Daily Archives: April 30, 2023

Green Inflation And The End Of Capitalism: Lenins Thesis Being Tested – Forbes

Posted: April 30, 2023 at 11:41 pm

1909 - November 26,1968) for Vladimir Lenin (April 22,1870 - January 21,1924), with text 'Lenin lived, Lenin lives, Lenin will live forever', Vladimir Mayakovsky's words emphasize a full-length portrait of the Soviet revolutionary and ideologue, USSR 1967. (Photo by Fototeca Gilardi/Getty Images)Getty Images

In an interview on Wednesday, the Bank of Englands chief economist Huw Pill said [People] need to accept that they're worse off and stop trying to maintain their real spending power by bidding up prices, whether [through] higher wages or passing the energy costs through onto customers. Demands for higher pay were only generating inflation as a result, he said. Inflation at 10.1 percent was five times higher than the Bank of Englands 2 percent target in March.

At this point, one might ask, why didnt the great economists of past generations think of Mr. Pills tough love remedy: stop higher wage claims you working class folks, and as for you businessmen, stop passing on increased costs. Stop generating inflation. Alas, the BOEs chief economist got one thing wrong. Workers clamoring for higher wages to keep up with higher costs of living and businessmen trying to pass on higher costs to their customers to keep their businesses running certainly accelerate inflation, but they arent generating it.

The late Nobel laureate Milton Friedman would have agreed: Consumers dont produce it. Producers dont produce it. The trade unions dont produce it. Foreign sheikhs dont produce it. Oil imports dont produce it. What produces it is too much government spending and too much government creation of money, and nothing else.

Lenins Weapon Wielded

A quote attributed to Vladimir Lenin states that "The best way to destroy the capitalist system [is] to debauch the currency." The quote was popularized in an essay on inflation by John Maynard Keynes, the influential British economist who played a key advisory role in the post-War Bretton Woods talks. Keynes wrote:

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily. Lenin was certainly right; there is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction

Todays wielders of Lenins weapon of currency debauchment come from ruling parties, across the ideological spectrum, in modern Western liberal democracies. The tragic flaw in Keynesian-inspired macroeconomics was the presumption that economic policy was conducted by a small group of wise and enlightened technocrats who acted selflessly for the public interest. The more plausible premise in liberal democracies is that governments formulate policies to win elections, rather than win elections to promote societal well-being. The norm that public budgets should be in balance, if not in surplus for a rainy day, and that deficits were to be tolerated only in exceptional circumstances such as war or depression is practiced only in the breach.

Since 1971 when President Nixon abandoned the gold standard, with few exceptions both Democrat and Republican administrations, with the support of the House and Senate, have been spending, and printing money at unprecedented levels as if to fulfil Lenins means of destroying capitalism. The Biden administration took an already bloated federal budget which under the Trump administration spent enormous sums in response to the covid lockdowns and doubled down on spending even more. President Biden has now spent more in his first two years than President Trump did during his last two years at the height of the pandemic.

Double Whammy

In his second month in office, Mr. Biden signed the $1.9 trillion American Rescue Plan. That was followed by a $1 trillion bipartisan infrastructure law in November 2021, a $750 billion misnamed Inflation Reduction Act in August and a $1.7 trillion government spending bill in December. President Bidens spending binge has wide-ranging beneficiaries. The American Rescue plan included direct payments of $1,400 to most Americans and extended $300 weekly boosts in unemployment payments. But outside of this general handout, the usual Democrat constituencies enjoyed wage increases and various boondoggles. These include the teachers unions, other favoured unionized workers, indebted students but above all crony investors in green industries such as EVs, wind, solar and power storage technologies favored by Bidens whole-of-government climate change priorities.

Bidens inflationary binge carries a double whammy. Not only is there too much government creation of money on the demand side but the Biden administration has simultaneously stymied domestic oil and gas business on the supply side. On attaining office, President Biden issued a series of executive orders which revoked permits for the Keystone XL pipeline, suspended oil leasing in Alaska, halted oil and gas leases on federal land, and even invoked the Endangered Species Act to block energy resource development on private lands in the West. Furthermore, by promoting Environmental, Social and Governance (ESG) metrics, governments, central banks and leading corporations cooperated to increasingly curtail investments in the fossil fuels sector without making it an explicit policy that would require legislation.

The administrations climate change imperatives added energy cost push to the excessive money supplys demand pull. As the master resource, fossil fuels count for over 80% of global energy use and their costs feed into the final costs of transport, fertilizer (and hence food), heating and cooling, and every other good and service produced in the economy. Until renewable energy is ready for prime time (excluding nuclear and hydroelectricity, it accounts for only 7% of the worlds energy use), green inflation is here to stay.

In June last year, US inflation had hit a 40-year high. President Bidens advisors blamed inflation on Covid, broken supply-chains, the Russian invasion of Ukraine, and corporate greed. Its no surprise that printing money like a drunken sailor or driving energy prices higher with anti-fossil fuel regulations dont rate a mention in White House communications.

Testing Lenins Thesis

If the deterioration of government finances has been gradual since President Nixons presidency (when the federal debt to GDP ratio was around 35%), it has become suddenly exponential. US national debt recently topped $31 trillion for the first time in U.S. history, just eight months after it crossed $30 trillion. After peaking at 134 percent of GDP in the second quarter of 2020 amid the Covid lockdown-induced recession, US federal debt was at 120 percent of GDP in the fourth quarter last year. This debt milestone was set amidst historically high inflation, rising interest rates and growing economic uncertainty.

It is, as they say, not too late. If the US government pulls back from excessive budget deficits, stops pursuing extravagantly expensive climate policies that dont add to productive capacity, eases the regulatory chokehold on fossil fuels projects and brings down energy prices, economic growth can be restored and inflation tempered.

Will the loss of confidence in the US dollar be gradual then followed by a sudden loss in the full faith and credit of the Federal Reserve in US debt markets? Lets hope that Lenins thesis will not be seriously tested by the continued tendency of Western liberal democracies towards debt-financed government spending together with higher energy prices driven by their green agendas.

I have worked in the oil and gas sector as an economist in both private industry and in think tanks, in Asia, the Middle East and the US over the past 25 years. I focus on global energy developments from the perspective of Asian countries that remain large markets for oil, gas and coal. I have written extensively on the areas of economic development, environment and energy economics. My publications include Singapore in a Post-Kyoto World: Energy, Environment and the Economy published by the Institute of Southeast Asian Studies (2015). I won the 1984 Robert S. McNamara Research Fellow award of the World Bank and received my Ph.D. in Economics in 1992.

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ISA in Action || Socialist Alternative Canada Conference ISA – International Socialist

Posted: at 11:41 pm

Clarity and purpose in a world of turmoil

Socialist Alternative Canada (SA) recently held its 4th National Conference, which was a resounding success. Members from across the country attended as well as international visitors from four other sections of International Socialist Alternative (ISA): Qubec, the United States, Mexico, and China/Hong Kong/Taiwan.

While the conference was taking place, the Vancouver police were clearing the encampments of the unhoused along East Hastings metres away from luxury restaurants, the poorest of the poor were deprived of what little they still had; a new oil pipeline funded by the Canadian state was being built in the suburbs; Indigenous communities were denied sovereignty of their land; and the planet had reached the highest concentration of atmospheric carbon dioxide since the evolution of our species. Due to government policies, Canada was the highest cumulative, per capita, contributor to the destruction of planetary habitats, which drives the extinction of millions of species and threatens humanitys future. Peoples mental health in many countries was getting worse.

In the midst of the multiple nightmares of contemporary capitalism, the conference felt like an island of sanity and reason. In a calm, precise analysis of the present situation, based on first-hand experiences of working people worldwide, and the commitment to meaningful, bold interventions in their daily struggles, SA Canada and ISA provide a counterpoint to the madness of capitalist-optimism on the one hand, and resignation of doomerism on the other. The example of older, more experienced comrades showed us that age is no barrier to humbleness, enthusiasm, and generosity of spirit. The youngest comrades, inspired with the depth of their wisdom, showed maturity beyond their years. Unsurprisingly, multiple comrades have noted the mental health benefits of the struggle to overcome capitalism.

The first day of the conference was dedicated to a review of global trends and developments, introduced by Tom Crean on behalf of ISAs International Executive. Multiple comrades from Canada and abroad contributed to the discussion.

The present era is defined by a conflict between the US and Chinese imperialist blocks. The conflict has been deepening with trade wars, an accelerating arms race and the brutal war in Ukraine that is part of this conflict. The capitalists worldwide are in conflict over markets, resources and political influence.

State spending and interventions in the economy and spending are seen as increasingly necessary to support economic growth. Due to the weakness of the working classs leadership, these interventions are on behalf of private capital.

The political legitimacy of the ruling classes the trust in political institutions is deeply undermined by soaring inequality and declining public services. The world is more unstable than it has been for decades. The economy and workers living standards are ravaged by inflation and threatened by a looming recession.

Working-class people should take a strong stance of anti-imperialism and international solidarity.

On the second day, we discussed developments in Canada and building Socialist Alternative with insights from across the country. Visiting comrades drew parallels with struggles in other countries.

In the inter-imperialist conflict, Canada has further abandoned any pretense of an independent policy vis-a-vis China and has closely aligned itself with US imperialism.

The cost-of-living crisis is getting worse as inflation and the response of the Bank of Canada push up the cost of food, rent and mortgages. Despite the recent increase in jobs, a recession remains likely as high interest rates hit spending, construction and other sectors of the economy. In spite of years of low taxes on corporations, they have not invested in production or raising productivity, preferring to speculate on various asset bubbles. The claims of neoliberalism have been shown to be a lie.

Workers wages are not keeping up with inflation, so workers have to fight to defend their living standards. Some strikes in the private sector have won significant wage increases. Strikes in the public sector, especially in Ontario, have forced the government to retreat from their attacks on union rights but did not win a cost-of-living adjustment. The failure of union leaders to organize effective struggles is feeding a shift in the consciousness of rank-and-file workers. In ballots to ratify agreements, large minorities voted to reject the inadequate deals.

Canadas health care system, once a source of pride, is in deep crisis after decades of neoliberal cuts, and some provinces, such as Alberta and Ontario, are privatizing parts of the health care sector. The possible future of privatized health care, if not defeated, is clear in the abject failure of health care in the US. A care crisis is looming, with thousands of vacant positions and lack of workers to fill them. Emergency services have been stretched beyond the breaking point in some areas.

All Canadian provinces face similar issues including unaffordable housing, the cost-of-living crisis, and food insecurity. To protect womens rights, we need to fight for housing, the rights of essential workers and against systemic violence. Although the federal government has promised $10/day child care, there is a large shortage of places and it is in crisis because of low pay and lack of workers.

The Canadian government makes nice noises about the environment but plans to increase the production of fossil fuels and provides billions in subsidies including building a very expensive pipeline to the Pacific Ocean. The hypocrisy on climate is only exceeded by the hypocrisy on Indigenous rights.

The Canadian capitalist state is based on colonialism. Indigenous resistance to the states attempts to weaken and destroy them and their cultures has never ceased. Importantly, there has never been more support from non-Indigenous peoples. However, Canadian capitalism, and its political parties, is based on the theft of land, turning common stewardship into private exploitation. They will never permit Indigenous land rights as doing so would destroy their entire economic system. Socialist Alternative seeks to bring together the common struggles of Indigenous people and the broader working class, while fully recognizing the particular struggles of Indigenous people. SA is not the savior of Indigenous peoples, but Marxism can help build broader solidarity.

Rural Canada feels alienated and ignored, suffering from a lack of internet and public services. The economic basis of rural Canada is entirely resource extraction and farming. Once the resources are extracted, big business moves on, abandoning the people and communities, only leaving behind poisoned land and water. People in rural communities are ill equipped to deal with the impacts of climate change. Many rural homes are empty, yet many rural people are homeless.

While homelessness is impacting an increasing number of people, the entire Canadian working class is experiencing political homelessness. The NDP has moved steadily to the centre, as demonstrated by the NDP-Liberal coalition, with the NDP increasingly looking like the tail of the Liberal dog. Any reforms that the Liberals will deliver could have been gained without tying the NDP to the Liberals. The Liberals will get the credit for any reforms and the NDP does not put forward a bold alternative to the failed Liberal policies. Rather than campaign, the NDP leadership stifles the partys pro-worker membership, as seen in BC with the blockage of Anjali Appadurais energized campaign for leadership. The lack of a campaigning NDP will open more space for the right populists to make gains.

There is a growing risk that the Conservatives under Poilievre could win the next election. His false rhetoric about supporting workers will get an echo, especially in the absence of an alternative from the NDP.

The widespread sympathy for the convoy at the start of 2022 revealed the deep anger and polarization in Canada that lay beneath the surface of society, as SA Canada had warned. Although many of the convoys organizers were well known far-right individuals, the vast majority of the convoys supporters were not fascist, as the convoy was neither anti-union nor explicitly racist.

The Canadian working class needs a new democratic and campaigning workers party. It will take mass movements and struggles to bring this into being and SA will be part of these struggles.

The building report showed many steps forward. Three years ago, the majority of SA Canada members were in Metro Vancouver. Now, SA has grown by 60 percent, with new members in Toronto and southern Ontario, across all three prairie provinces and on Vancouver Island.

A theme of this conference was internationalism. Marxists are internationalist in outlook and in action. At the last conference, SA agreed to help defeat the right-wing recall against Kshama Sawant in Seattle and SA Canada played its full part in winning a huge victory. SA Canada has stepped up internationally, raising money for comrades in countries under attack, and attending international events in the US, Mexico and Europe. A week before the conference, SA members were in Surrey organizing to ban caste discrimination in BC after a victory in Seattle inspired activists to launch a campaign in Canada. The week after the conference, SA was again working on this issue during Vaisakhi in Vancouver and Surrey.

The last conference agreed to take on SAs first paid full-time worker, and this has given our work a huge boost. We also agreed to increase the frequency of our magazine, from three issues a year to five, which we have done.

Finances are political and the conference demonstrated this. The finance appeal raised $6,823.70, the most ever, with more money to come in. Members agreed to increase their dues by $263 a month. This comes on top of a successful dues drive. Between 2021 and 2022, SAs dues per month increased by over 40 percent and the average dues per member by over 38 percent. After COVID restrictions hit magazine sales, in the last year SA raised a net surplus of nearly $4,000 on sales. By every metric, our website has been more successful.

Growth is both in quantity number of members, amount of dues, etc. but just as important, in quality. The conference showed a real qualitative growth in SAs members in their political clarity and confidence.

Based on the success of the last decade, growing by 400 percent, the conference confidently agreed goals for the next two years and beyond to strengthen revolutionary socialism in Canada. If you want to be part of building a Marxist organization in Canada, get in touch.

On the last day of the conference, the conference unanimously agreed a new Code of Conduct, to create a culture free of harassment and sexual abuse. This may seem obvious, but some left-wing organizations have had cases of sexual abuse that were ignored or brushed under the carpet. The conference also unanimously elected a new National Committee to guide SAs work until the next conference.

The final discussion was on youth and building Socialist Alternative Youth (SAY), with the presentation and discussion dominated by young members. Canadian young people are motivated to struggle against climate change, sexual violence and violence against women, LGBTQ struggles and against racism and colonialism. Young people recognize governments refusal and inability to address these issues.

Probably much to the regret of the right-wing Fraser Institute, young people (18 to 34 years old) are much more positive about socialism than capitalism. A 2023 study found that 46 percent thought socialism was the ideal economic system while only 39 percent thought capitalism was ideal. Thirteen percent of young people think communism is the ideal economic system! SAY is growing and will reach more of the young people looking for an end to the capitalist nightmare.

A socialist analysis helps to prevent burnout and doomerism, fight against anarchist opposition to organizing, and to keep young people from falling into the rabbit hole of right-wing conspiracies. Looking to the future was a fitting end to an enthusiastic conference.

This was my first time attending a SA conference. SA is an extremely diverse group of working-class people. Comrades differ in age, race, sexual and gender identity, as well as experience in organizing and political involvement. When working for a common cause, fighting for our shared struggle, none of these differences present the least bit of an obstacle. Everyone feels welcome. Comrades work as equals, each contributing what they can cooking together, helping to clean up, and sharing a spare bed or a couch for guests from far away (such as myself). In these moments, it feels as though a glimmer of socialism is already with us.

Throughout the conference I was reminded of a quote from an unexpected source: an introduction to a highly critical biography of Tito, the leader of partisan resistance to the Nazi occupation of Yugoslavia and later the countrys dictator, written by Slavko Goldstein. Goldstein, as a young man, escaped near certain death at the hands of the Nazis to join Titos partisans. Having enumerated all of Titos many flaws and failures, Goldstein ends with the following: Despite everything, I would like to thank Tito for one thing. Not for saving my life, but for giving me an opportunity to fight for it.

The context of the struggle is radically different, but in many ways the structure is the same. Like the partisan resistance to Nazi occupation, SA cannot guarantee victory to the working class. In our struggle, there will be advances and setbacks. However, following the tried and tested method grounded in Marxist analysis, SA can provide working people an opportunity for a meaningful and purposeful struggle. We must give workers and all the people suffering under capitalism the opportunity to fight.

Victory will appear impossible until it is won.

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Could Bath have the country’s longest all-woman ballot paper? – Somerset Live

Posted: at 11:41 pm

Bath could be unique in having the countrys longest all-woman ballot in the upcoming local elections.

All eight candidates standing for election to Bath and North East Somerset Council in the Widcombe and Lyncombe ward are women, which Bath-based elections expert Nigel Marriott said could be a record.

According to gender equality campaigners the Fawcett Society, as of 2019 only 35% of councillors were women. Assuming this is the proportion standing in the local elections, that would mean there is a less than 1 in 4000 chance of an eight-candidate ballot paper being made up solely of women, Mr Marriott calculates.

READ MORE: All the forms of ID you can use to vote in May's local elections

He explained: Its straightforward maths, one third raised to the power of 8 tells you that one in 4,441 eight-candidate lists should be all-female.

There are elections happening for over 8,000 council seats across England on May 4, but the number of candidate lists will be smaller because many of those including Widcombe and Lyncombe will see multiple candidates elected for the same ward. Also, in wards where only one candidate is elected, candidate lists are likely to be shorter.

Mr Marriott said: I think it's a good chance this is a first.

Widcombe and Lyncombe is currently represented by Winston Duguid and Alison Born, but Mr Duguid is retiring from the council at this election.

READ MORE: Go-ahead for 72 homes on edge of village despite fear it will be seen as 'the council estate'

Mr Marriott is mainly an expert on gender and inequality statistics, and has given evidence to Parliamentary select committees on the subject and helped them rewrite their guidelines.

But forecasting elections is his hobby. He said: In the 2019 general election I was the most accurate forecaster of everyone, beating even John Curtices exit poll.

Of course, it should be said I was also one of the most inaccurate in 2017 so you cant always get it right.

In the upcoming local elections, he is predicting that the Liberal Democrats will hold on to Bath and North East Somerset Council.

In North Somerset, he predicts that it will remain under no overall control, but with an increased number of Conservatives elected.

In Bath and North East Somerset, all four political parties represented on the council the Liberal Democrats, Conservatives, Labour and Greens have fielded full slates at this election, meaning that there is a candidate from each party of those parties for every single seat on the council. Many wards also have independent candidates standing.

Consequently, all wards that elect two councillors to the council have at least eight candidates at this election.

Midsomer Norton Redfield has the most people standing, with voters having eleven different people putting themselves forward for their two seats on the council.

The election will take place on May 4. You will now need to bring a photo ID with you when you vote.

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Newsweek: Most of the World wants to move on from Ukraine – Modern Diplomacy

Posted: at 11:41 pm

The bulk of the worlds countries want to move on, even if that means Russia keeping some Ukrainian land in exchange for guns falling silent, Newsweek notes.

Yes, the United States and its G7 allies wrapped up their foreign ministers meeting in Karuizawa, Japan this week on a note of strength and unity. Japanese Foreign Minister Yoshimasa Hayashi, who facilitated the gathering, couldnt help but brag about its success during the closing press conference, stressing that the strength of the solidarity between the G7 foreign ministers is at a level not seen before.

The joint communiqu issued by the group covered many topics of concern, from the Mideast peace process and Taiwan, to climate change and economic security. At the very top of the list was the war in Ukraine, and it was the very first topic the G7 addressed in its communiqu. Strongly condemning Russia, the G7 went on to reconfirm its support for Ukraine for as long as it takes and to providing sustained security, economic, and institutional support to help Ukraine defend itself, secure its free and democratic future

That phrase, for as long as it takes, wasnt accidental or plucked out of thin air. The Biden administration invoked this same expression on countless occasions since the war began nearly 14 months ago, partly to disabuse Russia of the notion that a longer war would serve its interests.

The U.S. is not only looking for a Ukrainian win, but a result that will atrophy Russian military power to the point where other would-be aggressors determine that wars of conquest arent worth pursuing.

Much of the rest of the world doesnt view the war in Ukraine as a high stakes game between good and evil. The U.S. and most of Europe prefer an unambiguous Russian defeat and are doing their best to expedite the heavy, land-based military systems that will make or break Kyivs looming counteroffensive against dug-in Russian positions in the east.

But countries outside the Western orbit are far less interested in Russia walking away from the war in disgrace than they are in stopping the war itself. This isnt a new phenomenon; countries like India, South Africa, and Indonesia expressed their preferences on a negotiated solution very early on. Yet the temptation to cease the fighting is getting stronger.

Brazilian President Luiz Incio Lula da Silva is one of those leaders who has sought to maintain a neutral position on the conflict. He has refused Washington and Kyivs requests to send Ukraine armored vehicles, aircraft, air-defense systems and mortar shells, actions that would upend Brazils traditional foreign policy of staying far away from conflicts in other regions. This is as much a matter of principle for Lula as it is a point of personal pride he wants to be the statesman who can bring Russia and Ukraine to the negotiating table.

Its in some ways similar to a diplomatic proposal unveiled by Mexico during last years U.N. General Assembly, in which a multi-country High-Level Caucus for Dialogue and Peace in Ukraine would support the U.N. Secretary Generals mediation efforts. The Ukrainian government vocally condemned Mexicos idea.

Iraq, too, offered its diplomatic assistance. During Ukrainian Foreign Minister Dmytro Kulebas trip to Baghdad, his Iraqi counterpart, Fuad Hussein, said his country is ready to be in service of peace.

Indian Prime Minister Narendra Modi has made similar comments in the past, and African heads of state ritualistically cite the urgency of negotiations to anyone who will listen.

China also publicized its own list of peace principles in February, centering on a ceasefire in service of a diplomatic agreement to end the war.

Ukraine and its partners in the West have largely dismissed these offers as unnecessary and even counterproductive. The reaction was especially stern in the case of Chinas initiative, which to be fair wasnt a serious peace plan. But if Ukraines counteroffensive stalls or turns out to be less than meets the eye (as U.S. intelligence leaks speculate), the U.S. wont be able to reject diplomatic entreaties as quickly and casually as it is today.

Impatience with the war in the non-Western world is already high, and there is no doubt constituencies within the U.N. would like to focus on other pressing humanitarian problems that have been sidelined as a result of the Ukraine conflict.

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Energy regulator stops short of addressing communications … – Windspeaker.com

Posted: at 11:40 pm

The Alberta Energy Regulator (AER) was before the House of Commons all-party Standing Committee on Environment and Sustainable Development April 24 to discuss Kearl oilsands mine tailing ponds seepages.

When pushed to explain why downstream communities were not notified of the leaks for almost a year, the regulator said investigations prevented them from providing details.

Not withstanding what the rules are, what the procedures are, it is clear we did not meet communication expectations in this case, Laurie Pushor did offer, however. He has been head of the AER for the past three years. The AER is a quasi-judicial body and the single regulator of energy development in Alberta.

Imperial Oil, which operates Kearl mine, said it did notify the AER in May 2022 that there were wastewater containment issues at the site. Discoloured surface water was found to the north and northeast outside of the mine site in four locations.

But the incidents only came to the publics attention after the AER issued an environmental protection order on Feb. 6 when 5.3 million litres of industrial wastewater had overflowed from a tailings pond.

It wasnt until that order was issued that communities downstream of the site were notified of the seepages. The Alberta, Northwest Territories and federal governments did not become aware of the situation until then either.

An Imperial Oil rep told the standing committee April 20 the company had reported the seeps to Albertas Environmental and Dangerous Goods Emergencies (EDGE) hotline, with the expectationthat when we call to EDGE the fan-out process starts at that point.

EDGE is meant to communicates openly with other regulatory agencies, such as the Alberta Energy Regulator (AER), in the event of an emergency or safety-related incident, reads the EDGE website.

As to why the provincial government wasnt informed at that time, the Imperial rep said she couldnt speak for how EDGE is run.

Also on April 20, Imperial CEO Brad Corson told the standing committee, the company followed the communications protocol established in confidential individual impact benefit agreements with Indigenous communities.

He said Imperial informed the environmental committees of those Indigenous communities about the May 2022 concerns, but Corson said Imperial should have followed up with information and kept the communities informed as testing of the seepages went along.

Corson also stressed that Imperials testing showed no drinking water had been contaminated.

When asked to confirm the companys assertions, Pushor said, Its all subject to the investigation and it would definitely be inappropriate for me to speculate on any potential wrongdoing or inappropriate behaviour on Imperials behalf. Thats a fundamental part of our investigation.

Pushor said the report would be made public when completed and/or the prosecutions office has completed any work they may undertake in relation to potential prosecution.

As for AERs responsibility in the communication vacuum, Pushor drew attention to the decision by the AERs board of directors to hire a third party to investigate aspects of AERs handling of the Kearl incidents.

Albertas information and privacy commissioner Diane McLeod has also launched an investigation into AERs communication around the seepages. Specifically, she will examine whether AER had an obligation under Section 32 of the Freedom of Information and Protection of Privacy Act (FOIP) to disclose information to the public or others about the leak.

Asked what he would do differently upon reflection, Pushor said as there is significant public interest in tailing ponds it would be worth revisiting the communications strategy to see about changes as to when, how broadly and how detailed information would be offered.

Pushor also noted that once we understood what was happening with the Kearl project, we asked all mines to do an assessment of their facilities and determine whether there was any indication anything like this might be happening elsewhere.

He said that information had been received and experts were now evaluating it.

Gerald Antoine, Dene national chief, and Shane Thompson, minister of environment and climate change for the Northwest Territories, also spoke April 24. Both took issue that their territories werent informed of the tailings ponds seepages.

We are very concerned that the Dene were not informed about this disastrous incident and the obvious health and environmental risk associated with the leaks and also the spills, said Antoine.

He said Alberta and the federal government, as well as the AER and Imperial, were at fault for not informing the Dene.

The environmental disasters such as this are an immediate and present reminder that we must constantly be vigilant in protecting Mother Earth, as this is our home. All levels of administrative government need to take immediate and urgent action to protect people and the environment, said Antoine.

Thompson drew attention to the comprehensive Transboundary Water Agreement signed between Alberta and the N.W.T. in 2015. The agreement, in part, facilitates improved monitoring and reporting of upstream affects from development.

Carmen Wells, director of lands and regulatory management for the Fort Chipewyan Mtis Nation Association, said that issues with AER, which she called a poor regulatory system, went beyond lack of communication.

These decades of poor regulation require change and an overhaulwhere (Fort Chipewyan Mtis) are not at the mercy of the decisions of Albertas policy makers who are willing to sacrifice northeastern Alberta, she said.

Canada needs to be involved, she said, in perhaps a co-management approach with Alberta.

Therell need to be some very big changes within the regulatory system, said Wells, saying it needs to be more collaborative with the communities.

It is the communities land and its the communities land that theyre going to end up with after everyone has left, she said.

Wells comments about changes needed to the AER were also voiced April 17 when representatives from the First Nations of Fort McKay, Fort McMurray, Athabasca Chipewyan and Mikisew Cree, as well as the Mtis Nations of Fort McMurray, Fort McKay and Willow Lake, addressed the standing committee.

Before Pushor began speaking, he was asked by NDP Edmonton Strathcona MP Heather McPherson to swear an oath that he would tell the truth. While he agreed to do as was requested, it wasnt without the Conservative MPs on the standing committee taking exception to Pushor being the only witness in three days of testimony having to take that action.

Also raising the ire of Conservative MPs was the introduction of a motion by Liberal N.W.T. MP Michael McLeod, who called the testimony by Imperial Oil and AER insufficient and requested them to return to the committee in October with documents supporting actions both Imperial and AER had taken between now and then.

Edmonton-Westaskiwin Conservative MP Mike Lake said the motion was in bad faith as it had been drafted prior to Pushors testimony.

Battle River-Crowfoot Conservative MP Damien Kurek said that while Conservatives were making a pretty solid effort to understand what had happened, everybody else was playing politics.

Chair Francis Scarpaleggia, a Liberal MP from Lac-Saint-Louis, Que., moved further discussion on the McLeods motion to Thursday because of time restrictions.

Yesterday marked the final scheduled day of testimony on seepages from the Kearls oilsands mine tailings ponds.

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Judge in archdiocese bankruptcy case recuses himself over donations scandal – The Guardian US

Posted: at 11:39 pm

New Orleans

Greg Guidry gave thousands to archdiocese before ruling in favor of New Orleans church in case involving nearly 500 clergy sexual abuse victims

Sat 29 Apr 2023 09.09 EDT

A federal judge overseeing a bankruptcy filing from the USs second-oldest Roman Catholic archdiocese has recused himself from the case amid scrutiny of his donations to the church as well as his close professional relationship with an attorney representing archdiocesan affiliates in insurance disputes.

Greg Guidry, who was appointed to the judicial bench at New Orleanss federal courthouse by the Donald Trump White House in 2019, issued an order after 8pm on Friday recusing himself from a role handling appeals in a contentious bankruptcy involving nearly 500 clergy sexual abuse victims.

It came a week after the Associated Press reported that he had donated tens of thousands of dollars to the archdiocese before consistently ruling in favor of New Orleanss Catholic church during its Chapter 11 bankruptcy filing. And Guidrys ruling came hours after the Guardian had joined the AP in asking questions about a lawyer who was involved in making those donations while his firm defended archdiocesan-related ministries such as assisted living homes and the church itself as an employer in medical malpractice lawsuits.

I do not believe [recusal] is mandated, and no party has filed a motion to [recuse] me, Guidrys order read. However, balancing my duty to decide the case with my duty to consider self-recusal if appropriate, I have decided to recuse myself from this matter in order to avoid any possible appearance of personal bias or prejudice.

Guidrys order on Friday marked a stark reversal of course from just a week earlier, when he told attorneys involved in the bankruptcy case that a federal judiciary committee on codes of conduct had approved his continuing to handle appeals related to the case despite his giving nearly $50,000 to New Orleans-area Catholic charities from leftover contributions he received after serving 10 years in the elected position of Louisiana state supreme court justice.

It also seems likely to throw a bankruptcy case which has been ongoing since 1 May 2020 into disarray because of a federal legal precedent subjecting every ruling in a matter by a recused judge to be potentially reviewed and nullified.

Bankruptcy court records show that the campaign finance committee chairperson who greenlighted Guidrys donations to the New Orleans archdiocese which serves a half-million Catholics a prominent local attorney named John Litchfield had been paid at least $80,000 directly from the local church. Litchfield told the Guardian late Friday morning that an associate at his firm had landed his office work defending some archdiocesan affiliates mainly nursing homes or other senior living centers from medical malpractice claims.

But Litchfield insisted his firm had steered well clear of the most contentious claims at the center of the bankruptcy: those of many people who claimed to have been molested as children by Catholic priests and deacons. And he argued that Guidry could retain the impartiality required of federal judges despite his support of the archdiocese and Litchfields business with the church.

If Greg didnt think hed be fair, hed recuse himself, said Litchfield, who acknowledged on Friday in his interview with the Guardian that the AP had also just contacted him about his relationship with Guidry. I know Greg Guidry. I know him well. And hes as straight as they come.

Late Friday morning, University of Richmond law professor Carl Tobias said he believed Guidry should recuse himself when Litchfields relationship to Guidry was described to him, citing a law requiring federal judges to avoid even the appearance of a conflict of interest.

It does sound to me like there are enough connections between the judge and the church and the counsel to at least ask that question about whether Guidry should recuse himself, Tobias said. Thats a legitimate question to ask.

Meanwhile, legal ethics professor Kathleen Clark told the AP: The public shouldnt have to rely on a judges personal certainty about his own rectitude. She added that Guidrys initial resistance to recusal was misguided and ethically blind.

Most of the gifts to the church by Guidry which the AP first reported last week $36,000 came in the months after the archdiocese asked New Orleanss federal bankruptcy court for protection from creditors while it reorganized its financial books as it was faced with a wave of sexual abuse lawsuits as well as activity restrictions associated with the Covid-19 pandemic.

Newsletters issued by the archdioceses charitable arm even recognized Guidry and his wife among its donors for separate, private and unspecified contributions in 2017.

Once assigned to handle appeals in the bankruptcy case, Guidry denied a request to unseal some secret church documents outlining how archdiocesan officials handled clerics suspected of sexually abusing children, including more than 80 priests and deacons who the local church itself acknowledges are strongly suspected of preying on minors.

Guidry recently upheld a financially ruinous $400,000 fine against local lawyer Richard Trahant, who represents clergy abuse victims and was accused of violating a confidentiality order when he warned a local principal that his school was employing a priest who admitted to previously sexually molesting a teenage girl. He also upheld the expulsions of four of Trahants clients from a committee of clerical sexual abuse survivors who are involved in the bankruptcy after word of his warning to the local school principal who, coincidentally, is Trahants cousin made the news.

Furthermore, in addition to the opinion from the judiciary committee which Guidry cited when he initially indicated he would not recuse himself, the judge said in writing that he would stay on the case after seeking informal advice from federal appellate court judge Jennifer Walker Elrod about what to do. Elrod, meanwhile, is scheduled next week to hear an appeal from one of the expelled committee members who was represented by Trahant.

Guidry at one point provided pro bono services and served as a board member for the New Orleans archdioceses charitable arm, which was involved in at least one multimillion-dollar settlement to victims beaten and sexually abused at two local Catholic orphanages. Two of Trahants clients who were ousted from the committee at the center of the appeal which Elrod is scheduled to hear were abused at one of those archdiocesan orphanages in Marrero, a suburban area of New Orleans.

Guidry joins several of his colleagues in New Orleanss federal judiciary who have recused themselves from the bankruptcy or related litigation, illustrating the multitude of links shared by the regions legal establishment and the local archdiocese.

One of those judges previously worked as the archdioceses general counsel and is married to a former US senator, David Vitter. A second has served on a nonprofit which supports numerous archdiocesan ministries, and another has acknowledged a role in behind-the-scenes media relations campaigns that executives of the National Football Leagues New Orleans Saints team helped the archdiocese mount after prominent media reporting on church sexual abuse cases in 2018 and 2019.

The Guardian asked Guidry, through a US federal courts spokesperson, whether he had told the judiciary committee about either his role with the orphanages or his relationship with Litchfield. The spokesperson replied with Guidrys motion to recuse himself.

Guidrys recusal comes as federal judges relationships with parties who have business before their courts are being examined even at the highest levels.

ProPublica recently reported the close friendship between Clarence Thomas, the senior conservative on the US supreme court, and the Republican megadonor Harlan Crow.

Without declaring them, Thomas received from Crow extensive gifts including luxury travel and resort stays. Crow also bought a home in which Thomass mother lives and donated money to groups connected to Ginni Thomas, the justices far-right activist wife.

Thomas and Crow have denied wrongdoing.

On Tuesday, Politico reported that another conservative supreme court justice, Neil Gorsuch, pocketed up to $500,000 from a property sale shortly after joining the court but did not disclose that the buyer was the chief executive of a law firm with business before the court.

Gorsuch has not commented while the executive at the law firm has denied wrongdoing.

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Judge in archdiocese bankruptcy case recuses himself over donations scandal - The Guardian US

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Revlon Taps New Directors as Lenders Take Control in Bankruptcy – The Wall Street Journal

Posted: at 11:39 pm

Revlon Inc. will emerge from bankruptcy under new ownership and a new board of directors that includes former executives from Bloomin Brands Inc., Sephora and Walgreens Boots Alliance Inc.

The reorganized beauty products companysnew board was selected byGlendon Capital Management LP, King Street Capital Management LP, Angelo Gordon & Co. and Nut Tree Capital Management LP, lenders to the businessthat are taking control in chapter 11.

Revlons bankruptcy ended nearly four decades of ownership bybillionaire financier Ronald Perelman, who bought the company in 1985. It sought protection from creditors last year as it faced a heavy debt load, inflation and supply-chain pressures.

Debra Perelman, his daughter, has been Revlons chief executive officer. She will remain CEO as well as a board memberas itpasses to new owners.

Leading the new board as executive chair will be Elizabeth Smith, former CEO of restaurant chain operator Bloomin Brands, owner of dining concepts that include Outback Steakhouse. Ms. Smith is also former chair of the Federal Reserve Bank of Atlanta, and former president of Avon Products Inc. She also worked for 14 years at Kraft Foods Inc., ultimately serving as president of its U.S. beverages and grocery sector.

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Ms. Smith currently serves on the boards of Hilton Worldwide Holdings Inc. and Authentic Brands Group LLC, and left the Bloomin board earlier this year.

Its no secret that the company has been under-resourced and burdened with a balance sheet with too much debt, Ms. Smith told WSJ Pro Bankruptcy. For the first time in years, Revlon will have the resources to reclaim its full potential.

Revlon survived the worst of the Covid-19 pandemic, only to be driven to bankruptcy by supply-chain disruptions and inflationary pressures. Itis expected to emerge from bankruptcy with $2.7 billion less debt, leaving roughly $1.5 billion of debt outstanding.

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The New York-based company will no longer trade publicly. The equity interests of Mr. Perelman and otherminority shareholders were wiped out in the chapter 11 case.

Other members of the new Revlon board will include: Martin Brok, former CEO of Sephora and a former regional president for Starbucks Corp. ; Timothy McLevish, former chief financial officer at Walgreens; Hans Melotte, a former executive at Johnson & Johnson and at Starbucks, where his jobs included chief supply chain officer; and Paul Pressler, chairman of eBay Inc. and former CEO of Gap Inc. Mr. Pressler previously served on the boards of Avon, Davids Bridal Inc. and Gap.

Ms. Smith said the new Revlon directors are considered independent, unaffiliated with thelendergroup recapitalizing the business.

Holly Kim,

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Write to Becky Yerak at becky.yerak@wsj.com

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Opinion: Highland Park shouldn’t declare bankruptcy over water debt – Detroit Free Press

Posted: at 11:39 pm

Eric W. Lupher| Detroit Free Press

Once again, the City of Highland Park is having financial troubles. This time, a long-running lawsuit with the Great Lakes Water Authority (GLWA) has run its course, and the court has ruled that the city owes the water authority an estimated $24 million for unpaid services.

Conflicts between the Highland Park and the water authority, including its predecessor the Detroit Water and Sewerage Department (DWSD), have gone on for decades, because Highland Park chronically underpaid for sewage treatment services. Those problems continued after GLWA was created, and it became more apparent that the other communities were bearing the cost of Highland Parks actions.

The Michigan Court of Appeals ruled that Highland Park had to pay these charges, amounting to more than twice what the city collects annually in property and income tax revenues and more than four times the citys annual water and sewer fund revenues.

Highland Park's combined general fund and enterprise budget is roughly $20 million. It finished the 2021-22 fiscal year with $4 million in cash reserves. It does not have the cash on hand to pay back this debt. Repurposing existing revenues for this purpose would draw from general government, public safety, public works and other services that arguably already are underresourced.

Facing this large debt, Highland Park asked the state to initiate a review of the citys finances pursuant to the states emergency manager law. A week later, the city sought to skip the legal process and jump straight to filing for municipal bankruptcy.

Perhaps Highland Park leaders think their problems are like what Detroit was facing a decade ago. But there are significant differences. Detroits fiscal decay and years of poor policy choices led to unbalanced budgets, impeded its cash flow, caused it to run up years of operating deficits and created long-term debts the city was unable to manage.

Highland Parks financial condition is much better. The city has maintained balanced budgets, stashed more than a third of its operating expenditures in cash reserves, and worked to pay down its long-term debt.

Instead of looking at Detroits 2013 bankruptcy as a way forward, Highland Park officials might consider the state actions in 2016 that addressed the long-standing financial problems that faced Detroit Public Schools (DPS). It owed over $1.7 billion in notes and loans that were backed by the state and other school districts.

When governments borrow from private entities, it comes with the governments promise to repay the borrowed amounts with interest. The financial history and credit worthiness of the government dictates the interest rates charged for borrowing.

When local governments borrow from the state or regional governments, it is the other governments, and ultimately state taxpayers, who bear the risk and absorb the cost if payments are not made.

Detroit filed for bankruptcy with most of its debt owed to investors and pensioners. Much of its debt relief came from shorting investors who knew that the city had experienced decades of decline and was a financial risk.

DPS experienced the same socio-economic declines and financial struggles and by 2016 was saddled with debt for delinquent payments for pension and retiree health care, the cost of early retirement incentives, and the repayment of cash flow borrowing, among other things. Because Michigan operates the teacher pension system and provided funding for the cash flow borrowing, it was the state, other school districts, and taxpayers on the hook for most of DPS debts.

The different nature of the debt dictated an approach different from Detroits bankruptcy.

The adopted debt relief plan did not absolve DPS of its debt, but crafted a solution in which the district repays the debt, but the state School Aid Fund plays a larger role in funding education while those payments are being made.Highland Parks unpaid sewerage billings are more akin to DPS problems than the City of Detroits. GLWA has floated the money while Highland Park wrangled over its sewerage costs. As a result, GLWA had fewer resources to invest in infrastructure improvements.

If the city doesnt have the money and bankruptcy is not appropriate, what are the alternatives?

The Wayne County Circuit Court could impose a judgment levy. This is a poor option. Highland Park property taxpayers already pay the eighth highest property tax rate in the state. While there is an element of fairness to this option those that incurred the debt must pay for it adding to the already high tax burden could further lessen any incentives to locate in Highland Park.

Issuing a bond to finance the debt would spread the cost over several years, with the effect of shifting the burden from past generations to future generations. Taking on more debt for operating costs would further burden future generations with the high cost of being in Highland Park for services provided in earlier years.

State government could foot the bill. Surplus funding from the previous fiscal year and federal funding is being doled out as the Legislature crafts a budget for the next fiscal year. This has taxpayers throughout the state foot the bill for Highland Parks debt.

The governor has proposed that GLWA repurpose a 2022 $25 million clean water grant from federal funding to make the payment on Highland Parks behalf. Because it is federal funding, all U.S. taxpayers would be absorbing the cost. This option doesnt really make GLWA whole. The dispute would be settled on paper. Highland Park would be free from the debt, but with less to spend on improvements to the regions water and sewerage infrastructure.

There are no good options. Each comes with tradeoffs with respect to who ultimately bears the cost of repaying the debt and the ability to pay.

Whatever solution is adopted, it is unlikely to address the underlying issues. Highland Park is a shrinking city that is bleeding people and tax base. Michigan, and southeast Michigan in particular, is struggling to improve the regions water and sewerage infrastructure. Both need to be addressed.

Eric W. Lupher is president of the nonpartisan research group Citizens Research Council of Michigan. Contact the Free Press opinion page: letters@freepress.com.Become a subscriber at Freep.com.

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Opinion: Highland Park shouldn't declare bankruptcy over water debt - Detroit Free Press

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In Kolkata, India’s new bankruptcy law is put to the test – Financial Times

Posted: at 11:39 pm

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In Kolkata, India's new bankruptcy law is put to the test - Financial Times

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Judge in Catholic bankruptcy recuses over church donations – The Associated Press

Posted: at 11:39 pm

A federal judge overseeing the New Orleans Roman Catholic bankruptcy recused himself in a late-night reversal that came a week after an Associated Press report showed he donated tens of thousands of dollars to the archdiocese and consistently ruled in favor of the church in the case involving nearly 500 clergy sex abuse victims.

U.S. District Judge Greg Guidry initially announced hours after the AP report that he would stay on the case, citing the opinion of fellow federal judges that no reasonable person could question his impartiality. But amid mounting pressure and persistent questions, he changed course late Friday in a terse, one-page filing.

I have decided to recuse myself from this matter in order to avoid any possible appearance of personal bias or prejudice, Guidry wrote.

Read the full AP invesigation:

The 62-year-old jurist has overseen the 3-year-old bankruptcy in an appellate role, and his recusal is likely to throw the case into disarray and trigger new hearings and appeals of every consequential ruling hes made.

But legal experts say it was the only action to take under the circumstances, citing federal law that calls on judges to step aside in any proceeding in which their impartiality might reasonably be questioned.

This was a clear and blatant conflict that existed for some time, said Joel Friedman, a longtime legal analyst in New Orleans who is now a law professor at Arizona State University. It creates the exact problem the rules are designed to avoid, the impression to the public that hes not an impartial decisionmaker.

Guidrys recusal underscores how tightly woven the church is in the citys power structure, a coziness perhaps best exemplified when executives of the NFLs New Orleans Saints secretly advised the archdiocese on public relations messaging at the height of its clergy abuse crisis.

APs review of campaign-finance records showed that Guidry, since being nominated to the federal bench in 2019 by then-President Donald Trump, gave nearly $50,000 to local Catholic charities from leftover political contributions from his decade serving as a Louisiana Supreme Court justice. Most of that giving, $36,000, came in the months after the archdiocese sought Chapter 11 bankruptcy protection in May 2020 amid a crush of sexual abuse lawsuits.

Guidry also served on the board of Catholic Charities, the archdioceses charitable arm, between 2000 and 2008, as the archdiocese was navigating an earlier wave of sex abuse lawsuits.

In the bankruptcy, Guidry frequently issued key rulings that altered the momentum of the bankruptcy and benefited the archdiocese.

Just last month, he upheld a $400,000 sanction against Richard Trahant, a veteran attorney for clergy abuse victims who was accused of violating a sweeping confidentiality order when he warned a local principal that his school had hired a priest who admitted to sex abuse. He also rebuffed at least one request to unseal secret church documents, part of a trove of records detailing clergy abuse in New Orleans going back decades.

Guidry referred the potential conflict to the Washington-based Committee on Codes of Conduct, which noted that none of the charities he donated to has been or is an actual party in the bankruptcy.

It also noted that Guidrys eight years on the board of Catholic Charities ended more than a decade before the bankruptcy and that his church contributions amounted to less than 25% of the campaign funds he had available to donate.

Based upon that advice and based upon my certainty that I can be fair and impartial, I have decided not to recuse myself, Guidry told attorneys in the case on April 21.

But it was not clear what details Guidry shared with the committee, and he refused to release its advisory opinion. The opinion also raised eyebrows because one of the judges Guidry consulted on the potential conflict, Jennifer Walker Elrod, is scheduled to hear an appeal from the bankruptcy next week for the 5th U.S. Circuit Court of Appeals.

We have no reason to rely on this secret opinion because we have no idea what the analysis is, said Kathleen Clark, a legal ethics professor at Washington University in St. Louis, adding it was utterly reasonable to question Guidrys ability to be impartial under these circumstances.

The public shouldnt have to rely on a judges personal certainty about his own rectitude, Clark added. The fact that he would even make this assertion shows how misguided and ethically blind this judge is.

Charles Hall, a spokesman for the Administrative Office of the U.S. Courts, said Guidry had no comment beyond the recusal order.

James Adams, a creditor in the bankruptcy who alleges he was abused by a priest as a fifth grader in 1980, says the judges recusal was long overdue.

Like the church, some federal judges will often do the right thing only after the press begins to investigate and question them, he said. Inflated ego and arrogance can be a dangerous side effect of putting on a black robe.

___

Mustian reported from New York. Contact APs global investigative team at Investigative@ap.org.

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