Another Inter-Regional Transfer of Wealth

Dominion recently announced plans to build a $1.6 billion coal-fired power plant in Wise County, in the heart of Virginia’s coalfields. The power company is billing the 585-megawatt “Virginia City Hybrid Energy Center” as a state-of-the-art clean coal facility. So far controversy has been muted. Some environmental groups have expressed displeasure, but their critique has gained little attention. What has escaped comment so far is the likelihood that the proposed location of the power plant in Southwest Virginia is driven by political considerations, and could well cost Dominion rate payers in eastern Virginia tens of millions of dollars annually in higher electric rates.

To be sure, the power plant would be an engineering marvel, incorporating a number of expensive refinements to reduce the impact of coal combustion on the environment. According to Dominion, some of those elements include:

  • Carbon capture. “Carbon-capture compatible” design, meaning that technology to capture carbon dioxide could be added to the station when it becomes commercially available. Dominion is sponsoring research at Virginia Tech to see if it is possible to sequester carbon dioxide in coal seams in Southwest Virginia. Carbon capture technology is entitled to extra incentive premiums under Virginia’s regulatory framework.
  • Fluidized bed technology. The use of circulating fluidized bed (CFB) technology, a clean-coal technology for reducing sulfur dioxide and nitrogen oxide. The power station also will use an air filter called a bag house to remove particulates and mercury.
  • Waste coal and biomass. The capability to use a wide range of coals, waste coal, and up to 20 percent biomass. Piles of unused waste coal can lead to acidic leaching that causes environmental problems in Southwest Virginia.
  • Pollution controls. Additional controls to remove even more sulfur dioxide and nitrogen oxide.
  • Water conservation. Air-cooled condensers to reduce water usage at the station by nearly 90 percent when compared to typical coal-powered facilities.
  • Ash recycling. The possible beneficial recycling of combustion by-products for the manufacturing of cement.

These are all commendable. What’s missing from Dominion’s press release, however, is what all this gee-whiz technology will cost to install. I don’t pretend to be an expert, and I’m willing to stand corrected. But to get a basis for comparison, I refer to a National Energy Technology Laboratory document, “Tracking New Coal-Fired Plants,” dated May 1, 2007. On page four of the PowerPoint presentation, it notes that 151 proposed new plants would generate 90 million gigawatts nationally at a cost of $145 billion. That averages out to a cost of $1.6 billion per gigawatt.

Coincidentally, $1.6 billion is what the Virginia City Hybrid Energy Center would cost. But instead of generating a full gigawatt of electric power, it would generate only 585 megawatts — or 58.5 percent of the average. The balance, or roughly $650 million, represents an additional cost to Virginia rate payers.

But that’s not all. States Dominion: “Under a state law encouraging the construction of the station, it would be powered by Virginia coal.” As it happens, Virginia has very high-quality, low-sulfur coal. But after 100 years of mining, Virginia’s remaining coal seams are either very thin or very deep, which means production costs are very high. Bottom line: Virginia electric consumers will pay more for their coal than if Dominion were free to purchase the fuel from any location. Thus, rate payers would pay more in two ways: for the up-front construction and for the fuel.

(I haven’t even discussed the cost of transmitting the electricity from SW Virginia to the population centers in the eastern part of the state. How’s that going to work? What transmission lines will be used? Will Dominion need to add to its electric transmission capacity?)

(Update: Dominion spokesman Jim Norvelle clarifies the transmission-line issue: “In our application with the SCC we identified the electrical switchyard at AEP’s Clinch River power station as our preferred intertie location. That is about nine miles away from our site in Virginia City, all of it adjoining an existing transmission line right-of-way belong to Old Dominion Power. The application says that PJM is performing its studies on possible intertie locations now. Of course, we would have to file a separate application with the SCC for the transmission line.”)

The underlying motive for locating the power plant in Southwest Virginia and for burning Virginia coal is to boost the depressed economy of the Southwest Virginia coalfields. The station would employ up to 800 workers during construction. Once complete, it would have 75 full-time employees and support about 350 mining jobs.

What is the legislative story behind this facility? I wish I knew. But I would be willing to wager that the origins of the Virginia City Hybrid Energy Center project is intimately bound up with approval of the electric utility re-regulation legislation enacted into law earlier this year. One of the key lawmakers who shepherded electric re-regulation through the legislative process was Del. Terry Kilgore, R-Gate City, whose 1st district encompasses Lee and Scott counties, and parts of Washington and Wise counties. The Dominion power plant would be located in his district — or right on the edge of it. (I can’t find a detailed map of the 1st House of Delegates district. Perhaps someone can help me.) Also not to be overlooked is the influence of Sen. William Wampler, R-Bristol, one of the most powerful members of the state Senate.

At a time when environmental and conservation groups are clamouring for a shift to conservation, renewable energy and a distributed grid, proponents of Big Grid electricity infrastructure contend that solar power, wind power, biomass-generated energy, cogeneration, etc. are impractical. Renewables just aren’t competitive with coal-fired electricity. Say what? Wind power is not competitive, but a coal-fired plant costing twice the national average would be competitive?

Bloggers and the news media need to dig deeper, and do it fast — before the State Corporation Commission approves the project. I would approach the story with a working hypothesis: By costing rate payers hundreds of millions of dollars more than a conventional coal plant, the Southwest Virginia facility represents an extravagant, inter-regional transfer of wealth. I also would investigate the politics of the deal: Did Dominion agree to the project to gain the help of Southwest Virginia legislators in getting its re-regulation legislation through the General Assembly?

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35 responses to “Another Inter-Regional Transfer of Wealth”

  1. Larry Gross Avatar
    Larry Gross

    The problem is .. that there is no benefit to Dominon to save energy and in fact, there are disincentives…

    here’s how other states are dealing with this:

    “In a bid to cut energy use, Maryland yesterday became just the fourth state in the nation to approve a plan that removes the incentive for electric utilities to sell more power in order to make more money.

    In a rate case ruling issued yesterday, the Maryland Public Service Commission endorsed an approach known as decoupling, which ensures that utilities do not lose revenue if customers use less electricity.

    Kudos to Maryland. “Decoupling” may seem like an arcane subject, but he is in fact one of the single most important climate solutions available — one that can achieve significant emissions savings while lowering people’s energy bills. The story goes on to explain how decoupling works:”

    why have our Virginia legislators chosen to not do this?

  2. Anonymous Avatar

    “…endorsed an approach known as decoupling, which ensures that utilities do not lose revenue if customers use less electricity…”

    Great. We are going to pay the power company more for the privilege of using less electricity.

    This isn’t exactly what I have in mind when I say conservation needs to be paid for.


  3. E M Risse Avatar
    E M Risse


    Everything you say about waste is true but there is more.

    You have in the past supported distributed generation.

    Take a look at Fig. 8 and Fig. 9 of the Annual Energy Review for 2005 (latest avaliable I beleive). These two graphs show the “Losses” during generation, transmission and distribution of electricty.

    More energy is “lost” than is “consumed” by the end user of electricty.

    Putting generation in the corner of VA is a crime.

    As to Larry’s point about incentive for conservation:

    Two proposals:

    Consumers: 2006 is the base year. Every substatial user pays more per KWH each year that the consumption level does not go down.

    Dominon: 2006 is the base year. Every year that total consumption falls they can change X% more per KWH to all customers so long as they

    Phase out lower rates for big users,

    Charge rates based on the actual cost of delivery to each customer,

    Install variable time rate meters with real time readouts, and

    Help users with high rates (due to remote locations) generate power they need.

    Location matters.

  4. Larry Gross Avatar
    Larry Gross

    people are free to conserve on their own.. they’re even free to generate their own power.

    But if you want the electric utility to get directly involved in conservation strategies – that ultimately will affect their bottom line – realities must be addressed.

    No responsible CEO (of any company but especially so – Dominion) is going to be able to go to shareholders and explain why the company pursued policies that damaged the value of their stock.

    I’m not convinced that Virginia tried very hard to de-regulate… in the first place.. especially if they had included a decoupling component…

    Jim B is right to be suspicious… it walks, talks, and acts like the “fix is in” with regard to Dominion .. but Jim should know.. it’s those Republicans that are in bed with those nasty capitalists…

    California… the “left” coast is where “decoupling” was invented.. followed by Maryland and you know if it came from those states that lefty Dems did it… right?

    Jim B needs to switch parties if he wants Virginia to get tough with Dominion! 🙂


  5. Groveton Avatar


    Really good article. Why is the plant nearly twice as expensive per unit of output? Is it the anti-pollution controls or juat a big fat cost base that Dominion can insist be part of their guaranteed return calculation?

    Why is the plant in Wise County? Because it’s cheaper to put the plant close to the coal or because Dominion is “in bed” with the politicians from that area?

    I normally would applaud South Western Virginia taking some initiative with economic development. But almost twice the price is just too high for 75 permanent jobs with another 350 supported in the mines.

    Larry Gross is right about one thing. The Republicans in Virginia sure do seem slimy. However, he’s wrong about something else – Dominion is no capitalist company. They are a quasi government agency cowering from the free market with slippery political deals and guaranteed returns.

  6. Anonymous Avatar

    “Jim B needs to switch parties if he wants Virginia to get tough with Dominion! :-)”

    Oh, please. Welcome to Virginia. Owned and operated once again by VEPCO. The parties compete to do them favors.

    Decoupling would be a disaster. Paying the power companies not to produce power is just like paying the farmers not to produce food — yet another form of wealth transfer and price controls. Maryland screwed up on de-reg and they are screwing up again.

    All of your suspicions about the reasoning behind the SW plant are correct — its all politics, pork, pandering and piss-poor economics. But you are supposed to be arguing about the abuser fees and not paying attention to the REAL rip off that passed this year…

  7. Anonymous Avatar

    “The problem is .. that there is no benefit to Dominon to save energy and in fact, there are disincentives…”

    I get an incentive to save energy in the mail every month, and I now have the new low watt bulbs and set the thermostat higher than I used to. And now that the era of frozen Virginia electric rates is over, we all will have plenty of additional incentive and the price goes up, up, up. Don’t look to incentivize the producer — either raise the price or give the consumer some other reason to save.

    No, the General Assembly just gave the producer a huge incentive to produce electricty at higher cost by setting up this gold-plated coal plant. In Russia this is called the planned economy — worked well for them, didn’t it?

  8. Andrea Epps Avatar
    Andrea Epps

    I think anon 12:38 has a significant point in that we were all so distracted with 3202 we didn’t pay enough attention to this disaster.

  9. Jim Bacon Avatar
    Jim Bacon

    Guys, the Dominion power plant in Wise County has nothing to do with the politics of Rs and Ds and everything to do with the politics of region. I can guarantee you that every elected official in Southwest Virginia, whether Republican or Democrat, was supporting this deal.

  10. Andrea Epps Avatar
    Andrea Epps

    I just went to the site via the above link and looked at the powerpoint. Slide # 5… “cost recovery through default rates set by the SCC”
    I would like to know what that really means.

  11. Larry Gross Avatar
    Larry Gross

    …”nothing to do with the politics of Rs and Ds”

    everyone knows that R,s think that what is good for business is good for Virginia – right? and that the D’s will grab Dominion by the short hairs .. and make em do right!


    I gotta admit.. in Virginia.. with regard to our elected representatives and Dominion – it appears to be – tweedle dee and tweedle dum…

    Hmmm… could it be that while we were all fretting over transportation abuser fees that we were asleep at the switch over electric power abusive fees?


  12. Groveton Avatar


    Your point about the power plant having nothing to do with Rs and Ds is the point. In most places (in my opinion) Republicans stand for smaller government, self-sufficiency and personal accountability. In most places (also in my opinion) Democrats stand for helping the working poor, a social safety net and keeping the wealth gap manageable.

    In Virginia, neither party stands for anything.

    Which is why I am always amazed that the bloggers on this site often consider themselves Republicans or Democrats.

    How could anybody tell one from the other?

    So, I make my third plea for Bacon’s Rebellion to consider individual state races. Given that there is no way to tell a politician’s beliefs by his / her party – analysis of individual races is the only way to understand the political climate.

    Bacon’s Rebellion could start by demanding that every candidate for state office disclose their position on the Virginia City Power Plant issue.

    I know this would be a lot of work but this seems (to me) to be the only way to get to the bottom of this mess – one candidate at a time.

    BTW – Wasn’t Virginia City the town where the Cartrights lived on Bonanza? I seem to remember that name burning up on the flaming map that started each show.

  13. Jim Bacon Avatar
    Jim Bacon

    Groveton, I think you have a good idea regarding holding elected officials accountable and pinning down their positions on concrete issues. Unfortunately, that would take a lot more resources than I have available at Bacon’s Rebellion. That is something that that the Virginia Foundation for Economic Research does, at least for business issues. Virginia FREE has a very elaborate system for identifying key issues and interviewing the candidates by a panel of judges.

  14. Groveton Avatar


    I understand the situation. I am looking at the Virginia FREE web site. Very interesting. Thanks of the tip.

  15. Anonymous Avatar

    It’s not every day that one finds regulatory economics being debated on a blog. It is a topic that only a very few study and fewer grasp. That in and of itself is worthy of mention.

    To those who have made a snap judgment about “decoupling,” I’d encourage them to reconsider. With some few exceptions, utility regulation for the last 60 or so years has been designed to encourage utilities to make profit by selling more.

    There are three basic components to utility rates: (1) fixed costs (such as maintaining wires, enough generating capacity to serve all, and “voltage support”), (2) variable costs (running the generating unit when power is needed), and (3) upon the fixed and variable costs, a reasonable rate of return. For about the last 60 years, state utility commissions have set rates in a way that essentially spreads all such costs among consumers according to how much electricity they consume. It sounds fair, and it is, so long as the public policy is to encourage consumption.

    When the public policy shifts to encourage conservation, and conservation is implemented, the variable costs go down, but the fixed costs remain largely constant (unless you do not care about reliability or want the power company to be able to shut down people in high demand times — such as rolling blackouts).

    Decoupling is a concept that has been used effectively in many states — it “decouples” the fixed cost from a consumer’s usage, meaning that the utility has a financial incentive to maintain its system for reliability purposes and does not have to encourage more use to make its margin. Variable costs are still charged to the user based on usage.

    It’s the rough equivalent of congestion pricing, which has been touted on this board before for transit purposes.

    It’s a rather esoteric subject that I am sure I have not captured perfectly, but for those who wish to encourage conservation, decoupling has worked in many states as such a mechanism. After all, there’s no avoiding the “invisible hand,” and it’s foolish to fight it, but wise to harness it for the public weal.

  16. Jim

    I do not think it is fair to characterize pollution control as a wealth transfer. After all, if Northern Virginia got its power at the expense of more polluted air elsewhere, isn’t that an inverse health transfer?

    I would agree forcing utilities to purchase more expensive Virginia coal is a wealth transfer.

  17. Jim Bacon Avatar
    Jim Bacon

    FW, By themselves, pollution controls are not a wealth transfer — they are a necessity. But building a coal-fired power plant, loading it up with pollution controls and wheeling the electricity vast distances, as opposed to promoting conservation, energy efficiency and clean, renewable energy sources close to the population centers they serve, DOES constitute a wealth transfer.

  18. Jim Bacon Avatar
    Jim Bacon

    Anonymous 8:12, I don’t quite understand. Under the decoupling scenario you laid out, where is the incentive to conserve?

  19. Larry Gross Avatar
    Larry Gross

    Anon 8:12 – thank you for succinctly explaining the process.

    Jim – the part that consumers can conserve on is the electricity useage component.

    Dominion has to maintain a reliable network as well as enough system capacity to keep it reliable.

    That means that they have to build new plants to prevent brownouts and blackouts and there is no incentive for them to not build those plants much less do so in an efficient and cost-effective manner.

    (If you think this sounds like VDOT, you are correct).

    In both cases – their perceived mission is to provide capacity and pass on whatever the costs for doing so are – to consumers/taxpayers.

    Anon compared decoupling to congestion pricing – and I feel it is a very apt description – because it changes the equation to focus on useage – and especially useage at peak periods.

    But consumers cannot know where to cut back intelligently without some help – smart meters and smart applicances.

    here’s a very relevant point:

    “…so long as the public policy is to encourage consumption.”

    turn this around – what is Virginia’s policy to encourage conservation?

    …lip service?

    … whacking on Dominion ala whipping boy?

    … sound bite foolishess like ” a goal of using some percent of green power by some future date”?

    what is Virginia’s Policy?

    and along the lines of what Groveton is saying.. here is a quick test for folks.

    Tell me what exactly YOUR Delgate and State Senator’s position on Dominion and Conservation.

    I’ll be most of us don’t have a clue – and this is very telling because if you and I don’t have a clue – it means that our elected officials don’t have it on their radar screen.. and that leaves them to do other “work” like abusive driver laws.

    Like Groveton – I’m pretty sick of our system in Va. Citizens need to have more of a role like they do in some places out west.

    Crazy referenda might happen but at least.. legislators would realize that they could be trumped by citizens if they are off the ranch.

  20. Larry Gross Avatar
    Larry Gross

    re: wealth transfer

    I’m with FW on this.

    I think it is interesting about powering NoVa and other urban Va via remote power generation.

    There is discussion about “distributed power”.

    Let me point out that Fredericksburg has a local power plant. It generates about what the area uses (242 megawatts) but here’s the kicker.

    It requires 100 car coal trains .. several per week to keep it going.

    What is more .. INEFFICIENT?

    1. – transmitting Power via power lines from where those coal trains originate?

    2. – loading 100 cars and dragging them by rail for 200 miles?

    Would it be preferable for NoVa, HR/TW, Richmond to have more and more power plants built within their boundaries and more and more coal trains to provide coal for them?

    and in the for what it is worth category…

    I note that Va has lately decided that SW and rural Va is where we should have our new prisons, including the big super max prisons…

    These were not characterized as a “wealth transfer” … even though .. they were clearly… because the vast majority of our prison population comes from our urban areas….

    (memo to Larry.. ask EMR about Balanced Communities and prisons).

  21. Larry Gross Avatar
    Larry Gross

    Everything you wanted to know about Virginia Power Generation but were afraid to ask (inlcuding the location of the plants and major distribution lines):

    (memo to Larry – try to understand the Geography shown at this site .. with respect to advocacies for balanced communities and distributed power generation).

  22. Jim Bacon Avatar
    Jim Bacon

    Larry, you ask which is more inefficient: moving coal to power plants by train, or transmitting electricity over power lines. The answer is, it depends.

    Railroads charge a lot to move coal, especially when power companies are captive customers with no alternatives. However, savvy power companies locate their plants in locations with alternative sources of supply — two railroads (CSX and Norfolk Southern), or coal brought in by barge. Or, they negotiate favorable long-term tariffs with coal producers and railroads before they finalize the decision where to build the plant, to give them more leverage.

    Compare that to wheeling in electricity over electric transmission lines. The transmission lines have significant capital cost, which must be counted against the locational cost of a power plant in Virginia. Furthermore, transmission lines “leak” electricity over long distances. It’s a right furr piece from St. Paul, Va., to Northern Virginia, and significant leakage can be expected.

    Look, if Dominion can make a case that it’s more cost-efficient to locate a power plant in Southwest Virginia when all relevant factors are taken into consideration, that would be marvellous. I’d like to see Southwest Virginia prosper — just as the expense of other regions, and in a process so opaque that no one can even sort out how large the subsidies are. But there are better ways to help the region. Bolstering investment in broadband infrastructure, upgrading the quality of education and recruiting business investment from Northern Virginia would make more sense, it seems to me.

  23. Anon 8:12 Avatar
    Anon 8:12

    Jim – Larry is right — the incentive to conserve is with the consumer on the usage component, as it is today. However, the power company today has no such incentive to encourage conservation because it needs to hit a certain amount of usage to ensure that it covers fixed costs plus a profit margin. Decoupling aligns the consumer’s incentive to conserve with the power company’s.

  24. Groveton Avatar

    Isn’t the biggest issue the fact that the plant will produce 58.5% of the power normally produced by a plant of that cost? I assume that is generation capcaity not generation and transmission capacity.

    That seems pretty poor on the face of it.

    However, you can sort of understand the inefficiency if you think about the ROI calculation. For example, if a company is guaranteed a return of 12% of its asset base, what is more profitable:

    1. A $1B power plan?
    2. A $2B power plant

    Well, in strict terms, it’s the $2B power plant.

    1. A $1B power plant generates $120M per year in return.
    2. A $2B power plant generates $240M per year in return.

    As long as the return is higher than the company’s cost of capital, the more expensive the plant the better.

    And, in a strict sense, the return will be recovered by the units received by the buyer so the transmission capital adds to the return and the transmission loss is irrelevant.

    This is why companies which seek regulated returns are … well … regulated.

    The motto of the telephone company regulators was to “protect the ratepayers from the shareholdres”. The telephone companies had to very clearly delineate their regulated businesses from their unregulated businesses. Employees were in either the regulated company or the unregulated company. Sometimes office buildings were physically divided so that the cost base for the regulated company was clearly separate from the unregulated company.

    Only the regulated company was allowed cost – plus returns. Even the regulated companies eventually went under declining price cap regulation.

    I checked the two candidates for state delagate from the 34th district – Margi Vanderhye (D) and Dave Hunt (R). Not a word about electric re-regulation. I watched the videotaped replays of the primary debates between Ms. Vanderhye and her Democratic challenger – Richard Sullivan. Not a word that I heard in hours of debate.

    However, I checked Jim Bacon’s recommended Virginia FREE site – plenty of information there.

    And … if you want to generate electricty in NOVA – we’ll be shipping canisters of uranium not train loads of coal. Maybe a trade? The Journey through Hallowed Ground accepts one nuke plant in Western Loudoun and we put all the rest of the land into a federal easement for bed and breakfasts.

  25. Larry Gross Avatar
    Larry Gross

    “The Journey through Hallowed Ground accepts one nuke plant in Western Loudoun and we put all the rest of the land into a federal easement for bed and breakfasts.”

    .. would that include forever onsite storage of spent fuel?


    How about nuke plants for all of Virginia’s urban areas and shut down all the coal plants?

  26. Groveton Avatar

    The spent fuel can be stored under the vegetable gardens for the bed and breakfasts. I always wnted to see a 200 pound tomato (:

    Also, with Lake Anna, Calvert Cliffs and others – aren’t we getting close to nuclear power plants in urban (or urbanizing) areas?

    How close does a nuke have to be before it’s close enough to not really matter how close it is. Lake Anna is 72 miles from Washington, DC.

    Everything has risks:

    1. USe corn to make ethanol and people will starve as corn is worth more as fule than food.

    2. Build oil fired plants and you enrich a set of countries who harbor terrorists who eventually harm the west in grevious ways.

    3. Use coal and potentially pollute the planet to the point that the ice melts and Manhattan becomes a modern day Atlantis.

    4. Use nuclear and watch a broken plant melt a hole through the Earth all the way to China.

    I’d take my chances with the nukes.

  27. Larry Gross Avatar
    Larry Gross

    How would you feel about a smart meter that would:

    1. – set off an alarm if useage levels exceeded pre-set limits?

    2. – the thresholds would change according to time of day

    3. – certain applicances (like water heaters) would automatically shut off when the thresholds were exceeded?

  28. Anonymous Avatar

    Well, well, well…Let me help you children.

    This was a little amendment slipped into SB 651 at the 2004 Session. Check it out on the General Assembly web site (Legilsative Information Systems). Read the last two or three sentences of the summary.

    The amendment was put in to “buy” the support of the Soutwest Virginia members. It was clearly the idea of Domion Virginia Power. It’s a great deal for them under the anticonsumer “reregulation” scheme that they have slipped into the law.

    The entire deregulation/reregulation senario is one that is going to cost Virginians one heck of a lot more than any tax increse that has been suggested.

    Someone hasn’t been paying attention or listening to the few voices that have been complaining about this for about 8 years.

  29. Anonymous Avatar

    I’m glad to see you talking about trades realistically. We need power, and to have it the power companies need to make enough money that they don’t decide to invest in other businesses. We need clean air, too. Too the extent power companies invest to give it to us, they will need to be paid for that investment as well.

    It is the same argument I have made about farms and open space: if we don’t provide enough money to support them, (one way or another) they will go away.

    I’ve got an alarm that goes off when I exceed preset usage: it is called my electric bill. How is that meter going to shut off the air conditioner that I don’t have?

    It is all a trade. That’s why free trade results in the lowest costs for all.


  30. Jim Bacon Avatar
    Jim Bacon

    Here is the language in SB651 (2004) that Anonymous 10:09 was referring to:

    “The bill authorizes any investor-owned distributor that has been designated a default service provider to petition the SCC for approval to construct a coal-fired generation facility that utilizes Virginia coal and is located in the coalfield region of the Commonwealth, in order to meet its native load and default service obligations. A distributor that builds such a facility shall have the right to recover the costs of the facility, plus a fair rate of return, through its default service rates. The construction of such a facility is declared to be in the public interest.”

  31. Groveton Avatar

    I thought Jim Bacon’s article hit the nail on the head:

    “Coincidentally, $1.6 billion is what the Virginia City Hybrid Energy Center would cost. But instead of generating a full gigawatt of electric power, it would generate only 585 megawatts — or 58.5 percent of the average. The balance, or roughly $650 million, represents an additional cost to Virginia rate payers.

    But that’s not all. States Dominion: “Under a state law encouraging the construction of the station, it would be powered by Virginia coal.” As it happens, Virginia has very high-quality, low-sulfur coal. But after 100 years of mining, Virginia’s remaining coal seams are either very thin or very deep, which means production costs are very high. Bottom line: Virginia electric consumers will pay more for their coal than if Dominion were free to purchase the fuel from any location. Thus, rate payers would pay more in two ways: for the up-front construction and for the fuel.”.

    In fact, as has been discussed, there is a third way that consumers get ripped off by this decision – namely, transmitting the electricity over long distances is more expensive and less efficient.

    It’s not just a politicized deal it’s a bad deal.

    I get the impression from Mr. Bacon’s article that the extra construction costs are due to the anti-pollution technology.

    However, I wonder if this is true.

    A $1.6B construction project leaves lots of pork left over for any politician – piggies who felt shorted by SB651.

    Of course, when the electric bills go through the roof there will be a hue and cry by the same politicians who suddenly find that consumers are being unfairly charged.

    Of course, when Dominion wants to transmit the electricity to Northern Virginia and beyond there will be a hue and cry from NIMBY-ville about the ugly power lines going through their part of the state.

  32. Anonymous Avatar

    Jim: The deal to build the power plant was part of the 2004 de-regulation bill that extended the rate cap that was set to expire in 2007 and extended it until 2010. This same legislation also kept Va firmly on the road to de-regulation. At the time AEP and others where going to be part of the consortium, but has since decided to AEP withdrew.

    GA Observer

  33. Larry Gross Avatar
    Larry Gross

    This morning’s Wall Street Journal makes one wonder what Dominion is doing:

    Cutline: “Coal’s Doubters
    Block New Wave
    Of Power Plants”
    From coast to coast, plans for a new generation of coal-fired power plants are falling by the wayside as states conclude that conventional coal plants are too dirty to build and the cost of cleaner plants is too high.

    If significant numbers of new coal plants don’t get built in the U.S. in coming years, it will put pressure on officials to clear the path for other power sources, including nuclear power, or trim the nation’s electricity demand…

    As recently as May, U.S. power companies had announced intentions to build as many as 150 new generating plants fueled by coal, which currently supplies about half the nation’s electricity. One reason for the surge of interest in coal was concern over the higher price of natural gas, which has driven up electricity prices in many places. Coal appeared capable of softening the impact since the U.S. has deep coal reserves and prices are low.

    But as plans for this fleet of new coal-powered plants move forward, an increasing number are being canceled or development slowed. Coal plants have come under fire because coal is a big source of carbon dioxide, the main gas blamed for global warming, in a time when climate change has become a hot-button political issue.

    An early sign of the changing momentum was contained in the $32 billion private-equity deal earlier this year to buy TXU Corp. To gain support for the deal, the buyers decided to trim eight of 11 coal plants TXU had proposed in Texas. Recent reversals in Florida, North Carolina, Oregon and other states have shown coal’s future prospects are dimming. Nearly two dozen coal projects have been canceled since early 2006, according to the National Energy Technology Laboratory in Pittsburgh, a division of the Department of Energy.

    full article at:

  34. Anonymous Avatar

    Back in the 70’s I worked on a cost estimating model to project the future cost of electricity.

    The way it worked was that you first selected a rate of increase in demand, and a rate of inflation. Then you had to choose between various power sources. The cost of those sources was based on historical averages, with escalation factored in, depending on when the facility needed to come on line.

    The killer was the lead time required, and the money invested years in the future before any return became evident. Oil and natural gas plants could come on line quickly, be located nearby, and could be scaled small, so that you could meet the demand incrementally, but fuel costs varied. Coal plants were larger and took a bigger bite out of the demand, but took longer to build, so you had to start earlier, although coal prices are more predictable.

    Nuclear plants took even longer and cost even more, so their actual advantage is not as big as it seems.

    So, you would select your growth and inflation rate, and selct the when and what type of plants to start.

    But the demand you selected wasn’t necessarily what you got, because the model would decrease demand with increased costs and had random variability due to outside influences and economic variability.

    I’m not claiming the model was perfect. Certainly it had no allowance in it for global warming costs. But, now matter what assumptions you made going in, the only way to succeed was to have a large percantage of coal plants in your plans.

    Technology made almost no difference, the whole thing was driven by discount rates and return on investment.


  35. Anonymous Avatar

    The vast majority of website operators don't have the guts to allow this post, anything like it, any searchable lines, or links. They have been deleted more than 90% of the time. The vast majority of syndicated talk radio hosts are screening their calls and won't allow this topic. The vast majority of callers don't have a clue. We are in big trouble. The truth is so Earth shattering, that no public figure has the guts to acknowledge it. Very few have the guts to allow a statement anything like this in their forum. The truth is being suppressed. We are in much more serious trouble than we have been told by any public figure. Don't be fooled by fluctuating economic indicators or short term market stability. The entire foundation of our economy is crumbling. Get ready people. Get your affairs in order. Get your households in order. Get your communities in order. Be prepared. This is no 'correction'. This is no ordinary recession. This won't be just another Great Depression. This will be much worse. Save this post now before it gets deleted.

    Sometimes, I wonder why I bother fighting so hard for the little guy. Whats the point if they are too stupid to listen? Say that reminds me.

    Amazing. The worst economic and cultural crisis of all time will go down in history horribly misunderstood. What a pathetic bunch of ignorant fools we have become. Consumer junkie credit card morons. Perfect little victims.

    Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are part of the problem. Its like a game of Monopoly. In America, the richest 1%, now hold ALMOST 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, offshore accounts, and material assets held by America’s richest 1%. Even that filthy pig Oprah Winfrey acknowledged that it was near 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING SELF-CENTERED SELF-PROMOTING HYPOCRITE SLOB. THE RICHEST ONE PERCENT HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their 'good will' ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. THE EQUATION THEY STAND FOR ABSOLUTELY CAN NOT WORK. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. There are serious concequences for doing so. Regardless, there is always a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the currency looses value, the middle class slip further into debt, and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to pay all the bills or sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars which have been transfered FROM US TO THEM. All over a period of about 30 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves 'heros' or ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any ‘humanitarian’ progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end very much like a giant game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this 'good will' 'humanitarian' BS from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. They get richer as we speak. They absolutely will not stop. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, subprime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth from poor to rich. Anyway, those other factors are related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of bottom line wealth within our country, there never would have been such a market for subprime to begin with. IF IT WEREN’T FOR THE OBSCENE, UNREASONABLE, ILLOGICAL, AND IMMORAL DISTRIBUTION OF UNITED STATES WEALTH, THERE WOULD NOT HAVE BEEN SUCH A MARKET FOR SUBPRIME AND THERE WOULD NOT HAVE BEEN A COLLAPSE IN THE HOUSING MARKET. Subprime did not cause this collapse. Otherwise, it would have done so back in the '90's. It didn't. It only delayed and then suddenly accelerated the inevitable. In fact, the market for subprime literally multiplied over the last decade as the concentration of United States wealth became more extreme. This created a false boom along with artificially raised values and then a sudden decline. Otherwise, the market would have tanked years earlier at a slower rate. Make no mistake. The housing and stock markets would have been in decline by now with or without subprime. Which by the way, was another trick whipped up by greedy bankers, executives, and politicians. IT MADE THEM RICHER. Along with many investors, developers, attorneys, and public figures. Including three of the most greedy, self-serving, self-promoting, hypocrite pigs that have ever lived. The credit industry has been ENDORSED for years by Oprah Winfrey, Ellen DeGeneres, and Dr Phil. Every interest rate. Every late fee. Every NSF fee. Every hidden charge. Every page of fine print. The industry as a whole was endorsed by them. They told their own loyal fans to run out and support it. In fact, they specifically endorsed Countrywide by name. IT MADE THEM RICHER. In order to fully appreciate this, you must realize what a rotten trick Countrywide had up their sleeve to begin with. How it was later ENDORSED by OPRAH WINFREY, ELLEN DEGENERES, AND DR PHIL. How incredibly irresponsible they were. How they betrayed their own loyal fans. How they were PAID FOR IT. How they contributed to the artificial rise and accelerated fall of the US housing market. Not only by concentrating so much wealth. Not only by flaunting their own extravogant multi-mansion lifestyles. Not only by promoting this unrealistic concept of 'bigger, better, faster, upscale' EVERYTHING. But also by endorsing subprime. Don't believe what you've heard from them or any other filthy rich public figure. THEY ARE PAID LIARS. It wasn't just about irresponsible lending, borrowing, local banker bonuses, or weak oversight. That was going on BEFORE subprime. It was actually much more cruel and calculated. Orchestrated from the top down. 'Predatory lending' is just that. Their plan was to give easy credit to millions while the housing market was high, inflate the market even higher in the process, reap a few years worth of payments from unsuspecting buyers, allow them to accumulate little or no equity, lie in wait as those homes increased in value, then jack up their rates making it near impossible for those buyers to make the payments on time. At which time, those buyers would be evicted, their dreams shattered, and their homes forfeited. Which by then, from the mid '90's until mid '07', would be even higher in value and re-sold for a higher price. The plan was to be executed primarily while the market was strong. They got away with it for a decade even before the talk show pigs endorsed it. Leaving thousands of buyers with NOTHING to show for all those payments made. This incredibly cruel and calculated plan was orchestrated in part by Countrywide. THE SAME COUNTRYWIDE ENDORSED BY OPRAH WINFREY, ELLEN DEGENERES, AND DR PHIL. IT MADE THEM RICHER. It also made many of their loyal fans homeless. What a rotten, disgusting trio of greedy, self-serving, self-promoting, hypocrite pigs. What a rotten, disgusting, immoral way to turn a quick buck. To make as many people as possible love you. Then tell those love-sick people to run out and buy a product or service because you say so. Because you were PAID to endorse it. Without the slightest regard for the downside or anything but your own obscene bottom line. Thats why they did it. GREED. Now, there are similar ties between every major industry, every Fortune 500 company, and nearly every public figure. IT MAKES THEM RICHER. It also drives up the cost and consumption for nearly every product, service, and resource on the market. So don’t fall for their ‘good will’ 'humanitarian' BS. ITS A SHAM. NOTHING BUT A CALCULATED, TAX DEDUCTIBLE, MARKETING PLAN TO RAISE THE VALUE OF THEIR OWN IMAGE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, lobbyist, executive, or card shark, then you’re a fool. No offense fellow citizens. But we have been mislead by nearly every living public figure. We still are. Even now, they claim to be ‘hurting’ right along with the rest of us. As if gas prices actually effect the lifestyle or bottom line of a millionaire. ITS A LIE. IN 2007, THE RICHEST 1 PERCENT INCREASED THEIR AVERAGE BOTTOM LINE WEALTH AGAIN. Most of these financial assets are on the books. Others hidden. Material assets aren't always disclosed. But make no mistake. America's richest 1 percent keep getting richer. On average, they are now worth almost $5,000,000 each. Thats an all time high. As a group, their net worth is over $20,000,000,000,000. THATS OVER TWENTY TRILLION DOLLARS. Another all time high. Which by the way, is much more than the entire middle and lower classes combined. Also more than enough to pay off our national debt, fund the Iraq war for a decade, repair our infrastructure, and bail out the US housing market. Still think that our biggest problem is China? Think again. Its the one percent club. That means every big name celebrity, athlete, executive, entrepreneur, developer, banker, and lottery winner. Along with many attorneys, doctors, and politicians. If they are rich, then they are part of the problem. Their incredible wealth was not ‘created’, ‘generated’, grown in their back yard, or printed up on their command. The lion's share was transfered FROM US TO THEM. Directly and indirectly. Its become near impossible to spend a dollar without making some greedy pig even richer. Don’t be fooled by the fall of the stock market, industry losses, lower profit margins, bank failures, or the occasional reported loss of a millionaire’s fortune. Overall, they just keep getting richer. They do so with little or no regard for their own industries or the economy as a whole. They are obsessed primarily with a desire to accumulate more personal wealth. They absolutely will not stop. Still, they have the nerve to pretend as if they care about ordinary people. ITS A LIE. NOTHING BUT CALCULATED PR CRAP. WAKE UP PEOPLE. THEIR PRIMARY GOAL IS TO WIN THE GAME. The one percent club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. CAFTA. Their idea. Outsourcing. Their idea. Downsizing. Their idea. Subprime. Their idea. High energy prices. Their idea. Oil ‘futures’. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement deal. Their idea. $400 cell phones. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. $50 event tickets. Their idea. $30 books. Their idea. $400 PC operating systems. Their idea. $60 video games. Their idea. Obscene health care charges. Their idea. Subliminal advertising. Their idea. Commercial brainwash plots on TV. Their idea. Vioxx, and Celebrex. Their idea. Excessive medical testing. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, medical testing, love-sick, celebrity junkie. Their idea. IT WAS ALL THEIR IDEA. IT MAKES THEM RICHER. All of the above drive up the cost of living, shrink the middle class, concentrate the world’s wealth and resources, create a domino effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, investors, developers, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the ‘charitable’ contribution is almost entirely offset. Not to mention the opportunity to plug their name, image, product, and ‘good will’ all at once. Which is usually done just before or after the release of their latest commercial project. IT MAKES THEM RICHER. These greedy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to ‘federal tax revenue’. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. If the middle and lower classes had a greater share of the economic pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for the vast majority because the executives, investors, developers, celebrities, athletes, attorneys, politicians, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, lobby, re-locate, cut jobs, and cut benefits to increase or preserve their own obscene personal bottom line. They do so even at the expense of their own industries. Even after you account for the fall of the market and lower industry profit margins, the richest 1 percent still keep getting richer on average. Simply because their wealth is drawn from the majority in many ways. Not necessarily at the same rate, but still in their favor. They continue to reap more than they spend down or 'give back'. They have done so for many years. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax revenue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a domino effect to consider. Caused primarily by a constant transfer of wealth from poor to rich. IT CAN’T WORK THIS WAY. But our leaders refuse to acknowledge this. Instead they come up with one trick after another to milk the system, feed the rich, and screw the majority. These decisions are heavily influensed by the 1% club. Every year, billions of federal tax dollars are diverted behind the scenes back to the rich and their respective industries. Loans from China have been necessary to compensate in part, for the red ink and the multi-trillion dollar transfer of wealth from poor to rich. At the same time, the feds have been pushing more financial burden onto the states who push them lower onto the cities. Again, the hardship is felt more by the majority and less by the 1% club. The rich prefer to live in exclusive areas or upper class communities. They get the best of everything. Reliable city services, new schools, freshly paved roads, new lighting, sidewalks, drainage, upscale parks, ect. The middle and lower class communities get little or nothing without a raise in basic service charges or a local tax increase. Which, they usually can’t afford. So the red ink flows followed by service cuts and lay-offs. All because of the OBSCENE distribution of bottom line wealth in this country. Anyway, when you account for all federal, state, local taxes, and fees, the middle class actually pay about the same rate as the rich. The devil is in the details. So when people forgive the rich for their incredible greed and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of bottom line wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, investors, celebrities, athletes, attorneys, doctors, entrepreneurs, developers, lobbyists, and sold-out politicians to kiss their greedy asses. As a nation, we were in much better shape. Strong middle class, free and clear assets, home equity, savings, widespread prosperity, stable job market, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth, and resources than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, credit crunch, weak job market, weak middle class, weak US dollar, 13 figure national debt, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can’t even afford basic health care. ALL BECAUSE OF GREED. I really don’t blame the upper class in general. At least not as a group and not without exception. No economy could ever function without some reasonable scale of income and wealth. But it can’t be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. TOP HEAVY ECONOMIES CAN NOT BE SUSTAINED. THEY ALWAYS COLLAPSE. Bottom line: The richest 1 percent will soon tank the largest economy in the world. It will be catastrophic. Like nothing we’ve ever seen before. The American dream will be shattered. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions more to struggle, fight, starve, suffer, and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, they will jump to small minded conclusions about 'jealousy', 'envy', or 'socialism'. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its underlying cause. WE ARE IN BIG TROUBLE.

    So what can we do about it? Well, not much. Unfortunately, we are stuck on a runaway train. The problem has gone unchecked for too many years. The US/global depression is comming thanks to the 1% club. It would take a massive effort by the vast majority to prevent it. Along with a voluntary sacrifice by the rich. THATS NOT GOING TO HAPPEN. But if you believe in miracles, then spend your money as wisely as possible. Especially in middle and lower class communities. Check the Fortune 500 list and limit your support of high profit/low labor industries (Hollywood, pro sports, energy, credit, pharmaceutical, cable, satelite, internet advertising, video, and music, cell phone, high fashion, jewelry, ect.). Cancel all but one credit card for emergencies only. Call the provider and demand a lower rate. Be persistent. You may get it. (By the way. I gave this piece of advice long before NBC. I'm not looking for kudos. I'm telling you that NBC is directly affiliated with the credit industry. They could have given you this piece of advice years ago. Instead, they stood by and allowed their parent company, sister companies, and network sponsors to RIP YOU OFF. Even now, they give the occasional 'good guy' financial advice only because they are pressured to do so. They carefully balance every piece of 'good guy' advice with their primary goal to GET YOUR MONEY. Which is why their 'good guy' advice is so often followed by a plug for one of their sister companies, sister channels, network sponsors, or coorporate partners. For example: They tell you to pay down your credit card debt. Good advice. They should have given it years ago. Then, they tell you to GET MORE CREDIT CARDS and use them. Bad advice. One week Jean Chatzky tells you to avoid the 'free credit report' scam because it is always followed by a monthly service charge. Good advice. They should have given it years ago. The following week she stands by as her paid fellow advisor Carmen Wong strongly implies for you to have your credit monitered on a monthly basis and praises a caller for doing so. Bad advice. This is actually a plug for one of their network sponsors, coorporate partners, or parent company. The praise is nothing but a psychological trick. DON'T FALL FOR IT. Don't take ANYTHING they say at face value. Instead, read between the lines. Carefully weigh every piece of 'good guy' advice given against their primary goal. THEY WANT YOUR MONEY.). If you need a cell phone, then do your homework and find the best deal on a local pre-pay. You may be able to get one for as little as $10 a month. Don't text. The charge may seem low at the time but their profit margins are obscene. If you want home internet access, then check for a locally based provider. They can be found in nearly every city nationwide. Otherwise, use the least expensive big name provider, and share accounts whenever possible. If you need to search, then use the less popular search engines. They usually produce about same results anyway. Don't pay for any internet download. Their profit margins for such data transfers are obscene. Don’t pay to see any blockbuster movie. Instead, wait a few months and rent the DVD from a local store, borrow it, or buy it USED. Then loan it to a friend or family member. If you prefer the outing, then choose a film produced by the lesser known studeos with lower paid actors. If you want to see a big name game or event, then watch it in a local bar, club, or at home on network TV. Don’t buy any high end official merchandise and don’t support the high end sponsors. If its endorsed by a big name celebrity, then don’t buy it. If you can afford a new car, then make an exception for GM, Ford, and Dodge. If they don’t increase their market share soon, then a lot more people are going to get screwed out of their pensions and/or benefits. Of course, you must know by now to avoid those big trucks and SUVs unless you truly need one for its utility. Don’t be ashamed to buy a foreign car if you prefer it. Afterall, those with the most fuel efficient vehicles consume a lot less foreign oil. Which accounts for a pretty big chunk of our trade deficit. Its a reasonable trade-off. Anyway, the global economy is worth supporting to some extent. Its the obscene profit margins, trade deficits, and BS from OPEC that get us into trouble. Otherwise, the global economy would be a good thing for everyone. Just keep in mind that the big 3 are struggling and they do produce a few smaller reliable cars. Don’t frequent any high end department store, mall, or any business in a newly developed center or upper class community. By doing so, you encourage greedy developers, make them richer, and draw vital support away from industrial areas and away from the middle and lower class communities. Instead, support the local retailer and the less popular shopping centers. Especially in lower or middle class communities. If you can afford to buy a home, then do so. But go smaller and less expensive. Don’t get yourself in too deep and don’t buy into the newly developed condos or gated communities. Instead, find a modest home in a building or neighborhood at least 20 years old. If you live in one of the poorer states, then try to support its economy first and foremost. Be on the lookout for commercial brainwash plots on TV. They are written into nearly every scene of nearly every show. Most cater to network sponsors, coorporate partners, and parent companies. Especially commercial health care. In particular, high profit pharmaceuticals and excessive medical testing. These plugs are countless, calculated, and VERY well written. They have commercial brainwashing down to a science. DON'T FALL FOR IT. Get off the couch and take care of your own body the way nature intended. There is no substitute. If you must see a doctor, then DEMAND that he/she give you more than 5 minutes of their undivided attention. Otherwise, dispute their unreasonable charges. Be prepared with written questions about your condition and get them answered one at a time. If they refuse, then dispute their unreasonable charges. If they prescribe excessive medical testing then ask if they personally own the equipment or if they are paid a commission for each test. If they find nothing new or signifigant, then dispute their unreasonable charges. If they prescribe a pharmaceutical, then ask for a generic. Better yet, concider a change in lifestyle or simple tolerance. If they still recommend the name brand pharmaceutical, then ask about any financial ties or conflict of interest. If they get offended, then dispute their unreasonable charges and consider a new doctor. If you must drug away your sniffles, worries, jitters, aches, and pains, then at least do your homework. Be aware of the possible side-effects ahead of time. Don't be surprised to find yourself back a week or two later feeling worse. In which case, you should dispute their unreasonable charges. If you are diagnosed with another medical condition, then ask your doctor what he/she has done to rule out those possible side-effects. Otherwise, dispute their unreasonable charges. Don't let any greedy doctor treat you like a number, make you wait an hour, or rush you out of their office. Otherwise, dispute their unreasonable charges. Don't fall for this CRAP that doctors have no choice but to over-book their time or over-charge their patients because of a high overhead. ITS A LIE. YOUR DOCTOR IS MOST LIKELY A MULTI-MILLIONAIRE. So don't fall for their CRAP. Demand their undivided attention and respect. Afterall, they took an oath. If you have the opportunity before being admitted, then check the record of your hospital. Check to see if they have been investigated or sued for providing unnecessary treatment, excessive medical testing, or fraudulent billing. Dozens have already been caught doing so. Do all of the above regardless of your coverage. Don't force your employer to cover the obscene and often fraudulent charges of a corrupt health care industry. By doing so, you make the problem worse. Keep your guard up when watching ANY talk show. These people are not your friends. They are not your advocates. They are paid actors hired to get your attention and your money. Some of them are also executive producers (Oprah Winfrey, Ellen Degeneres, and Dr Phil.). Nearly every word, smile, and stupid joke is rehearsed ahead of time. Including those which take place so often during what appear to be 'technical oversights' (Today Show. Even their stage hands are mixed in behind the scenes so that you can hear them laugh at every stupid joke.). Its all fake. Its all calculated. These people are not trying to make the world a happy place. They are trying to entertain you only because their marketing studies have shown that you are more likely to drop your guard and support their sponsors. Nearly every segment is about marketing some over-priced product or service. They will use any excuse to plug a gadget, fashion item, travel destonation, credit card, university, drug, medical test, surgical procedure, movie, TV show, book, magazine, song, website, ect. Almost all of it over-priced. Almost all of it resulting in higher profits for their sponsors, partners, and parent companies. DON'T FALL FOR IT. Big business is fine on occasion depending on their product, ethics, employment, profit margins, and profit sharing. Do your homework. If they are screwing up our economy or society, then don't pay them for it. If you want to support any legitimate charity, then do so directly. Never support any celebrity foundation. Don't be fooled by the sale of baby photos, lies about percentage of income donated, or praise from other well known public figures. Celebrity foundations are CRAP. They spend most of their funding on PR campaigns, exotic travel, and super high end accomodations for themselves. Thats right. Filthy rich public figures have been jet-setting the world in the name of 'humanity' for years. Riding in personal jets, staying in super-exclusive resorts, and living it up in exotic locations around the world the likes of which most people could never afford even if their lives depended on it. They bring along agents, advisors, publicists, hair, make-up, wardrobe, lighting, and photo crews who are also in it for themselves. They are paid six or seven figures for their part to schedule, manage, document, showcase, praise, and publicize the 'good will' of said public figures and their respective industries. Every possible expense is passed of as 'incidental' or 'necessary' and billed right back to some 'foundation' named after said public figure and/or respective industry. Every possible tax deduction is claimed. Which are incredibly vague and diverse thanks to our sold-out government. Deals are cut with major networks who agree to praise the 'good will' or 'humanitarian' effort of said public figures and plug their latest commercial project around the same time. Others from around the world pick up the story and save these industries billions in advertising every year. Resulting in higher profits and paychecks for the 1% club. When its all said and done more wealth is transfered from poor to rich. NOT the other way around. So don't support any charity named after a living celebrity. Don't be fooled or inspired by any photo you see in a magazine, any clip on TV, any affiliation, or any short term short sighted progress report. Instead, go to and look up a top rated charity to support your favorite cause. Its all there. For example: 'Habitat For Humanity' is a top rated charity. They have been for many years. They operate with a low overhead, volunteer workforce, and donated materials. They have built homes for the less fortunate in nearly every city nationwide. Including New Orleans. They do so as we speak. No similar effort can match their progress hour for hour or dollar for dollar. So there is no legitimate reason to support a slower, less efficient effort represented by a filthy rich Hollywood actor who flies in on a personal jet, takes most of the credit, and makes a deal with a major network for plugs just days before the premier of his latest film or DVD release. By doing so, you support not only the inefficient effort, but also the filthy rich actor. Concentrating more wealth and dumbing down our society further in the process. Instead, support 'Habitat For Humanity'. Its not perfect. It is affiliated with some big business. However, it is MUCH more efficient, effective, and less corrupt than 'Make It Right'. The difference is profound. In general, support the little guy as much as possible and the big guy as little as possible. Keep your own greed in check. Don't play the big stakes lottery games, and don't invest only for profit. Don't believe for a second that you can get rich and still manage to keep your soul because you can't. Don't believe for a second that you can concentrate even more of the world's wealth and somehow 'give back' enough to make up for it because you can't. If you do come into a fortune, then give away the bulk of it to a legitimate cause or directly to others who have far less. Do it quickly before that big money turns your heart black. Find the courage and do it. STAY OUT OF THE 1% CLUB. Encourage others to do the same. Their standard is obscene, unjust, illogical, and immoral. There is no excuse for it. Do your part to reverse the transfer of wealth away from the rich and back to the middle and lower classes. Otherwise, there will be no economic recovery EVER. Unfortunately, there is no perfect answer. Jobs will be lost either way. Families will go cold and hungry either way. Innocent children will starve and die either way. But we need to support the largest group of workers with the most reasonable profit margins. We need to stand for a more reasonable distribution of income, bottom line wealth, and resources. We need to support LEGITIMATE charities (Check that list at This is our only chance to limit the severity or duration of the comming US/global depression. In the meantime, don’t listen to Bernanke, Paulson, Bartiromo, Orman, Dobbs, Kramer, Pickens, Larson, O'Reiley, Limbaugh, Bruce, Ingraham, or any other public figure with regard to the economy. They are all plenty smart but I swear to you that they will lie right through their rotten teeth. IT MAKES THEM RICHER. These people work for big business. They are sponsored by big business. The ‘experts’ they cite also work for big business. They invest in big business. They are all motivated primarily by their obsessive desire to accumulate even more personal wealth. THEY WILL LIE RIGHT THROUGH THEIR ROTTEN TEETH. So don’t fall for their tricks. Instead, look at the big picture. The economic problems we face have been mounting for well over 20 years. All of them caused or aggrivated by a constant transfer of wealth from poor to rich. Soon, it will cause the worst ever GLOBAL DEPRESSION. Its not brain surgery. For the mostpart, Its simple math. Like I said, you are welcome to copy this entry and run it by any professor of economics or socio-economics. Go ahead and do it. Ask them specifically about the link between the distribution of wealth and economic stability. If thats not good enough, then look up what Albert Einstein had to say about greed, excess, extreme wealth, and its horrible economic and cultural concequences. Then call any syndicated talk radio show. Tell the screeners that you would like to discuss the concentration of wealth. Mention the views of Albert Einstein with regard to this issue. Your call will be refused. FLAT OUT REFUSED. The vast majority screen their calls and won't allow this topic. Try any local talk radio show. You will face massive opposition there as well but at least they will take your call. Be prepared. These people are very good debators. The vast majority are die-hard capitalists. If they take offense, they may insult you, talk over you, try to re-define your own statements, or call you a 'socialist', 'marxist', or 'communist'. They often use these words to refer to anyone who points out the flaws of unbridled capitalism. They may follow with the old "socialism/marxism doesn't work" line. Maybe, they should take a closer look at whats happening in the world and see that unbridled capitalism doesn't work either. The heavy concentration of wealth is it's fatal flaw. We need a compromise. A relatively free market system with a minimum wage, a maximum wage, a progressive tax policy, and caps on personal wealth. Any little step in that direction would be a start. If you get the opportunity, then confront any politician or public figure in any forum. Ask them to confirm or deny the concentration of wealth and the relation if any to economic stability. Watch them squirm. They will not give you a straight answer because most public figures are filthy rich. They simply will not acknowledge the ugly truth. GREED KILLS. IT WILL BE OUR DOWNFALL.

    Its already underway. A massive campaign to divert our attention. Trump, Buffet, O'Reiley, Dobbs, Winfrey, Pickens, Larson, Norris, Branson, Bohannon, Limbaugh, Coulter, Clinton, Hannity, Ingraham, Bruce, Bloomberg, Doyle, and several other well known filthy rich public figures have been running their mouths about the economy. Finally admitting a hint of severity after years of denial. They even have the nerve to FINALLY acknowledge the possibility of a US/global depression. Still, they refuse to acknowledge the single greatest underlying cause. GREED. Instead, they focus on policies, procedures, and circumstances that were born FROM the underlying cause. GREED. They ramble on about 'subprime', 'toxic debt', 'junk bonds', and 'risky investments'. As if somehow all of this could have been avoided if those transactions had never taken place to begin with. What a joke. Those factors don't represent the underlying cause of this global economic crisis. They represent the effect of a shrinking middle class and massive consumer debt. CAUSED BY GREED. A MASSIVE TRANSFER OF WEALTH FROM POOR TO RICH. Otherwise, there wouldn't have been such a market for subprime to begin with. The debt wouldn't have been 'toxic'. The bonds wouldn't have been 'junk'. The investments wouldn't have been so 'risky'. By focusing on such factors, they attempt to divert our attention, limit our hindsight, disregard the OBSCENE concentration of wealth and capital, that shrinking middle class, the high cost of living, and the particular form of evil responsible for almost all of it. GREED. Dancing their way around the big picture. DON'T FALL FOR IT. Remember: Our national debt was way up BEFORE subprime. Consumer debt was way up BEFORE subprime. The cost of living was up BEFORE subprime. Wall Street profits were obscene BEFORE subprime. The middle class were loosing free and clear assets BEFORE subprime. Our infrastructure was in bad shape BEFORE subprime. Loans from China were taken out BEFORE subprime. The dollar was loosing value BEFORE subprime. All of this took place over a period of many years under both Republican and Democratic rule. All of it coincided with a transfer of wealth from poor to rich. So don’t let these cowardly, hypocritical, sold-out, partisan, filthy rich public figures divert your attention or limit your range of thought. THE CURRENT GLOBAL ECONOMIC CRISIS WAS NOT CAUSED BY A SINGLE POLICY, PROCEDURE, POLITICAL PARTY, OR ADMINISTRATION. IT WAS CAUSED PRIMARILY BY A MASSIVE TRANSFER OF WEALTH FROM POOR TO RICH. THIS ALSO REPRESENTS A MASSIVE CONCENTRATION OF CAPITAL WORLDWIDE. OTHERWISE, THERE WOULD NOT HAVE BEEN SUCH A MARKET FOR SUBPRIME AND THERE WOULD NOT HAVE BEEN A GLOBAL CREDIT CRUNCH. MONEY DOES NOT GROW ON TREES AND IT DOES NOT JUST FLOAT AWAY. IT ONLY TRANSFERS FROM ONE PARTY TO ANOTHER. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. GREED KILLS. IT WILL BE OUR DOWNFALL.

    A word for those who respond with the usual ‘I know more than you. I spell better than you. I talk like an economist. Look how smart, knowledgable, and articulate I am’ crap. Let me say this in advance. I don’t claim to be an expert in this field. I never will be. I'm still learning and I don't claim to be infallible. But I did go on record with these predictions long before any public figure uttered the word ‘recession’. I've done so 'on the air' and 'online'. Millions of you already know my voice from various local talk radio shows in several states and one syndicated. My first call was in September of '05'. I tried to explain that we will never have world peace without world prosperity and that we will never have world prosperity without a 'fair and reasonable pay-scale'. I also tried to explain the link between 'extreme wealth' and 'extreme poverty'. My call was immediately followed by attacks from so called 'patriots' who felt that my cause must have been to promote 'socialism' or 'bring down America'. Not warn her citizens. You may also remember me from various chat rooms criticizing the 1% club and Hollywood humanitarians in particular. If you search long enough, you will find my early postings online from ‘05' and ‘06'. At first, they were written specifically to fit within a few hundred characters. Including the first draft of this rant. It started with one short paragraph predicting a 'total collapse of the US economy'. Others included phrases like 'game of Monopoly', 'recession is inevitable', 'global recession', 'greed kills', and 'the worst economic and cultural crisis of all time'. Some of which were eventually included here. From day 1, I have tried to explain the link between extreme wealth, poverty, and economic instability. My internet account was eventually cancelled for posting 'spam' in response to articles about the economy. In December of '06', I predicted market instability by spring of the following year. I did so 'on the air'. In January of '07', I called another morning talk radio show and spoke with a guest host who was filling in for a well known public figure. Again, I specifically predicted growing market instability, the current US recession, and the subsequent US/global depression.Which by the way, will be the worst of all time by far. In February of '07', Allen Greenspan acknowledged a 'one in three' chance of a US recession. I immediately called another talk radio show and guranteed AGAIN that it was iminent. I criticized Greenspan and tried to explain that it was not about 'odds' but instead a very simple equation with regard to distribution of income and wealth. I also gave credit to Albert Einstein who went on record with similar views in 1949. As far as I know, he was the first to do so. By late spring of '07', the market was rattled and the economic 'stimulus' in the works. Which turned out to be around $160,000,000,000. THATS ONE HUNDRED AND SIXTY BILLION DOLLARS. Well over 1% of our GDP. Deemed appropriate at the time by our leaders. In fact, Bush went on record with a claim that it was based on a mathematical formula and proven strategy. They said it would work. I immediately predicted that it would have little or no effect. By summer of '07' the stock market was more unstable. The housing market in decline. Again, I predicted that it would get MUCH worse. In September of '07', I predicted that our government would have no choice but to acknowledge a US recession by October of '08'. I also assured the audiance that our economy would "go down in a ball of flames" because of greed and that no recovery would EVER take place without a more reasonable distribution of wealth and resources. I have made these predictions 'on air' and 'online' literally hundreds of times. The first call was in September of '05'. Made to a well known public figure with a large audiance. The first blog post a month or so later. Prior to that, I had never even seen one. In fact, my very first post to a blog was written specifically to warn my fellow citizens about the comming US/global depression. Which I was already convinced at the time would be SEVERE within a decade. That was in October of '05'. At the time, there were literally only a few of us worldwide posting any such prediction online. I'm talking maybe a dozen searchable links. This particular rant began with one short paragraph in '06'. Like the others, it was originally intended to fit within a few hundred characters. At the time, I was unaware of any blogs which allowed for longer entries to be posted anonymously. This paragraph was first written in early-mid '08'. Its been updated several times. There has also been a running debate on which began in October of '07' (don't click on their ads). In February or March of '08', I refered specifically to the bank failures of the Great Depression and predicted that it was about to happen again. At the time, I was one of only a few bloggers worldwide to go on record with any such prediction. This was still several weeks to months before Greenspan, Paulson, Bartiromo, Orman, Kramer, O'Reiley, Larson, Bohannon, Dobbs, Celeste or any other well known public figure had acknowledged even a hint of severity. It was also several weeks before Fanny May and Freddie Mac made the news. I also predicted in March that our markets would end the year much lower than they began. Which was still contrary to what we were being told by any public figure. I was allowed to post but when my predictions came true, the site operators went back all the way to October of '07' and deleted nearly every one of my previous entries (they missed a few.). Their motive was obvious. They wanted to 'erase' my credibility. is directly affiliated with NBC, GE, Universal Studeos, Countrywide, CityBank, Capital One, Oprah Winfrey, Angelina Jolie, Brad Pitt, Ellen Degeneres, Dr Phil, and others who I persecute by name. All of which depend on the constant dumbing down of society. All of whom are partially responsible for the current economic crisis. None of which or whom have the GUTS to acknowledge the single greatest underlying cause. GREED. In fact, those who epitomoze it (all of the above) want my big mouth SHUT. For 3 solid years, I have been ripping on the 1% club for their incredible greed and hypocrisy. From day 1, my call has been for a more reasonable distribution of income, wealth, and resources. My warning that without it, we would face the worst economic and cultural crisis of all time. Since then, I’ve gone on record against people like Greenspan, Bernanke, Paulson, Laffer, O'Reiley, Bartiromo, Orman, Kramer, Larson, and Dobbs. So far, my predictions have been accurate. The public figures DEAD WRONG. Afterall, not one of them acknowledged even a hint of severity in '05', '06', or '07'. When they FINALLY did this year, they all said something to the effect of "None of us saw this comming.". LIARS. There were a few of us typing our fingers to the bone trying to warn people. There were a few of us calling talk radio shows almost daily trying to warn people. I was one of them. Again, I don't claim to be an expert in this field. But I do understand simple equations, basic economics, and cultural trends. I also realize that mainstream views are DEAD WRONG and based on LIES told by filthy rich public figures who will say whatever it takes to serve their own interests. GREED. Afterall, what kind of incredible MORON could even glance at the numbers and somehow think the equation could work? What kind of incredible MORON could possibly hope to sustain an economy based on a constant transfer of wealth from poor to rich? What the hell did they expect to happen when the middle class finally ran low on money to spend on over-priced crap like everything that I mentioned in that first long paragraph? What the hell were they thinking of? I'll tell you what. RICHES. FILTHY STINKING RICHES. Thats what. Now, they are spinning themselves dizzy trying to divert our attention. Mark my words: They will never acknowledge the obscene concentration of wealth or the negative effect had on economic stability. They will never acknowledge the downside of their own incredible greed. They will all come up with one campaign or strategy after another to blame the other guy, the other administration, the other politician, the other party, the other policy, the other industry, the other country, ect. Whatever it takes to dumb down our society. They will NEVER have the GUTS to acknowledge the single greatest underlying cause for this global economic crisis. GREED. They won't even have the guts to acknowledge the views or predictions of Albert Einstein made way back in 1949. THOSE PARTICULAR VIEWS AND PREDICTIONS. Instead, they will produce their own big money/big business/big celebrity 'experts' who have the same motive to lie right through their rotten teeth. GREED. Its not their knowledge I question. Its their character. GREED. Like I said. This is not brain surgery. For the mostpart, its simple math. When you concentrate the world’s wealth, you also concentrate its capital, and shrink the middle class along with the potential market for every major industry. Homes go unsold. Bills go unpaid. Jobs are lost. Banks fail. More products go unsold. More jobs are lost. More banks fail. and so on. and so on. and so on. It happened 80 years ago in that order beginning with a concentration of wealth. It will happen again. This time on a catastrophic global scale. Throughout the cycle, the rich will panic and tighten their grip. Concentrating the world’s wealth and resources even further, getting richer in the process, and ensuring the collapse of every major economy worldwide. Think it can’t happen? Think again. GREED KILLS. IT WILL BE OUR DOWNFALL.

    Another thing. I don’t want credit for any of this. Otherwise, I would have given my full name a long time ago. I havn't. IT DOESN'T MATTER. I'm not selling a book and I'm not looking for any notoriety. At least not yet. I do have a plan to go public when my parents die. In fact, I have BIG plans for my inheritence. Every single penny of it. In the meantime, I don't want them to know about it. I also don't want them punished for my big mouth. Which is why I've gone out of my way to remain anonymous for 3 solid years. When I do go public, it won't be for profit and it won't be for popularity. It will be for a legitimate cause and NOTHING ELSE. In fact, I hope to be just one of many. A face in the crowd. In the meantime, I don't care who gets to say "I told you so." IT DOESN'T MATTER. As far as I’m concerned, you can put this entire rant in your own words and take credit for all of it. I don’t care. Just spread the word. Otherwise, the greatest injustice of all time will go down in history unchecked.

    By the way. The bailout won’t work. IT WON’T WORK. The plan fails to address the fundamental problem. The middle class don’t need more credit. They need a reasonable share of the economic pie. They also need a lower cost of living and a chance to catch their breath. They need a break from all of the psychological marketing tricks and mass market BS. Most of all, they need to wake up, see the truth, and take a stand. GREED KILLS. IT WILL BE OUR DOWNFALL.

    To my surprise, two public figures have found the courage to acknowledge this problem to some degree. On 11.07.07 former presidential candidate Ron Paul mentioned the massive transfer of wealth from poor to rich. He also hinted at the possibility of economic collapse. He did so on 'Face the Nation'. He was blacklisted almost immediately for doing so. On 9.28.08 former secretary of labor Robert Reich refered to the obscene levels of income inequality as part of a "recipe for disaster". He mentioned the richest one percent in particular. He did so on 'Late Night With Conan O'Brien'. As far as I know, Albert Einstein was the first to explain the link between extreme wealth and economic instability. He did so in 1949. He explained how the first Great Depression was actually caused by a massive transfer of wealth from poor to rich. He predicted that it would happen again. He also predicted much greater levels of economic instability proportional to much greater levels of income and wealth inequality. He was right. Amazing. The prosperity of an entire world is about to be compromised. Almost entirely because of greed. IT WILL BE OUR DOWNFALL.

    Another word about the first Great Depression. It really was a perfect storm. Caused almost entirely by greed. First, there was unprecedented economic growth. There was a massive building spree. There was a growing sense of optimism and materialism. There was a growing obsession for celebrities. The American people became spoiled, foolish, naive, brainwashed, and love-sick. They were bombarded with ads for one product or service after another. Encouraged to spend all of their money as if it were going out of style. Obscene profits were hoarded at the top. All of this represented a MASSIVE transfer of wealth from poor to rich. Executives, entrepreneurs, developers, celebrities, and share holders. By 1929, America's wealthiest 1 percent had accumulated around 40% of all United States wealth. The upper class held around 30%. The middle and lower classes were left to share the rest. When the majority finally ran low on money to spend, profits declined and the stock market crashed. Of course, the rich threw a fit and started cutting jobs. They would stop at nothing to maintain their disgusting profit margins and ill-gotten obscene levels of wealth as long as possible. The small business owners did what they felt necessary to survive. They cut more jobs. The losses were felt primarily by the little guy. This created a domino effect. The middle class shrunk drastically and the lower class expanded. With less wealth in reserve and active circulation, banks failed by the hundreds. More jobs were cut. Unemployment reached 25% in 1933. The worst year of the Great Depression. Those who were employed had to settle for much lower wages. Millions went cold and hungry. The recovery involved a massive infusion of new currency, a World War, and higher taxes on the rich. With so many men in the service, so many women on the production line, and those higher taxes to help pay for it, the lions share of United States wealth was gradually transfered back to the middle class. This redistribution of wealth continued until the mid seventies. At the time, the richest 1% reaped about 10% of all private income and held about 20% of all United States wealth. Far less than previous levels. The middle class had home equity, free and clear assets, and money in the bank. Most American households were secure with a single full time provider. Most retirees could enjoy their lives, live in their own homes, afford basic health care, and not have to worry about going bankrupt. THATS THE WAY IT SHOULD BE. The tide began to change in 1976. Jimmy Carter was blamed for a recession that was actually caused by a number of global circumstances including greed. Then a short sighted little pig by the name of Arthur Laffer came along. Known for his famous 'Laffer Curve'. A simple and short sighted equation whipped up to increase tax revenues and profit margins without the slightest regard for ANYTHING ELSE. He convinced Ronald Reagan to campaign on and grant massive tax breaks to the rich and their respective industries. His half-baked theory was that by doing so, unprecidented levels of economic growth and revenue could be achieved. He was right. Unfortunately, he failed to see or acknowledge the big picture. He failed to understand or admit what should have been incredibly obvious after the first Great Depression. That 'economic growth' and 'actual prosperity' are two very different things. Jobs don't necessarily 'create' wealth. In fact, they almost never do. For the mostpart, they only transfer it from one party to another. The devil is in the details. Reaganomics, gave the rich and their respective industries the incentive to 'expand' and 'create jobs'. But those products and services were misrepresented, over-priced, and then sold or billed right back to the people. Often, without their knowledge, understanding, or consent. Certainly without a clue about how the economy REALLY works. All of this resulted in higher profits for those at the top and stagnant wages for almost everyone else. The cost of living went up right along with those obscene profit margins. The American people ended up working more hours just to maintain their standard of living. So with Reaganomics, the transfer of wealth from poor to rich was kicked back into high gear. Here we are 27 years later. Trillions in wealth and capital have been concentrated all over again. National and consumer debt are both at an all time high. The middle class are weak, the lower class flat broke, and the cost of basic living higher than ever before. The dollar is weak because too many of them have been hoarded and the government left with no choice but to print billions more backed up by loans from China. Its another perfect storm. THE BIG ONE. The largest economy in the world is about to go down in a ball of flames. Ground zero of a global economic crisis. CAUSED ALMOST ENTIRELY BY GREED. A MASSIVE TRANSFER OF WEALTH FROM POOR TO RICH. As a nation, we don't even see it because our entire culture has been defined by Washington, Wall Street, Hollywood, Pro-sports, and commercial health care. We have been lied to and led around like puppies by those with the worst possible motive. GREED. THEY WANT OUR MONEY. For the mostpart, we just bend over and let them take it. We have become their perfect little victims once again. A nation of consumer junkie, credit card, couch potatoe, drug and doctor morons. We spend most of our spare time on that couch getting brainwashed by greedy public figures who will say or do whatever it takes to get our money. Even worse, those public figures have re-defined any logical standard we ever had for 'good will'. Mother Teresa is dead. America's favorite 'humanitarian' is now a filthy rich multi-media pig who reaped a billion dollar fortune from the middle class by making damn sure they stay on that couch long enough to watch her show and read her magazine. Transforming them into pathetic, naive, love-sick fools who turn around and buy any product or service given away to a cheering studeo audiance or endorsed by their idol. The same goes for Ellen Degeneres, Dr Phil, Regis and Kelly, Rachael Ray, The View, and their respective demographics. Which by the way, are almost identical. Primarily, middle class housewives, retirees, and welfare mothers. Who have been shown through marketing research to spend most of their money and food stamps on over-priced CRAP advertised on TV or a TV show website ( Especially if that over-priced crap is endorsed by a 'hero' or 'humanitarian'. They are easy targets. Not like the rest of us are much less gullible. We're not. In fact, every filthy rich well known public figure and every major industry have followed suit with a similar marketing strategy. Dumbing down our society and cashing in on bogus promises to make the world a better place. They do it because they know it works. They also know that we are too stupid, short sighted, naive, smitten, and love-sick to take a closer look at the world and see that they are wolves in sheep's clothing. To see that what they are doing is FALSE. For example: In the fall of '01', Jennifer Lopez was invited to take part in a music video for charity. The effort was hailed as a benefit for victims of AIDS and 9/11. Well, Jennifer Lopez doesn't do ANYTHING for free. She DEMANDED AND RECIEVED the following for her exclusive use: A 45 foot trailer with a TV, VCR, stereo, an assortment of CDs, a white dressing room with lavish all white decor, all white furniture, and an assortment of exotic fruits and desserts. All of this was necessary just to get her sorry ass in the studeo for 30 minutes. FOR CHARITY. Of course, the organizers are partly to blame for selling out to a 'diva'. In fact, I have my doubts about the entire project. Charity just isn't what it used to be. Most of it has gone commercial. SOLD OUT. Even the UN has become a PR firm for Hollywood and Pro-Sports. Going so far as to allow George Clooney access to the UN headquarters auditorium with his own camera crew. A F$#@$&% CELEBRITY. Of course, that footage was plastered all over the media weeks later right along with plugs for his latest Hollywood blockbuster. Like I said, the UN has become a PR firm. Most of their 'good will ambassadors' are filthy rich, hypocrite pigs who dumb down their ignorant fans, take as much of their money as possible, buy up mass acreage and multiple mansions, flaunt their extravogant lifestyles, jet-set the world, burn through limited life sustaining resources like there is no tomorrow, drive up the cost of living worldwide, and then run their mouths about 'poverty' or some other 'injustice' everytime their latest commercial project hits the market. They do it for publicity. They even have the nerve to run their mouths about 'global warming', 'conservation', and 'green' living. As if the example they set is anything but obscene. As if a roll of eco-friendly toilet paper somehow offsets the clear cutting of a dozen acres to build another F%$#$@# CELEBRITY MANSION. Of course, they have NOTHING to say about greed or economic injustice. NOTHING to say about the obscene concentration of wealth and resources worldwide. NOT A SINGLE F%$#@#$ WORD. What a bunch of false heroes. These people have no real desire to make the world a better place. Their primary goal is to APPEAR as if they do. IT MAKES THEM RICHER. It also gives them a lame excuse to be such greedy, rank, filthy, disgusting, slobbering, squandering, hypocrite pigs. Amazing. EVERY big business, EVERY big celebrity, EVERY billionaire, and damn near every multi-millionaire on the planet have all taken up 'philanthropy' or 'good will'. Those with the most money, also have the most power, and influense by far. They own or influense every government, manage every major industry, and the lion's share of life sustaining resources. They literally rule our world. They always have. Still, every major problem of modern society gets worse by the day. The world's wealth is more concentrated than ever before. Her life sustaining resources are in high demand, more expensive than ever, and squandered by the rich on extravogant living. Meanwhile, families loose their homes, retirees loose their pensions, heroes loose their lives, crime is up, and red ink flows in nearly every community nationwide. The global economy is in a state of crisis. The prosperity of an entire world is about to be compromised. Still, those with the most power, money, influense, and 'good will' promise to make it all better. If only we continue to buy any product or service with their name on it. IT IS A SHAM. GOOD WILL HAS BECOME BIG BUSINESS.

    The rich and famous do not want to be seen as 'pigs' or go down in history as 'villains'. They want to be seen as 'heros' and go down in history as 'humanitarians'. The market for their product has become global. The fan base has become global. Therefore, the 'humanitarian' effort and 'good will' PR machine has gone global. These 'humanitarian' efforts and 'good deeds' are not chosen to address the greatest need or injustice. They are chosen almost exclusively to appeal to the largest demographic for their respective commercial products. The largest fan base. Efficiency or effect is of little or no concern. Its all about PR, marketing, image, and fame. This is why so many of the rich and famous have taken up 'philanthropy' or 'good will' around the world. This is why so many have 'schools' or 'foundations' in their name. This is why so many play golf or appear on a TV game show for 'charity'. This is why so many sign motorcycles, other merchandise, or auction off

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