Category Archives: Federal

The Boston Globe Visits Richmond

Slavery? What slavery>

Slavery? What slavery?

 By Peter Galuszka

An outside view is always welcome, especially in these incredible days when a lot of Southern mythology is being turned on its head.

Richmond is a great locus for the examination given its tortured history. The former Capital of the Confederacy (more by accident than anything else) is a true crucible.

The Boston Globe is running a series of articles from cities across the country examining how Americans citizens view their identities and how they are reacting to the fast-moving examination of slavery, the Civil War and the debates over its twisted symbols, especially the Confederate flag.

Globe reporter Michael Karnish starts with Ana Edwards, an African-American Richmonder, as she stands near the Jefferson Davis Monument on the city’s famed Monument Avenue packed with Confederate generals, Arthur Ashe and an aviator.

Confederate President Jefferson Davis, who led the insurrection against the United States, is praised as backing “Constitutional Principles” and “Defender of States Rights” (strangely similar to the conservative reaction to the recent U.S. Supreme Court decision on gay marriage).

Nowhere is it inscribed about what the war was all about – slavery.

You might go down to Shockoe Bottom for that. It was once the second busiest slave trading market in the country. There’s a site for an old gallows, a “Burial Ground for Negroes.” Lumpkin’s Jail. Ghosts of about 350,000 slaves “sent downriver from Richmond over a 35-year period before the Civil War.

One of them was Anthony Burns, 19, who escaped to Boston in 1853 but was arrested under a fugitive law and after lots of public demonstrations, was returned to Richmond with federal troops at the ready. He ended up in Lumpkin’s Jail.

There’s not a lot in Richmond to remind about slavery. In fact, when one drives north across the James River on Interstate 95, the Virginia Holocaust Museum makes a bigger impression even though Virginia had nothing to do with the Nazi Final Solution.

The Globe reporter does a fair job of contrasting Carytown, the chic and artsy shopping district (that goes hand to mouth with the city’s annoying fetish for fancy food and craft beer) with other parts of the city that are chock full of impoverished people. One out of every four Richmonders is officially poor.

Mayor Dwight Jones, an African-American, discusses his plans to eliminate public housing and fill it with mixed-use and mixed-income developments.

The next page to turn will be the UCL World Cycling Championship where 1,000 international cyclists will converge on Richmond for nine days in September. It is expected to draw 450,000 spectators (as the promoters insist they be called). Jones is a big promoter.

But plans are to have the cyclists zip past the 1907-era Confederate generals and Jefferson Davis on the city’s most famous avenue about 16 times before video cameras that will be broadcast globally. What kind of impression will that make? Given Richmond’s enormous and unresolved image problems and insecurity, can it simply and politely avoid facing the past as it has for 150 years and expect everyone else to go along with it?

I wouldn’t expect Mayor Jones to come up with an answer since he has failed to do much to put a slavery museum in Shockoe Bottom, the most appropriate spot for it. Instead, he was pushing some kind of museum along with an expensive project including a minor league baseball stadium and bars and restaurants.

To be sure, I am not completely sure people or newspapers from Boston have a lock on any moral compass. I went to college there for four years in the early 1970s and heard so much self-righteous nonsense that I began to think of myself as a Southerner.

After all, in the fall of 1974, just after I graduated and went back to North Carolina, Boston erupted into racial violence over court-ordered busing to integrate its de facto segregated schools.

In this case, however, the Globe has a good perspective on Richmond. It is a valuable addition to the debate.

Taking The Statues Down

stalin By Peter Galuszka

In 1993, I was stumbling along the rough concrete sidewalks of Alma Ata, then the  capital of the former Soviet Republic of Kazakhstan. I was late for an interview with an official of what was now an independent nation rich in oil, natural gas and uranium.

The street map I had was old. I stopped a Kazakh woman in a kerchief and asked, “Is this Lenin Street?”

“Not anymore,” she replied. “It is Apple Street.”

Therein lies a small history lesson. Every human society, it doesn’t matter, where undergoes a major reassessment of how its humanity squares with its history.

The former Soviet Union is an excellent example. Its architect, V.I. Lenin, was a brilliant organizer but a killer. Josef Stalin murdered at least 20 million (who’s counting?) during the Great Purge and later in the war against Hitler.

Time and again, the old USSR and now the Russian Federation would undergo a change in leadership and the statutes would come down. They did when Stalin died in 1953 in Eastern Europe. Russians were shocked when new chieftain Nikita Khrushchev gave his liberal-minded “Secret Speech” in 1956 denounced Stalin. When another liberal, Mikhail S. Gorbachev, came to power in 1985, he pushed the national conversation even further.

By that time, I was reporting there for an international magazine. I visited a tractor factory in the town of Vladimir in 1987. Its very bright deputy director who would go on the Harvard Graduate School of Business, smirked uneasily when he said the factory was still named after Andrei Zhdanov.

He didn’t need to mention that Zhdanov was a Stalin thug who oppressed artists like Anna Akhmatova and Dmitri Shostakovich. He also was instrumental in starting the great purge of the 1930s during which 1.5 million people were imprisoned and more than 680,000 were shot.

The old statues really started to come down after the Soviet Union fell apart in 1991. The Zhdanov plant got a new name (although the way things are going under Vladimir Putin, the statues are starting to go back up).

So, what’s may point? That all societies need to air their history and their myths – including the ones that white Southerners have clung to for yours. Are some so arrogant as to claim they are above what other nations undergo?

Mother Jones, one of my favorite magazines, has story listing just how many streets, schools and public buildings are named after dubious characters. In Jacksonville, Fla., they renamed a high school named after Nathan. Bedford Forrest, a lieutenant general in the Confederate Army and founder of the Ku Klux Klan. North Carolina has renamed school facilities named after former Gov. Charles Aycock, a white supremacist.

And for the truly strange, look no farther than Richmond. The Martin Luther King Jr. Middle School is on a street named after John Singleton Mosby, a famous Confederate cavalry raider.

Don’t Stop a Welcome Purge

confederate flag dayBy Peter Galuszka

The Confederate Battle flag is quickly unraveling throughout the Old Dominion. With it are going many icons of an era racked with controversy and hatred, along with mythology, which regretfully will still continue in some form.

Following the example of South Carolina Gov. Nikki Haley who asked that state’s legislature to take the Confederate flag off State Capitol grounds, Virginia Gov. Terry McAuliffe ordered the Department of Motor Vehicles to stop issuing specialty license plates showing the flag along with the Sons of Confederate Veterans logo.

National retailers such as Walmart and Amazon likewise nixed the flag and removed items displaying it from their shelves and warehouses.

Two events helped push this national movement with remarkable speed.

One was a U.S. Supreme Court decision – split evenly between liberal and conservative judges – that Texas had the right not to allow the Confederate flag on its license plates. The other was the shooting death of nine African-Americans by a self-styled white supremacist as they prayed at a Charleston church.

It’s about time some movement was made on this matter. But in Virginia, as in other parts of the South, there’s a lot more to do. Richmond’s famous Monument Avenue has the statues of Confederate generals Robert E. Lee, Thomas “Stonewall” Jackson and J.E.B. Stuart. Why aren’t they dismantled?

Richmond area schools have “Rebels “or “Confederates” as their mascots, namely Lee-Davis High School in Mechanicsville and Douglas S. Freeman in Henrico County.

Throughout the state are street names celebrating the Southern war machine. There are Jefferson Davis Highways in Alexandria and South Richmond. Only recently were flags removed from the Confederate Memorial Chapel on the grounds of the Virginia Museum of Fine Arts and at private Washington & Lee University.

Of course, the flag is an insult to those oppressed by it, notably African-Americans. But mythology – about an honorable South tragically plundered and lost – has provided cover and let it fly 150 years after the Civil War.

Having grown up mostly in the South or Border States in the 1950s and 1960s and then having worked there for years, I have dealt with the Confederate flag for years. I don’t find it absolutely shocking as some do, but I have always wondered why it keeps flying on public property.

It wasn’t until I was in college in the Boston area when I started really asking myself questions. For one course, I read “The Strange Career of Jim Crow,” historian C. Vann Woodward’s 1955 masterpiece. He demolished the idea that legal segregation was a long-time Southern tradition. Instead, it started up in the 1890s, he pointed out.

That’s not a very long time, especially for white Southerners who purport to be so sensitive to history. Instead, they have invented a mythology. Virginia is becoming more diverse and includes people who have no family tie to state during the mid-19th century. One reason Gov. Haley had the fortitude to do what she did was that she is an Indian-American, born in South Carolina. In other words, she is neither white nor black according to the old rules and didn’t need to be guided by them.

My immediate concern is that this long-needed purge won’t go far enough. And as long as the generals preside over Richmond’s Monument Avenue, the fairy tales will endure.

Dubious Oil Lobby Bankrolls Dubious Poll

CEABy Peter Galuszka

In a recent post, Bacons Rebellion extolled the findings of Hickman Analytics Inc., a suburban Washington consulting firm hired by the Consumer Energy Alliance, which found that according to a survey of 500 registered voters, the vast majority of Virginians support Dominion’s Atlantic Coast Pipeline.

The $5 billion project would take natural gas released by hydraulic fracturing from West Virginia southeastward through Virginia into North Carolina. Dominion has taken some strong-arm tactics to force the project through, such as suing property owners who declined to let surveyors onto their property.

Having reported on the controversy in such places as Nelson County, I was surprised to note the Hickman results showing such a strong support for the pipeline.

Maybe, I shouldn’t have been so surprised.

Let’s start with the so-called “Consumer Energy Alliance.” For starters, it is a Texas based lobbying group funded by such fossil fuel giants as ExxonMobil and Devon Energy, perhaps the largest independent oil rim in the country plus as host of utilities.

It has been traversing the United States drumming up support, often through dubious polls, against initiatives to cut back on carbon emissions. It supports the Keystone XL and other petroleum pipelines.

Says SourceWatch, quoting Salon.com, “The CEA is part of a sophisticated public affairs strategy designed to manipulate the U.S. political system by deluging the media with messaging favorable to the tar-sands industry; to persuade key state and federal legislators to act in the extractive industries’ favor; and to defeat any attempt to regulate the carbon emissions emanating from gasoline and diesel used by U.S. vehicles.”

The group was created in the late 2000s by Michael Whatley a Republican energy lobbyist with links to the Canadian and American oil sector.

The alliance’s modus operandi is to use “polls” presumably of average voters on key energy issues.

In Wisconsin, the CEA got involved in a battle over an attempt by electric utilities to hike rates if individual homeowners used solar panels to generate power. The state is dominated by coal-fired power and hasn’t done much with renewables. The utilities claim that they paid for the electricity grid and therefore home-power generators must pay extra for its use and the cost should be shared by all through rate hikes.

Many ratepayers opposed this blatant attempt to push back at solar power. Then, all the way from Texas and Washington, the Consumer Energy Alliance jumped in with the names of 2,500 local ratepayers who backed the rate hikes. It wanted to give their names to Wisconsin regulators.

The Grist asked: “What dog does CEA, a trade group from Texas, have in Wisconsin’s fight, anyway? Well, CEA represents the interests of mostly fossil fuel companies, so it is engaged in a nationwide campaign to slow the spread of home-produced renewable energy. It has a regional Midwest chapter, which pushes for fracking and for President Obama to approve the Keystone XL tar-sands pipeline.”

I was likewise puzzled by the Virginia pipeline survey that CEA paid for by Hickman Analytics, a Chevy Chase, Md. firm that does a lot of political polling. The firm is powerful and its principals were heavily involved with disgraced Democratic presidential candidate John Edwards.

There was a poll by Hickman for CEA showing that New Hampshire vote just love Arctic offshore drilling. That’s off because the Granite State isn’t anywhere close to the Arctic despite its cold winters.

There was another Hickman/CEA poll showing how much Coloradans love the Keystone XL pipeline – another curiosity because the last time I checked that pipeline doesn’t run through Colorado.

And, fresh with a “five figure” sponsorship from Dominion, Bacon’s Rebellion publisher James A. Bacon Jr. starts writing about this dubious poll from a dubious source showing that Virginians are tickled pink with the ACL pipeline. When questioned, he says it’s nothing different from a poll funded by the Sierra Club.

Maybe, on another matter, it is curious that Bacon’s Rebellion’s sponsorship deal with Dominion which Jim posted online is signed by Daniel A. Weekley, vice president for Dominion corporate affairs.

The very same Mr. Weekley signed an informational packet sent out to Virginia homeowners impacted by the proposed pipeline route telling them what a great thing the pipeline is.

Am I connecting the dots correctly?
 

Is SEAL Team 6 Out of Control?

Seal_Team_Six_old_insigniaBy Peter Galuszka

Dam Neck Annex is a forgettable piece of beachfront landscape amidst the strip malls of Virginia Beach. F-18s Hornet jets roar past from nearby Oceana Naval Air Station and the traffic is typical for the area: vans with soccer moms, bikers’ choppers and sedans with families headed for the sand.

Surrounded by thousands of yards of barbed wire and other protections, the annex which consists of shooting ranges and blocky buildings is home to SEAL Team 6, one of the most celebrated covert warrior groups in the world. Despite their fame and penchant for grabbing publicity, there’s evidence that SEAL Team 6 is out of control – in more ways than one.

On Sunday, The New York Times printed an extensive investigation showing that TEAM 6 has been serving as a covert hit-job unit in Afghanistan and other parts of South Asia and the Middle East. The highly-trained unit has been involved with many high risk missions but one stands out, according to the Times. It is “Operation Omega,” started by former Army commander Lt. Gen. Stanley McChrystal who was concerned in 2006 that the U.S. did not have sufficient troops in Afghanistan to beat back an increasingly aggressive insurgency by the Taliban.

The Times says that Operation Omega was modeled after the infamous Phoenix Program in South Vietnam that was designed to identify and eliminate, often by assassination, members and supporters of the Viet Cong. From 1965 until 1972, up to 41,000 people were killed in the process.

It isn’t know what Seal Team 6’s death count was, but the Times reports that from 2006 to 2008, there were weeks at a time “when their unit logged 10 to 15 kills on many nights, and sometimes up to 25.”

These, apparently, are not traditional night raids or return-fire situations when an American patrol is ambushed. These were surgical, precision strikes including kidnappings and at times, apparently, assassinations.

One issue is that because of their intense secrecy and worries about security there is not much oversight into the Team’s activities. The Times says that Team 6 by passes usual military judicial processes and is overseen by the secretive Joint Special Operations Command (JSOC).

The Virginia-based SEAL time had been tasked with special, high-risk missions such as the highly-acclaimed rescue of Capt. Richard Phillips, a commercial sea captain, who had been kidnapped by pirates off of East Africa when his ship had been taken by pirates in 2009. One concern in the Times is that such special missions were subverted as TEAM 6 was pushed into using its special snatch and grab or kill expertise in a more routine basis in Afghanistan and other countries.

Another strange issue is that for what is purported to be a highly covert unit, Team 6 gets a ton of publicity, some of it sleazy, and some of its members tend to get into trouble when they get back home.

For example, when Tom Hanks made a movie in which he portray the rescued cargo ship captain, the Navy willingly laid on a small fleet of ships and helicopters to help.

Book publishers have been inundated by supposedly non-fiction tomes about Team 6’s heroics. A couple involved who actually nailed Osama bin Laden. Robert O’Neill penned one claiming it fired the last fatal shot. Matt Bissonette, writing ‘No Easy Day,” under the nom de ’guerre Mark Own, said he did. Both SEALS drew criticism for violating security and going after big bucks.

The hands-down worst case involves “American Sniper” about the famed shooter Chris Kyle who was the subject a best-selling (two million copes) book and a box-office smash movie directed by Clint Eastwood. The book made $6 million and the movie hit the $400 million mark. But strangely, Kyle’s family didn’t see much of it after Kyle was murdered at a Texas shooting range two years ago.

The Virginian-Pilot reported recently that the family has seen none of the funds raised to help Kyle’s family by some so-called military help funds.

So, it seems you have two serious questions. Has Seal Team 6– and other SEAL units –morphed into an assassination team that has little accountability. If this is so, why are so many trying to cash in on it, especially, it seems, the United States Navy.

I’ve not been in the military service but I have known a few people who have been, including covert operators. Many tend to operate within strict rules and they don’t say anything about what happened.

Federal Bailouts and the Buildup of Risk

bailout_barometer

Graphic credit: Federal Reserve Bank of Richmond

by James A. Bacon

The federal government plays a much bigger role in shaping the United States economy than is evident in its taxing and spending policies. Uncle Sam funnels credit to favored constituencies through subsidized credit programs like TIFIA transportation loans and the Import-Export bank as well as by protecting lenders from losses due to a borrower’s default. Members of Congress are exercised, as well they ought to be, by the dispensing of subsidized credits to corporate interests. But loan guarantees have a far bigger impact — and expose the federal government, and the U.S. economy — to far greater risk.

Sixty percent of the U.S. financial system’s loans are explicitly or implicitly backed by the federal government, the Federal Reserve Board of Richmond has found in its updated Bailout Barometer. That’s up from roughly 45% as recently as 1999.

The capitalist financial system is inherently prone to booms and busts. Busts lead to corporate failures, and big corporate failures can trigger panics, in which even financially sound firms get caught in the undertow. The U.S. has sought to alleviate this pain by providing loan guarantees. Some guarantees are self-financing, such as federal insurance on bank deposits. Other guarantees are policed by regulators, and yet others are implied but ambiguous and not spelled out in advance. But the end result is that actors in the financial system adjust their behavior — taking on more risk than they would otherwise — in ways that could create new, bigger problems in the future. As the Richmond Fed explains:

Implicit guarantees effectively subsidize risk. Investors in implicitly protected markets feel little need to demand higher yields to compensate for the risk of loss. Implicitly protected funding sources are therefore cheaper, causing market participants to rely more heavily on them. At the same time, risk is more likely to accumulate in protected areas since market participants are less likely to prepare for the possibility of distress — for example, by holding adequate capital to cushion against losses, or by building safeguarding features into contracts — and creditors are less likely to monitor their activities. This is the so-called “moral hazard” problem of the financial safety net: The expectation of government support weakens the private sector’s ability and willingness to limit risk, resulting in excessive risk-taking. …

The Richmond Fed’s view is that the moral hazard from the [Too Big To Fail] problem is pervasive in our financial system. The U.S. government’s history of market interventions — from the bailout of Continental Illinois National Bank and Trust Company in 1984 to the public concerns raised during the Long-Term Capital Management crisis in 1998 — shaped market participants’ expectations of official support leading up to the events of 2007-08. According to Richmond Fed estimates, the proportion of total U.S. financial firms’ liabilities covered by the federal financial safety net has increased by one-third since our first estimate in 1999. The safety net covered 60 percent of financial sector liabilities as of 2013. More than 40 percent of that support is implicit and ambiguous.

Bacon’s bottom line: While the current financial regime did alleviate the pain of the 2007 market collapse, the system could be allowing even bigger risks to build up. Like generals fighting the last war, regulators are fighting the last panic. The new risks will not be the same as the old ones, and we won’t know what they are until they explode in the next financial debacle. But spurred by the Fed’s near-zero interest rate policies, investors are chasing higher returns by taking greater risks, and financial markets are concocting elaborate new financial instruments to circumvent the regulators.

The global derivatives market was calculated in 2013 to be roughly $1.2 quadrillion in notional value, or about 20 times the global economy. Admittedly, most of that is tied to interest rates, currency values and stock indexes, not the economic sectors guaranteed by the federal government. But it illustrates how arcane financial instruments can magnify or hedge risks in ways we mere mortals — and government bureaucrats earning low, six-figure salaries — can barely comprehend.

I don’t know what will trigger the next financial crisis. Most likely, it will come from a quarter that most people would never expect. I don’t know when it will come. But the history of capitalism since the South Sea Bubble of 1720 suggests that one will come along eventually. If a bunch of multibillionaire hedge fund managers lose multibillion dollar bets and wind up selling apples on the street, I will lose no sleep. But if those hedge fund multibillionaires’ losses are back-stopped by federal loan guarantees, effectively socializing their losses, I will have a deep and abiding rage.

One More Time Now… Devolve Transportation Funding to the States

Graphic credit: Wall Street Journal

Graphic credit: Wall Street Journal

by James A. Bacon

Congress is floundering over what to do about the Highway Trust Fund, which collects the federal gasoline tax and plows it back to the states to finance a smorgasbord of transportation projects. The original justification for the gas tax was to build the Interstate Highway System, but the program has morphed over the years into a  piggy bank for all manner of Interstate, highway, transit and miscellaneous projects that must be supplemented with General Fund appropriations. Congress persons are loathe to relinquish the perk of doling out money to constituents, but fiscal pressures make it impractical to continue the General Fund subsidies, while raising the gas tax is a political killer. What’s a Congress person to do? What he or she does best — dither.

Meanwhile, in the wake of Amtrak’s deadly derailment last week, we hear the usual wailing and gnashing of teeth that America isn’t investing enough in infrastructure.

The idea that the United States is significantly under-investing in infrastructure is nonsense — the kind of special pleading you hear from big construction and engineering firms who grow fat on infrastructure spending. Among the G-7 countries (Japan, Germany, France, the United Kingdom, Italy, Canada and the U.S.), the total capital stock of the U.S. (transportation and other infrastructure) is the third highest, equivalent to 52% of the Gross Domestic Product, as seen in the graphic above, published today in the Wall Street Journal. While Japan is off-the-charts higher, that country arguably has way over-invested in transportation, creating a system that it cannot afford to maintain over the long run.

infastructure_quality

Graphic credit: Wall Street Journal

Likewise, the quality of infrastructure (the general state of repair) is also in the middle of the pack, as seen at left.

The problem isn’t the level of spending, it’s the mis-allocation of spending. As WSJ columnist Greg IP writes (sounding a long-time theme here at Bacon’s Rebellion), the economic Return on Investment of federally funded projects varies widely; indeed  the feds have no mechanism for ascertaining ROI. “It’s nobody’s job in Washington to figure out which roads or bridges we should invest in,” Ip quotes Aaron Klein with the Bipartisan Policy Center as saying.

pavement_life_cycle2It’s time for Congress to get out of the business of building new transportation infrastructure. Having constructed the Interstate Highway System, Uncle Sam should commit to maintaining it and devolve responsibility for other projects to the states. That means adjusting the gas tax to whatever level it takes to maintain that system at an optimal level, and no higher. By optimum, I mean at a reasonably high state of quality and repair and with sufficient spending to undertake deep repairs at the most economically advantageous point on the life-cycle curve. Presumably, that level would require a much lower federal gas tax than the one in place now. A reduction in the federal gas tax would free the states to increase their own gas taxes by a like amount, more, or less, depending upon their circumstances.

A bedrock principle for maintaining an optimum level of infrastructure investment is to put each component — roads, highways, mass transit, ports, airports, railroads — on a user-pays basis. When users pay for the transportation amenities they want, they are more careful about what they ask for. Any other system results in a political free-for-all in which every interest group seeks to get its favored projects funded at the expense of everyone else, in which case ideology and politics prevail over economic rationality.

Is This Guy For Real??

Please go to Salon. a liberal website, and read the story about an interview given by Dave Bratt on immigration. This is so over the top for 2015 .

— Les Schreiber

Blankenship’s Incriminating Tapes

don-blankenship By Peter Galuszka

It may sound like something out of the Nixon White House, but embattled coal baron Donald L. Blankenship regularly taped conversations in his office, giving federal prosecutors powerful new ammunition as he approaches criminal trial in July.

According to Bloomberg News, the former head of Massey Energy taped up to 1,900 conversations that often go to the heart of the case against him. Blankenship was indicted last Nov. 13 on several felony charges that he violated safety standards and securities laws in the run up to the April 5, 2010 blast at the Upper Big Branch mine in West Virginia that killed 29 miners.

The revelation of the tapes came about in a circuitous way. The tapes were given to federal prosecutors in 2011 by officials of Alpha Natural Resources, which bought Richmond-based Massey Energy in 2011 for $7.1 billion.

After reaching a non-prosecution deal with federal prosecutors, Alpha hired a powerful New York law firm to investigate Massey for any possible violations.

Alpha, based in Bristol, was required as part of a non-prosecution order it signed to surrender all evidence, including the tapes.

Earlier this year, Alpha declined to continue paying Blankenship’s legal bills since he was under criminal indictment. Blankenship, claiming Alpha was required to indemnify, him, sued Alpha in a Delaware court. The existence of the tapes was revealed in that venue.

According to court documents filed in Delaware, Blankenship seemed to know that his disregard and hardball management practices could hurt him.

The tapes show Blankenship’s disdain for the U.S. Mine Safety and Health Administration (MSHA), which regulates mines but also reveal Blankenship knew Massey’s practices were risky.

According to testimony, a tape has Blankenship stating, “Sometimes, I’m torn up with what I see about the craziness we do. Maybe if it weren’t for MSHA, we’d blow ourselves up. I don’t know.”

“I know MSHA is bad, but I tell you what, we do some dumb things. I don’t know what we’d do if we didn’t have them,” Blankenship said on tape in the Delaware case.

So far, little has been revealed about what evidence the U.S. Attorney’s Office in Charleston, W.Va. has against Blankenship. Irene Berger, a U.S. District Judge in Beckley, W.Va., issued a massive gag order forbidding lawyers and even family members of the 29 mine victims from discussing the case, now scheduled for July 13 in Beckely.

The gag rules were order modified after the Charleston Gazette and the Wall Street Journal among other news outlets challenged them before the U.S. Fourth Circuit Court of Appeals in Richmond.

In some cases, apparently, the tapes cut both ways. In Delaware, Blankenship’s lawyers played a tape from 2009 which has Blankenship urging executives to tighten up on safety. “I don’t want to go to 100 funerals,” he is quoted as saying. He allegedly told Baxter Phillips Jr., then Massey’s president, that if there were a fatal disaster, “You may be the one who goes to jail.”

According to Bloomberg, Alpha initiated the internal probe after reaching a non-prosecution deal with federal prosecutors. It hired Cleary Gottleib Steen & Hamilton of New York to handle it.

Since Alpha refused to continue paying Blankenship’s legal bills, Blankenship reportedly has paid his lawyers $1 million himself.

The writer is the author of “Thunder on the Mountain, Death at Massey and the Dirty Secrets Behind Big Coal,” 2012, St. Martin’s Press. Paperback , West Virginia University Press, 2014.

Carly Fiorina… Native Virginian?

fiorina

Photo credit: Washington Times

Last time I paid attention to Carly Fiorina, she was running for the U.S. Senate in California. She didn’t win that race, although, as a Republican candidate, she acquitted herself well in a deep blue state. So, it was with some surprise that I read in an article about her run for the presidency that she now hails from Mason Neck, Va.

Mason what?

According to Wikipedia, Mason Neck is a peninsula jutting into the Potomac River just east of Woodbridge. Located in Fairfax County, it is a census-designated place of about 2,000 residents. According to local real estate listings, there are currently eight houses on the market valued at more than $1 million. So, it seems to be the kind of place where a former CEO of HP might settle down should she move to the East Coast.

So, it looks like Virginia has a favorite son, er, make that a favorite daughter, running for president. None of us knew that Fiorina lived in Virginia, but what the heck. None of our home-grown politicians seem up to the challenge. We might as well root for the newcomer.

— JAB