S.3512 - A bill to provide a statutory waiver of compliance with the Jones Act to foreign flagged vessels assisting in responding to the Deepwater Horizon oil spill.
Kay Bailey Hutchison (R-TX) has finally sponsored a bill that would give waviers to foreign vessels giving aid to the crisis in the Gulf of Mexico. We are 63 days into the crisis.It is somewhat of a mystery as to why Obama will not issue a blanket wavier to the Jones Act, as did President George Bush during the Katrina crisis. Some suggest that it is because Obama is protecting the maritime unions. We think not. Look at the union's record. The specific union in question is the Seafarers International Union. In 2000, this union donated $3,544 to candidate George W. Bush but not a penny to Bush's opponent, Al Gore. Again, in the 2004 election, Bush received a $2,000, while Sen. John Kerry received nothing. Most importantly, for our point, is the fact that the union did not donate to candidate Obama in 2008. So, at least on a personal level, we do not believe Obama is protecting this union.
Midknight Review thinks the answer to our mystery is one of two considerations: either Obama is more of a thorough going union ideologue - a union purest, if you will - than any of his predecessors, or he sees this evolving crisis as a pathway to higher oil prices "beyond his control," and, thus, the perfect segue into his green policy -- formally declared as "dead" by all who understand election year politics. We actually believe the latter circumstance is the fact.
If the latter point is true, Obama mis-calculates on two levels: First, he fails to see that higher oil prices for whatever reason, will be the death knell of his Administration. We all know what happens when this nation has to pay $4.00 per gallon or more. At that price, 18 wheel truck costs rise to $1,800 per fill-up -- and the death of the trucking industry sets in. More than this, commercial air transportation comes to a halt. Without these two transportation elements, the economy takes a major nose dive. Obama is willing to risk all this in the hope of reconstituting his green agenda, including Cap and Trade and the death of the gas guzzling American car.
But we said that he mis-calculates on two levels. The second? An angry populace. Understand that few Americans are into political schtick as is this editor and the many he partners with. The American people typically vote their pocket book and their emotions more than any other consideration. Typically. There are times when they break with the "typical," with tradition. In this case, the American voter will roll Obama's ideology into the mix of anger and the stress on their pocket book. We believe this to be the "perfect storm" and he does not see it coming.
Understand that Obama has not only refused to waive the Jones Act. He has issued a six to 18 month moratorium on deep-water drilling in the region - a decision that promises to cost 25,000 jobs immediately and effect the lives of some 80,000 others, directly related to the business in the Gulf. The economy of the Gulf generates some $287 billion each and every year. The $20 billion in escrow is not nearly enough to mitigate this financial disaster, much less repay all in the Gulf for their losses. Some will remind this editor that the $20 billion in escrow is an open ended amount. Correct. But the agreement between Obama and BP is not simply about an open ended escrow account. It is much more specific. While the end game is AT LEAST $20 billion, the qualifier is something far less. In setting up the escrow account, BP agreed to put $5 billion into the escrow account each year. THAT is the real kicker. Obama has allowed for a BP pay-out over a period of years, perhaps 20 years or more, and has limited their liabilities to 5 billion dollars per year. Meanwhile, the business community rots and goes elsewhere.
Point of the post: everyone is focused on the open ended escrow account. No one is focused on the fact that BP's liabilities [in the Gulf] have been fixed at $5billion a year -- something extremely manageable for the oil giant. The losses in the first year will far exceed that amount. In taking over the reimbursement program to those effected by this disaster, Obama has moved BP away from the public fury. When the well-head is closed, the sad state of "recovery" will move to section D in our newspapers and will not be given a mention in the televised/radio media. That's what happens to old news.
We hope that those who have power, political power, will not forget. Senator Kay Hutchison has not forgotten and is willing to pursue meaningful solutions to crisis. Obama has other things in mind.
No comments:
Post a Comment