Cicilline Bill Would Target Rampant Oil Speculation


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Congressman David Cicilline introduced a bill today that would curb rampant speculation in the oil markets, which would both drive down the price at the pump and put the petroleum economy back in line with the laws of supply and demand, he said.

“If you look at what has happened in the market, production is up and demand is down,” Cicilline told me today. “So the market is not working right. And a substantial piece of this is excessive speculation. Wall Street is using oil futures as a gambling casino.”

Though they’ve inched back down recently, oil prices have skyrocketed in 2012. The national average has climbed from $3.34 in mid-January to $3.87 today. In Rhode Island during that same time period, the average price of a gallon has gone from $3.50 to $3.97.

During the gas price spike in 2008, the exact same piece of legislation passed the House by an overwhelmingly bipartisan vote of 402-19.

The bill, which is co-sponsored by Congressman Maurice Hinchey (D-NY) and Congressman Raúl Grijalva (D-AZ) would compel the US Commodites and Futures Trading Commission, the entity that regulates such speculation to put new rules into place to negate the effects of speculation on the price at the pump.

Cicilline said the CFCT could set greater limits on how many future shares one entity could own at a time or set limits on how much of the oil market could be designate for futures trading.

“This is dangerously reminiscent of what we saw in the housing market when Wall Street was using very sophisticated tools to drive up prices,” he said. “We’re not powerless to respond to this crisis.”

The futures market controls about 80 percent of all crude oil, said Gary Gensler, the Chairman of the CFTC, recently. Cicilline added that that percentage has doubled in the past decade and shortly before that futures trading controlled only about 20 percent of the market. Cicilline said Goldman Sachs is the biggest holder of crude oil futures.

President Obama called for further regulation on oil speculation earlier in the week. Sen. Bernie Sanders (I-VT) is sponsoring similar legislation in the Senate.

Speculation occurs when investors buy “futures” in a commodity such as oil. In effect they purchase a credit to buy a barrel (or many, as is often the case) at a price set now and collect the oil at a future date. If the price is higher than they bought the future share for, they make money. The problem occurs when many investors purchase future shares, artificially driving up the price beyond what it costs to extract, refine and deliver.

Why I’m Not Running for Congress, Again


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Every two years I consider the possibility of running for Congress… Again.

Yes, I ran for the US House of Representatives in 2004 in the Democratic Primary challenger to Patrick Kennedy, who had cast an insanely foolish vote for the war in Iraq.

At the time, I joked that my slogan was, “More liberal than a Kennedy.”

It’s 2012, and we’re finally out of Iraq, but the other issue that I developed during that primary run has become more imminent and remains ineffectively addressed by the current crop of wind-blowing politicians.

I’m talking about the price and cost of fossil fuel energy.

In 2004, I proposed a $.25 a gallon tax on gasoline. The money would go to fund alternative energy and public transportation. The price of a gallon at the time was about $2. “No one will pay that much!” was the UNIVERSAL reply I got from even my most liberal and environmental friends.

$4 a gallon? Just wait.

In 2004, I was talking about peak oil — nobody believed me. They laughed. That’s years away.

Now, it is generally an “accepted fact” that every year — for the rest of eternity — we will be pumping less and less gas and oil from the ground. The well isn’t dry, but it will be.

$5 a gallon? Just wait.

My final oil bill — for only 120 gallons was just over $600 — and it was a warm winter. Anybody out there run a public school? Can you tell me how many gallons of oil you burn to heat those buildings?

Have we budgeted for $6 a gallon fuel oil? For $10 a gallon?

$10 a gallon? Just wait.

Since 2004, what percentage of tax dollars have been spent funding public transportation, mass transit and alternative energy, and what percentage have gone to highways, tax cuts for oil companies and so on?

If I was running for Congress, I’d research the facts and tell you the answers.
But I’m not going to run for Congress.

Here’s why.

After my first run, I realized a few things about being a politician in the current political climate:

  1. You need to raise lots and lots of money
  2. You need to have an Ego the size of Rhode Island (or bigger)

During my campaign, I said over and over again, “I don’t want your money. I just want your vote — and tell other people.”
I got 26% of the primary vote on a budget of less than $500.
But I clearly didn’t get the message across — which needs money.

I also found that I was unwilling to ram my face and political opinions in front of thousands and thousands of people at every opportunity. I was unwilling to stand up at a memorial for Iraq war dead and wounded and say, “The war is wrong—vote for me!” When I did so at the Avon theater on the anniversary 9/11 at an anti-war film, I was hissed and booed. Hissed and booed in the bastion of liberalism because I wanted to run for Congress against the war.

Everybody who knows me, knows I have a huge ego — but it’s not that big. I don’t think I’m “The Best Man For The Job.”

But….

Every two years I look at the clowns who are running for office and running the country and I ask: Where is the leadership who will step forward and say, “We need to start planning and conserving energy NOW. We can’t wait for the invisible hand of capitalism to produce these kinds of results. Capital will be happy to drain this country dry and move to Europe, where they’ve had high gas taxes for decades—and used the funds to pay for the trains!”

What do we need? What would my platform be?

  • Raise the price of gas by 10% and increase taxes for oil companies. The increase will encourage conservation. Use the funds to plan and improve energy efficiency in ALL municipal buildings, to fund alternative energy production for homeowners, and to build trains and fund public transportation.
  • Create tax incentives now for the imminent flood of citizenry moving from the suburbs to the cities. Create energy efficient and affordable and good looking housing (talk to Keith Stokes in RI about this) so that people will be able to live near where they work and shop and play.
  • De-Authorize No Child Left Behind. End the test-test-test focus of public schooling. Use all money saved from the FUNDING INDUSTRY to hire new teachers and make class size smaller.
  • Fund public works of art
  • Encourage urban farming (talk to Cuba about this)

Finally, I’ve been thinking about the Occupy movement, and thinking that we need to find a new “Occupation” for most people. The idea that people will find “work” in a post-industrial post-oil economy is tenuous. I think that people need both work and occupations, things to occupy their time, to produce for the common good (socialism? Gasp!) and for their own livelihood and self-image.

I don’t know how “Operation Keep America Occupied” would work, but there really needs to be something more for our young people than playing Call of Duty and going to the Mall.

So, why am I not running for Congress?
Because none of the issues I’ve mentioned are electable.
Because I don’t want to ask you for money to send me to Washington.

Besides, I like it here.

Mark Binder is an award-winning author and storyteller. You can look at his “Campaign” website, and download my catchy campaign song, at: http://markbinder.com/candidate/ 

___________

In honor of the end of the war in Iraq and the coming end of the Afghanistan mess, Mark’s book, “Stories for Peace” is half-off. Everything else is discounted 20% for RI Future at: http://bit.ly/storyspecials

If you’d like to keep in touch with Mark’s “Storyteller” personna, please subscribe to the Storyamonth newsletter: http://storyamonth.com/

Matt Jerzyk and the Early Days of RI Future


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From the photo files of RI Future.

The Providence Phoenix has given RI Future great press as of late. Last week, the profiled me as the new owner of this progressive news website and this week they profile Matt Jerzyk, a senior policy adviser to Providence Mayor Angel Taveras and the founding father of RI Future whom they dub the state’s “blogfather.” The article dedicates no small amount of ink to the early days of the site he formally named Rhode Island’s Future.

Over the course of his four years running the site, Jerzyk pulled no punches, handing out his annual DINO (Democrat in Name Only) of the Year award while criticizing the likes of State Representative Arthur Corvese, Secretary of State Ralph Mollis, Woonsocket Mayor Susan Menard, former Providence Mayor Buddy Cianci, and former gubernatorial candidate Myrth York. In a state dominated by one party, Rhode Islanders flocked to the site for a mix of political gossip, policy analysis, and the occasional Jerzyk hissy fit.

Jerzyk, of course, is important to the local leftist community for far more reasons than simply launching this site – he’s an important adviser to the state’s most popular and powerful progressive politician, and he’s largely responsible for helping some of the more progressive members of the state legislature win their seats. I’ll always remember his crusade to get Ralph Papitto’s name removed from the Roger Williams law school after the chairman of the school made a racist statement at a meeting.

Both for creating RI Future, and all his efforts in building a better Rhode Island, I’d like to offer Jerzyk a big giant thank you. While this site, and Rhode Island, for that matter, have changed a lot since Matt Jerzyk first launched a blog called more formally and, we think, very fittingly, Rhode Island’s Future, we strive to build upon the great work Jerzyk and others have poured into it over the years. Here’s what Jerzyk told the Phoenix back in 2008 when he first sold this site:

I wanted to build a Daily Kos blog for Rhode Island: an online news source that could build a progressive media to compete with the vast right-wing talk radio operation. I think the blog has become a tremendous success because of the community we have created. With tens of thousands of readers and over a dozen writers, we are not only debating important political issues, we have also provided an online clearinghouse for people to get involved in the political system, from the 2006 US Senate race to the Rhode Island for Obama campaign in 2008 . . . . We are also pushing people to walk the walk because, at the end of the day, a healthy democracy requires people to engage it: by holding elected officials accountable or going to city or town council meetings or running for office directly.

RI Progress Report: Gov Misses Photo Op, Gordon Misses Tax Deadline, NY Yankees Support Scott Brown


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The governor is in Afghanistan and it didn’t make the front page of the local daily newspaper. Instead, a first glance at the Providence Journal this morning informs readers that Dick Clark has passed away. Dick Clark, in case you don’t know, was the host of American Bandstand. Our country is at war with Afghanistan, as you probably do know, and the elected leader of Rhode Island is there. It could have been a much better news cycle for Chafee, if only his office would have procured a picture of his boots on the ground there. The governor made himself available to reporters by phone (including me), but given that he isn’t the best interview, the whole thing would have made a much better photo op.

Actual exclusive: Dan Gordon did not pay his income taxes. He told Dan McGowan that he hopes his protest sends a message to Rhode Islanders. Yep, it will.

Half of RI politicians told Ted Nesi they’d share their tax returns with him. Anthony Gemma actually said he would share his only if he wins a seat in Congress, but for the time being he has  “family and partners to protect at this point.” Which of course begs the question of who else will Gemma no longer feel obliged to protect if he were to get elected. Here’s one safe guess: Democrats.

Political sin in these here parts: Mass. Sen. Scott Brown took campaign money from New York Yankees President Randy Levine.

It goes without saying that most people disagree with the Vatican’s anti-abortion policies, but did you know only 14 percent of Catholics agree with the church when it comes to whether or not to support women’s rights.

Projo calls Paul Ryan’s budget proposal “dishonest.”

This page may be updated throughout the day. Click HERE for an archive of the RI Progress Report.

Roots of Progress: Colonial Regulators as Early Occupy


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I’ve struggled attempting to write this part, which is both the most relevant and most obscure part of this series, as well as being the last. I’ve based this largely on the work of William Hogeland, including his excellent Founding Finance series of articles (which have been moved due to a site redesign; if you have time, watch this talk he gave.). The simplest way is to begin with a story.

You know this story. Americans faced a large imbalance in wealth, with rich financiers largely having profited over the last decades as the poor were getting poorer. Money played an important role in politics; if you wanted run for office, you had to have it. Veterans were returning home from war. Lenders were giving out money at outrageously high interest rates to the poor, and a foreclosure crisis rocked the country. People were so angry they took to the streets to protest, demanding an end to economic injustice. Sometimes, these protests involved violent confrontation with law and order and the destruction of property.

But this isn’t the story of America in the early 21st Century, it’s the story of America in the 1700s. There’s no good way to name these people. When we think of American government in the 1700s, we tend to divide them between Alexander Hamilton on one side (the Hamiltonians) and Thomas Jefferson and James Madison on the other (the Jeffersonians). Mr. Hogeland describes this other group as “small ‘d’ democratic populists”. Most often, they appear to have taken the name “Regulators”.

Mr. Hogeland’s made this point more eloquently than I, but the Regulators were Occupy long before Occupy. No one leader tends to outshine the others. Not only that, these were the types of people who actually tended to fight for the Revolution; the same Revolution overseen by the financial class that was forcing them into debt and continued to do so after the war.

Robert Morris, Godfather of American Finance

They were arrayed against by powerful interests, including Hamilton’s mentor Robert Morris, the Financier of the Revolution, and a war profiteer and corrupt politico. Hamilton himself opposed them, using military force to crush a rebellion in Pennsylvania, and then reduced the economic arguments to a protest against a whiskey tax, giving it the name “Whiskey Rebellion”. But the Whiskey Rebellion wasn’t just about whiskey, and the problems existed long before those western Pennsylvanians rose up.

In colonial times, hard currency was scarce, and the countryside often existed with a barter economy, which was impossible to buy improvements with. Merchants demand hard currency. So farmers borrowed from merchants to pay merchants for necessities. These merchants were the original payday lenders, sending families across America into debt. Many lost their homes.

As a result, people rioted. They did everything possible to stop foreclosures, from attacking officials and liberating those imprisoned for their debts to marching on the Springfield Armory in Massachusetts in an attempt to overthrow the state government; known in history books as Shays’ Rebellion. Eventually, the Regulators were suppressed and crushed. Today, when we discuss disagreements in the Founding Period, it’s only Anti-Federalists vs. Federalists, or Jeffersonians vs. Hamiltonians. Gone are the regular people who shed their blood, not only to free this nation, but to then keep themselves free.

The echoes of this failure to deal with these problems were heard in Rhode Island when Thomas Dorr was declared Governor in opposition to Samuel Ward King. We hear the echoes today, as Rhode Islanders face foreclosure, job loss, massive debt and increasingly elite political representation.

As progressives, we should always be looking for new ideas and new ways of thinking. But we should never forget that our roots lie in American history. We did not spring from the Populist movement, or the Progressive movement, or the New Deal. We came forth before the birth of America; our ideas travelled across the Atlantic to take root in this country. Many of our ideas and beliefs have been held as sacred for Americans since before 1776. American history is our history, too.