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California's Troubles Start Now

The recent California Davis re-call was about Ken Lay, Enron, and $9 Billion and was initiated to prevent an Enron $9 Billion pay back.
California's Troubles Begin Now
By: Jack Dalton

If Californians thought they had financial problems before the recall wait till they see what's coming now that Ah-nold is Governor. They will soon learn what many of us observers have known for a while; the recall was a well orchestrated campaign to sabotage Gray Davis and Cruz Bustamante's attempt to make Enron (and the other Texas energy corporate thieves) pay back the right at $9 billion they swindled from Californians. In April of 2001 Gray Davis appealed to the Federal Energy Regulatory Commission in an attempt to force Ken Lay and Enron to return the $9 billion they stole from California through all the fraudulent schemes. At the same time Cruz Bustamante filed a civil suit against Enron under California's Civil Code 17200... the Unfair Business Practices Act... to recover the $9 billion from Enron.

California's $8 billion deficit would no longer exist (in fact it would have a surplus) if either Davis or Bustamante were to win. Based on all the existing evidence against Enron, Bustamante's suit (which is headed to court now) would pretty much be a hands down win. One big glitch however, Ken Lay. May 2001 (one month after Bustamante filed his civil suit against Enron) Ken Lay held a meeting at the Peninsula Hotel in Los Angeles. In attendance was the millionaire buddy of Ken Lay that was the originator of the Davis recall, Riordan (former mayor of Los Angeles), Mike Milken (the criminal junk bond salesman), Ken Lay of Enron infamy, and Arnold Schwarzenegger. Karl Rove was also rumored to have been there also but that has never been confirmed. What a gathering. The topic of discussion... the energy "crisis" created by two lawsuits.

The plan... keep Davis & Bustamante from being re-elected. If that fails... attempt a recall of Davis. Enron wanted to pay 2 cents on the dollar to California, but the governor would have to accept Enron's deal which is something Davis would never go along with. The solution... re-call Davis and put sympathetic ear in the governor's chair... who, the Terminator himself. Arnold accepts Enron's deal and that will effectively cut the rug out from Bustamante's civil suit against Enron for the entire $9 billion. Everyone wins except Californians... they get it in the shorts! And guess what? Not only will the state still be in the financial hole, but it will just about triple within the next 3 to 6 months. There isn't space here to put forth the economic models to support that prediction... just keep watching and you'll see it happen. Did I mention that the person who heads up the Federal Energy Regulatory Commission was hand picked for Bush baby by Ken Lay?

This re-call is going to have repercussions nationally... I am absolutely certain that the Terminator will hand California to Bush on a golden platter come election time next year. We had all better get real busy over the next few months or Bush baby will end up setting up permanent residence in the White House. Now that is truly a very scary thought.
Jack Dalton
Portland, Or
 Jack_dalton@ommp.org

homepage: homepage: http://Oregon-Medical-Marijuana-Project.org
address: address: Portland, Or.

Explain... 10.Oct.2003 08:49

skeptic

Please show us all how Enron "stole" $9 billion dollars. Use verifiable facts please...no rhetoric or claims that can't be checked. In other words...show your work.

Please show us how California only has a budget deficit of $8 billion dollars. It's actually much, much greater. Again, if you're going to make claims of this sort, please "show your work".

Deficit already going to grow under Arnold 10.Oct.2003 09:57

Adammonte9000 adammonte9000@aol.com

Arnold's first plans as governor, he has said, will be to repeal the car tax. So the deficit everyone wanted to fix by electing this man is already going to grow from $8 billion to $13 billion or something like that. Good way to start. Hehe

Skeptic 11.Oct.2003 18:49

Dire Wolf

You have got to be kidding me, asking this cat to post proof, do you not read when you serf the net ? or do you just jack off ? It took me 2 min to come up with plenty on Enron, Ken Lay, and Ah-Nuld maybe start with  http://www.whatreallyhappened.com and here is one just for you  http://www.rense.com/general42/degreg.htm and also you can read about all the NWO ties Ah-Nuld has at  http://www.infowars.com oh yeah if you were to busy Jackin off NWO means "New World Order" you know the elite illuminated ones that control the world governments and business, and if you need proof of that put down the tissue paper zip up your pants and do some research.
The real truth is common sence.

I'm doing enough homework for everyone 11.Oct.2003 21:44

researcher

Of course, what poeple need to understand is that much more than $9 billion was stolen from California but the pwoer companies which included Enron. The $9 billion is just what Davis was asking to have returned, and why he was run out of office by an extremely well-finance and well-connected (not to mention supremely well-uninformed) opponent. Anyway, the California swindle is a long a sordid tale. For general background, an idea of who all the major players were I would recommend Greg Palast's chapter California Reamin' (http://gregpalast.com/detail.cfm?artid=211&row=1) in The Bes Democracy Money Can Buy. Here is an excerpt:
So, I asked Emory, did the state go ahead with their deregulation plan knowing it would blow up? "Oh yes, we knew it," Emory told me in 2000. Now an industry lawyer in Washington, she added, "What happened [the blackouts and price explosion] was predictable. We knew last year we'd have serious problems." There was, she said, discussion of stalling deregulation but the political push was on, despite foreknowledge of disaster.

Insider Emory says the state was not surprised that on the first hot summer day after deregulation, when California needed every bit of juice it could find, the small coterie of plant owners held California's power system hostage. They could name their price for electricity and they did: $9,999 per unit of power-30,000 percent above the old regulated price of about $30. Californians were lucky, says Emory: The power pirates thought that the state's computer could only accept four-digit bids in the automated auction.

In fact, the computers would have accepted seven digits, bankrupting half the families in Los Angeles in a day.

That article mentions Dr. Eugene Coyle who was predicting this back in 1994. There is an interview with him (http://www.flatlander.org/body.html) which may not be half as good as the sourced material provided. You can also get Dr. Coyle's address to the house (http://www.publicpowernow.org/story/2001/6/20/124058/212) which has many useful facts such as:
California's electricity bill rose from $8 billion in 1999 to $28 billion in 2000...

So in a year we have gone from $36 to $345 per MWH...

Last week the State of California -- which has been forced to be the power purchaser -- paid $1,900 per MWH to one generator -- compared with, as I cited earlier, a price of $36 MWH a year earlier.

Electric power requires planning and is an industry that lends itself to planning. Growth in demand is predictable. Markets don't do planning, though cartels do. California has turned over the planning function to a cartel.

In California a group of companies has been able to exploit monopoly power. A now un-regulated monopoly. And this monopoly is protected by more than a patent that can be ignored, as drug patents are in India and possibly will be in South Africa and Brazil. The electric cartel has a physical defense, not merely a paper one, against price wars -- the fact that it takes a power plant to supply the product.

The argument the generators make is that there is a shortage and that new supply coming on line in the next year or two will cause prices to drop to "a competitive level." Well, prices may drop, particularly if it rains torrents in the Pacific Northwest. But there is no reason to expect "competitive prices" -- in fact there is every reason to expect on-going and permanent price gouging, albeit at a lower level than now. The generators will control total capacity and will be careful to see that too much capacity doesn't get built. Unlike coffee farmers, they will see to it that excess capacity doesn't cause a price war -- or a competitive market.

http://gregpalast.com/detail.cfm?artid=211&row=1
http://www.flatlander.org/body.html
http://www.publicpowernow.org/story/2001/6/20/124058/212