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A green revolt against Bush

In an embarrassing rebuke to the White House, a group of Republican and Democratic governors is embracing the Kyoto accords on global warming.

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A green revolt against Bush

A bipartisan group of Northeastern governors is expected to announce an historic agreement this week to reduce carbon dioxide emissions from power plants, a plan that would break sharply with Bush administration policy on global warming.

The agreement for mandatory greenhouse-gas emission caps could put the states on the road to compliance with the Kyoto climate-change treaty, an embarrassing rebuke to the president, who made a decision in 2001 to pull the U.S. out of negotiations on the pact. In another repudiation of Bush doctrine, the states say that their move away from fossil fuels and toward sustainable energy will not only benefit the environment but the economy as well.

“I think what you’ll see is nearly every Mid-Atlantic and New England state agreeing to join in a regional [carbon dioxide] cap and trade regime,” Bradley Campbell, commissioner of New Jersey’s Department of Environmental Protection, told Salon. Campbell said that Republican governors are expected to sign on to the plan despite backroom coercion by the White House. “Several of my counterparts in Republican-led states have reported active efforts by the Bush administration to pressure them to not participate in a regional program to implement greenhouse gas reductions,” he said.

While it’s not surprising that Northeast Democrats would defy Bush, it seems likely six Republican states will break ranks with the president’s refusal to address climate change, certainly including New York Gov. George Pataki, and possibly Vermont Gov. James Douglas, New Hampshire Gov. Craig Benson and Connecticut Gov. John Rowland. Only Maryland, said Campbell, is so far siding with the president. “Republican Gov. [Robert] Ehrlich has largely aligned himself with the pollution policies of the Bush administration which has been hostile to even acknowledging climate change as a problem,” Campbell noted. “I think the jury is also out on Pennsylvania because their economy is so coal dependent, and because [Democratic] Gov. [Edward] Rendell is new to these issues and newly elected.”

Campbell argued that the states have been forced to act due to the White House’s lack of leadership on climate change. National and regional climate change assessments generated by U.S. scientists during the Clinton administration — but disregarded by the Bush team as too extreme — forecast dire global warming consequences for the states, including financially disastrous tidal surges in coastal cities, significant stresses on forest, wetland and estuary ecosystems, and increased human diseases such as West Nile Virus.

The Bush administration’s response to these and other scientific warnings has been feeble at best, and sometimes counterproductive. The Bush-Cheney energy plan (a fossil fuel corporate-feeding frenzy) is dead on arrival in Congress, and Bush’s carbon dioxide reduction plan (corporate volunteerism at its most cynical) is stillborn. In fact, Bush’s entire environmental agenda is in disarray, with EPA chief Christie Todd Whitman resigning after her many battles with the White House, and with Bush’s “Clear Skies” air pollution initiative seen as so corporate-friendly that it is creating defectors even among stalwart Republicans like Sen. Lamar Alexander of Tennessee.

Led by New York and New Jersey, the Northeast governors are looking to act on climate change by moving beyond coal and oil. And they are listening seriously to visionary alternative-energy gurus who see a booming wind-hydrogen economy not decades ahead, but just around the corner.

“If we can go from making cars to making tanks and bombers in a single year, like we did in World War II, then we can transition to a wind-hydrogen economy in just a few years,” Lester Brown, founder of the Earth Policy Institute, told Salon. “But we can only do it if we want to. That level of commitment exists elsewhere. Germany, for example, is planning to cut carbon emissions 40 percent by 2020. The difference isn’t that they have engineering know-how we don’t. It is that they have leadership.”

The regional carbon dioxide emission cap and trade program agreed to in principle by the Northeast states would put limits on the amount of CO2 produced by power plants. Each governor’s home state would be allowed to set its own caps, while allowing individual plant owners to trade emission credits with energy producers around the region. The program will likely be designed similarly to the nation’s successful cap and trade program to limit sulfur dioxide air pollution. For example, one plant might emit less C02 than allowed under the cap; it could sell its surplus to a plant that exceeds its cap. That not only limits emissions, but gives both plants a financial incentive to reduce greenhouse gases.

Pataki challenged the Northeastern states to join him in a CO2 cap and trade program in April, and asked for a response by his fellow governors by this week. While an announcement is expected shortly, most officials declined comment.

Campbell speculated that the regional cap and trade program might be so much like that achieved by the Kyoto Climate Change Treaty that it would allow U.S. power plants, and eventually other industries, to trade their greenhouse gas pollution credits internationally. “There is a long-term possibility that we may, as a region, or as states, be able to participate in Kyoto in spite of the Bush administration’s rejection of the treaty,” Campbell said.

The 1997 Kyoto Protocol calls for a 5.2 percent cut in planet-wide greenhouse gas emissions below 1990 levels, achieved by 2012. The treaty, rejected by the U.S., has been ratified by 100 nations but has yet to be implemented. It still requires approval by countries representing 55 percent of 1990 carbon emissions. If Russia ratifies this year, the treaty will go into effect. America’s cuts in all greenhouse gases under Kyoto were to have been 7 percent, made no later than 2012.

Beyond the technical complexities of the plan, some U.S. governors are setting significant mandatory quotas for electricity generated by alternative power — wind, biomass, solar and hydrogen.

The most outspoken and daring participant among the states is Pataki. The New York governor has steadily distanced himself from Bush on the climate change issue. “It’s important to remember that Pataki led the way by inviting the Northeast governors to participate in the [cap and trade] initiative back in April, and that he has worked closely with the environmental community on global warming,” says Ashok Gupta, director of the air and energy program for the Natural Resources Defense Council. “This allows environmentalists, almost three years into the Bush administration, to work in a state where we are still making progress, while others around the country and especially in Washington are fully on the defensive.”

Since taking the White House, the president abandoned the Kyoto Treaty, reversed a GOP campaign promise to regulate power plant CO2 emissions, ignored scientific reports on climate change, and opted for a toothless global warming program. In June, a long section of an EPA environmental report outlining risks from rising temperatures was censored, “whittled to a few noncommittal paragraphs” after White House arm twisting, according to the New York Times.

Bush does offer limited support to sustainable energy. The administration, for example, allocated $720 million in new funding over the next five years to develop the much-hyped “Freedom Car,” a hydrogen fuel cell vehicle. By comparison, federal coal and oil subsidies now run to $5 billion annually, says Taxpayers for Common Sense. This doesn’t even take into account the $55 billion to $96 billion spent yearly by the Pentagon to guard fossil fuel corporate interests worldwide, as calculated by the International Center for Technology Assessment.

Pataki has gone his own way. In 2001, he launched a state greenhouse gas emissions reduction taskforce. It made tough recommendations, which the governor is striving to meet. In an interview, state Department of Environmental Conservation commissioner Erin Crotty said Pataki’s state energy plan sets a greenhouse gas emission reduction target of 5 percent below 1990 levels by 2010, and 10 percent by 2020.

In this year’s state-of-the-state speech, the governor announced that within 10 years, New York will get at least 25 percent of its electric power from renewable resources such as wind and solar. This goal, while ambitious, is not as challenging as it looks, since the state already generates 17 percent of its electricity from renewable hydropower. The governor has yet to officially commit to a specific cap on CO2 emissions from power plants at 25 percent below 1990 levels (a cut the taskforce said can be made with no cost to consumers).

Further, Crotty said, Pataki plans to adopt the California Zero Emission Vehicle standard to cut carbon dioxide exhaust from cars — if the California standard holds up in court. Pataki’s backing of the so-called “California Car” is significant since the Bush administration has joined carmakers in suing California to block the initiative.

While New York’s actions might seem paltry compared with the scope of the global problem, they could have a real impact. New York state, if it were its own nation, would boast the world’s eighth largest economy, spending $38 billion on energy alone. New England, combined with New York and New Jersey, as a nation, would be the world’s eighth largest greenhouse gas emitter.

Pataki’s reasons for supporting global warming action diverge 180 degrees from Bush’s view: “The governor’s philosophy on the environment is that you can’t have a strong economy without a protected environment, and vice versa,” said Crotty. New York state’s economic health is “based on the health of our natural resources. In Long Island Sound alone we have a $5 billion dollar economy based on everything from tourism to commercial and recreational fisheries, not to mention the Adirondack and Catskill forest preserves, an area twice the size of Yosemite. For us, climate change poses a serious threat to both the environment and the economy.”

A 2000 federal report estimated that the state’s temperatures may rise an average 1.7 to 3.5 degrees Fahrenheit by the 2020s due to human-caused global warming, resulting in higher sea levels, coastal flooding and increased likelihood of severe weather events such as drought and hurricanes. “The Federal Emergency Management Agency modeled the number of Level 5 hurricanes hitting New York City at high tide and doing billions in damage,” said Jeff Jones, communications director for Environmental Advocates of New York. What’s disturbing, Jones said, is that “while FEMA used to model such an event as a hundred-year storm, they now model it as a 20-year storm.” With New York temperatures projected to rise 6 to 10 degrees Fahrenheit by 2080, such events could become even more frequent.

Crotty notes another divergence from Bush’s position. While the president claims that adherence to Kyoto CO2 cuts and a switch to alternative energy will bankrupt the nation, Pataki sees a commitment to wind, solar, hydrogen and biomass as a boon. “We’ve proven that reducing greenhouse gases can be done without harming the economy,” she said. “In fact, we see an economic advantage to encouraging technological innovations here in New York.”

Pataki may have a pragmatic reason for his stance. Global warming is becoming a hot political issue in New York. For example, the governor’s surprise announcement of a greenhouse gas taskforce came at the height of the last governor’s race, at a black-tie dinner by the New York League of Conservation Voters. “The governor recognized that a League endorsement was important the previous time he ran and would be very important to his reelection,” said Jones.

Other governors around the nation are pursuing greenhouse gas emission cuts and making commitments to renewable energy. “Three to five years ago, almost no one was talking about greenhouse gases,” says Gupta. “To have state leaders taking action sends a message that regulation at the national level is inevitable. It is part of the overall pressure on Congress to act.”

In New Jersey, it was another Republican, then-Gov. Christie Whitman, who took an early stand against climate change. In 1998, she set a state goal of cutting greenhouse gases 3.5 percent below 1990 levels by 2005, and she added a small charge to consumer utility bills to raise $358 million for energy efficiency and renewable energy programs. Later, when she was Bush’s EPA director, it was Whitman’s tough stance on global warming that caused her first rift with the administration and helped pave the way for her departure this year.

New Jersey, now in Democratic hands, is out front in curbing greenhouse gas pollution, putting stringent CO2 emission limits on the state’s biggest utility. In June, Gov. James McGreevey pledged that 20 percent of the state’s energy will come from clean power by 2020, a tall order in a state with little hydropower.

Maine, under Democratic Gov. John Baldacci, has just committed to reducing carbon dioxide emissions to 1990 levels by 2010, to 10 percent below 1990 levels by 2020, and by 75 to 80 percent over the long term, in line with a proposal by the New England Governors and Eastern Canadian Premiers. “At a time when the federal government has deleted climate change information from EPA reports, Maine is not risking our future — we’re taking action,” said Sue Jones of the Natural Resources Council of Maine.

Vermont has committed to reducing the state’s greenhouse gas emissions by more than 25 percent over the next decade. And Massachusetts was the first state to mandate CO2 cuts at power plants, targeting its six dirtiest fossil fuel plants.

Outside the Northeast, the Republican stronghold of Nevada plans to get 15 percent of its energy from renewables by 2013, with a report by the Energy Foundation estimating that alternative energy will increase the state gross product by $665 million and create up to 5,000 jobs.

According to WorldWatch Institute, California Gov. Gray Davis has pegged the net benefits of renewable energy over a five-year period at $11 billion in economic development benefits for his state due to new job creation and in-state investments.

Remarkably, while he was serving as the Texas governor, George W. Bush signed a bill mandating that 3 to 4 percent of the state’s electricity come from renewable resources, creating a boon for Texas wind power. By the end of 2002, 15 states had enacted legislation requiring utilities to increase their use of renewable energy, reports the Washington Post. Not unexpectedly, the greatest resistance to alternative energy is in Midwestern states with the most fossil fuel-burning power plants, and in the Southeast, where coal mining remains an economic force.

In Europe, successful renewable energy initiatives and greenhouse gas caps are causing Bush’s bogeyman of economic ruin to vanish in a puff of prosperous reality.

British Prime Minister Tony Blair, seen by many in Britain as “Bush’s poodle,” has broken with America over global warming, comparing the climate change threat to that of terrorism. Just days before the Iraq war, Blair announced plans to cut U.K. greenhouse gas emissions 60 percent by 2050 — a rate that, if achieved planet-wide, could probably stabilize global warming, U.N. scientists say. “There will be no genuine security if the planet is ravaged by climate change,” Blair said. He hopes to get the entire European Union to back his plan. He has also committed to getting 20 percent of British energy from renewables by 2020, according to the U.K. Guardian.

While critics call Blair’s initiative under-funded, just last week the U.K. announced a program to build offshore wind turbines to generate 6,000 megawatts of power. Wind power is now growing in Europe by 40 percent per year, with a capacity of more than 20,000 megawatts installed — that’s three-quarters of the world’s total wind power output, enough to serve more than 10 million European homes.

In the U.S., wind energy is at about one-fifth of Europe’s capacity, according to the WorldWatch Institute. Germany currently generates 12,000 megawatts annually from wind, Spain has 4,800 megawatts, while the U.S. falls behind at just 4,700 megawatts. Even Denmark installed more wind turbines last year than the U.S.

Japan and Germany lead the world in solar power, producing 100 and 75 megawatts respectively, while the U.S. is a distant third at 32 megawatts. (India may soon catch us, since it already produces 18 megawatts). Japan leads the manufacture of solar cells, monopolizing 43 percent of the market, with Germany controlling 25 percent. Again America is behind, in third place at 24 percent.

Iceland has declared plans to be the first nation to convert fully to a hydrogen economy, is retrofitting Reykjavik’s bus fleet with fuel cell engines, and has opened hydrogen fueling stations in the capital.

Forward-looking political action abroad and by the U.S. governors, while not as far-reaching as environmentalists might like, is indicative of a fundamental change in the response to global warming. Leaders beyond the influence of the Bush administration are fast recognizing that inaction on global warming could be catastrophically costly in dollars and human suffering; that popular opinion is shifting in support of decisive action; and that the alternative energy technologies able to abate global warming’s worst impacts are ready today. Best of all, those who implement these sustainable technologies are likely to reap huge economic dividends — in innovative corporate startups, increased jobs and improvements in quality of life.

This bold vision for the future that is starting to capture the political and public imagination includes vast windfarms that generate boundless power, and hydrogen cars that hum along streets while causing no pollution. It includes landfills that are no longer a source of noxious smells but of biomass power. It promises millions of solar roofs, and energy self-sufficient homes that sell their power back to utility companies. It even promises transformed human landscapes where telecommuters no longer sit in traffic jams wasting gas and time; where urban sprawl is contained and cities are made livable and pedestrian-friendly.

A whole suite of technologies, all blossoming simultaneously, explain the boom in alternative energy abroad. “One of the most exciting things has been advances in wind turbine design to operate at much lower wind speed and convert much more wind into electricity,” said Lester Brown, the alternative energy expert who heads the Earth Policy Institute. The largest turbines now produce 250 times more electricity than the ones built 20 years ago, when California pioneered the industry. “We have enough harnessable wind energy in the U.S. to meet all our energy needs,” Brown said. According to the U.S. Department of Energy, three windy states alone — Texas, North Dakota and Kansas — can supply all of the nation’s electricity.

Brown paints a future where Western ranchers and farmers plant a new cash crop among their cows and corn: wind turbines that will turn their lands into energy providers as well as food providers. Wind is abundant, cheap, clean, inexhaustible, environmentally benign and, because it is decentralized, free from terrorist threat.

“Once we get cheap electricity from wind, then we have the option of electrolyzing water to produce hydrogen,” said Brown. “And hydrogen is the fuel of the future.”

That future may be closer than we think. “Everyone always talks about hydrogen in relation to fuel-cell cars, but the reality is that if we wanted to move rapidly away from oil, we don’t have to go that route. We could simply convert our internal combustion engines from gasoline to hydrogen, burning the hydrogen directly,” revealed Brown. “It’s fairly simple, requiring minor engine changes probably costing not more than about $200 per car. For that amount, a mechanic at a service station could convert an internal combustion engine to a gas engine that would run on natural gas or hydrogen. In fact, BMW now has a prototype model where, while driving down the road, you can switch from gasoline to hydrogen and back again. From an engineering point of view, it is entirely within range.” It hasn’t been attempted before because hydrogen hasn’t been cheap, but an abundance of wind power would change that.

Brown dismisses another often mentioned impediment to the wind-hydrogen transition: the lack of a distribution system. The infrastructure is already in place, he said. “I do all my cooking in a Washington, D.C., apartment with natural gas piped in from Texas. Hydrogen can be delivered the same way, using the same pipes.”

American entrepreneurs already know what Brown knows. “Ken Lay, when he was at Enron — his faults aside — was a visionary,” Brown said. “What Lay saw was that the natural gas fields in Texas would one day be depleted, gone. But the wind that Texas has in abundance would still be there.” Lay founded a profitable wind company at Enron with the idea that Texas wind farms would produce cheap electricity and electrolyze water to make cheap hydrogen. Using existing but modified natural gas pipelines, the hydrogen would flow to the nation’s buildings and cars. General Electric has since taken over Enron’s wind company.

Retrofitting natural gas pipelines probably won’t come cheap. Because hydrogen atoms are very small, thousands of miles of pipeline would have to be better sealed to prevent leakage. But that cost pales against the $1 trillion in climate change-related disasters over the past 15 years. In 1998 alone, the hottest year on record, a Southern U.S. drought did $6 billion in damage; a freakish New England ice storm did $2.5 billion; Hurricane Mitch, the deadliest Atlantic storm in 200 years, caused $5 billion in destruction; while a Yangtze River flood in China did $30 billion in harm. Unless action is taken, the cost of global warming-caused disasters is likely to double every decade, according to a U.N. Environment Program Finance Initiative report.

Brown leaps further ahead in time and in hope: “The development of hydrogen fuel cells is exciting as well because of their efficiency. What we will see in the cities of the future are automobiles that don’t make any noise or emit any pollutants. We can’t even imagine a city without noise and air pollution, because we’ve never known it!”

Amory Lovins, another alternative energy guru, in an interview reported that just such a vehicle has been designed by his Rocky Mountain Institute: “We’ve developed a 99-mile-per-gallon gas-electric hybrid Explorer-class SUV.” According to Lovins, just $200 million in investment capital could see the hypercar roll off assembly lines, saving three or four times America’s annual Persian Gulf imports. Hypercars could eventually be converted to hydrogen fuel cell engines as the technology arrived. Lovins has not patented his design, and Ford, GM, Daimler/Chrysler and other car companies are all racing to be the first to market such a car.

“If you look at the speed of production conversion at the start of World War II, it was just stunning. I think the same could be done now because a lot of the technologies are already well-developed,” said Lovins. “If you put together a New Manhattan Project to develop the wind-hydrogen economy, all bets are off. Under normal conditions hypercars could control half the market in 10 years. With a crash program to get things into production, you could probably cut that time in half. That is ambitious, but Americans are very good at doing ambitious things when their attention is concentrated.”

Unfortunately, Brown believes that we may need a climate change disaster, or a series of them, on the psychological scale of the Pearl Harbor attack to create the needed urgency for change. “We’re probably going to see trouble first in the food sector, the most vulnerable section of the global economy. The combination of falling water tables and rising temperatures may very soon bring the era of cheap food to an end,” he warned. China is no longer producing enough grain to feed itself. Once its stores are used up, Brown said, that nation of 1.3 billion people is likely to come to the world’s table demanding grain. But continued climate shocks — intensifying bouts of drought and deluge — may make help difficult. “We’re really a lot closer to that moment than most of us imagine,” said Brown. “That could be our wakeup call.”

When the moment comes, Brown hopes the technology and economics will fall into place so we can quickly move to stabilize climate. At that date, the pioneering work of the Northeast governors may be recognized for its innovation.

“Twenty years from now, I hope we’ll be looking at a very different mix of energy sources, with a great many more renewables on-line,” said Campbell, the New Jersey environmental commissioner. The state, he asserted, is re-envisioning its future from the ground up, supporting a vigorous green-building program, planting 100,000 trees in urban areas to reduce energy needs and absorb carbon, and working toward livable cities and containing sprawl so people drive less. Ultimately, he thinks, the nation can effectively curb carbon dioxide emissions.

“I don’t want to underestimate what a significant challenge this is,” he said. “We have to build the infrastructure to regulate a new pollutant. It is like the early moments when Congress passed the first environmental laws, setting very ambitious goals, but having little conception of the mechanics and technology of how to get there.”

Should we fail, the cost could be terrible. A new book, “When Life Nearly Died,” by professor Michael Benton of the U.K.’s Bristol University, shows that temperature increases over the next 97 years could roughly equal that at the end of the Permian period 251 million years ago. Runaway global warming then triggered the worst mass extinction ever, the disappearance of 95 percent of species on the planet.

President Bush, when he acknowledges modern climate change at all, sees it as a distant threat and challenge. But the problem of global warming — endangering the world’s food supply and even life itself — is with us now. And so are the solutions.

Glenn Scherer is an environmental journalist who resides at EcoVillage at Ithaca, N.Y.

The Wall Street Journal’s Freudian tweet

The newspaper declares Enron-inspired Sarbanes-Oxley law struck down by Supreme Court. Er, not so fast

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The Wall Street Journal's Freudian tweet

The Wall Street Journal has never made any attempt to hide its antipathy for Sarbanes-Oxley, the Enron/Worldcom-inspired law that attempted to increase oversight on public company accounting. The Journal’s position is that the law imposed costs on businesses that hurt the overall economy. Since this is the Journal’s editorial position on any legislation that tries to rein in the business world, no one was ever required to take their rantings too seriously (even though, it is true, Sarbanes-Oxley has resulted in compliance costs that can be challenging for smaller public firms).

So perhaps that explains why the Wall Street Journal’s flagship Twitter feed (as pointed out by Felix Salmon) jumped the gun this morning, reporting via a tweet practically dripping with glee that Sarbanes-Oxley had finally been vanquished!

BREAKING: Supreme Court strikes down Sarbanes-Oxley, the landmark anti-fraud law. Much more to come at http://wsj.com

Except, as the Journal and other publications soon reported, the court did no such thing. The court struck down a part of Sarbanes-Oxley that had to with the president’s power to fire members of the Public Company Oversight Accounting Board, the regulatory body set up by Sarbanes-Oxley to watch over the accounting firms that audit public companies.

Currently, members of the PCOAB can only be fired “for cause.” The court ruled that this violated the Constitution’s “separation of powers” principles. Now the president will be able to fire the overseers “at will.”

Critics of Sarbanes-Oxley had hoped that the court would use this flaw to throw out the entire law. But that’s not happening. The law stands. The proper tweet should have been “Supreme Court strikes down minor part of Sarbanes-Oxley; law remains in effect.”

Maybe it was an honest error — albeit retweeted around the world at near the speed of light. Or maybe it was an unintentional revelation of the deepest hopes and desires of the Wall Street Journal’s shell-shocked editorial core — the subconscious revealed in 140 characters or less. With just days to go before a new avalanche of financial sector regulation becomes law, the Journal saw one bright spot in the advancing gloom — Sarbanes-Oxley would be no more! And the paper (or a Twitter-feed monitoring intern) got a little excited. Hey, no worries, it’s happened to the best of us.

But the least the paper could do would be a follow-up, one-word tweet: Ooops! Any self-respecting blogger would have felt that much responsibility. But the Journal blithely tweeted forward, gradually approaching the truth, with nary a look back. Tut tut.

UPDATE: The man behind the mistaken tweet, Zach Seward, comes admirably clean in Felix Salmon’s comments.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

Jack Abramoff, Eliot Spitzer: A tale of two swindlers

What connects the disgraced N.Y. governor and the jailed D.C. lobbyist? Oscar-winner Alex Gibney explains

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Jack Abramoff, Eliot Spitzer: A tale of two swindlersFormer New York governor Eliot Spitzer speaks at the Reuters Global Financial Regulation Summit 2010 in New York April 28, 2010. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS HEADSHOT)(Credit: © Brendan Mcdermid / Reuters)

What do the following have in common: Imprisoned Washington lobbyist Jack Abramoff, disgraced ex-New York Gov. Eliot Spitzer, the collapse of Enron, the Bush administration’s torture policies, the late gonzo journalist Hunter S. Thompson? Before we go chasing some thread of thematic continuity — and we could definitely do that — let’s observe the emotional connection. All of those people and things provoke or embody big, visceral reactions: shock, outrage, disgust, amazement.

The other thing they have in common, of course, is Alex Gibney, who has made movies about all those subjects, including the Oscar-winner “Taxi to the Dark Side,” the box-office breakthrough “Enron: The Smartest Guys in the Room” and “Gonzo: The Life and Work of Dr. Hunter S. Thompson,” which wasn’t a big hit but strikes me as a key work in understanding what Gibney is up to. He thrives on those oversize emotions mentioned above, channeling them into intentionally ambiguous pop documentaries that inhabit a nuanced middle ground between journalism and entertainment.

As he would be the first to admit, Gibney’s films depend on the work of old-school investigative journalists, those lumbering sauropods who take months or years to reach their destinations. His particular genius lies in taking their facts and figures, their reams of insider testimony, and spinning them into compelling on-screen yarns, loaded with archival news footage, goofy animations and special effects, dramatic re-creations and comic-relief moments. Yet if Gibney’s films are a long way from the purist cinema-vérité documentary tradition, they’re closer in spirit to old-fashioned muckraking than to the clown-prince pranksterism of Michael Moore. (Gibney’s voice can be heard in his films, both literally and figuratively, but he never appears as a character.)

Even by Gibney’s prolific standards, 2010 is shaping up as a bonanza, or perhaps an unmanageable pileup. When I met him recently at the New York offices of Magnolia Pictures, we were officially talking about his explosive, hilarious and eye-opening Abramoff film, “Casino Jack and the United States of Money,” which Magnolia releases in theaters this week. But Gibney also had — count ‘em — three other new movies premiering in the Tribeca Film Festival, at least if you count his section of the anthology documentary “Freakonomics,” adapted from Stephen Dubner and Steven Levitt’s bestselling books. (Other co-directors of that film are Seth Gordon, Eugene Jarecki, Morgan Spurlock and the “Jesus Camp” duo, Heidi Ewing and Rachel Grady.)

Gibney also unveiled a sneak preview of his as-yet-untitled Eliot Spitzer documentary at Tribeca, along with “My Trip to Al-Qaeda,” a film based on journalist and author Lawrence Wright’s solo theater piece about his quest to find the roots of Islamic terrorism. (That film will play on HBO, and perhaps also receive limited theatrical release. The commercial fate of the Spitzer film remains undecided.)

“Casino Jack” veritably revels in the rollicking, stranger-than-fiction details of the Abramoff scandal, in which a brilliant and charismatic lobbyist pimped out much of the United States Congress to big-money corporate clients, along the way defrauding Indian tribes, the territorial government of the Mariana Islands and other easy marks. Beyond that, though, Gibney is fascinated by the scandal’s larger implications — and it’s there that we begin to see the conceptual thread that ties his films together. Abramoff was no rogue out to enrich himself (although he did that too) but a committed right-wing ideologue who permanently changed the rules of the game in Washington. He embraced and embodied that old gag about the Golden Rule: Those who have the gold make the rules.

As always, Gibney was a cheerful, upbeat conversationalist in person. He’s a film buff who stays busy at festivals catching other people’s work, and in an interview context he delivers concise, on-message sound bites, not dark, philosophical jeremiads. Still, as I told him, I sense a pattern here, whether or not it’s entirely conscious: Gibney is documenting the not-so-slow and not-so-gradual demolition of the American dream, the interlinked vision of freedom, democracy and capitalism that has been so influential in the recent history of the world, and now seems to be in potentially terminal decay.

So, Alex, we’re here to talk about “Casino Jack and the United States of Money,” but you’ve got two other films that are either complete or almost complete. And then there’s “Freakonomics,” which you directed part of. I think you should write some kind of self-help book on how to get stuff done. Are you one of those people who’s incredibly organized?

Man, that would make everybody who knows me howl with laughter. I may be the world’s most disorganized person. But I do put in the hours. I should probably join Filmmakers Anonymous. Stop me before I say yes again!

You know, you could look at your films and describe them as miscellaneous. Generally you’re taking the work of journalists and adapting it for the screen. But when I look at them, I see a congressional corruption scandal, a major corporate scandal, a disgraced politician and a dead journalist who spent his life excoriating the stupidity and corruption he saw around him. Is there a pattern?

Maybe if you see it, you’ll let me know. [Laughter.] There are clearly certain things that interest me, and I seem to go there. But a pattern? I don’t know.

Well, if I were a graduate student trying to write a thesis about you, I might suggest that these are all aspects of the decline of America since 1980 — the legacy of the Reagan revolution and the triumph of conservatism in American politics.

Well, there’s a theme in that. I think that’s the big story. Now we’re seeing that the net result of the Reagan revolution was the Wall Street meltdown. Take away all the rules and regulations, and what do you get? Meltdown. So I think that’s a theme.

But the other thing that’s increasingly interesting for me is human behavior. What makes people do the strange things they do? How do good people go bad? How do people abuse power? Those are big things for me.

You’re showing your movie about Eliot Spitzer at Tribeca, but it has no title yet and we’ve all been asked not to write about it. So I take it you don’t think it’s ready to roll?

I’m taking my cue on the Spitzer film from what happened with “Casino Jack” at Sundance. We thought it was finished. But seeing it with an audience, who weren’t my friends or anything, you learn things about how it plays. So we made it a lot shorter, we took at some narration, we just shifted stuff around. I would say the Spitzer film is largely finished, and now we’ll see how people respond. We may make a few adjustments.

Your other new film is “My Trip to Al-Qaeda,” which — well, how would you describe it? Is it an adaptation of Lawrence Wright’s performance piece?

Yeah, in some ways it is. He did a one-man play called “My Trip to Al-Qaeda,” which is like “my summer vacation,” except in the Middle East. What intrigued me was that it was an everyman’s look at al-Qaida — why they attacked us, and why they came to be what they were. In making the film, we filmed the play, but then we enhanced it. The set of the play was Larry’s study, but it also included a TV screen. We made that TV screen significantly bigger on our set, and used it as a magic portal.

There’s a kind of time and space travel in the film, where we go to Cairo, to London. We also travel through space and time to the caves in Afghanistan, to Saudi Arabia, so that you can see and feel these places in addition to traveling on Larry’s personal journey, which is his play.

Getting back to “Casino Jack,” which is a movie about a scandal that was widely covered in the media when the story broke, five or six years ago. It seems as if you’re arguing that people may know Abramoff’s name, and maybe the general outlines of the story, but may not understand its importance.

In some ways, he assembled the tool kit that lobbyists are still using. Now, people will object to that: “Absolutely not! Jack Abramoff was one of a kind! He was completely outrageous.” Well, yes. He was outrageous, and he was way out of control. But he used the same tool kit everybody uses today: the rapacious use of not-for-profits to hide trips, to hide agendas, to hide money flows. The revolving door, where you get staffers from senators’ or congressmen’s offices and put them into your lobbying shops so you can influence votes, influence legislation. The use of entertainment and skyboxes — there are different rules now, but there are also ways to get around them. Biggest of all is the way you manage money to influence legislation, in a way that skirts the prohibitions on quid pro quo. It’s about going inside the kitchen in the world’s biggest restaurant and seeing how the sausage is made. Jack Abramoff was the master chef in the world’s biggest restaurant.

We wonder why Congress is dysfunctional, why they’re not doing the people’s bidding, why everyone seems to hate them. The reason is, the system is broken, because it’s all based on money. By looking at Jack’s story, you can see how that happened.

And Jack’s story — first of all, it’s hilarious and spectacular. It’s globe-girdling, there’s a murder in it, there are sweatshops in Saipan, dirty deals in Russia, arms whistling to the West Bank. But at its heart is the very stuff that is breaking our system of democracy.

This was the biggest congressional corruption scandal ever, at least at the time. But did the level of corruption that Abramoff represented become the new normal, in a sense? Because in the film you suggest that even more dramatic stuff has happened since his downfall.

The dispiriting thing is that Jack Abramoff, in the wake of the financial lobbying of the last few years, looks like a piker. I mean, he’s Podunk! The financial lobbyists, and the medical and pharmaceutical lobbyists, have taken what Abramoff did to a new level.

You mentioned the fact that the Abramoff story is highly entertaining, which it certainly is. And while it’s unlikely that your viewers will find him likable or sympathetic, let’s just say this: He makes one hell of a lead character.

There is another film, which is still called “Casino Jack.” I think they’re going to change the title. It’s a fictional version of this story, in which Kevin Spacey plays Jack Abramoff. I’ve seen the film, and Kevin Spacey is very good in it. But he’s no Jack Abramoff. [Laughter.]

Jack Abramoff is one of a kind. As Neal Volz, a former staffer for congressman Bob Ney who later worked for Jack, says, “Jack could talk a dog off a meat truck.” He was that persuasive. He was the ultimate salesman, but he was also a man of great imagination. He was a film buff, who saw his own life as an action film or a spy thriller. As a result, he imagined himself into situations that, you know, make for pretty good moviegoing.

Suddenly, we’re in Angola, in Africa, where Jack is holding a sort of right-wing Woodstock [in June 1985], shooting machine guns with a bloodthirsty character named Jonas Savimbi and a guy named Adolfo Calero, who used to run the Contras in Nicaragua. And they’re all holding hands after a lot of machine-gun shooting and singing a version of “Kumbaya” with this guy Lew Lehrman, who later ran for governor in New York state, and who gave George Washington’s bowl to Jonas Savimbi, this bloodthirsty dictator. You can’t make this stuff up!

Yeah, I literally couldn’t believe that entire sequence. It’s so amazing. It seems impossible, totally fictional. Was it difficult to find documentation of that event?

It sure was. We got lucky or we were good, one of the two. We tracked down a cameraman who had been there, and he still had 10 hours of footage. We also got Jack’s film, which was amazing. Jack was a film producer. He produced “Red Scorpion,” with Dolph Lundgren [released in 1989], and “Red Scorpion 2.” I think the Angola affair — it taught Jack that it wasn’t a big enough deal. That was his documentary version, and he was always going to make an action film. So he reinvents Savimbi into Red Scorpion, and has Dolph Lundgren as the action hero, shooting up everybody and performing weightlifting tricks. And that’s what Jack was as a young man, a weightlifter. So Dolph Lundgren is standing in for Jack.

I have a fun thing at the beginning of the film. There’s this thing that Jack said to somebody, which we transposed into an e-mail: “Documentary? You don’t want to make a documentary. Nobody watches documentaries. You want to make an action film.”

So to some extent, this film is an action film. That’s what I told Jack: “It’s an action film, man. People are going to be entertained.” I think it’s also a comedy, at least in parts. But unfortunately it’s a comedy in which the joke’s on us.

So you’ve had contact with Abramoff. What was that like?

Very interesting. I visited him in prison, and found him to be a very engaging character, very funny, good storyteller. He loves to quote movies.

Did he know who you were?

He did. I think — no, I know — that there was great reluctance to meeting with me. It wasn’t like I had a big record as a movement conservative, which was something we joked about. We agreed on one thing: I didn’t see him as a bad apple. I saw him as spectacular evidence of a rotten barrel.

He was at the center of things, not on the periphery. Everybody else was trying to make him the scapegoat: “Oh, we got rid of Jack Abramoff. Everything’s fine!” I told him, and I firmly believe, that he was at the center. He was doing stuff to the extreme, yes, over the top. But he was doing the same stuff everybody else was doing.

Well, you make a pretty strong case that Abramoff wasn’t in it for the money, or not entirely. He had an ideological motivation. He actually believed he was doing the right thing.

Right. I think he was a zealot. Unlike his partner, Mike Scanlon, who was in it for the money, Jack Abramoff was a zealot. He believed in the principles of the Reagan revolution. He was very anti-Soviet, but he also wanted to do what Grover Norquist has suggested: make government so small you can drown it in the bathtub. Denude it of its resources. Destroy the government, in effect.

Do you see any parallels between Abramoff and Eliot Spitzer? Here are these two brilliant, headstrong guys from opposite sides of the political spectrum, who appeared to be very idealistic, driven by ideology, but who allowed themselves to become corrupted.

I don’t know that Eliot was corrupted by his ideology, but I think he’s a character who did something that was wildly unexpected. If there is a parallel, it’s hubris. I think Jack became so entranced with his outsize reputation that he began to believe his own press releases. And I think Eliot Spitzer — he started seeing prostitutes at the moment of his greatest political influence. He was on his way to being governor, overwhelmingly popular among both Republicans and Democrats. And at that very moment, at the top of his game, he began to see prostitutes. Dudley Do-Right did wrong.

Of the two of them, maybe Spitzer was the real hypocrite. You can call Abramoff a lot of things, but not that.

I don’t think you could really accuse Jack of being a hypocrite. Jack was corrupt, and I don’t think you can say that Eliot Spitzer was corrupt. But he was hypocritical, there’s no doubt about that. Look, he had increased penalties for johns in New York, and he had prosecuted escort services. Now, I have rather politically incorrect liberal views about whether prostitution should be legal. [Laughter.] But the fact was that it was illegal, and he was the governor of New York, who had convinced people to elect him because he was Mr. Clean. So, yes, he was a hypocrite. And Jack wasn’t.

“Casino Jack and the United States of Money” opens May 7 in New York, Los Angeles and Washington; May 14 in Chicago, Phoenix, San Diego, San Francisco, San Jose, Calif., Santa Cruz, Calif., and Seattle; May 21 in Atlanta, Boston, Monterey, Calif., Nashville, Palm Springs, Calif., Philadelphia, Sacramento, Tucson, Ariz., and Austin, Texas; May 28 in Charlotte, N.C., Cleveland, Dallas, Kansas City, Miami, Minneapolis, Portland, Ore., Salt Lake City, San Antonio and Santa Fe, N.M.; and June 4 in Houston and Waterville, Maine, with more cities to follow.

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Exclusive Alex Gibney clip: Jack Abramoff and healthcare

See a deleted scene from Oscar-winner Alex Gibney's new movie about the guy who dosed Congress with dirty money

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In an exclusive premiere for Film Salon readers, here’s a deleted scene from Oscar-winning director Alex Gibney’s upcoming documentary “Casino Jack and the United States of Money.” The film recounts the horrifying, mesmerizing saga of über-lobbyist Jack Abramoff and the congressional corruption scandal of the late ’90s and early 2000s that dramatically changed the landscape of Washington (and definitely not for the better).

In this Webisode, Gibney explores the elaborate money shuffle through which Abramoff channeled money from supposedly legitimate lobbying clients (like Indian tribes) through Republican PACs and Big Pharma front groups, who in turn wrote industry-friendly legislation that was passed intact by the GOP-led Congress. I’ll have an interview with Gibney and more coverage of the film next week. “Casino Jack and the United States of Money” opens May 7 in major cities, but you’ll only find this clip here (at least until the DVD comes out).

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It’s time for Wall Street to pay

We need accountability -- as in, jail time where warranted -- for those who created the financial disaster

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It's time for Wall Street to payJames Cayne of Bear Stearns, John Thain of Merrill Lynch, and Lloyd Blankfein of Goldman Sachs

Almost everybody’s got their noses out of joint these days — and no wonder. If there’s a significant American institution that hasn’t failed in its fundamental public responsibility over the past decade, it’d be hard to identify.

Writing in Time, Christopher Hayes puts it succinctly: “Nearly every pillar institution in American society — whether it’s General Motors, Congress, Wall Street, Major League Baseball, the Catholic Church or the mainstream media — has revealed itself to be corrupt, incompetent or both. And at the root of these failures are the people who run these institutions, the bright and industrious minds who occupy the commanding heights of our meritocratic order.”

Me, I blame the combination of runaway baseball salaries, the “talented and gifted” movement in schools, and the tyranny of SAT scores. I’m only half-joking. Once free agency drove even an average third baseman’s pay into the seven-figure range formerly reserved for tycoons who owned major industries or medium-size Midwestern states, practically everybody with SAT scores over 1,400 figured they deserved to earn as much as Aramis Ramirez.

The differences being that quality third basemen are a lot rarer than Ivy League MBAs, and are publicly and relentlessly evaluated. Steroids or no steroids, one bad season and they’re replaced by a 22-year-old from the Dominican Republic. That’s one of the things keeping us fans hanging on.

Not so in the corporate world. As recently as 2008, the geniuses running Wall Street investment banks bankrupted their companies and came perilously close to collapsing the world financial system. And what happened? A few CEOs departed via “golden parachute,” but most executives stayed shamelessly in place, profited from multibillion-dollar TARP bailouts and then began awarding each other obscene bonuses almost before the smoke cleared.

Meanwhile, a substantial part of a generation’s retirement savings vanished into thin air. Had the Bush administration succeeded in “privatizing” Social Security back in 2005, the damage could not have been worse.

Over time, American institutions appear to be growing steadily less accountable. Hayes cites the Catholic Church’s sex abuse scandal, which strikes me as a red herring. Yes, the bishops averted their eyes, placing the putative well-being of the church above children. Yes, ecclesiastical lectures on sexual sin are a bit harder to take. But the church has been hierarchical, secretive and self-protective since forever. Moreover, as recent developments in Ireland and Germany show, the problem is international.

More to the point, “look at CEO pay,” Hayes urges. “In 1978, according to the Economic Policy Institute, the ratio of average CEO pay to average wage was about 35 to 1. By 2007 it was 275 to 1.” In comparison, the ratio remains approximately 20 to 1 in most European countries; roughly 11 to 1 in Japan. Yet people complain about labor unions.

Hayes cites Nell Minow, an expert in corporate governance nicknamed “The CEO Killer” by Fortune magazine, to the effect that all many executives know how to do is “manipulate the levers of governance and devise ingenious methods of guaranteeing themselves windfalls regardless of their company’s performance.” The unvarying defense of the latest Wall Street bonuses, of course, is that the talented and gifted recipients might otherwise change teams. Why, perish the thought.

Only recently, reporters have begun catching up with the bankruptcy examiner’s report on the failure of Lehman Brothers investment bank, the precipitating event in the 2008 financial crisis. According to law professor and former white-collar prosecutor Peter J. Henning, writing in the New York Times’ DealBook blog, the 2,000-page document “discusses some accounting gimmicks that are eerily reminiscent of how Enron tried to prop up its balance sheet back in 2001 before it collapsed.”

And for which, it will be recalled, a number of Enron executives went to prison. The details can be dauntingly complex. But what they amounted to were a series of short-term accounting tricks designed to make the bank’s financial health appear robust as it “teetered on the brink of ruin.”

The examiner’s report calls CEO Richard Fuld “grossly negligent” at minimum, and reserves even harsher terms for Lehman’s accounting firm, Ernst & Young. Remember when accounting was a respectable profession? No more. They’re buccaneers today.

The basic gimmick was called a “Repo 105,” moving bad real estate-based assets off the books by using them as collateral for short-term loans just long enough to file quarterly reports, then unwinding the deals as quickly as overnight.

It’s as if your brother-in-law assumed your debts and deeded you his assets overnight so you could qualify for a bank loan, then took them back. Except Lehman was doing it to the tune of $50 billion a pop. You and your brother-in-law would go to prison for that, and so should somebody at Lehman Brothers. Hopefully, somebody with a brilliant academic record and impeccable social credentials, so the rest of them start paying attention.

© 2010, Gene Lyons. Distributed by United Feature Syndicate, Inc.

 

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Arkansas Times columnist Gene Lyons is a National Magazine Award winner and co-author of "The Hunting of the President" (St. Martin's Press, 2000). You can e-mail Lyons at eugenelyons2@yahoo.com.

Sundance: Searing portrait of a top lobbyist

Oscar-winner Alex Gibney talks about his new Jack Abramoff expos

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Sundance: Searing portrait of a top lobbyist18 Aug 2005, MIAMI, FL, USA --- Washington lobbyist Jack Abramoff leaves the courthouse in Miami August 18, 2005. Abramoff, a central figure in investigations involving House Majority Leader Tom Delay, plans to fight charges he defrauded two lenders of $60 million to buy a casino cruise line, his lawyer said on Thursday. Abramoff, a well-connected Republican lobbyist, and Adam Kidan, his partner in the $147.5 millions buyout of SunCruz Casino five years ago, were indicted by a federal grand jury in Fort Lauderdale, Florida, on August 11. --- Image by © CARLOS BARRIA/Reuters/Corbis(Credit: © Carlos Barria/reuters/corbis)

PARK CITY, Utah — Alex Gibney’s new documentary, “Casino Jack and the United States of Money,” which premiered at Sundance this week, is much more than a shocking and highly entertaining movie about Jack Abramoff, the über-lobbyist at the center of the biggest corruption scandal in congressional history. It’s a portrait of a political system that has been poisoned down to the root by the pernicious influence of big money, by the buying and selling of connections and influence, and by a radical free-market ideology that has been systematically employed to undermine the principles of representative democracy.

As the Oscar-winning director of “Taxi to the Dark Side” and “Enron: The Smartest Guys in the Room” told me in our conversation in a Park City restaurant, the Abramoff case was not an isolated instance of criminality, but a symptom of a much larger disease. As in his earlier films, Gibney dramatizes the work of America’s best investigative journalists, and directly attacks the “bad apple” hypothesis that’s repeatedly employed to explain away disturbing tales of corruption and malfeasance, from Enron to Abu Ghraib to Abramoff.

Magnolia Pictures will release “Casino Jack” in theaters this spring. For now, here’s Alex Gibney on the outlandish Abramoff tale and its rogue’s gallery of supporting players — from Tom DeLay to Grover Norquist to George W. Bush — why it definitely still resonates in the Obama era, and what it means for our imperiled republic. 

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