“For The Love Of Money”: How The Gas Lobby Is Using The Crimea Crisis To Push Bad Policy And Make More Money
A small group of pundits and politicians with close ties to the fossil fuel industry are using the crisis in Crimea to demand that the United States promote natural gas exports as a quick fix for the volatile situation. But such a solution, experts say, would cost billions of dollars, require years of development, and would not significantly impact the international price of gas or Russia’s role as a major supplier for the region. Rather, the move would simply increase gas prices for American consumers while enriching companies involved in the liquified natural gas (LNG) trade.
On Capitol Hill, House Energy and Commerce Committee Chairman Representative Fred Upton (R-MI) was among the first to use the crisis in Ukraine to demand that the Department of Energy speed up the approval process for new LNG terminals. “Now is the time to send the signal to our global allies that US natural gas will be an available and viable alternative to their energy needs,” said Upton in a statement. As we’ve reported, Upton’s committee is managed in part by Tom Hassenboehler, a former lobbyist who joined Upton’s staff last year after working for America’s Natural Gas Alliance, the primary trade group pushing to expand natural gas development and LNG exports.
Paul Bledsoe, in an opinion column for Reuters, wrote that the United States should expedite natural gas exports to “bolster transatlantic solidarity and help to form a united US-EU response to Russian intervention in Crimea.” He was identified in the piece as a member of the “White House Climate Change Task Force under President Clinton.” What wasn’t disclosed, however, is that Bledsoe is an official with a pro–fossil fuels think tank called the Bipartisan Policy Center, which is funded by the American Gas Association and energy companies with a financial stake in promoting the natural gas industry. (Although he’s not listed on the website, a representative with BPC told Republic Report that Bledsoe continues to work there.)
Groups created and funded by Charles Koch, chief executive of Koch Industries, have also demanded that America should respond to the crisis in Crimea with LNG exports. “A serious President would also fast-forward permits on new liquefied natural gas terminals that could ship to Europe,” claims a column posted by Americans for Prosperity, a Koch-run advocacy group. A similar argument is advanced by the Koch-founded Cato Institute.
What’s left undisclosed, however, is the huge financial stake in the debate for Koch Industries. A brochure for the company shows that Koch has deeply expanded its footprint into the natural gas market, and is now actively engaged in shipping, sourcing and marketing LNG, in addition to becoming a leader in developing financial instruments related to natural gas. “To complement existing North American activities from Houston and to optimize their global portfolio, KS&T companies are expanding a Europe-wide natural gas business from Geneva and an LNG trading business from offices in Houston and London,” reads the document. Further, Koch federal lobbying disclosures show that the firm has pushed a bill to expedite LNG exports from America to NATO countries.
In perhaps the most ironic twist of this public debate around how to respond to Russia’s incursion into Crimea, American lobbyists with ties to Russia are calling for a solution that would not only shield Russian gas oligarchs, but enrich them. The National Association of Manufacturers has opposed tough sanctions on Russia. Instead, NAM has used the crisis in Ukraine to “urge speedier approval of liquified natural gas exports, arguing that the move would weaken Vladimir Putin’s control over Europe’s energy supply.” NAM’s chief lobbyist Jay Timmons told Politico that an LNG-export response would “send a strong signal to the Russian Federation, our NATO allies, our trading partners and the rest of the world that energy exports matter and are a critical tool of American foreign policy.”
What Timmons did not mention is that ExxonMobil is a leading member of his trade association, and that ExxonMobil has extensive ties to Russian gas giants, including partnerships to develop natural gas in the United States and around the world. (For more on the business ties, see Kert Davies and Steve Horn’s recent reporting on the Putin-sanctioned alliance between ExxonMobil and Russian state–owned oil and gas giant Rosneft.) In short, Timmons’s strong signal to Russia would help Russian gas businesses.
By: Lee Fang, The Nation, March 20, 2014; Originally Published at RepublicReport.org
“An Outsized Voice”: There’s A Big Difference Between Union Money And Koch Money
For dozens of readers, our editorial this morning on the Democratic criticism of the Koch brothers left out something crucial: the big financial muscle of unions in backing liberal politcians.
“As the editors of The Times must know, unions in America far outspend the Kochs in their funding for Democratic candidates,” wrote Yitzhak Klein of Jerusalem wrote in the comments section. “What Harry Reid is doing is cheap demagoguery. Also this editorial.”
Mr. Klein, like many other commenters (some of whom are prominent) has his figures wrong. As the Washington Post and the Center for Responsive Politics recently reported, unions poured about $400 million into the 2012 elections. That almost matched the $407 million raised and spent by the Koch network in that same election cycle.
But think about what those numbers mean. Two brothers, aided by a small and shadowy group of similarly wealthy donors, spent more than millions of union members. The fortunes of just a few people have allowed them an outsized voice, and they are openly trying to use it to turn control of the Senate to Republicans.
The Koch group Americans for Prosperity has also joined the right-wing drive to reduce union rights and membership around the country, with the goal — made explicit at last week’s Conservative Political Action Conference — of muzzling the voice of union members in politics.
The Times has long deplored the vast amount of cash that is polluting politics, whether it comes from the right or left. (And we were critical of a Democratic donor who plans to spend $100 million this year against candidates who ignore climate change.) But for the most part, unions, unlike the Koch network, don’t try to disguise their contributions in a maze of interlocking “social welfare” groups. Their contributions on behalf of candidates or issues may be unlimited, thanks to Citizens United, but they are generally clearly marked as coming from one union or another. (They want Democrats to know which unions raised the money.)
Union members aren’t coerced into giving political money, either, despite the claims of several commenters. Thanks to a 1988 Supreme Court case, workers have the right not to pay for a union’s political activity, and can demand that their dues be restricted to collective bargaining expenses. The union members who contributed to that $400 million pot in 2012 opted into the system.
That’s still too much money. But there’s a world of difference between a small group of tycoons writing huge checks, and a huge group of workers writing small ones.
By: David Firestone, Taking Note, Editor’s Blog, The New York Times, March 11, 2014
“Washing Koch As White As Snow”: No Matter The Camouflage, Things-Don’t-Go-Better-With-Koch
Joe Scarborough recently got into quite a huff—and got the Morning Joe crew to huff with him—over Harry Reid’s attacks on David and Charles Koch, the billionaire industrialists who fund dozens of conservative causes and Republican campaigns. Reid had said, rather catchily for him, that Senate Republicans “are addicted to Koch.” The Senate majority leader also said the brothers “have no conscience and are willing to lie” in political ads, and that they’re “un-American” for trying to “buy America.”
Reid said he doesn’t begrudge the Kochs their wealth, but “what is un-American is when shadow billionaires pour unlimited money into our democracy to rig the system and benefit themselves and the wealthiest 1 percent.”
That might sound hyperbolic unless you have followed the long list of ways the Kochs are indeed buying America. For starters, while their Koch Industries is the one of the nation’s largest air polluters, their money is a huge factor in blocking climate change progress and spreading know-nothing denialism; they fund ALEC and its stand-your-ground political agenda; and they’re waging a multimillion-dollar war against the Affordable Care Act, trying to convince young people, through ads like the one with the creepy Uncle Sam gynecologist, that they should be afraid, very afraid of Obamacare. Through innumerable think tanks, PACs, nonprofits and dark-money trap doors, Koch money has formed a veritable “Kochopus” that reaches deep into academia, industry, state legislatures and Congress. (For more, see here and here.)
But what’s really gotten Harry Reid to put up his dukes is that the Koch-funded PAC Americans for Prosperity (AFM) has spent more than $30 million, and counting, on ads attacking Democratic senate candidates in the upcoming midterm elections. To defeat Senator Kay Hagan of North Carolina, for instance, AFM has already dropped $8.2 million on TV, radio and digital ads. As Politico puts it, that’s more “than all Democratic outside groups in every Senate race in the country—combined.” Koch money could easily flip the Senate to a Republican majority, leaving little but presidential vetoes to blunt the GOP House’s politics of cruelty.
Joe Scarborough understandably fumed at the “un-American” charge, but he framed the Koch’s power quite differently.
“Let’s first tell the truth about them and what they do, put some perspective in it,” he said Thursday. “It’s unbelievable what they’ve done for cancer research, what they’ve done for the arts, what they have done for education.”
Indeed, you can tell by the way the bros have been slapping their names on cultural institutions that they think they can get their reps fixed wholesale. In New York City alone, the New York State Theater at Lincoln Center has become the David H. Koch Theater. As you enter the Metropolitan Museum of Art, signs tell you you’re standing on the new David H. Koch Plaza. David Koch’s name had also been elevated by his contributions to WNET, the city’s PBS affiliate. That ended last year, however, when WNET ran an independent documentary critical of him. To placate Koch, they axed a second similar film, but Koch resigned from the board and took his money with him.
But by emphasizing the Kochs’ philanthropy—which, come on, is the least two men worth $40 billion each and tied at number four on the Forbes rich people list, can do—Scarborough was providing exactly what their largesse was intended to produce: praise and a media force field that can deflect political criticism. Not that Joe is terribly adverse to their politics, but the point of his outrage in the Morning Joe banter was to shift focus away from Koch policies to Reid’s breach of polite discourse. Willie Geist said that the “addicted to Koch” line “seems beneath the office.” Former congressman and nominal Democrat Harold Ford sniffed, “There’s no need for that kind of vitriol.” Only Donnie Deutsch got close to the heart of the matter, asking whether the “Koch brothers spending a billion on advertising is good for democracy.”
Training your eyes on an oligarch’s philanthropy and away from what it camouflages is to accept in some way the essential justness of great wealth. As if to second that notion, Governor Chris Christie said at CPAC last week that Reid was “rail[ing] against two American entrepreneurs who have built a business, created jobs, and created wealth and philanthropy in this country. Harry Reid should get back to work and stop picking on great Americans who are creating great things in our country.” Some of those great things include millions in donations to the Republican Governors Association, which Christie (still) heads.
Reid’s attacks are part of a larger Democratic pushback, which includes TV spots and sites like KochAddiction.com and StopTheGreedAgenda. The strategy is transparent: link GOP candidates to the Kochs and make the Kochs into villains.
Creating a visible villain is, of course, a time-honored political activity. The Dems have vilified Newt Gingrich and more recently Mitt Romney’s Bain Capital, while the Republicans’ demons include Nancy Pelosi, the Rev. Wright and Bill Ayers. As for “un-American,” a few years ago Glenn Beck falsely portrayed George Soros, the closest big-time funder progressives have to the Kochs, as a Nazi collaborator.
But beyond a bunch of liberals who follow the Koch trail, will voters know or care about what the billionaire brothers do with their money?
Paul Waldman in The American Prospect doubts it. And so far, he says, the Democratic ads aren’t up to the job. In this very busy spot, running in Michigan, the Koch brothers appear as barely identified ghosts amid a jumble of hard-to-follow words.
For what it’s worth, the things-don’t-go-better-with-Koch message is getting across, at least with focus groups. Democratic pollster Geoff Garin told the Times, “Our research has shown pretty clearly that once voters recognize the source of the attacks [on Democratic candidates], they tend to discount them substantially.” Focus groups, he said, had an “overwhelmingly negative” reaction to the Kochs’ political involvement and believed that the Kochs’ “agenda will hurt average people and the undermine the middle class.’”
Billionaire venture capitalist Tom Perkins might have been only kidding when he said that democracies should be run more like corporations: “You pay a million dollars in taxes, you get a million votes.”
But if you pay for enough misleading ads, that is, in effect, what a million bucks can do. And the more the media unthinkingly hail your charitable giving, the more mileage a million dollars will get you.
By: Leslie Savan, The Nation, March 10, 2014
“Unlimited Spending”: This Is How The Koch Brothers Plan To Win The U.S Senate
The Koch brothers* are hiring.
You’ll find job listings for campaign staff positions in Koch-funded groups in Arizona, California, Colorado, Florida, Louisiana, Minnesota, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Texas and Virginia. Some of the ads call for experts in social media channels such as Facebook, Twitter, Pandora, YouTube, Google, and OutBrain to effect a strategy that’s both agile and overwhelming.
And you’re already seeing $20 million worth of TV ads from the Koch-funded group Americans for Prosperity (AFP) targeting incumbent senators in Alaska, New Hampshire, North Carolina and Louisiana for supporting Obamacare. Similar ads are now up Michigan and Iowa, where veteran Democrats Carl Levin (D-MI) and Tom Harkin (D-IA) are vacating their Senate seats.
Now Democrats are sounding the alarm to their donors in a moment that’s reminiscent of the note the Obama campaign hit with an email in which the president said, “I will be outspent.”
“Democrats need money at this early stage in order to fight back against the limitless spending from the Kochs,” Guy Cecil, the executive director of the Democratic Senatorial Campaign Committee, told The New York Times. “The limitless spending from the Kochs means we need Democratic donors to step up in a bigger way immediately.”
Republicans need six seats to take over the U.S. Senate and the Kochs are trying to expand the map to put even the states that twice voted for President Obama in play. And they’re building on a model that they perfected in 2010 when right-leaning groups hammered the president and Democrats in Congress for a year over the “failed” stimulus before it even had a chance to work.
With Democrats holding virtually every swing seat in the nation after the landslide of 2008, they defended on all fronts and avoided trying to nationalize the race, even though the choice was made for them. As the midterm election hit, in the midst of the worst job market in 60 years, Republicans won more elected offices than they had at any time since before the Great Depression.
The right tried to reprise this strategy in 2012 with dismal results. But in an off-year election, without President Obama on the ballot and with Obamacare disapproval soaring in red states, there’s a clear opportunity to use health care reform to define Democrats early.
And that’s what the Kochs are doing wherever they see an opportunity.
With former Michigan Secretary of State Terri Lynn Land polling better than expected against her likely Democratic opponent Rep. Gary Peters (D-MI), especially in polls that under-sample African-Americans, Michigan presents such an opportunity. Land supported Rep. Paul Ryan (R-WI) in his plan to privatize Social Security and Medicare in previous budgets, but she’s unlikely to produce the sort of gaffes that cost Republicans Senate seats in Missouri, Indiana, Nevada and Rhode Island.
Land recently touted outside groups supporting her run right as AFP’s ad targeting her opponent began a $1 million three-week run — even though collaboration between candidates and these groups is illegal. Wink, wink.
Democrats also hope to expand the Senate map to Georgia — where Obama only lost by 8 percent without spending a dime in the state. Michelle Nunn, the daughter of the state’s former beloved senator Sam Nunn, will likely be the Democratic nominee and could easily end up facing Rep. Paul Broun (R-GA) who was voted “Most Likely to be the Next Akin.” His primary opponent, Rep. Jack Kingston (R-GA) — who recently said that children would benefit from working — was a close second to Broun.
While Karl Rove is actively trying to influence Republican primaries to ensure the most electable candidates win, Americans for Prosperity retains its Tea Party credibility by aiming its fire only at Democrats and sticking to the issue that will preoccupy the right for the third national election in a row — Obamacare.
So if you’re in one of those 13 targeted states, expect to hear about #fullrepeal of a law that’s been on the books for almost four years now on TV, Facebook, Twitter, Snapchat, email and anywhere the Kochs can find you.
*The Kochs go out of their way to obscure how they spend the millions they invest in Republican politics. Americans for Prosperity is a 501(c)(4) social welfare group that doesn’t have to release the names of its donors — though we know David Koch helped to found the group. These non-profits, which are limited in the amount of resources they can apply to political efforts, were the subject of the controversy where the IRS used political keywords to identify conservative and progressive groups for extra scrutiny. Big groups like AFP and Karl Rove’s Crossroads GPS avoided such scrutiny, until recently, at least.
By: Jason Sattler, The National Memo, January 15, 2014
“The Circle of Scam”: Welcome To Conservative Politics, Where Everybody’s Fleecing Somebody
I’ve long held that what William Goldman said about Hollywood—”Nobody knows anything”—is equally true of Washington. At the same time though, people in politics are particularly adept at finding those who know even less than they do, and scamming them into giving over their political support or their money, or both.
I thought of this when reading the long investigation The Washington Post published the other day on the byzantine network of organizations the Koch brothers have established or funded to funnel their ample resources into politics. There are dozens of groups involved, and money moves back and forth between them in intricate ways. The Post was able to trace $400 million they spent in the last election, but since there were a number of organizations whose money they weren’t able to track, the real number is almost certainly higher. As a tax law expert quoted in the article says, “It is a very sophisticated and complicated structure … It’s designed to make it opaque as to where the money is coming from and where the money is going. No layperson thought this up. It would only be worth it if you were spending the kind of dollars the Koch brothers are, because this was not cheap.” The Koch brothers no doubt can avail themselves of the most skilled and creative accountants money can buy.
But they sure didn’t get much for their money. Barack Obama, you might have noticed, is still the president, and Democrats did quite well overall in 2012. Perhaps there was no way for the Kochs to change that even with a mid-nine-figure investment. But what it appears happened is that these brothers, who are no doubt savvy businessmen, got taken to the cleaners by their consultants (Matt Yglesias had the same thought I did about this).
You see, political consultants don’t always have standard rates that they use for all their clients. On one end, this may mean that the firm accepts a smaller profit to do some work for a do-gooder nonprofit. On the other end, it means that for a client the consultant knows has deep pockets, the same services will be marked up, maybe by a little, maybe by a lot. If you were a Republican polling firm and the Kochs came to you asking you to do a poll that you ordinarily charge $50,000 for, maybe you could just bump that up to $75,000. They probably won’t notice the difference, after all. And maybe you convince them that they need to conduct six or eight such polls over the course of the year. The direct mail consultants are doing the same thing, and you can bet the media consultants are doing it too, because those guys pull money from clients like nobody’s business. And it isn’t like the Kochs are going to be going over the contracts line by line, right?
Each individual consultant may only be padding his own bottom line by $50,000 here or $100,000 there, but there are so many people involved and so many millions passing hither and yon that by the time its over, the results at the ballot box may be discouraging but a lot of already successful Republican consultants are thinking it’s finally time to get that beach house.
There’s another scam going on at the same time, which is that many of these efforts are aimed at recruiting regular people to be the Koch’s ground troops, to put a “grassroots” face on what is most assuredly an elite project. The Kochs have sincerely held political beliefs, which by pure coincidence happen to line up perfectly with their economic interests. They’d like it if there were fewer regulations on corporate behavior and lower taxes on the rich, among other things (that isn’t to say they don’t also have beliefs on non-economic topics like abortion as well, because I’m sure they do). If you can convince a bunch of middle-class folk to go stand outside in their tricorner hats braying about the Founders and the Constitution as they press Congress to lighten the burdens on our nation’s beleaguered plutocrats, then it’s all worth it.
So the Kochs are getting scammed by their consultants, and they’re scamming the people whom those consultants are persuading, and meanwhile there are plenty of other scams around too. Today Rush Limbaugh went on the air and told his millions of listeners that the “polar vortex” is not an actual thing that meteorologists have documented, but something the media made up in order to make the current cold wave not contradict their existing global warming hoax. Does Rush Limbaugh believe this? I doubt it. But treating his audience like a bunch of gullible fools is part of his business model.
You can find regular people who think that if “global warming” were real, that would mean it will never get cold again. But that’s not because they’re dumb (though they may be). It’s because that’s what people they trust have been telling them for years. Every winter, whenever there’s a cold snap or a big snowfall, a parade of doltish Fox anchors goes on the air hour after hour to say, “So much for global warming! Suck it, Al Gore!” Or as Ted Cruz said today, “It’s cold! Al Gore told me this wouldn’t happen!” Har, har! And those Republican voters, made ever stupider by the media figures they adore, make sure the people who represent them won’t allow anything to be done to address climate change. And you know who benefits from that? Why Charles and David Koch, who are in the oil business. They make money, the consultants make money, Rush Limbaugh makes money, and the only people in the equation who don’t make money are the suckers at the bottom.
By: Paul Waldman, Contributing Editor, The American Prospect, January 7, 2014
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