Posts Tagged ‘New York State’

The fall of Andrew Cuomo

August 12, 2021

Gov. Cuomo

As with Donald Trump, Hillary Clinton and many another public figure, the things NY Gov. Andrew Cuomo was most attacked for were not the worst things that he did.

Cuomo probably deserved to be impeached for corruption.  I don’t know whether the sex scandal was grounds for impeachment.  Of course impeachment on charges of corruption might have led to disclosures that would have embarrassed a whole lot of people.

By resigning, he avoids impeachment and preserves the option of a political comeback.

LINKS

The Real Question Is Why Andrew Cuomo Took So Long to Fall by Zephyr Teachout for The Nation.

Andrew Cuomo’s Legacy: Normalizing Corruption and Lawlessness by David Sirota for Jacobin.

New York Governor Andrew Cuomo Resigns in Sex Scandal by David Walsh for the World Socialist Web Site.

Nine other scandals surrounding the New York governor by Robert Gavin for the Albany Times-Union.

The fracking boom is ending with a bust

February 16, 2015

screen shot 2015-02-14 at 10.06.10 am

screen shot 2015-02-14 at 10.07.42 amSource: Business Insider.

Business booms are followed by busts—the interaction of overconfidence, oversupply and diminishing returns.

That’s not just a law of the free-market system, it’s a law of human nature.

As the chart above indicates, hydraulic fracturing for natural gas is an industry entering the bust part of its cycle.

The glut of natural gas probably will continue for some time.   Gas companies would continue to pump gas even if they’re losing money.

They’ve already paid for the drilling equipment, and they’d lose less money by continuing to pump than by walking away from their sunk costs.

It’s good that New York state didn’t jump into fracking just now.   We’d have had all the problems associated with fracking and none of the benefits the come with getting in on the ground floor.

The wise thing to do just from a business point of view, aside from all environmental and climate considerations, is to keep natural gas in the ground as long as we can.  If there comes a time when we desperately need it, it will be there.

LINKS

Fracking has collapsed by Wolf Richter of Wolf Street for Business Insider.

Keystone XL, Cold War 2.0 and the GOP Vision for 2016 by Michael T. Klare for TomDispatch.  Fracking is a factor in geopolitics.

Update 2/28/15

As Bill Harvey pointed out in his comment, a decline in the number of rigs doesn’t mean a decline in production—that is, not right away.

markets cotd rig count2

Oil rigs and oil production in the United States

A happy surprise: Gov. Cuomo bans fracking

December 18, 2014

Gov. Andrew Cuomo’s decsion to ban hydraulic fracturing for oil and gas in New York state was made for the right reason – the Precautionary Principle.

fracking-diagramThat is, he banned fracking not because it was proven to be harmful, but that there were good reasons to think it might not be safe.

I misjudged Cuomo.  I thought he intended to approve fracking, but was postponing this unpopular decision until after the election.

With falling oil and gas prices, the economic benefits of fracking are even less than before.  The oil and gas locked underground in the Marcellus shale will not go away.  It will still be there if someday the USA is so desperate for energy that fracking is necessary.

∞∞∞

“This Will Have a Ripple Effect Across the Country”: State of New York Bans Fracking by Cole Stangler for In These Times.  (Hat tip to Bill Harvey)

Before and after autumn photography

October 28, 2014

These photos from Bored Panda show the beauty of the transformation from summer into fall.

Central Park, New York City, in summer

Central Park, New York City, in summer

Central Park, New York City, in autumn

Central Park, New York City, in autumn

(more…)

Does the Constitution protect corruption?

August 27, 2014

The Supreme Court ruled in the Citizens United case that campaign contributions are a form of free speech protected by the First Amendment.   On April 2, the Supreme Court ruled, in McCutcheon vs. Federal Election Commission, that Congress does have the right to legislate against corruption in campaign financing, but, as Jill Lepore pointed out in an article in The New Yorker, only against certain forms of corruption.

Chief Justice John Roberts wrote the opinion for the five-to-four majority. “The right to participate in democracy through political contributions is protected by the First Amendment, but that right is not absolute,” he began. 

040614newcoletoonCongress may not “regulate contributions simply to reduce the amount of money in politics, or to restrict the political participation of some in order to enhance the relative influence of others.”  But there is “one legitimate governmental interest for restricting campaign finances,” he explained: “preventing corruption or the appearance of corruption.”

That said, the Court’s understanding of corruption is very narrow, Roberts explained, echoing a view expressed by Justice Anthony Kennedy in McConnell v. F.E.C., in 2003: “Congress may target only a specific type of corruption—‘quid pro quo’ corruption.”

Quid pro quo is when an elected official does something like accepting fifteen thousand dollars in cash in exchange for supporting another politician’s bid to run for mayor of New York.  The only kind of corruption that federal law is allowed to prohibit is out-and-out bribery.  The kind of political prostitution that the Moreland Commission was in the middle of attempting to document—elected officials representing the interests not of their constituents but of their largest contributors—does not constitute, in the view of the Supreme Court, either corruption or the appearance of corruption.

via Zephyr Teachout’s Anti-Corruption Campaign.

The Moreland Commission to Investigate Public Corruption was appointed by Gov. Andrew Cuomo in April, 2013, to investigate corruption in New York state.

The commission was given 18 months to do its work, but in March of this year, Gov. Cuomo shut it down.  He said it was supposed to investigate the legislative branch, not the executive branch.

In the meantime, the commission made a series of preliminary recommendations, including closing loopholes regarding limited liability laws, mandating disclosure of outside spending, instituting public finance and creating an independent election-law enforcement agency.

As Lepore noted, these recommendations, except maybe for public campaign financing, would have had little effect in the light of Citizens United and McCutcheon.

 Zephyr Teachout, who opposes Gov. Cuomo in the coming Democratic primary, is a law professor who says the Supreme Court’s decision is contrary to the intention of the authors of the Constitution.  Even if she’s right, this doesn’t change anything.

Maybe it is necessary to amend the Constitution, as was done after the Supreme Court ruled that slavery was protected by the Constitution and later when the Supreme Court ruled that a federal income tax was unconstitutional.

The world scene: Notes & links 10/30/13

October 30, 2013

The World’s Billionaires List in Forbes

Billionaires: Decline of the West, Rise of the Rest by Robin Broad and John Cavanagh for Triple Crisis.

Forbes magazine’s annual list of the world’s billionaires indicates there are still more billionaires in the United States than in any other country, but the rest of the world is catching up.  China has the second largest number of billionaires and Russia has the third, followed by Germany, India, Brazil and Turkey.

The new list reflects the growth of the BRIC countries (Brazil, Russia, India and China)  relative to the United States, western Europe and Japan.   Broad and Cavanagh wrote that it also reflects growing inequality throughout the world.  The world’s richest man, Carlos Slim of Mexico, has a net worth of $73 billion, equal to 6.2 percent of Mexico’s GDP.  The third richest is Amacio Ortega, the Spanish retail king, who accumulated a fortune of $57 billion in a country where a fourth of the work force are unemployed.  If you’re wondering, the world’s second richest billionaire is Bill Gates and the fourth richest is Warren Buffett.

The Most Important Labor Strike in the World Is Happening Right Now by David Callahan for Common Dreams.

Millions of workers across Indonesia are on strike, demanding a higher minimum wage (it is now about $200 a month) and a universal health plan.  This is important for U.S. workers because Indonesia, the fourth most populous nation in the world after China, India and the United States, is a giant sweatshop which helps depress wages worldwide.

The sooner Indonesia follows the path of Japan, South Korea, Taiwan and Singapore, and develops a sizable middle class, the better not only for Indonesia, but for the United States, because Indonesia will become more of a potential market for U.S.-made goods and less of a magnet for how-wage employers.   Labor unions historically have helped bring wage-earners into the middle class.

Will the House of Saud pivot to China? by Pepe Escobar for Asia Times

Turkey’s Choice: Chinese Missile Defense or NATO? by Semih Idiz for Al-Monitor Turkey Pulse.

The Turkish government is negotiating to obtain a missile defense system from the Chinese Precision Machinery Import and Export Company, which also supplies military technology to Syria, Iran and North Korea.  The Turks said the Chinese bid is lower and offers technology transfer withheld by Raytheon, Lockheed Martin and other western bidders.  This is another example of the fact that China is now a global power, and not a regional east Asian power.

(more…)