pawatercooler.com

It’s been said that the GOP will get serious about spending reductions when the debt ceiling comes to a vote. Supposedly we have more leverage on that issue.

I’m thinking not. The GOP has less leverage on that issue.

The basic structure of the debt ceiling vote is similar to the fiscal cliff vote. Republicans have the ability to block something the President wants, with a painful consequence if a deal is not struck.

However, with the debt ceiling, the overall breakdown value is worse than it was with the fiscal cliff vote, and is far worse for Republicans than Democrats. If the fiscal cliff had broken down, there would have been some negative economic consequences, public pressure, and if it dragged on long enough, perhaps some electoral pain. Had we gone off the cliff in a meaningful way, we might have even eventually worked out a better deal. But Congress was unable to bear the pain.

The debt ceiling is worse for Republicans in several ways. Firstly, the overall consequences of a breakdown are worse in the sense that a sovereign default would almost guarantee a severe and long-lasting depression that would make the Great Recession look like a walk in the park. Secondly, knowing that this consequence is unbearable to Obama as well, we should anticipate his actions. Who doubts that Obama would invoke the 14th Amendment, or perhaps pull out the old platinum coin trick? The breakdown value of the debt ceiling negotiation could be a massive unconstitutional power grab by the executive. Huzzah!

If we try to play hardball with the debt ceiling, we’d get a repeat of the fiscal cliff vote, and we’d walk away with out pants around our ankles.

Does anybody think that a Congress unable to explode the daisy-cutter they were sitting on will have the intestinal fortitude to explode the debt ceiling nuclear device? I thought not.

No. Pass the debt ceiling, relatively cleanly. I mean, sure, try to get some cuts, but when push comes to shove, just pass the thing.

Then shut down the government – Gingrich style. Don’t pass another spending bill. Save for defense and homeland security, don’t so much as appropriate toilet paper for government lavatories. Not one dime.

Deprive Obama of something he wants. The relative pain of the breakdown values should be reversed. Obama loves government. So do Republicans, but less so than Obama. Take it from him. Perhaps for months.

And if you think a prolonged total government shut-down is too harsh, you really didn’t have the stomach for the debt ceiling vote in the first place.

(“Plan B” is looking pretty sweet right now, ain’t it? Remember that.)

The Governor’s mishandling of the Sandusky investigation may doom the GOP

Ohio, Ohio, Ohio. It’s all about Ohio. Win the Buckeye state — win the White House.

Very true, especially for Mitt Romney, since no Republican has won without it.

But the monumental point is being overlooked.

Ohio is only kingmaker by default.  Its 18 electoral votes would not be needed if Romney wins Ohio’s larger neighbor — Pennsylvania and its 20 electors.

That’s not wishful thinking, but eminently achievable. Or at least it was, until two men severely diminished hope for delivering the Keystone State: Jerry Sandusky and Republican Governor Tom Corbett.

*****

Make no mistake. Pennsylvania should have been a lock for the GOP.  The fact that it has not voted Republican for president since 1988 is misleading. When there is a solid candidate, Pennsylvania is always in play, where a small vote swing changes the election result (George W. Bush in 2000 and 2004).  Conversely, bad candidates lose handily (Bush I in ‘92, Dole in ’96, and McCain in 2008). And remember that Ronald Reagan won it twice, and George H.W. Bush in ’88.

In 1994, it became the most Republican state in the country in terms of elected officials, with the GOP claiming both U.S. Senate seats, the governorship, total control of the state legislature, a majority in its congressional delegation, and two of three statewide row offices.

Fast forward to 2010, when GOP Governor Tom Corbett rode to victory with a massive ten-point margin.  Conservative Pat Toomey was elected U.S. Senator, and Republicans gained control of the State House in historic fashion, smashing the Democrats and taking a ten-seat majority.  The State Senate remained solidly Republican — as it has for three decades.

So why is it likely that Romney will lose the Pennsylvania Prize?

Enter Corbett and Sandusky.

*****

The most worthless commodities in politics are endorsements. Party leaders endorsing their own is expected, swaying no one.  And celebrities choosing sides only makes for good cocktail talk.  Romney doesn’t benefit from Clint Eastwood, nor Obama from Bruce Springsteen.

But while endorsements don’t sell, popularity does. And they are distinctively different.

If a leader possesses a bold vision — and the ability to articulate ideas in a common sense, bipartisan way — he will have followers from the entire political spectrum. New Jersey’s Republican Governor Chris Christie is the best example, having achieved monumental victories despite both legislative chambers being heavily Democratic.

While no single Republican could swing Jersey to Romney, that feat should have been in the bag in much more Republican Pennsylvania. If Christie could rack up wins in The People’s Republic of New Jersey, gaining immense popularity, how could Corbett not deliver Pennsylvania?

Because he is an MIA governor.

After the first year of his Administration, when virtually nothing was accomplished, Corbett’s own legislators nicknamed him “Christie-lite.” But after the second year, with an even more startling lack of achievements, the nicknames became unprintable.

We’re not talking about a failed extreme right-wing agenda, but common sense ideas Corbett promised but didn’t come close to delivering, despite holding all the cards.

-Was the nation’s largest state-controlled liquor system dismantled — a move overwhelmingly supported by most Pennsylvanians? Nope. Zero action.

-Was any effort made to 1) solve the state’s massive pension crisis, 2)lower the job-killing, corporate net income tax (second-highest in the nation), or 3) reform the nation’s most hostile legal climate? All drive businesses away, but no action was taken. The can was kicked down the road.

-Did state union workers receive a contract in line with private sector employees? No.  Instead, Corbett gave them guaranteed raises, no increases in health care premiums, and eliminated layoffs for economic reasons. At the same time, he raised salaries of his inner circle, aides who apparently couldn’t get by on $135,000.

While his inaction sunk the Governor’s favorable ratings, it was his handling of sexual predator Jerry Sandusky that really put him in the toilet, flushing away whatever attractiveness he had left.

Corbett’s attempt to steal the national limelight at Penn State news conferences by portraying himself as the savior who took down Sandusky rapidly backfired. Instead, his decisions in that case (he was the investigating Attorney General) grew into a firestorm that continues to explode.

No one is buying Corbett’s claims that he didn’t play politics with the Sandusky investigation. A whopping 69 percent of Pennsylvanians don’t view Corbett favorably, making him the nation’s least popular governor.  And a miniscule 17 percent think he handled the Sandusky investigation well.

Why? Maybe because:

-It took three years to get Sandusky off the street. Within the law enforcement community, it’s almost unanimous that Sandusky should have been nailed much, much earlier. Ten cases weren’t needed, as Corbett maintains, but only two or three to make an arrest while continuing to build the case.

-Corbett ordered a narcotics agent to lead a whopping team of two to investigate Sandusky, while scores of agents — including child predator units — prosecuted a political corruption case.

Because of Corbett’s colossal inconsistencies, Republican leaders were forced to abruptly end a legislative session, killing a motion requesting a federal investigation of Corbett’s handling of the case.

As a result, Corbett’s numbers have stayed in the basement. The erosion of his popularity, transcending Party lines, stems from the nagging feeling that Corbett placed politics above the protection of innocent children.

*****

The most far-reaching result of the Governor’s failures will be the political earthquake that never was. If Corbett had been just a fraction of Chris Christie, and had run the Sandusky investigation properly, Mitt Romney wins Pennsylvania hands down.

Instead, because of Corbett’s toxicity, Romney was forced to focus on Ohio, which he will likely lose, and with it, the White House.

But that may be the least of Corbett’s troubles. Kathleen Kane is poised to become the first elected Democratic Attorney General in Pennsylvania history.  Should that occur, the political embarrassment for Corbett would be immense, since he would be seen as the main contributor to a Kane victory.

If elected, Kane promises an intense review of the Sandusky investigation, with no hesitation to charge anyone —including the Governor — should improprieties be uncovered.

And who thought politics wouldn’t be interesting after this election?

As published in Daily County Daily Times:
http://www.delcotimes.com/articles/2012/11/05/opinion/doc50979500780a2499235935.txt

Philadelphia Magazine:
http://blogs.phillymag.com/the_philly_post/2012/11/05/sandusky-corbett-defeat-romney/

Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at CF@FreindlyFireZone.com

David Hentosh:

Adding to the bad timing of Kathy’s challenge is the absence of fresh ideas or a new direction that could at least spark interest from voters. Railing against the rich and corporations, blaming Bush tax cuts, and bringing our troops home are stale, Democrat talking points. So, too, is her bumper-sticker, fear-inducing accusation that Fitzpatrick wants to “kill” Social Security. Desiring a change to the tax code is pretty much an across-the-board issue with all candidates and accusing Fitzpatrick of partisanship sounds like the pot calling the kettle black

Boockvar will appeal to far-left voters because she certainly leans that way, but far-left tactics won’t convince others. On her website, she lamely tries to pair Fitzpatrick with Tod Akins, hoping printing their names together will stain Fitzpatrick with Akins’ infamous blunder. That and accusing Fitzpatrick of trying to “roll back women’s rights”, however, are typical far-left, over-the-top tactics showing her true colors – and they are bland.

Well, not in so few words.

“Unemployment continues to drop and those people who are unemployed, they’re not going to be voting for the party who wants to cut their benefits — cut access to food stamps, cut job training,” Fattah, Senior Member of the House Appropriations Committee, told MSNBC’s Al Sharpton last night.

Fattah quickly reformulated his analysis of why the unemployed will back Democrats. “I think on this election day, those who have a job can credit the administration for stabilizing our economy and those who don’t know that this administration is trying to put them to work,” he said.

At least someone watches MSNBC out there.

 Americans don’t have enough holidays.

Unlike our Euro brethren, who take off all of August to refresh themselves after their grueling 25-hour work weeks, those in the U.S. can’t catch a break.  Sure, we have Arbor Day and Wildflower Week, but we need to celebrate more.  So it’s only appropriate to propose a holiday to which we can all relate, one that stays with us for more than just a day.

National Colonic Month.

No, not the colonic used to flush the body of evil red meat. That would be pointless since, according to a new study, just looking at a hamburger increases the likelihood of death by 900 percent.

National Colonic Month would be the collective feeling of having a gas pump forcefully inserted where the sun doesn’t shine by the United States Congress each time we refuel our cars, buy groceries, heat our homes, lay people off, lose our jobs, pull out our hair and contemplate “crimes of opportunity” (aka siphoning your neighbor’s gas tank), all in the name of making Arab sheiks the world’s first trillionaires.

Since America has perfected its current position of being bent over a barrel, its posterior wide open and ready to receive whatever comes, what better time for a national colonic of Middle Eastern petroleum?  And here’s the best part.  Given America’s insatiable appetite, National Colonic Month would just roll from month to month. So whether gas is $4 now, $5 in the summer, or $9 when the Washington braintrust strikes Iran, we will never have to worry about a shortage of colonic activity.

Of course, as with any procedure, there are side effects.  In our case, it hurts a lot more as the price goes up, hemorrhaging can occur, and decay and disease may soon set in. And since we are the only doctor in town, yet remain impotent to solve, let alone diagnose, the problem, the prognosis for recovery isn’t good.

Kind of reminds you of Fletch’s most famous line, “Using the whole fist, Doc?” 

In America’s case, it’s a lot more than a fist.

*****

It’s really tough to figure out who is dumber: Congress or the people who elect them.

Are people up in arms about skyrocketing gas prices? You bet.  My answer? Shut up and take your colonic.  It’s no one’s fault but your own, so deal with it.

Oh sure, there are renewed calls for drilling now that gas is $4/gallon — just like in 2008 when it hit $4.50.  But then the economy tanked, oil prices collapsed, and gas returned to “normal” (under $3).  Result? Back to complacency.  The only thing that got drilled was the people, but they were too ignorant to know better.

Now that prices have spiked again, we are looking for a scapegoat.  Obama is a convenient target, and while he is partially responsible, so are his blamers, namely the Republicans. Consider:

1) It was George H.W. Bush who implemented the moratorium on offshore drilling.  And it was Junior Bush who, rather than being proactive by opening up ANWR and reversing Dad’s mistake while he had significant majorities in Congress (and let’s face it — after 9/11, he could have had anything he wanted in the name of security), waited until gas spiraled out of control to call for drilling.  Too late, as the Democrats slammed the door in his face.

2) A local Republican congressman told me during a 2010 interview that he couldn’t introduce a drilling bill while in the minority. Uhh, sorry, but Civics 101 says differently. The bill may not make it out of a Democratically-controlled committee, but it absolutely could have been introduced.  And, by the way, that would have been a coup, since Obama made offshore drilling and nuclear power a cornerstone of his 2010 State of the Union address.  But the GOP response? He didn’t really believe that. 

Remember, this is the same president who just green-lighted the first new nuclear power plants since 1978.  A Democrat doing that is akin to Ronald Reagan calling for a ban of all handguns.  But rather than work with the President on a (yes—Republican!) issue, the result was bitter, partisan attacks. Hence, no offshore drilling.

3) But Mr. Obama doesn’t get a free pass. He recently ridiculed those who advocate “drill, drill, drill” to lower energy prices. Well, not to be a stickler, but if you produce more of something, the price will, in fact, drop.  Yes, we should all be more energy-conscious. That’s common sense. And alternative energy resources should be developed so long as they are market-feasible. But let’s be real. Oil is the unrivaled king of the energy world. Since that will not change for decades, if ever, it’s time to remove our heads from the colonic area and do what we all know has to be done: drill domestically.

Obama delayed the Keystone XL Pipeline, which was a mistake.  But what damn near everybody is missing is that, save for a relatively small amount of product from North Dakota, the oil is all Canadian.  Granted, getting oil from our Canuck friends is certainly better than relying on Middle Eastern nations, but it misses the point entirely.  Why are we not responsibly drilling on our own turf, keeping the jobs and revenue stateside?

4) Natural gas just hit a ten year low, while oil (and gasoline) are soaring. Go figure. So the wells that should be tapping the unlimited, clean-burning natural resource literally beneath our feet are being capped, killing jobs and entire industries.  Well, except for colonics.

5) Most disturbing is that our local congressional representatives are spending their time holding hearings on the closings of the Sunoco and Conoco-Phillips refineries. No, that’s not a joke. Congressman Pat Meehan and Senator Bob Casey are looking for answers as to how the closings will affect oil prices and impact national security.  (This should be no surprise, as Congress routinely holds hearings on weighty matters such as how the College Football Bowl Championship should be decided).

Perhaps I could save a boatload of taxpayer cash by releasing the results of a poll conducted of a sixth-grade class I teach.  The closings will be bad. Very bad. Prices will continue to rise, since if there is less of something, its cost will increase. And we will be less secure. Next hearing?

When did we start prioritizing national security anyway? Congress cares infinitely more about the national security of Middle Eastern sheikdoms than it does America, despite some of those nations funding anti-American terrorist groups with our petro dollars.  And all for one reason: their oil.

Here’s the bottom line: as long as we refuse to domestically drill, American soldiers will continue to die in Muslim lands.  And no amount of hearings, protests, or political rhetoric will change that. And let’s be honest. Our men and women are not “fighting for our freedom,” nor are they “keeping the war over there.” They are simply doing the bidding of a Congress —and the people who elect them — who are too complacent, or worse, impotent — to do the responsible thing: protect America by harnessing our vast and unparalleled domestic energy resources.

And there’s no colonic to cleanse the soul from the blood we all have on our hands.

So to be crude, stick it in and fill ‘er up, Sheik.

An accredited member of the media, Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at CF@FreindlyFireZone.com

In front of the entire nation, conservative radio giant Rush Limbaugh repeatedly called Georgetown law student Sandra Fluke a “slut” and “prostitute” for her support of an Obama Administration policy requiring health insurers to offer contraceptives.

Not surprisingly, the issue became, and still remains, the preeminent national story, pushing it front-and-center in the Republican presidential campaign.

Anytime a powder-keg situation ignites into a massive media firestorm, as this one did, it is always interesting to look at who comes out on top, and who is left burning in the ashes.

And the biggest loser, by far, may surprise you.

So here is a look at winners and casualties of Pill-Gate:

Winners

Limbaugh The Entertainer Rush has followed the cardinal rule in entertainment: there’s no such thing as bad publicity.  Bet the ranch that his ratings will increase, and with that additional advertisers.  This is not foreign territory to Rush, as he has been engulfed in numerous high-profile controversies in the past, since, let’s face it, controversy pays.  To the tune of $40 million a year.

Remember too that Rush has the luxury of saying pretty much whatever he wants without fear of repercussion.  With a net worth in excess of $350 million, he needn’t worry about paying the rent should he get fired.  And how likely is Clear Channel Communications (his employer) to fire the most lucrative figure on the radio?  It’s doesn’t take courage to tell and defend the truth when one stands to lose nothing. For those who idolize Rush in that regard, find a real hero to adore.

Oh, and his apology? It’s a stretch to even call it that, but all part of the game.  Apologize while not really apologizing, and trash your enemies in the process.  If nothing else, Limbaugh would be a great politician.

Advertisers Sure, some advertisers have “temporarily” suspended advertising, but most of those companies are also practicing the above rule.  A business (very publicly) announcing that it will yank advertising from Limbaugh scores a huge coup by receiving untold millions in free publicity.  And in a few weeks when the shelf life of this story dies, most, if not all, will quietly return to Limbaugh.  It’s a win-win for advertisers, and Clear Channel knows it.  And let’s face it — Limbaugh’s advertisers know he’s controversial, which is exactly why they pay top dollar to run commercials on his show. To them, occasional forays over the line of decency are acceptable risks. 

Sandra Fluke The are hundreds of thousands of law students, but Fluke has broken through the ranks of obscurity to be forever known as the “Limbaugh slut girl” who wanted taxpayers to foot the bill for her sexual habits.  She helped her issue gain political ground, and will never have to worry about landing a job.  Fluke’s popularity — and notoriety — is her golden ticket.  Who knew testifying at an unofficial congressional hearing could be so lucrative?

Mandatory Contraception issue (perception) This issue gained significant momentum, unwittingly helped by a poor student being mercilessly— and personally — attacked by an ultra-wealthy bully.  And what about the actual merits of the issue?  To many in the Great American Middle, they don’t matter. Right or wrong, their mentality is that if Limbaugh is attacking this young girl for just trying to tell her story, she must have some valid points. Conversely, if Limbaugh has to demonize her, his position must be so weak that it can’t be won on its own merits.

Too bad, because on the issue, Rush was right.

Losers

Mandatory Contraception issue on its merits The President is wrong in attempting to mandate contraception coverage from health insurers, as that is a case of government vastly overstepping its bounds. There are religiously-affiliated entities that are opposed to providing certain services, directly or indirectly, such as contraception and abortion. To do so not only tramples on market freedom, but religious freedom as well.  

Truth be told, most insurers are more inclined to offer contraception services anyway because it makes financial sense.  Paying for the Pill is infinitely cheaper than shelling out thousands for OB-GYN visits, ultrasounds, pregnancy complications, child births, vaccinations and, of course, the regular medical bills that accompany a new child throughout his life.  

But the market should determine that coverage, not government.

Limbaugh The Movement Leader Entertainers do whatever is necessary to entertain and make money.  But when they cross the line and represent themselves as serious leaders of a political movement, there are problems. Most Rush fans can’t discern the difference, and that endangers their conservative cause when their iconic leader does something that benefits himself but vastly sets back a core issue.  

It’s not that he doesn’t care, but that he puts his own interests ahead of the Cause, even if that means hurting the Movement. This is nothing new, and it isn’t just Rush. Ann Coulter calling John Edwards a “faggot” was another example of needlessly providing red meat to the Left. And make no mistake, this issue will be back in the general election, with Obama and the Democrats painting all Republicans as extremist, mean-spirited Rush Limbaugh-types.  Not a winning image for the GOP.

The Republican Party Another fantastic issue in which the Republicans could have differentiated themselves from Obama and the Democrats — and another opportunity squandered. What else is new?

Not one Republican leader — and not one GOP presidential contender — transformed this into what it is: the lack of common sense health care reform. And God forbid any of them tell the truth by pointing the finger at themselves as to why we find ourselves having this debate at all. 

But here’s the truth.  This is fault of George W. Bush, along with the sizable GOP majorities he had in both Houses for six straight years. Did they make any real attempt to solve the problem of skyrocketing health care costs? No. Had they done so, Sandra Fluke wouldn’t be begging the taxpayers to pay for her contraceptives.

As it now stands in America, if you don’t like your employer’s health insurer, you can either pay for a different insurer out of pocket (totally impractical since there are so few options and far too expensive), or change jobs (more impractical).  Notice that there is no option to buy insurance across state lines, since that is illegal.  So while we can buy auto insurance from any state in the country, we are banned from doing so for health insurance.

Why such a stranglehold on the free market? Because it’s not in the interests of the big insurance players to have such consumer choice, as they would be forced to actually become competitive.  Thankfully for them, they have deep pockets which they use to fund the coffers of politicians. Result? Consumers are held hostage to skyrocketing rates and decreasing coverage, while the insurers laugh all the way to the bank.

Then there are the flexible spending accounts that still have a “use it or lose it” policy. Instead of encouraging savings, such plans only serve to have consumers making a mad dash to the pharmacy so they can buy 27 bottles of aspirin before their money — yes, their money —disappears. 

Medical malpractice reform? Did the Republicans and President Bush —while riding an unprecedented wave of popularity — have the guts to take on the trial lawyers who, more than anyone, are the cause of massive increases in health insurance premiums? A look at how many Republicans took big money from these scourges of society is all you need to know.

And the GOP failed miserably throwing the Left’s hypocrisy back in its face.  These are the people who advocate unrestricted abortion, screaming that government has no place in the uterus, while asking the same government to fund their contraceptives (which, I believe, affects that very same uterus).  The inconsistency of those folks was a gimme, a political homerun for the Republicans.  But their silence has been deafening.

Had the Republicans did what they had promised — what they surely could have achieved with just a bit of political will — this whole Rush/slut/contraceptive debate would never have taken place, because there would never have been Obama, and hence, no Obamacare. But that is a lesson lost on way too many Republicans, who find it convenient to blame everyone but their own Party.

*****

Perhaps those on the Right would do well to 1) realize that the Limbaughs of the world are entertainers, not Movement leaders, and treat them as such, 2) refuse to defend the indefensible when such entertainers cross the line, 3) stop blaming Obama for the things he very clearly told the nation he was going to do — make government-run nationalized health care a priority, and 4) hold the Republican Party accountable for its deliberate failures to fix America’s problems (offshore drilling, border walls, health care reform, smaller government), as promised in its Party Platform.

Maybe then this nation could have a constructive dialogue on the pressing issues of the day.

And what a Rush that would be.

An accredited member of the media, Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at CF@FreindlyFireZone.com

Endorsing Steve Welch —who voted for Obama — would make the Party a national laughingstock…Republican State Committee: It’s Time For An Open Senate Primary

Second in a series on how retooled refineries can save jobs and revitalize manufacturing

“Thank you for trying to get those who should understand the urgency of energy independence, jobs, and our future…to do so.  (We are) loading up the SUV almost every day to give away household items to Neighborhood Services and friends…and preparing to relocate if necessary.  You are right… finding middle class wages here in Pennsylvania is challenging if not impossible.  The blood, sweat and tears of years planning and building our dream home only to sell it in a bad housing market is like adding salt to the wound….”

This heartbreaking message was sent by a distraught wife of a 19-year Sunoco refinery worker, as that company’s two refineries (Philadelphia and Marcus Hook) are slated for closing, as is the ConocoPhillips refinery in Trainer, Delaware County, if no buyers are found.  Making the sin mortal, there are reports that the ConocoPhillips plant might be dismantled, shipped overseas, and resurrected in a foreign—potentially adversarial — country.  But this is nothing new, as America’s abandonment of its manufacturing base has often included shipping entire facilities overseas for the benefit of our competitors.

Can it be reversed? Is it possible not only to save these refinery jobs but at the same time create a rebirth of American manufacturing — mandatory for the nation’s future since no country has ever survived without an industrial base?  Many “experts” will arrogantly claim “no,” that America can’t compete with Chinese labor costs, and smugly proclaim that manufacturing is passé anyway— unnecessary in a modern 21^st century economy.

Unfortunately, the wrong people here are losing their jobs.  The backbone of America shouldn’t be facing the unemployment lines. The so-called experts, including the politicians from both Parties who got us into this mess, should be the ones getting canned. 

(See Freindly Fire’s Sunoco Refinery Part One:)

http://blogs.phillymag.com/the_philly_post/2011/12/21/save-philadelphias-sunoco-refinery-jobs/

But if we are to save jobs by retooling the refineries to process God’s gift to Pennsylvania (and the nation) — Marcellus Shale natural gas — it is imperative to stop the blame game and halt the tendency, while natural in a time of such high emotion,  to conveniently point fingers at whatever “boogeyman of the day” caused this unfortunate situation. Likewise, the fly-by-night ideas proposed by some shortsighted politicians must be seen for what they are: either clueless suggestions or a naked pandering for votes.

*****

Who Didn’t Cause The Problem

Sunoco

A million dollars is a lot of money — who hasn’t thought about having that much cash? You could do a lot with a mil per year, even more if you made that per week, and would be king of the world if you raked in seven figures per day, especially if that that was the case for three straight years. Life would be sweet — unless, of course, you happened to be in the sweet crude oil refining business in a deteriorating market.

So let’s be consistent. If making a million a day is desirable, losing that amount on a daily basis would be, in professional financial nomenclature, very, very bad. Common sense tells us that anyone losing a million a day for three years would do everything possible to stop the hemorrhaging. Welcome to Sunoco’s plight.

Ask any student unschooled in economics what the primary objective of business is, and he will invariably answer, “to make money.” Wrong.  Making money is easy.  Earning a profit by taking in more than you spend — the correct answer — is the hard part.

Despite the misguided “Occupy” mentality that profits are nothing more than gluttonous greed, the truth is quite different. They are necessary to expand operations, hire more personnel, pay salaries and benefits, and contribute to the overall health of a company —and the entire economy.  (Not that Wall Street greed doesn’t exist in numerous other forms, much of which should be regulated/outlawed, but that is another column).

Sunoco and ConocoPhillips are not in the “business” of losing money, and their past profits and payouts to shareholders are completely irrelevant to the fact that the outlook for the refining business is bleak.  They are under no moral, ethical or financial obligation to keep the doors open. Keeping people employed inefficiently—READ: subsidized — in a business with no possibility of profit is anathema to the Free Market and would eventually collapse the entire entity.  This is not speculation but economic certainty.

And if you want to see what happens when this course is recklessly pursued, pull up a chair because you’re in luck. You have a ringside seat watching such an implosion in action: the unsustainable economic policies of the United States Government.

It is also important to note that in 2009, Sunoco announced a significant worker layoff in an attempt to improve company competitiveness — and all were white collar, with no unionized personnel getting pink slips.  Closing the refineries is anything but anti-labor.

Unions

The refinery shutdowns have nothing to do with “greedy unions sucking too much money” from the companies’ bottom lines, as some critics of organized labor incorrectly state. Many of those in refinery operations are highly- skilled union workers who have made a solid living over the last several decades. But a look at the market conditions shows such a minefield ahead for the companies that no amount of concessions would come close to solving the problem.  In the big picture, the significant obstacles facing Sunoco and ConocoPhillips are infinitely greater than any “high” labor costs associated with operating the refineries.

Just like “evil empire” rich oil company executives make inviting targets for blame, so do “pillaging” unions who “want more for doing less.” Is either side perfect? Of course not, since there is no such thing. But while both make good scapegoats, it is simply counterproductive to continually throw darts at them.  Insults don’t solve problems. Strategic vision and genuine partnerships do. The only thing that matters is solving the problem — and quickly. 

Obama

Some find it convenient to blame the President for everything from high gas prices to their children getting a bad test grade. While he certainly has his faults, he extended his hand to the Republicans on the single most important issue of our time — moving America towards energy independence.  If some of his suggestions had been enacted (which, in reality, are part of the Republican platform), they would have quite possibly made the refining outlook much brighter for Sunoco and Conoco, and the shutdowns may not have occurred.

And the GOP response? No bills were introduced, and they absolutely refused to work with the President, with many stating that “he didn’t really believe what he was saying.”  What a brilliant, mature response.

For the disbelievers who need proof, just watch the President’s 2010 State of the Union speech, when, in front of the entire nation, he urged Congress to expand our offshore drilling ventures, and freed up millions of acres of coastal water for exploration and development. In addition, he called for an increase in nuclear power plants across America and pursued loan guarantees for new facilities (even one year later in light of the Japanese disaster).

Which was interesting, not only because he went against one of his strongest constituencies (the environmental lobby), but also because Obama’s move threw a wrench in the conspiracy that he was a closet Muslim who wanted to weaken America. Pushing for energy independence would be the polar opposite way to achieve that goal.

Granted, Obama has not been stellar in following up on his domestic drilling initiatives after the BP spill, and has yet to authorize the critical Keystone XL Pipeline project, but those shortcomings pale in comparison to the other Party’s inaction.

What did oilman George W. Bush or his Halliburton-affiliated sidekick Dick Cheyney do to increase domestic production? Zero.

Or the patriarch of the Bush family, George Herbert Walker Bush?  Well, it was the elder Bush who signed the moratorium on offshore drilling. His son W. left it in place for seven years, despite having sizable majorities in both Houses of Congress. Only after fuel costs skyrocketed to over $4.50 per gallon in 2008 did he call for the lifting of the moratorium. But it was too little, too late. And it never happened.

What could have prevented those crippling spikes at the pump? Offshore drilling — both off the continental shelves and in ANWR (the Arctic National Wildlife Refuge) — and the construction of new refineries, given that the last one was built in 1976.

And what better time to have pushed it through than right after the September 11 attacks. In addition to having a Republican congress and nearly 100 percent of the nation behind him, Bush had the world’s goodwill in his corner.

Instead, this nation’s reliance on foreign oil — which is a nice way of saying we are pumping billions of petro dollars into the coffers of some who are hell bent on destroying us — has only increased.

And this week, gas hit another all-time high for this time of year.

Both Parties are guilty of forsaking America’s security and economic well-being. It is only right that they atone by eliminating the red tape, bureaucracy and onerous regulations placed upon the energy industry, as well as rescind the economy-killing taxes on fuel.  Those steps would make it infinitely more palatable for entrepreneurs to convert the refineries, keeping those strategic assets and jobs exactly where they belong: in America.

Parts Three and Four will detail solutions for how refinery conversions can jumpstart the economy through specific uses of dry and wet natural gas — while NOT making Philadelphia a port for Liquefied Natural Gas. 

Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at CF@FreindlyFireZone.com

Part 1 of a series on saving refinery jobs and getting America working again 

For the tens of thousands whose livelihoods depend on the Sunoco and Conoco-Phillips oil refineries in Philadelphia, Marcus Hook and Trainer, the Grinch arrived early this Christmas, announcing that all three facilities would be closing in the near future.

But unlike the Grinch who delighted in causing misery for the sake of misery, the oil companies seemed to have no choice.  Their hand was forced by a combination of market forces that saw them losing millions every single day.

And now, short of the companies finding buyers, those workers will be thrown out into the cold, unemployed in an America that is plunging further into the abyss. An America that doesn’t make a bloody thing anymore.  An America with the highest corporate taxes in the world.  And an America with trade policies that sell out its own citizens.

Making matters worse, most of the workers will be seeking new jobs in Pennsylvania, one of the least competitive states in the nation when it comes to attracting new companies.

Doom and gloom? No, just the hard truth.  And here’s another one. Short of packing up and moving to refinery-laden Louisiana, most of the laid off workers will never find a job in this region close to the pay scale and skill level which they are leaving.

Welcome to The New America, one that too often puts the interests of its competitors — and even its adversaries — ahead of its own citizens.

Compounding the problem even further (if that’s possible) is the unwanted involvement of those who caused our economic mess in the first place — the politicians.  And, as they continue to demonstrate, they don’t have the slightest clue as to how to right the ship.

Politicians need to be taken out of the equation. Pandering for votes by holding pointless meetings with refinery and union officials isn’t solving anything.  It only gives false hope (while providing them with 30-second sound bites).

But here’s the good news.  There is hope, more than can be imagined. Those refinery workers could not be sitting on a better spot on Earth to reap the rewards of a massive opportunity — the correct utilization of the Marcellus Shale natural gas bonanza. If the politicians do their most important job — and the only one they should be doing — of cutting bureaucratic red tape and slashing stifling regulations, the free market will take hold, creating jobs and wealth of unprecedented proportions.

But that’s a tall order.

*****

Former Governor Ed Rendell, while certainly an affable chap, was never mistaken for a genius, especially when it came to getting Pennsylvanians working again.  His mentality was that a paternalistic government knows best, derived no doubt from the fact that he virtually never held a private sector job in his life. Thus, he was wholly incapable of understanding the difficult decisions that businesses must make to maintain profitability.

So it was no surprise when, in 2009, Rendell inserted his nose where it didn’t belong, publicly excoriating Sunoco for its decision to lay off some of its salaried workforce.  Sunoco officials had stated the move was geared towards remaining competitive, as the company was anticipating a “more difficult economic reality” moving forward.

Taking his criticism even further, Rendell flatly rejected the decision-making of Sunoco’s Chairman and CEO Lynn Elsenhans, arrogantly saying he couldn’t take her at her word. Incredibly, he went so far as to state the “real” reason for the layoffs: “They are solely intended to make a profitable company more profitable and helping pad the dividends paid to shareholders.”

So if Ed was correct (which is always the case – just ask him), Sunoco’s recent decision to shut down its refineries — permanently — must be because it’s just making too much money. 

Or…

Maybe the folks at Sunoco had a slightly better idea than Ed Rendell of the deteriorating market conditions coming down the pike, and maneuvered accordingly to keep its head above water.  Despite their best efforts though, Sunoco did not meet with success, as the closures clearly indicate.

Now the big questions loom — can the refineries be saved, will a buyer be found, can they be converted to refine natural gas, and, of course, what will be the fate of the thousands of families whose livelihoods depend on the refineries?

While Rendell is out of the picture, the involvement of other elected officials still leaves a lot to be desired.

Earlier this week, members of Congress emerged, extremely frustrated, from a meeting with refinery officials, complaining that the company wouldn’t reveal details about highly confidential strategic negotiations with potential buyers.

Earth to Congress: Have We Met? Who do these guys think they are that Sunoco owes them an explanation for anything, let alone sharing privileged information of the highest magnitude? And do we even have to mention that Congress hasn’t been able to keep anything secret in 200 years?

And last month, a bipartisan congressional delegation called on the U.S. Energy Information Administration (along with the U.S. Department of Energy and the Federal Energy Regulatory Commission) to conduct an impact analysis on the potential of the refineries’ closure.

Uh, here’s a not-so-humble message to each member of that delegation: your proctologist called.  He found your head.

Are they serious? Another Blue-Ribbon study to tell us what any sixth-grader already knows? 

It will be bad.  Very, very bad. Jobs will be lost, families thrown into chaos, houses foreclosed, businesses shuttered.  The refining capacity for the East Coast will suffer tremendously (not helped, of course, by the fact that we haven’t built a new refinery in America since 1976). Prices will increase. Volatility will spike. And America will, yet again, find itself bent over the barrel, spending billions more petro dollars buying oil from hostile nations because we (READ: Congress)  will not do the obvious — implement a policy of energy independence.

So let’s save the tens of millions of taxpayer dollars on an absolutely meaningless study, and do something novel: solve the problem!

And to reiterate Step One, the politicians woefully short on private sector experience and who lack the necessary vision to turn an unfortunate situation into a positive one need to get out of the way and let business-savvy entrepreneurs do what they do best: create opportunity.

Energy is the single most important industry in getting America back on her feet again.  And retooling the refineries here in our backyard —the right way, for the right product, to fulfill the right vision — is the blueprint to make that a reality.

And what a Christmas present that would be!

(Part Two will specifically examine what should be done to save the refineries and their jobs).

Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at CF@FreindlyFireZone.com

Well…

Last week’s release of FBI documents finally put in writing what nobody had ever said on the record: The FBI suspected that former Rep. John Murtha (D-Pa.) and lobbyists close to him were running a scheme to funnel earmarks to sham companies and nonprofits to benefit the lawmaker’s friends and former staffers.

Bits and pieces of this story were kicked around for years before Murtha died in February 2010. The Los Angeles Times, Roll Call, the Washington Post and others had documented the odd appearance of earmarks for tiny defense contractors that just happened to open an office in western Pennsylvania and just happened to hire one of the lobbying firms close to Murtha and just happened to begin making campaign donations to Murtha and other Members of Congress close to him.
Reporters could do little but assemble the coincidences and couldn’t prove there was anything wrong with the bigger picture.

But it turns out the FBI was reading the stories and was very interested — interested enough that the Justice Department had opened a criminal investigation into Murtha and some of the lobbyists in his orbit, a fact that never leaked while Murtha was alive.

Mr Murtha might be dead, but his co-conspirators aren’t.