Free Markets, Free People

CBS


Was Solyndra just the tip of a failed taxpayer funded “green energy” iceberg?

It appears so.  CBS News’ Sharyl Attkisson (yes the same Ms. Attkisson who has been the only reporter following up on Fast and Furious) has checked and it seems Solyndra was just one of many “green companies” which the Obama administration attempted to pick as “winners” by “investing” your money via loan guarantees:

Take Beacon Power — a green energy storage company. We were surprised to learn exactly what the Energy Department knew before committing $43 million of your tax dollars.

Documents obtained by CBS News show Standard and Poor’s had confidentially given the project a dismal outlook of "CCC-plus."

Read the documents

Asked whether he’d put his personal money into Beacon, economist Peter Morici replied, "Not on purpose."

"It’s, it is a junk bond," Morici said. "But it’s not even a good junk bond. It’s well below investment grade."

Was the Energy Department investing tax dollars in something that’s not even a good junk bond? Morici says yes.

"This level of bond has about a 70 percent chance of failing in the long term," he said.

In fact, Beacon did go bankrupt two months ago and it’s unclear whether taxpayers will get all their money back. And the feds made other loans when public documents indicate they should have known they could be throwing good money after bad.

That’s one.  But there are more:

Others are also struggling with potential problems. Nevada Geothermal — a home state project personally endorsed by Senate Majority Leader Harry Reid –  warns of multiple potential defaults in new SEC filings reviewed by CBS News. It was already having trouble paying the bills when it received $98.5 million in Energy Department loan guarantees.

SunPower landed a deal linked to a $1.2 billion loan guarantee last fall, after a French oil company took it over. On its last financial statement, SunPower owed more than it was worth. On its last financial statement, SunPower owed more than it was worth. SunPower’s role is to design, build and initially operate and maintain the California Valley Solar Ranch Project that’s the subject of the loan guarantee.

First Solar was the biggest S&P 500 loser in 2011 and its CEO was cut loose – even as taxpayers were forced to back a whopping $3 billion in company loans.

Anyone – does the Constitution have a “venture capitalist” clause in it that we somehow missed?  Is it the job of our government to pick winners and losers in a market using taxpayer dollars?

Well according to the brilliant Steven Chu, Secretary of Energy, no politics were involved in any of this.  But:

Nobody from the Energy Department would agree to an interview. Last November at a hearing on Solyndra, Energy Secretary Steven Chu strongly defended the government’s attempts to bolster America’s clean energy prospects. "In the coming decades, the clean energy sector is expected to grow by hundreds of billions of dollars," Chu said. "We are in a fierce global race to capture this market."

The government is blowing it big time.  Why?  Because, despite Chu’s claim, it is all about politics.  And ideology. 

In fact this administration has no trust in markets to develop the technology they desire so they’re sold on the idea that the central government should be used to facilitate their ideology.  And that is precisely what this is all about.  Solyndra, Beacon Power, Nevada Geothermal, SunPower and First Solar are just failed indicators of the bankruptcy of their approach.  Given a treasury and the ability to spend money almost unchecked, they’ve committed to implementing their ideology on the back of taxpayers.  And, unsurprisingly, they’re failing miserably.

But we’re assumed to be so dumb we can’t see through their political scheme.

Unfortunately, as it has been for quite some time, no one will be held accountable for this fiasco that has cost us billions in money we simply don’t have.   If anyone ever wanted a case study of how out-of-control and outside the Constitutional box government has become, the failed “green energy” sector loan program provides the perfect scenario.

Meanwhile, in Canada:

Canada is now looking to Asian countries to market its abundance of oil, natural gas and minerals as plans to build the proposed Keystone XL pipeline have stalled with the U.S. administration.

Prime Minister Stephen Harper will travel to China next month to discuss selling Canada’s bounty to the rapidly growing nation.

The preferred initial plan was to build the $7 billion Keystone pipeline to deliver Alberta’s oilsands crude to refineries in Texas on the Gulf of Mexico.

Harper reasoned that the U.S. government would prefer to deal with a friendly neighbor to help meet its energy needs while creating thousands of jobs.

With widespread opposition by U.S. environmentalists, the Obama administration has delayed its decision on whether to approve the project proposed by energy giant TransCanada Pipelines.

The new plan would market to China and Asian countries through the proposed Northern Gateway pipeline that would transport Alberta’s oil and natural gas to British Columbia for shipment by tankers.

Yup, no politics at all.

~McQ

Twitter: @McQandO


“Fast and Furious” – “The perfect storm of idiocy”

The Washington Times, one of the few media outlets covering this story, tells us:

The Obama administration sought to intimidate witnesses into not testifying to Congress on Tuesday about whether ATF knowingly allowed weapons, including assault rifles, to be “walked” into Mexico, the chairman of a House committee investigating the program said in an interview Monday.

House Oversight and Government Reform Committee Chairman Darrell E. Issa, California Republican, said at least two scheduled witnesses expected to be asked about a controversial weapons investigation known as “Fast and Furious”received warning letters from the Bureau of Alcohol, Tobacco, Firearms and Explosives to limit their testimony.

Good grief … I can only imagine the reaction of the NY Times and Washington Post if this had been a mere 4 years ago.  But I state the obvious.  Intimidating witnesses?  Is this the “hope and change” we were all promised? 

Revelations like that have caused this story to stink so badly, that even a reluctant media is finally beginning to turn their attention to the hearings.

Here’s CBS with a piece about the controversy and  what one of the scheduled witnesses today will be telling the committee:

In advance of a hearing later today, the House Committee on Oversight and Government Reform released a report containing new testimony and allegations in the ATF gunwalker case. According to the report, Carlos Canino, Acting ATF Attache in Mexico, calls the strategy his agency employed: "The perfect storm of idiocy."

"We armed the [Sinaloa] cartel," Canino told investigators. "It is disgusting." Canino will be a key witness at the hearing.

[Joint Committee report: Operation Fast and Furious: Fueling Cartel Violence (pdf)]

But it’s not just the Sinaloa cartel. Documents obtained by Congressional investigators show weapons – sold under ATF’s watch in Operation Fast and Furious out of the Phoenix office – have been used by at least three Mexican drug cartels: Sinaloa, El Teo and La Familia.

In other words, Congressional investigators say the very agency charged with preventing weapons from falling into the hands of violent cartels south of the border … instead facilitated it.

Doh!  You can read the report at the link in the cite.  Issa also had some strong words for AG Eric Holder:

“How is it that the No. 2, 3, 4 at Justice all knew about this program, but the No. 1 didn’t?,” Mr. Issa said. “Is it because he said ‘don’t tell me’? Is it because they knew what they were doing is wrong, and they were protecting their boss? Or is it that Eric Holder is just so disconnected … ?

“Whichever it is — he knew and he’s lied to Congress, or he didn’t know, and he’s so detached that he wasn’t doing his job — that really probably is for the administration to make a decision on, sooner not later,” Mr. Issa said.

Just another case of how ill-served we are with this clown as our chief law enforcement officer.   He’s either a liar or clueless.  Great choices, no?  Hopefully this story will gain enough visibility that we’ll see Obama come out and tell the White House press corps that he has “full faith” in Eric and is “behind him 100%”.  That of course means that within a week or two Holder would announce he was resigning from the AG’s office to “spend more time with my family”.

Frankly, we’d be better off with the office vacant than with this bunch in there.

~McQ

Twitter: @McQandO