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Thursday, September 15, 2005

Follow the Money for the Real Story

By Molly Ivins
The Chicago Tribune

Thursday 15 September 2005

Austin, Texas - Here's a good idea: Consumer groups and progressive congress-folks have joined in an effort to stop hundreds of thousands of victims of Hurricane Katrina from being further harmed by the new bankruptcy law, scheduled to take effect Oct. 17. This law was written of, by and for the consumer credit industry and is particularly onerous for the poor.

The bill was passed with massive support from the Republican leadership in Congress and from a disgusting number of sellout Democrats. While it was being considered in committee earlier this year, Rep. Sheila Jackson Lee (D-Texas) offered an amendment to protect victims of natural disasters. It was defeated, without debate, on a party-line vote.

Now, Congress has a chance to rethink some of the most punitive parts of the bill. Katrina victims who were planning to file before the new law goes into effect are out of luck - where are they gonna find a lawyer, let alone an open courthouse?

Under the new law, anyone whose income is above the state median must file under Chapter 13, a more restrictive category that requires some repayment of debt. The new law grants no exemption for natural disaster, even though it's going to be a little tough for some citizen sitting in the Houston Astrodome who no longer has a home to come up with tax statements, pay stubs and six months of income and expense data.

Meanwhile, it's an ill wind that blows no one good, so we should not be surprised to learn the first winner out of the gate on Katrina is Halliburton Co., whose deserving subsidiary Kellogg, Brown and Root already has been granted a $29.8 million contract for cleanup work in the wake of Katrina.

Of course, no one would suggest Halliburton and its subsidiaries get government contracts (it already has billions of dollars of Iraq rehab work) just because Vice President Dick Cheney is still on the payroll. Heavens no. The veep continues to get deferred pay from the company he once headed - $194,852 last year.

But Cheney has nothing to do with the Halliburton contracts - that, friends, goes through none other than the noted lobbyist and former head of - of all things - the Federal Emergency Management Agency. Since Joe Allbaugh, who was Bush's campaign manager in 2000, announced that he was leaving FEMA in December 2002, it appears he has been busy making sure reconstruction contracts in Iraq go to companies that give generously to the Republican Party.

Now, aren't you ashamed of yourself for thinking there's something wrong with that? Besides, Allbaugh is now with a big-time Washington lobbying firm, where he also represents Shaw Group Inc., and - voila - Shaw Group, too, already has a $100 million emergency contract from FEMA for housing management and construction and a $100 million order from the US Army Corps of Engineers for Katrina repair. >>>continued


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