Everything Seemingly Is Spinning Out of Control

by Alan Fram and Eileen Putman
Sunday, June 22, 2008 by Associated Press

WASHINGTON -

Midwestern levees are bursting. Polar bears are adrift. Gas prices are
skyrocketing. Home values are abysmal. Air fares, college tuition and health
care border on unaffordable. Wars without end rage in Iraq, Afghanistan and
against terrorism.

Horatio Alger, twist in your grave.

The can-do, bootstrap approach embedded in the American psyche is under
assault. Eroding it is a dour powerlessness that is chipping away at the
country's sturdy conviction that destiny can be commanded with sheer courage
and perseverance.

The sense of helplessness is even reflected in this year's presidential
election. Each contender offers a sense of order - and hope. Republican John
McCain promises an experienced hand in a frightening time. Democrat Barack
Obama promises bright and shiny change, and his large crowds believe his
exhortation, "Yes, we can."

Even so, a battered public seems discouraged by the onslaught of dispiriting
things. An Associated Press-Ipsos poll says a barrel-scraping 17 percent of
people surveyed believe the country is moving in the right direction. That
is the lowest reading since the survey began in 2003.

An ABC News-Washington Post survey put that figure at 14 percent, tying the
low in more than three decades of taking soundings on the national mood.

"It is pretty scary," said Charles Truxal, 64, a retired corporate manager
in Rochester, Minn. "People are thinking things are going to get better, and
they haven't been. And then you go hide in your basement because tornadoes
are coming through. If you think about things, you have very little power to
make it change."

Recent natural disasters around the world dwarf anything afflicting the U.S.
Consider that more than 69,000 people died in the China earthquake, and that
78,000 were killed and 56,000 missing from the Myanmar cyclone.

Americans need do no more than check the weather, look in their wallets or
turn on the news for their daily reality check on a world gone haywire.

Floods engulf Midwestern river towns. Is it global warming, the gradual
degradation of a planet's weather that man seems powerless to stop or just a
freakish late-spring deluge?

It hardly matters to those in the path. Just ask the people of New Orleans
who survived Hurricane Katrina. They are living in a city where, 1,000 days
after the storm, entire neighborhoods remain abandoned, a national
embarrassment that evokes disbelief from visitors.

Food is becoming scarcer and more expensive on a worldwide scale, due to
increased consumption in growing countries such as China and India and
rising fuel costs. That can-do solution to energy needs - turning corn into
fuel - is sapping fields of plenty once devoted to crops that people need to
eat. Shortages have sparked riots. In the U.S., rice prices tripled and some
stores rationed the staple.

Residents of the nation's capital and its suburbs repeatedly lose power for
extended periods as mere thunderstorms rumble through. In California,
leaders warn people to use less water in the unrelenting drought.

Want to get away from it all? The weak U.S. dollar makes travel abroad
forbiddingly expensive. To add insult to injury, some airlines now charge to
check luggage.

Want to escape on the couch? A writers' strike halted favorite TV shows for
half a season. The newspaper on the table may soon be a relic of the
Internet age. Just as video stores are falling by the wayside as people get
their movies online or in the mail.

But there's always sports, right?

The moorings seem to be coming loose here, too.

Baseball stars Barry Bonds and Roger Clemens stand accused of enhancing
their heroics with drugs. Basketball referees are suspected of cheating.

Stay tuned for less than pristine tales from the drug-addled Tour de France
and who knows what from the Summer Olympics.

It's not the first time Americans have felt a loss of control.

Alger, the dime-novel author whose heroes overcame adversity to gain riches
and fame, played to similar anxieties when the U.S. was becoming an
industrial society in the late 1800s.

American University historian Allan J. Lichtman notes that the U.S. has
endured comparable periods and worse, including the economic stagflation
(stagnant growth combined with inflation) and Iran hostage crisis of 1980;
the dawn of the Cold War, the Korean War and the hysterical hunts for
domestic Communists in the late 1940s and early 1950s; and the Depression of
the 1930s.

"All those periods were followed by much more optimistic periods in which
the American people had their confidence restored," he said. "Of course,
that doesn't mean it will happen again."

Each period also was followed by a change in the party controlling the White
House.

This period has seen intense interest in the presidential primaries,
especially the Democrats' five-month duel between Obama and Hillary Rodham
Clinton. Records were shattered by voters showing up at polling places,
yearning for a voice in who will next guide the country as it confronts the
uncontrollable.

Never mind that their views of their current leaders are near rock bottom,
reflecting a frustration with Washington's inability to solve anything.
President Bush barely gets the approval of three in 10 people, and it's even
worse for the Democratic-led Congress.

Why the vulnerability? After all, this is the 21st century, not a more
primitive past when little in life was assured. Surely people know how to
fix problems now.

Maybe. And maybe this is what the 21st century will be about - a great
unraveling of some things long taken for granted.

© 2008 Associated Press

***

Court Rewards Exxon for Valdez Spill

by Greg Palast
Chicago Tribune (revised)

[Thursday, June 26, 2008] Twenty years after Exxon Valdez slimed over one
thousand miles of Alaskan beaches, the company has yet to pay the $5 billion
in punitive damages awarded by the jury. And now they won't have to. The
Supreme Court today cut Exxon's liability by 90% to half a billion. It's so
cheap, it's like a permit to spill.

Exxon knew this would happen. Right after the spill, I was brought to Alaska
by the Natives whose Prince William Sound islands, livelihoods, and their
food source was contaminated by Exxon crude. My assignment: to investigate
oil company frauds that led to to the disaster. There were plenty.

But before we brought charges, the Natives hoped to settle with the oil
company, to receive just enough compensation to buy some boats and rebuild
their island villages to withstand what would be a decade of trying to
survive in a polluted ecological death zone.

In San Diego, I met with Exxon's US production chief, Otto Harrison, who
said, "Admit it; the oil spill's the best thing to happen" to the Natives.

His company offered the Natives pennies on the dollar. The oil men added a
cruel threat: take it or leave it and wait twenty years to get even the
pennies. Exxon is immortal - but Natives die.

And they did. A third of the Native fishermen and seal hunters I worked with
are dead. Now their families will collect one tenth of their award, two
decades too late.

In today's ruling, Supreme Court Justice David Souter wrote that Exxon's
recklessness was ''profitless'' - so the company shouldn't have to pay
punitive damages. Profitless, Mr. Souter? Exxon and it's oil shipping
partners saved billions - BILLIONS - by operating for sixteen years without
the oil spill safety equipment they promised, in writing, under oath and by
contract.

The official story is, "Drunken Skipper Hits Reef." But don't believe it,
Mr. Souter. Alaska's Native lands and coastline were destroyed by a
systematic fraud motivated by profit-crazed penny-pinching. Here's the
unreported story, the one you won't get tonight on the Petroleum Broadcast
System:

It begins in 1969 when big shots from Humble Oil and ARCO (now known as
Exxon and British Petroleum) met with the Chugach Natives, owners of the
most valuable parcel of l and on the planet: Valdez Port, the only
conceivable terminus for a pipeline that would handle a trillion dollars in
crude oil.

These Alaskan natives ultimately agreed to sell the Exxon consortium this
astronomically valuable patch of land -- for a single dollar. The Natives
refused cash. Rather, in 1969, they asked only that the oil companies
promise to protect their Prince William Sound fishing and seal hunting
grounds from oil.

In 1971, Exxon and partners agreed to place the Natives' specific list of
safeguards into federal law. These commitment to safety reassured enough
Congressmen for the oil group to win, by one vote, the right to ship oil
from Valdez.

The oil companies repeated their promises under oath to the US Congress.

The spill disaster was the result of Exxon and partners breaking every one
of those promises - cynically, systematically, disastrously, in the fifteen
years leading up to the spill.

Forget the drunken skipper fable. As to Captain Joe Hazelwood, he was below
decks, sleeping off his bender. At the helm, the third mate would never have
collided with Bligh Reef had he looked at his Raycas radar. But the radar
was not turned on. In fact, the tanker's radar was left broken and disasbled
for more than a year before the disaster, and Exxon management knew it. It
was just too expensive to fix and operate.

For the Chugach, this discovery was poignantly ironic. On their list of
safety demands in return for Valdez was "state-of-the-art" on-ship radar.

We discovered more, but because of the labyrinthine ways of litigation,
little became public, especially about the reckless acts of the industry
consortium, Alyeska, which controls the Alaska Pipeline.
Several smaller oil spills before the Exxon Valdez could have warned of a
system breakdown. But a former Senior Lab Technician with Alyeska, Erlene
Blake, told our investigators that management routinely ordered her to toss
out test samples of water evidencing spilled oil. She was ordered to refill
the test tubes with a bucket of clean sea water called, "The Miracle
Barrel."

In a secret meeting in April 1988, Alyeska Vice-President T.L. Polasek
confidentially warned the oil group executives that, because Alyeska had
never purchased promised safety equipment, it was simply "not possible" to
contain an oil spill past the Valdez Narrows -- exactly where the Exxon
Valdez ran aground 10 months later.

The Natives demanded (and law requires) that the shippers maintain round-
the-clock oil spill response teams. Alyeska hired the Natives, especiallly
qualified by their generations-old knowledge of the Sound, for this
emergency work. They trained to drop from helicopters into the water with
special equipment to contain an oil slick at a moments notice. But in 1979,
quietly, Alyeska fired them all. To deflect inquisitive state inspectors,
the oil consortium created sham teams, listing names of oil terminal workers
who had not the foggiest idea how to use spill equipment which, in any
event, was missing, broken or existed only on paper.
In 1989, when the oil poured from the tanker, there was no Native response
team, only chaos.

Today, twenty years after the oil washed over the Chugach beaches, you can
kick over a rock and it will smell like an old gas station.

The cover story of the Drunken Captain serves the oil industry well. It
falsely presents America's greatest environmental disaster as a tale of
human frailty, a one-time accident. But broken radar, missing equipment,
phantom spill teams, faked tests -- the profit-driven disregard of the
law -- made the spill an inevitability, not an accident.

Yet Big Oil tells us, as they plead to drill in the Arctic National Wildlife
Reserve, as Senator John McCain calls for drilling off the shores of the
Lower 48, it can't happen again. They promise.

Greg Palast is a Puffin Foundation Writing Fellow for Investigative
Reporting at the Nation Institute, New York. Read and view his
investigations for BBC Television at http://www.GregPalast.com. An earlier
version of this report originally appeared in the Chicago Tribune. Photos by
James Macalpine (1993). Support the Palast Investigative Fund and find out
more about this "well-designed disaster" by picking up Palast's NY Times
best-selling book The Best Democracy Money Can Buy at
http://www.palastinvestigativefund.org/


------------------------------------

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