Chuck Pumps It Up

Obviously emboldened by the fact that either no one cares about his role in this disaster or no one understands how deep his involvement is, Schumer and his PR machine have continued to push the envelope of denial while pointing a crooked finger in the direction of everything but himself and the robber barons on Wall Street he has been protecting since taking office.

Charles Schumer Oil Shell Game
This fancy chart is another great way for me not to tell you why gas is so high at the pump

A couple of weeks ago Sen. Charles Schumer responded to a piece I had written claiming that he alone was responsible for the high price of oil. The point of the column was to illustrate the responsibility inherent in his position as the one senator who sits on the committees with oversight and authority to investigate and recommend legislation that would restore prudent checks and balances to the wildly unregulated commodity exchanges at the root of skyrocketing gasoline prices.

Because I was hoping to provoke a legitimate response from New York’s Democratic senator, I stopped short of detailing how intimately involved Schumer was in creating and subsequently covering for the irresponsible deregulation that allowed investment banks and oil companies to trade oil futures contracts without any oversight of a completely opaque and shadowy marketplace.

I was being polite.

As a result, the senator’s minions clearly viewed my rebuke as somewhat tongue-in-cheek, answering with the exact type of benign platitudinous response Americans have been conditioned to accept from our public officials. Schumer’s letter to the editor, which we published in its entirety the following week, ran sans snarky commentary from yours truly. (Those comments were left for my website.) Obviously emboldened by the fact that either no one cares about his role in this disaster or no one understands how deep his involvement is, Schumer and his PR machine have continued to push the envelope of denial while pointing a crooked finger in the direction of everything but himself and the robber barons on Wall Street he has been protecting since taking office.

His most recent diversion was to send a letter to Jon Leibowitz, chairman of the Federal Trade Commission, asking him to investigate U.S. oil refineries in connection with price fixing. Sounds logical, right? That’s our Chuck. Man of the people. But this is the perfect example of “gorilla dust” whereby two gorillas face off against one another in a spectacle of chest-thumping and screaming, throwing dirt in the air to create a commotion for the purpose of actually avoiding an altercation. The problem is that Schumer equivocates so often on this issue that his face and words have become wallpaper to Americans. He’s beating our collective will into submission by the sheer volume of deceptive statements.

To highlight the senator’s subterfuge, I have taken the liberty of explaining or translating his statements. Hopefully you will find this helpful.

Schumer: “Recent reports have indicated that U.S. refiners are cutting back on U.S. gasoline stockpiles in order to artificially keep prices high and inflate their bottom line… while gasoline use is declining, U.S. gasoline inventories remain below average and refining margins continue to rise.”
Planet Earth: The truth is that we have an over-supply of oil right now because, as Schumer admits, we are using less gasoline. The refiner doesn’t choose how much oil to refine, the market does. The market also determines how much the refinery is paid, and the oil companies such as Exxon Mobil and investment banks such as Morgan Stanley and Goldman Sachs are the market. All Chuckles is trying to do here is shoot the messenger and create a distraction from his beloved Wall Street funding sources.

Schumer: “I’ve called for the elimination of (oil) subsidies to help reduce our deficit and stop wasting taxpayer money subsidizing oil companies that don’t need any help.”
Planet Earth: Talk of eliminating oil subsidies is politically sexy and practically worthless unless we put an end to Big Oil’s ability to manipulate the market by simultaneously setting prices and driving the volume of trading. Eliminating the subsidies without fixing the fundamental market problem will bring in, or retain, more revenue for the government but the oil companies would have already taken it out of the consumer’s pocket to achieve the same bottom line margin by jacking prices at the pump.

Schumer: “I helped to protect a $100 million loan guarantee to build the Taylor Biomass Energy facility in Orange County that uses a process called gasification to convert over 95 percent of the waste received at its facility into cleaner energy.”
Planet Earth. Gasification, indeed. There’s only one thing spouting hot gas right now, and it ain’t the Taylor Biomass Energy facility. For the record, these projects are great for reducing greenhouse gas emissions. But let’s be clear about the energy potential. The energy captured from the average landfill is enough to power approximately 7,200 homes annually. That’s the equivalent of two on-shore GE wind turbines. Two, yes, two.

The well-documented back-room maneuverings done by Schumer to repeal Glass-Steagal in 1999, his assistance in creating the Enron Loophole in the Commodities Futures Modernization Act in 2000 and his silence as a member of the banking committee when the Bush administration obliterated all transparency in the commodities and derivatives market in 2006 makes him a central accomplice in the dirty dealings that precipitated the global financial meltdown and today’s spike in oil prices. His chicanery in addressing a fearful public represents the true nadir of the crisis.

So let me be absolutely clear this time in addressing our fair senator and be assured, sir, that my tongue is neither planted in my cheek nor forked as yours appears to be. Rather, it speaks a truth some part of you understands but no part of you wants to acknowledge. Save your minions the time and effort of responding as there is no more room in this paper for your spurious replies. As you are funded by the oil and bank oligarchy you helped to create, I hardly expect you to continue this conversation anyway. Regardless, for every dishonest press release you issue or diversionary press conference you hold, a growing number of informed citizens will know to offer this refrain:

Chuck Schumer is responsible for the price of gas.
Chuck Schumer is responsible for the price of gas.
Chuck Schumer is responsible for the price of gas.

Now, go forth and spread this word. If you made it all the way to the end of this column and have connected the dots that draw a picture of corruption please forward, digg, like, stumble, reddit, send it to everyone you know who is watching their savings flow from their wallets and into the coffers of Wall Street and Big Oil.

Author: Jed Morey

Jed Morey is the publisher of the Long Island Press, LI's Cultural Arts and Investigative News Journal. The Press has a monthly circulation of 100,000, and www.longislandpress.com, welcomes more than 500,000 unique visitors every month. He serves on the board of the Holocaust Memorial and Tolerance Center in Nassau County, as well as the President's Council of Big Brothers and Big Sisters of Long Island. In addition to the contributions on this blog, Morey authors a column for the Long Island Press titled "Off The Reservation" and is a staunch advocate for Indian rights. The column was voted Best Column in New York by the NY Press Association in 2010 and third overall in the nation among alternative publications by the Association of Alternative Weeklies in 2012. Morey lives in Glen Cove with his wife, Eden White, and their two daughters.

3 thoughts on “Chuck Pumps It Up”

  1. Very informative, Thanks.

    It was forwarded to me by Susan Auriemma,a mutual friend and co-worker in our effort to reduce helicopter noise on Long Island. BTW, do you know my cousin, Jeff Wollock, who is also very active in Indian affairs.

    Len

  2. Thank you. I try to keep up on the underhanded B.S. our politicians are into but it is sometimes difficult. It seems every rock you turn over has one of these snakes in it. It really doesn’t matter which party. Please keep doing what you are doing and I am going to forward this article.

  3. What surprise, Goldman Sachs upgraded its price target for oil on expectations of good demand. Those greedy b*****ds!

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