending coffee klatches and Rotary Club lunches.

I know that's not going to happen. And Sarah knows that's not going to happen. So let me say it for her: Sarah Palin will not be a candidate for the 2012 Republican presidential nomination.
What during the run-up to the 2012 presidential election Sarah will be is a Republican celebrity the way that Bill Clinton is a Democratic celebrity.

Giving speeches in convention halls packed with true-believing party faithful and being fawned over by the network paparazzi will be a whole lot more fun, and way more profitable, than being a candidate. And it certainly will be more fun and way more profitable than being the Governor of a backwater state that is an hour's drive from Wasilla to the Anchorage airport and then three-plus more hours of flight time from anywhere important.

Once Sarah made the easy decision that she would not run for reelection in 2010 so that during the two years prior to the 2012 presidential election she can be a full-time celebrity, the decision to become one immediately, rather than waiting another year and a half for her term as Governor to expire, was a no-brainer.

First, because Sarah Palin's celebrity no longer is dependent on her status as Governor. And second, because from the moment she was sworn into office Sarah has demonstrated over and over and over and over again that she has no idea what she's doing. And when she's in over her head, Sarah's instinct is to find a face-saving way to make her way to the nearest door marked "Exit."

When he became governor in December 2002 Frank Murkowski was not prepared to reward Sarah for her service during his campaign by making her a United States Senator. But if Sarah is to be believed, and I think she should be, Frank was prepared to bring her into his cabinet as Commissioner of Commerce, Community & Economic Development.

However, until Governor Palin shredded the rule by refusing to move there herself, every Governor has required the members of his cabinet to live in Juneau, the state capitol six hundred air miles south of Anchorage. Frank Murkowski was no exception. And Sarah refused to leave Wasilla.

So Frank found Sarah a state job to which she could commute from home.

In 1978 the Alaska Legislature had created a three-member Oil and Gas Conservation Commission whose duties include fixing the gas-oil/water-oil ratios that well operators must maintain, monitoring oil and gas pool pressures, and regulating the drilling, plugging, and spacing of wells, the disposal of salt water and oil field wastes, and the quantity and rate of production of oil and gas from particular wells.

If by education and work experience Sarah was not qualified to run a bureaucracy like the Department of Commerce, Community & Economic Development, she was completely unqualified to regulate the oil and gas industry. But while the statute that created the Commission required one member of the Commission to be a petroleum engineer and one member to be a petroleum geologist, in 2003 the statute authorized the third member of the Commission to be unqualified.

So in February 2003 when Governor Murkowski appointed Randy Ruedrich, the chair of the Alaska Republican Party who was a petroleum engineer by trade, to the petroleum engineer's seat on the Commission, he appointed Sarah to the third seat.

Appointments to seats on the Oil and Gas Conservation Commission are subject to confirmation by the Alaska Legislature.

When she was asked at her first confirmation hearing by the chairman of the Senate Resources Committee to explain why she wanted the job and "what you bring to the mix," Sarah answered that because Alaska needed a healthy oil and gas industry she was "absolutely motivated, excited, and challenged to be able to serve in this capacity."

That non sequitur non-response to the question engendered a long and uncomfortable silence in the hearing room; after which another Senator asked:

There are a lot of really smart people that work in the industry that have a lot of technical expertise. You're going to be asked to make rulings on things of a very technical nature. I don't see where you've had any background in oil and gas development and some of these technical issues. I realize that's not a requirement for this job because you're the public member. But how are you going to keep people from blowing a bunch of smoke up your skirts?


Cheerfully ignoring the sexist framing of the question, Sarah's answer to that heart-of-the-matter query was to note that "thankfully we have a technical staff here at the Commission" and that she had "confidence that they do with their technical knowledge give objective and fair advice to the Commissioners." "But you're right, I don't have all the technical background." (Five years later John McCain would tout Sarah Palin's qualifications as an oil and gas expert as one of the principal reasons he had selected her as his running mate.)

In 2006 the Alaska Legislature would amend the statute to require the "public member" of the Oil and Gas Conservation Commission to "have training or expertise that gives the person a fundamental understanding of the oil and gas industry in the state." While Sarah Palin did not have that qualification, in 2003 she didn't have to. As a consequence, that March the Legislature confirmed her appointment as a Commissioner by a vote of 51 to 3.

Within weeks of her arrival at the Oil and Gas Conservation Commission Sarah knew she was drowning. That she had no understanding of, and no interest in, the Commission's highly technical work. And not only that, but, like every state employee, she was expected to be at work five mornings a week. To get to the Commission's office in Anchorage required an hour commute from Wasilla that during the winter she had to make by driving in the pitch dark down an icy, moose-strewn highway.

So according to people who knew her at the time, soon after she arrived at the Oil and Gas Conservation Commission Sarah began searching for a face-saving excuse to quit a job she never should have been given.

The excuse she found was Randy Ruedrich.

When the Alaska Legislature considered Ruedrich's appointment to the Oil and Gas Conservation Commission during the same joint session at which it confirmed Sarah's appointment to the Commission, Ethan Berkowitz, the Democratic Minority Leader of the Alaska House of Representatives, urged the Legislature to reject Ruedrich's appointment on the ethically obvious ground that it was a conflict of interest for the chairman of a political party to regulate an industry that employed individuals from whom the chairman would be soliciting campaign contributions.

Representative Berkowitz argued:

It's just wrong to confirm a sitting chair of a political party to a quasi-judicial body. There is a conflict of interest that's built in. I urge the members to reject this nomination at this time. I don't know how you can take proprietary information from oil and gas companies, many of whom are the largest political donors in the state, at the same time you're serving as a political party chairperson. The conflicts of interest are inherent, they are omnipresent. Mr. Ruedrich has a choice. He can either be on the Oil and Gas Conservation Commission or he can be chair of the Republican Party. He can't be both.

When the debate ended, on a party-line vote all 36 Republicans voted to confirm Randy Ruedrich and all 18 Democrats voted to reject the appointment.

For several months thereafter Oil and Gas Conservation Commissioner Palin, who also served as the Commission's ethics officer, had no ethical problem with Randy Ruedrich serving as a Commissioner. But then she suddenly had a huge, and very public, problem when the news leaked that during his workday Ruedrich had been using his office computer to conduct Alaska Republican Party business.

The year previous when she had been a candidate in the Republican primary election for the party's nomination for Lieutenant Governor, Sarah not only had used her computer in the Wasilla mayor's office for campaign purposes, she had used it to communicate about the progress of her campaign with Randy Ruedrich.

But now she not only expressed outrage about Ruedrich's ethical lapse, she had the brazen temerity to file an ethics complaint against him. And then in a public fit of professed pique, in January 2004 she quit the Commission because, since the Attorney General's investigation of Ruedrich's violation of the Alaska Ethics Act was ongoing, she was precluded from publicly discussing what she knew about it. As Sarah went out of her way to tell the Anchorage Daily News, the state's largest newspaper: "I'm forced to withhold information from Alaskans, and that goes against what I believe in as a public servant."

Sarah's self-serving seizure of the ethical high ground made her reputation with socially conservative, mostly white, rank-and-file Republican voters. Two years later when she challenged Frank Murkowski in the 2006 Alaska Republican gubernatorial primary election, her reputation for having fearlessly fought "good old boy political corruption" in the guise of the chairman of her own party was a principal reason she was able to defeat Frank, who by then was the most reviled Governor in Alaska history, by an astonishing 32,000 votes.

What does that well-known story of Sarah Palin's rise from small town mayor to Governor have to do with her decision to quit the job that less than three years ago she double-crossed her patrons Randy Ruedrich and Frank Murkowski to win?

It's the same pattern.

As Lyda Green and Gary Stevens, the past and present Republican presidents of the Alaska Senate will tell you, Lyda publicly, Gary more privately, Sarah Palin's tenure as Governor of Alaska has been a disaster. And a majority of the other members of the Alaska Legislature, Republican and Democrat, liberal and conservative, alike, will tell you that Sarah has next to no interest in public policy and knows next to nothing about the nuts and bolts of governing. And what's worse, she has no interest in learning.

Sarah Palin is a smart woman. So she knows that she is no more qualified to be Governor of Alaska than she was qualified to serve on the Oil and Gas Conservation Commission. So even if she still needed the governorship, which she doesn't, my bet is that, as she did when she was a member of the Commission, she would be looking for a way out.

For Commissioner Palin, the way out was to use her professed abhorrence of Randy Ruedrich's ethical transgression as her excuse to leave a job she couldn't handle. For Governor Palin, the way out is to use her professed abhorrence of the public's purported misuse of the Alaska Ethics Act as her excuse to leave a job she can't handle.

In the interest of full disclosure, I represent Andree McLeod, a citizen-activist who, to hear Sarah tell it, has been one of Governor Palin's principal tormentors, in two lawsuits. The first concerns Sarah and her senior staff's intentional use of their private email accounts to conduct state business. The second concerns the question of whether the Governor's Office waived the "deliberative process privilege" in the Alaska Public Records Act when Sarah decided to share confidential emails with her husband, Todd Palin, knowing when she did so that Todd, who works for British Petroleum, is not a state employee.

During her news conference last Friday, Sarah called the ethics complaints that Andree McLeod and other Alaskans have filed against her over the past year "silly accusations" and she then bragged that "every one - all 15 (actually 18) of the ethics complaints have been dismissed. We've won!"

But neither of those assertions is true.

Some of the complaints were frivolous. But many others were not, including the complaint that a senior member of her staff unlawfully manipulated the state civil service system to obtain a job for a Palin campaign supporter, the complaint that Sarah used state money to transport her children to events they had no official reason to be at, the complaint that two members of her staff spent time during their work day in the Governor's Office attending to Sarah's political interests, the complaint that Sarah has been unlawfully collecting per diem for living at home in Wasilla using the ruse that she lives in the Governor's Mansion in Juneau when everyone - including all of Juneau - knows that she never really has, and, most importantly, the ethics complaint that Sarah filed last September against herself as part of the Troopergate scandal in order to have the Attorney General investigate whether she had ordered Walt Monegan, her Commissioner of Public Safety, to fire her former brother-in-law from his job as a state trooper.

Because Alaska's Attorney General serves at the Alaska Governor's pleasure, Talis Colberg, a friend of Sarah's from the Matanuska-Susitna Valley who was Attorney General at the time, hired an Anchorage attorney and former prosecutor named Tim Petumenos to conduct the investigation of Sarah Palin that Sarah Palin had asked be made.

In the report on his investigation that he issued the day before the 2008 presidential election, Tim gave Sarah a benefit-of-the-doubt pass on the allegations of misconduct. Sarah then triumphantly claimed that she had been vindicated, while a lot of other people dismissed the Petumenos report as a politically motivated whitewash.

What got lost in all that hullabaloo is that when Tim Petumenos interviewed Sarah and Walt under oath they told flatly contradictory stories. Walt testified that Sarah had a conversation with him in Juneau during which, until he curtly told her that her doing so was legally inappropriate, she tried to raise the subject of firing Wooten.

In his report, Tim stated that "Governor Palin denies that this conversation took place" and had "testified under oath that this is not a failure of recollection on her part since the nature of the conversation as described is such that she would have remembered having had it."

In other words, either Walt Monegan, Alaska's former chief law enforcement officer, committed perjury. Or Sarah Palin, the Governor of Alaska, committed perjury.

Article II, Section 20, of the Alaska Constitution provides that "all civil officers of the State are subject to impeachment by the legislature" and that "impeachment shall originate in the senate."

In 1985 when it came to public attention that Alaska Governor Bill Sheffield may have committed an impeachable offense, the Alaska Senate initiated an investigation at the conclusion of which it concluded that Governor Sheffield had not done so. But the Alaska Senate did its constitutional duty by initiating an investigation.

As Bill Clinton educated the nation, perjury is an impeachable offense. But the Alaska Senate has not initiated an investigation to determine whether Sarah Palin committed perjury, even though more than eight months ago Tim Petumenos publicly reported that she may have done so.

Last March I had a conversation about that with Alaska State Senator Hollis French, the chairman of the Senate Judiciary Committee. At the conclusion of that conversation Hollis begrudgingly admitted that the Alaska Senate had a constitutional duty to investigate whether Sarah should be impeached. But neither he nor any other member of the Alaska Senate has taken any action in that regard.

In March when he and I chatted, it was well-known in Alaska political circles that Hollis, a Democrat, intends to run for Governor in 2010. And it was assumed that the job he wants would be open because Sarah would not seek a second term. So Hollis had - and today continues to have - no reason to provoke the ire of the thousands of Palinistas who will be voting for someone other than Sarah for Governor next year.

Whether allowing personal political ambition to trump constitutional duty explains Senator French's refusal to urge the Alaska Senate to initiate an impeachment investigation only Hollis knows. But I can guarantee that if Sarah had decided to stay for her full term the perjury issue would have circled back on her.

In any event, she can spin it however she wants. But Sarah Palin is not quitting because Andree McLeod and other Alaskans have hounded her out of office by filing ethics complaints. The closest Sarah's come to admitting her true motivation happened on Monday when, while holding court on the beach at her husband Todd's fishing site in Dillingham, she told the national press corps that "when all these lawmakers are lining up for office their desire would be to clobber the administration left and right so that they can position themselves for office" and that "I'm not going to let Alaskans go through a year of stymied, paralyzed administration and not getting anything done."

Translated from Palinese, what Sarah said was that the real reason she is quitting is that she understands that she's lost control of the Alaska Legislature, a majority of whose members are fellow Republicans, many of whom hate her guts.

In April it was Republican votes that caused Sarah to suffer the public humiliation of being the first Governor in Alaska history to have a cabinet appointment rejected when the Alaska Legislature rejected Wayne Ross, an affable gun-nut who Sarah hung out to dry politically, as Sarah's choice to succeed Talis Colberg as Attorney general. And this January it would have been Republican votes that would have overridden Sarah's veto of the State of Alaska's acceptance of a big hunk of federal stimulus money.

Given all that, and given that in 2010 the TransCanada Alaska Company's solicitation - called an "open season" - of bids to transport natural gas from the North Slope through the pipeline that when her political capital still was high Sarah several years ago bamboozled the Alaska Legislature into giving TransCanada 500 million public dollars to build will be an abject failure, it is no wonder that Sarah decided that there was no reason to wait until the end of her first term before devoting herself full-time to promoting her celebrity and to raking in the multi-millions of dollars to which celebrities of Sarah Palin's rank are entitled.

The real surprise about Sarah's resignation announcement last Friday is that it took her more than ten months from her (and Bristol, Willow, and damaged Baby Trig's) first appearance on the cover of People Magazine to make it.

So thanks Sarah. We've all had a terrific time.

Sayonara governor-girl.

Donald Craig Mitchell is an attorney in Anchorage, Alaska. Mitchell is the author of Sold American: The Story of Alaska Natives and Their Land and Take My Land Take My Life: The Story of Congress's Historic Settlement of Alaska Native Land Claims, which in 2006 the Alaska Historical Society recognized as two of the most important books ever written about the history of Alaska.

Related Articles
Palin and the cult of celebrity destruction
No one wins in Palin-Letterman fight
How Palin turned on her own party and became governor
You can 'say' that again
Interview with son of a preacher man

Source:
http://www.alaskadispatch.com/palin-watch/1283-palin-how-she-gained-control-and-then-lost-it
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Friday, July 10, 2009

Italian power plants occupied by Greenpeace activists


July 8, 2009
Bloomberg


Greenpeace activists occupied four Italian coal-fired power plants, demanding action from world leaders to stave off climate change on the opening day of a Group of Eight summit being hosted by Italy.

At least 100 demonstrators took part in the protest at Enel SpA-owned generators in Brindisi, Marghera and Porto Tolle and at a fourth power station in Vado Ligure owned by Tirreno Power.

G8 leaders must stop putting the interests of polluting industries such as coal ahead of the climate, Greenpeace said.

“Greenpeace’s demonstrations are unjustified,” the president of Italy’s coal-operators association said in an e-mailed statement.

“Italy doesn’t have nuclear power. Coal accounts for 12 percent of its energy mix compared to a European average of 33 percent, and it is a leader in clean-coal technology.”

Power flows on Italy’s high-voltage lines were unaffected by the protest, according to a spokesman for grid operator Terna SpA.

A spokeswoman for Greenpeace said that the coal conveyors were stopped in Venice and Brindisi, though all four plants continue to operate even with protesters trying to block production.

Source:
http://www.bloomberg.com/apps/news?pid=20601082&sid=aVpQ0gjw6Yog
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Biomass pile fire causes little damage


July 7, 2009
Biomass Magazine


A fire on a six-acre hog fuel pile on July 4 at the Biomass One power plant in White City, Oregon caused only minimal damage, but high winds during the fire did cause some concerns.

The damage is hard to quantify on such a large pile, according to the plant general manager, but was confined to just one side and did not spread to the rest of the pile.

The official cause of the fire on the 80-foot-high pile is unknown, but the manager speculates spontaneous combustion is the culprit.

Hot spots are common in large piles and can be smothered easily.

The problem usually is on the edges of the pile, he said. If the loose sluff is not compacted, it allows air movement.

Biomass One usually removes that sluff, but did not have room over the weekend, as it was not operating to allow for maintenance.

The company has an inventory of about 113,000 dry tons, according to the manager.

The 30-megawatt wood fire power plant provides electricity to PacifiCorp, Portland, and employs 65 full-time jobs.

Source:
http://www.biomassmagazine.com/article.jsp?article_id=2852
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Wednesday, July 08, 2009

Al-Qaeda cell was preparing to attack pipeline


July 6, 2009
South Korea News.Net


An international Al-Qaeda cell, based in the northern Sinai Peninsula, is suspected of being involved in plans to attack gas pipelines running between Israel and Egypt.

According to Egyptian media, the plan was to strike Israeli ships passing through the Suez Canal. Ten people, allegedly behind a February bomb attack at Cairo’s famous Khan el-Khalili market, have been under suspicion since a police raid uncovered arms and information from a hideout used by the group.

The cache of explosives included anti-tank weapons, car bombs and personal explosive belts.

Two Palestinians, five Egyptians, a Belgian, a Briton and a French citizen are among the suspected cell members.

It is believed the European members probably entered Egypt through underground tunnels near Rafah into the Gaza Strip.

They allegedly received money for their mission and moved back to Egypt through the tunnels, at which time they allegedly carried out the Cairo attack.

It has been suggested the cell was controlled by a Palestinian-based commander of an al-Qaeda group. He has lived in the Gaza Strip since fleeing Egypt three years ago.

Source:
http://www.southkoreanews.net/story/515743
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Monday, July 06, 2009

Washington Post cancels lobbyist event


By Mike Allen and Michael Calderone
Politico
July 2, 2009


Washington Post publisher Katharine Weymouth said today she was canceling plans for an exclusive "salon" at her home where for as much as $250,000, the Post offered lobbyists and association executives off-the-record access to "those powerful few" — Obama administration officials, members of Congress, and even the paper’s own reporters and editors.

The astonishing offer was detailed in a flier circulated Wednesday to a health care lobbyist, who provided it to a reporter because the lobbyist said he felt it was a conflict for the paper to charge for access to, as the flier says, its “health care reporting and editorial staff."

With the Post newsroom in an uproar after POLITICO reported the solicitation, Weymouth said in an email to the staff that "a flier went out that was prepared by the Marketing department and was never vetted by me or by the newsroom. Had it been, the flier would have been immediately killed, because it completely misrepresented what we were trying to do."

Weymouth said the paper had planned a series of dinners with participation from the newsroom “but with parameters such that we did not in any way compromise our integrity. Sponsorship of events, like advertising in the newspaper, must be at arm's length and cannot imply control over the content or access to our journalists. At this juncture, we will not be holding the planned July dinner and we will not hold salon dinners involving the newsroom.

She made it clear however, that The Post, which lost $19.5 million in the first quarter, sees bringing together Washington figures as a future revenue source. “We do believe that there is a viable way to expand our expertise into live conferences and events that simply enhances what we do - cover Washington for Washingtonians and those interested in Washington,” she said. “ And we will begin to do live events in ways that enhance our reputation and in no way call into question our integrity.”

Executive editor Marcus Brauchli was as adamant as Weymouth in denouncing the plan promoted in the flier. “You cannot buy access to a Washington Post journalist,” Brauchli told POLITICO. Brauchli was named on the flier as one of the salon’s "Hosts and Discussion Leaders."

Brauchli said in an interview that he understood the business side of the Post planned on holding dinners on policy and was scheduled to attend the July 21 dinner at Weymouth’s Washington home, but he said he had not seen the material promoting it until today. “The flier, and the description of these things, was not at all consistent with the preliminary conversations the newsroom had,” Brauchli said, adding that it was “absolutely impossible” the newsroom would participate in the kind of event described in the solicitation for the event.

"Underwriting Opportunity: An evening with the right people can alter the debate," says the one-page flier. "Underwrite and participate in this intimate and exclusive Washington Post Salon, an off-the-record dinner and discussion at the home of CEO and Publisher Katharine Weymouth. ... Bring your organization’s CEO or executive director literally to the table. Interact with key Obama administration and congressional leaders."

The flier promised the dinner would be held in an intimate setting with no unseemly conflict between participants. “Spirited? Yes. Confrontational? No,” it said. “The relaxed setting in the home of Katharine Weymouth assures it. What is guaranteed is a collegial evening, with Obama administration officials, Congress members, business leaders, advocacy leaders and other select minds typically on the guest list of 20 or less. …

Brauchli emphasized that the newsroom had given specific parameters to the paper’s business staff that he said were apparently not followed. He said that for newsroom staffers to participate, they would have to be able to ask questions and that he would “reserve the right to allow any information or ideas that emerge from an event to shape or inform our coverage.”
That directly contradicts the solicitation to potential sponsors, which billed the dinner as “off-the-record.”

Our mission in the news department is to serve an audience,” Brauchli said, “not serve our sponsors.”

“We do not use the Post’s name or our journalists to gain access to officials or sources for the benefit of non-news purposes,” he continued.

Brauchli said that Post employees on the business side — not the newsroom — would have been responsible for seeking participants for this event. Reporters, he said, would not solicit sources or administration officials. Brauchli said that he did not know who was invited or who accepted.

Ceci Connolly, a Post reporter who covers health care, told POLITICO that she had been told there would be a dinner and that she would be invited. However, Connolly said, she “knew nothing about sponsorships and had not seen any flier or invitation.”

Brauchli declined to comment on whether anyone on the business side would be held responsible for the abortive plan. He said that would be a decision for either Weymouth or Stephen Hills, The Post’s president and general manager.

But regarding future events, Brauchli said: “I would hope that everybody in the Washington Post Company is always sensitive to the importance of the newsroom’s integrity and independence.”

Charles Pelton, The Post business-side employee listed as the event contact, seemed to dispute Brauchli’s version of events.

Pelton was quoted by Post ombudsman Andy Alexander in an online commentary as saying that newsroom leaders, including Brauchli, had been involved in discussions about the salons and other events.“This was well-developed with the newsroom,” Pelton told Alexander. “What was not developed was the marketing message to potential sponsors.”

According to Alexander, who called the flier a “public relations disaster,” Pelton told him: “There’s no intention to influence or peddle.” “There’s no intention to have a Lincoln Bedroom situation,” referring to charges that President Bill Clinton used invitations to stay at the White House as a way of luring political backing.

Pelton did not return a phone call from POLITICO.

If POLITICO had not reported on the flier this morning, Brauchli said he expects someone would have seen it before the event and, given the obvious ethical issue, it would have been canceled.

Kris Coratti, communications director of Washington Post Media, a division of The Washington Post Company, said the flier “came out of a business division for conferences and events, and the newsroom was unaware of such communication. It went out before it was properly vetted, and this draft does not represent what the company’s vision for these dinners are, which is meant to be an independent, policy-oriented event for newsmakers."

"As written, the newsroom could not participate in an event like this. We do believe there is an opportunity to have a conferences and events business, and that The Post should be leading these conversations in Washington, big or small, while maintaining journalistic integrity. The newsroom will participate where appropriate."

Earlier this morning, Brauchli sent an e-mail entitled “Newsroom Independence” to his staff explaining his position.

"Colleagues,” Brauchli said. “A flier was distributed this week offering an 'underwriting opportunity' for a dinner on health care reform, in which the news department had been asked to participate. The language in the flier and the description of the event preclude our participation."

"We will not participate in events where promises are made that in exchange for money The Post will offer access to newsroom personnel or will refrain from confrontational questioning. Our independence from advertisers or sponsors is inviolable. There is a long tradition of news organizations hosting conferences and events, and we believe The Post, including the newsroom, can do these things in ways that are consistent with our values."

The first "Salon" was to be called "Health-Care Reform: Better or Worse for Americans? The reform and funding debate." More were anticipated, and the flier described the opportunities for participants:

Offered at $25,000 per sponsor, per Salon. Maximum of two sponsors per Salon. Underwriters’ CEO or Executive Director participates in the discussion. Underwriters appreciatively acknowledged in printed invitations and at the dinner. Annual series sponsorship of 11 Salons offered at $250,000 … Hosts and Discussion Leaders ... Health-care reporting and editorial staff members of The Washington Post ... An exclusive opportunity to participate in the health-care reform debate among the select few who will actually get it done. ... A Washington Post Salon ... July 21, 2009 6:30 p.m. ...

"Washington Post Salons are extensions of The Washington Post brand of journalistic inquiry into the issues, a unique opportunity for stakeholders to hear and be heard," the flier says. "At the core is a critical topic of our day. Dinner and a volley of ideas unfold in an evening of intelligent, news-driven and off-the-record conversation. ... By bringing together those powerful few in business and policy-making who are forwarding, legislating and reporting on the issues, Washington Post Salons give life to the debate. Be at this nexus of business and policy with your underwriting of Washington Post Salons."

White House press secretary Robert Gibbs was asked Thursday in the briefing room if anyone from the White House was invited to attend the salons, and what the policy is for attending such events.

"I don't know if anybody here was," Gibbs said. "I think some people in the administration, writ large, may have been invited. I do not believe, based on what I've been able to check, anyone has accepted the invitations."

Gibbs said that the White House counsel would review such invitations and that they "would likely exceed" what would be considered appropriate.

Source:
http://www.politico.com/news/stories/0709/24441.html
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Saturday, July 04, 2009

PALIN RESIGNS


The Mudflats
July 3, 2009

Yes, it’s true.

Governor Sarah Palin, at a hastily called press conference this morning, has announced that she will be stepping down from office on July 25, and turning the reins over to Lt. Governor Sean Parnell “for the good of Alaska.”

She’s turning the state over to the guy she didn’t even trust to run things during her failed VP campaign. She chose to govern by Blackberry, while simultaneously speed reading “Politics for Dummies,” making rhetoric-filled speeches to hopped up conservatives, and being a full-time mom on the campaign trail. And still she didn’t leave the state to Sean Parnell. But now, apparently, something is different.

The media is all in a tizzy trying to figure out what’s going on.

Eddie Burke is busy talking to Sean Hannity telling him that Palin’s resignation is a brilliant tactical move cleverly hatched to thwart her enemies. Clearly this demonstrates her political smarts. “Now what will they do?” he wonders. “They won’t have anything to complain about!”

Yes, brilliant. She’s really thwarted them now. Why didn’t George Bush use that strategy, we wonder?

Of course, those who have been follwing the Alaska blogosphere closely are aware of the rumors bubbling up that there’s something big…something really big that’s headed her way; the iceberg that’s headed for the S.S. Palin. We’ll see.

Meanwhile what we do know is that Palin has littered her bizarre resignation speech with references to ethics complaints, Photoshopping bloggers, the military, Alaska history, a recap of the administration and a hodge podge of other topics. She delivered the speech with the same adrenaline-filled jaw clenching intensity that she had when she returned from the campaign trail and settled back in to the governor’s office.

And we know that she delivered this speech from her own home, a few hours before the start of a holiday weekend. Not the time to announce something you want the media to focus on.

The news will be breaking for a while, and she will by no means fade out of the media spotlight.

And as for Eddie Burke’s concern that those who oppose Palin will have nothing to do? I’m about to go enjoy a barbeque!

Leave comments here, and I’ll check back in as more news becomes available.

Apologies for server issues. The Mudflats was swamped!

>Clink< (that was my glass) Idependence Day came a day early. For a transcript of the speech, click HERE

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UPDATES

Okay, I’ve now been able to get independent information from multiple sources that all of this precedes what are said to be possible federal indictments against Palin, concerning an embezzlement scandal related to the building of Palin’s house and the Wasilla Sports Complex built during her tenure. Both structures, it is said, feature the “same windows, same wood, same products.” Federal investigators have been looking into this for some time, and indictments could be imminent, according to the Alaska sources. From Brad Blog

“I don’t think this is buckling to pressure,” said Ayers. “I think this is her coming to the realization that the legislature in Alaska and that some bloggers and activists in Alaska are going to do everything they can to stymie her progress. This is a governor who didn’t run for the office because she wanted a title. She wanted to make significant change in the state. She realized that that was no longer going to be able to happen, because things had become so partisan there.” From HuffPo

"Multiple sources have been digging around in the wake of Sarah Palin’s cryptic resignation speech Friday and they’ve found that when Palin was Mayor of her home town of Wasilla, AK in 2002, she was influental in the construction of the Wasilla Sports Complex and hockey arena.
First of all, the $12mil+ project ended up in the hands of contractors who were friends of friends of Palin. Secondly, at around the same time the sports complex was being built, so was Palin’s new house. What’s interesting about that is the house is constructed from the exact same materials the sports complex was built with. The windows in both structures are the same, the wood is the same, pretty well everything. When the house was being built, Palin, being Mayor at the time, influenced the bylaw requiring building permits in the town so that now there is no official list of the contractors who worked on her house". The Inquisitr

Wednesday, July 01, 2009

Al Franken has last laugh

The Republican former senator admits defeat after the state Supreme Court rules in Franken's favor in the long ballot recount. Franken's win will give Democrats a 60-vote filibuster-proof majority.



by P.J. Huffstutter, James Oliphant
Los Angeles Times
July 1, 2009


After a fierce eight-month voter recount battle in Minnesota, Al Franken’s U.S. Senate victory Tuesday hands Democrats a powerful, filibusterproof majority as they embark on the administration’s ambitious initiatives for energy and healthcare reform.

The victory followed the Minnesota Supreme Court’s unanimous ruling Tuesday declaring Franken the victor over Republican incumbent Norm Coleman by a razor-thin 312 votes out of 2.9 million cast in November’s election.

Franken, 58, formerly of NBC’s “Saturday Night Live” and later of liberal talk radio station Air America, said he was humbled “not just by the closeness of this election, but by the responsibility that comes with this position.”

“I can’t wait to get started,” he said at a news conference.

His comic roots haunted him occasionally during the campaign. Rivals in the Democratic primary objected to a satirical piece he wrote for Playboy in 2000, in which he described sex acts at a fictional virtual-reality sex lab in Minnesota.

And Republicans cried foul when they learned that Franken had helped conceive an SNL sketch mocking Sen. John McCain of Arizona, the GOP presidential candidate — and now one of Franken’s colleagues.

During the campaign, Franken usually played it straight.

The win carries symbolic weight for the Democrats, undeniably branding them the party of power in the White House, House and now the Senate, where Democrats will hold a 60-vote supermajority — counting two independents who caucus with them.

But the practical effect of the 60-vote milestone may be less profound.

It has been more than 30 years since Democrats have held a similar supermajority in the Senate — from 1976 to 1978 during the Carter administration. As President Carter discovered, senators, by tradition, are notoriously independent and regionally minded, voting out of interests that extend beyond party loyalty.

Franken himself said he had no plans to be a Democratic automaton.

“The way I see it, I’m not going to Washington to be the 60th Democratic senator. I’m going to Washington to be the second senator from the state of Minnesota, and that’s how I’m going to do this job,” he said.

The success — or failure — of Congress to pass effective legislation is almost solely the Democrats’ responsibility now — a fact that Republicans were eager to note Tuesday.

“With their supermajority, the era of excuses and fingerpointing is now over,” said Sen. John Cornyn (R-Texas), chairman of the National Republican Senatorial Committee, indicating that Democrats can’t blame intransigent Republicans anymore for the failure to make legislative progress.

Coleman’s defeat was a disappointment for Republicans, although Coleman himself said he was at peace with the outcome.

“The election of November 2008 is over,” said Coleman, 59, as he stood outside his Minnesota home. “It’s time to look forward and not look back.”

Coleman, who has been in the Senate since 2003, said he called Franken to congratulate him on his victory: “I told him that it’ll be the best job he’ll ever have.”

The fight to get to Washington had been a long and emotional battle that at times bordered on the ridiculous. On the morning after the election in November, unofficial results showed Coleman ahead by 725 votes.

Coleman declared victory Nov. 5, but Franken pushed ahead with a demand for a recount.
As the days passed, the tally changed and Coleman’s lead ultimately dwindled. Both sides flooded the courts and the secretary of state’s office with legal challenges.

State election officials hand-counted millions of ballots, and the campaigns fought over the penmanship of voters who apparently weren’t content to color inside the ballot’s oval lines.

Coleman’s lead evaporated, and in December Franken pulled ahead.

In April, a lower court ruled that Franken had the most votes. Coleman appealed to the state Supreme Court. The two men have spent at least $11million on the legal fight.

On Tuesday, the court rejected Coleman’s contention that thousands of absentee ballots were illegally excluded. Coleman conceded two hours later.

Minnesota Gov. Tim Pawlenty, a Republican, certified the election within hours of the decision.
Since the Senate is in recess until after Independence Day, the earliest Franken could be seated is next week.

“There is far too much work to be done for the state and the nation to drag this process on any longer,” Democratic National Committee Chairman Tim Kaine said in a statement Tuesday.

President Obama said in a statement: “I look forward to working with Sen.-elect Franken to build a new foundation for growth and prosperity by lowering healthcare costs and investing in the kind of cleanenergy jobs and industries that will help America lead in the 21st century.”

Franken’s arrival in the Senate comes at a crucial time, with several big-ticket legislative initiatives poised to be debated in the Senate in the coming months.

In July, the Senate will work toward fashioning a final version of a healthcare overhaul bill, to be voted on later in the year. It will also take up a version of the massive energy and climate-change bill passed by the House last week. In both cases, Franken’s vote could be instrumental.

Healthcare reform promises to be divisive, and the energy bill has already proven to be so. It passed the House on Friday by just seven votes, with 44 Democrats voting against it. Several Democrats in the Senate may follow suit, voting to protect agricultural or energy interests in their states.

Franken’s presence also will provide more breathing room for the confirmation of Supreme Court nominee Sonia Sotomayor. Republicans have been careful to avoid threatening to filibuster the nomination, but that option could disappear for good, draining much of the drama out of the fight. Her confirmation hearings begin July 13, with a final floor vote likely during the first week of August.

Though Franken’s presence ostensibly means Democrats will have to spend less time wooing Republicans, in practice that isn’t likely to be the case.

The contentious bills on energy, healthcare and, perhaps down the road, immigration will require some Republican support.

Indeed, Sen. Harry Reid (DNev.), the Senate majority leader, may spend as much time attempting to keep conservative Democrats on board with the caucus — and he won’t be afraid to attempt to replace a vote with a moderate Republican if he must.

Factor into the equation as well the poor health of Senate lions Robert C. Byrd of West Virginia and Edward M. Kennedy of Massachusetts. The Senate majority whip, Richard J. Durbin of Illinois, said last week that Democrats, in truth, could only count on 58 votes right now because of the men’s conditions.

The Democratic caucus also includes independent Sens. Joe Lieberman of Connecticut and Bernie Sanders of Vermont, and Sen. Arlen Specter of Pennsylvania, who defected to the Democratic Party from the GOP earlier this year. Over the years, Specter has at times charted his own course and frustrated both parties.

That means that in certain circumstances, the Republicans could still be able to mount a filibuster.

Source:
http://www.latimes.com/news/politics/la-na-franken1-2009jul01,0,7511424.story
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