In June 2008, the Democrats effectively closed the Enron loophole created in December 2000 Phil Gramm in his insertion of the "Enron Loophole" into the Commodity Futures Modernization Act. This loophole was a primary cause of skyrocketing oil prices driven by out-of-control oil speculators. Oil was ~$25/barrel in December 2000 when the CFMA passed, and rose to ~$145/barrel in early July 2008. The former Director of the Division of Trading & Markets in the late 1990’s testified to Congress that closure of this loophole would result in a 25-50% decrease in oil prices in the near term. Democrats garnered bipartisan support to effectively close the loophole and overcome the arguments of John McCain and a veto by President Bush. Today, the price of crude oil is now under $100/barrel, a drop of nearly $45/barrel and over 30%.
So, why aren't the Dems making a big story about this? What am I not seeing? If McCain can be hung out to dry on this issue, why is Obama and the Dem Party taking a pass here? Read on for additional info on this issue...
In June 2008, the Democrats effectively closed the Enron loophole created in December 2000 by John McCain’s current economic advisor, Phil Gramm, in his unethical, last-minute insertion of what was later termed the "Enron Loophole" into Gramm’s very own Commodity Futures Modernization Act. This loophole was a primary cause of skyrocketing oil prices driven by out-of-control and un-monitored oil futures traders (speculators). Consider that oil was ~$25/barrel in December 2000 when Gramm’s bill passed, while it rose to ~$145/barrel in early July 2008 shortly after loophole closure.
Although Michael Greenberger, professor of law at Maryland University and former CFTC Director of the Division of Trading & Markets in the late 1990’s testified to Congress that closure of this loophole would result in a 25-50% decrease in oil prices in the near term, Democrats garnered bipartisan support to overcome the arguments of John McCain and a veto by President Bush. Today, the price of crude oil is under $100/barrel, a drop of over $45/barrel and over 30%. Hmm, apparently Mr. Greenberger knew what he was talking about, as the speculators have been leaving the oil futures market like lemmings over a cliff this past few weeks.
It is no accident that only a few days after the Enron Loophole was effectively closed, Bush and McCain called for the removal of the moratorium on offshore oil exploration, arguing that taking action to increase oil supplies would decrease oil prices. It is also no accident that the Republicans decided it necessary to start milling about as a group in the halls of Congress to draw attention to the need for the lifting of the offshore drilling ban. Drill Here, Drill Now. This, knowing that Bush’s own Energy Information Administration reported that offshore drilling would not have an impact on oil production until 2030, and then only resulting in a 3% increase, is classic, Republican bullshit.
So, here we have John McCain working his unethical ass off to stop closure of the Enron Loophole to protect oil companies...while moving an oil tanker full of Big Oil money into his campaign fund for backing Big Oil in fighting the Enron Loophole closure and in backing the removal of the offshore drilling moratorium.
Please, write your local newspapers and get the word out about the Enron Loophole and McCain's stand for Big Oil instead of everday Joe and Jill (hahaha). I had an ad on this topic in the Columbus Dispatch about 10 days ago and got good feedback from family, friends and co-workers. Please join me in calling the Obama campaign to ask for an ad or two on the Dem closure of the Enron Loophole. Thanks.