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Senate Proceeding on Jul 24th, 2008 :: 7:31:16 to 7:49:35
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Maria Cantwell

7:04:37 to 7:31:16( Edit History Discussion )
Speech By: Maria Cantwell

Maria Cantwell

7:31:03 to 7:31:16( Edit History Discussion )

Maria Cantwell: the other chart up here first? let me just quote one of many things that i could refer to from his website. i have a great deal of information in which he makes it very clear that he is for more offshore production.

Chuck Grassley

7:31:16 to 7:31:26( Edit History Discussion )

Chuck Grassley: among other things in june of this year he said, for example, "opponents of domestic production chinning to their position even as the price of foreign oil has doubled and doubled again. every year we are

Chuck Grassley

7:31:16 to 7:49:35( Edit History Discussion )
Speech By: Chuck Grassley

Chuck Grassley

7:31:26 to 7:31:37( Edit History Discussion )

Chuck Grassley: ending hundreds of billions of dollars out of the country for oil imports, much of it from opec, while trillions of dollars worth of oil in reserves in america goes unused." he said that the federal

Chuck Grassley

7:31:37 to 7:31:49( Edit History Discussion )

Chuck Grassley: moratorium on the drilling of the outer continental shelf stands in the way of exploration and production. john mccain feels it is time to lift the restrictions to put our own reserves to use. and

Chuck Grassley

7:31:49 to 7:32:09( Edit History Discussion )

Chuck Grassley: on and on. he supports offshore production. so why did some of my colleagues take a quotation of his, leave part of it out, and try to create the impression that he didn't support it and this he didn't

Chuck Grassley

7:32:09 to 7:32:29( Edit History Discussion )

Chuck Grassley: think it would do any good? he was responding to a question earlier about whether more of this offshore production would produce immediate results. and all he did was to tell the truth. here's what he said.

Chuck Grassley

7:32:29 to 7:32:45( Edit History Discussion )

Chuck Grassley: i don't see an immediate relief, but i do see that exploitation of existing reserves that may exist and that in view of many experts that do exist off our coast sincere also a way -- coasts is also

Chuck Grassley

7:32:45 to 7:33:02( Edit History Discussion )

Chuck Grassley: a way that we need to provide some relief even though it may take some years. it would have a psychological impact that i think is beneficial. i. totally agree withee it. my colleagues read this

Chuck Grassley

7:33:02 to 7:33:15( Edit History Discussion )

Chuck Grassley: to suggest that he believes that offshore production would only -- would have no benefit except a psychological ben fivment as you can see -- benefit. as you can see, that's not what he said. but

Chuck Grassley

7:33:15 to 7:33:32( Edit History Discussion )

Chuck Grassley: his point is also valid. in addition to is a way that we need to provide more relief, it will actually provide a psychological boost to the markets, just as president bush's lifting of the moratorium

Chuck Grassley

7:33:32 to 7:33:50( Edit History Discussion )

Chuck Grassley: a week or so ago on offshore drilling caused prices to drop. and many analysts believe that the drop of about $20 per barrel was much because of the president's announcement and the fact that congress

Chuck Grassley

7:33:50 to 7:34:03( Edit History Discussion )

Chuck Grassley: was taking up this subject with the idea that perhaps we would actually get something done. what the t speculators are doing is simply placing a bet into future that there is either going to be enough oil to

Chuck Grassley

7:34:03 to 7:34:17( Edit History Discussion )

Chuck Grassley: meet demand or there isn't. and if there isn't, then they're betting that the price will go up. what senator mccain is saying, the mere fact that we pass legislation saying that we are going to produoce

Chuck Grassley

7:34:17 to 7:34:26( Edit History Discussion )

Chuck Grassley: more oil offshore would immediately have the impact on the markets to bring the prices down because they would know that in the future we would have enough supply to meet our demand. john mccain was

Chuck Grassley

7:34:26 to 7:34:39( Edit History Discussion )

Chuck Grassley: exactly correct on this and it think it serves no purposeo to misquote him and suggest otherwise.~ i would also note that in the house of representatives, just today legislation was defeated as it was

Chuck Grassley

7:34:39 to 7:35:19( Edit History Discussion )

Chuck Grassley: last week by the democratic majority there that is very similar to, if not identical to, legislation that was introduced by democrats here in the senate. for example, last week the house of representatives

Chuck Grassley

7:35:19 to 7:35:29( Edit History Discussion )

Chuck Grassley: defeated a provision that says that whereha leases have been let to oil producers, that if they don't drill on those leases after a period of time, then the leases come back to the federal government.

Chuck Grassley

7:35:29 to 7:35:44( Edit History Discussion )

Chuck Grassley: madam president, as you probably know, that's already the law. the bottom line is that you get primarily ten-year leases. some are shorter. you can't obviously immediately go out and drill on every

Chuck Grassley

7:35:44 to 7:35:54( Edit History Discussion )

Chuck Grassley: one of several hundred thousand acres. but what you do is you try to figure out where is it most likely that you're going to get oil. you start drilling there first and you keep going until you have

Chuck Grassley

7:35:54 to 7:36:03( Edit History Discussion )

Chuck Grassley: drilled in all the areas where you think there is potential. it's obviously not going to be on every acre. but whatever you haven't done at't the end of ten years, it goes back to the government.

Chuck Grassley

7:36:03 to 7:36:12( Edit History Discussion )

Chuck Grassley: so, that bill failed because it's already law. then this, tod another bill failed, and that was to drain the strategic petroleum reserve. now this is our national security reserve of oil. in case of a national

Chuck Grassley

7:36:12 to 7:36:24( Edit History Discussion )

Chuck Grassley: emergency, we need for our military primarily to have oil reserves so that the tanks can drive and the planes can fly and the ships can sail. and you don't want to reduce that simply to try to affect

Chuck Grassley

7:36:24 to 7:36:40( Edit History Discussion )

Chuck Grassley: very briefly the price of gas in the country. they would reduce it by 10%. what would that do in terms of the oil supply in the country? well, it would reduce the oil supply by three and a half

Chuck Grassley

7:36:40 to 7:36:57( Edit History Discussion )

Chuck Grassley: days. three and a half days. if it drove the prices down at all, which i doubt would happen, it would be very temporary because everybody would know that it's not a permanent solution. so it's no wonder

Chuck Grassley

7:36:57 to 7:37:17( Edit History Discussion )

Chuck Grassley: that that failed in the house. and, again, to the extent that that is part of the democratic bill, it's obviously not a solution to the problem. i mentioned that i would talk briefly about what senator

Chuck Grassley

7:37:17 to 7:37:28( Edit History Discussion )

Chuck Grassley: sessions was talking about, and that's the unintended consequences of not producing our own energy even though we have it in our country and relying on other countries to do it instead. more than 60%

Chuck Grassley

7:37:28 to 7:37:44( Edit History Discussion )

Chuck Grassley: of every dollarla spent at the pump -- and i filled up my tank last week, and it cost me over $70, and my tank wasn't even empty when i filled it. more than 60 cents out of every dollar that i paid

Chuck Grassley

7:37:44 to 7:38:02( Edit History Discussion )

Chuck Grassley: went to a foreign country. now we can keep that country in the united states if we produced our own energy. madam president, if i could speak for another 20 seconds? i ask unanimous consent. the presiding

Chuck Grassley

7:38:02 to 7:38:21( Edit History Discussion )

Chuck Grassley: officer: without objection, so ordered. mr. kyl: i'll conclude by saying that we could do ourselves a whole lot of good to take advantage of the resources that exist here right here in the united states

Chuck Grassley

7:38:21 to 7:38:35( Edit History Discussion )

Chuck Grassley: of america, reduce the cost of gasoline at the pump and ensure our future energy security. i hope during the next several days we'll have an opportunity to do that as we debate this important legislation.

Chuck Grassley

7:38:35 to 7:38:51( Edit History Discussion )

Chuck Grassley: a senator: madam president? the presiding officer: the in senator from washington is recognized. ms. cantwell: thank you, madam president. i came to the floor yesterday to talk about how we could move forward

Chuck Grassley

7:38:51 to 7:39:05( Edit History Discussion )

Chuck Grassley: on a new energy future and basically how drilling for oil would only give us 1% of what our future energy needs would be and how we instead should be moving towards a renewable energy future and

Chuck Grassley

7:39:05 to 7:39:21( Edit History Discussion )

Chuck Grassley: new energy technology that could actuallyly reduce our dependence on foreign oil by over half if we would just plan in the same time period to move forward on that commitment. in fact, that we had

Chuck Grassley

7:39:21 to 7:39:35( Edit History Discussion )

Chuck Grassley: lost time because of the last eight years not being aggressive enough. but today i come to the floor to talk about the proper policingol of oil markets because we are in a crisis that is literally bankrupting

Chuck Grassley

7:39:35 to 7:39:55( Edit History Discussion )

Chuck Grassley: families and businesses and even threatening entire industries. now, i don't often agree with president george bush, but i have to say in his latest economic analysis, i actually agree with him,

Chuck Grassley

7:39:55 to 7:40:12( Edit History Discussion )

Chuck Grassley: which i think explains part of thehe reason why we are in a crisis. that's right, the president said that wall street got drunk. that's right, the president acknowledged that something was wrong with

Chuck Grassley

7:40:12 to 7:40:25( Edit History Discussion )

Chuck Grassley: wall street and that wall street got drunk. now, i don't know if the president meant to say that. that has now been captured on the internet. i don't know if he plans to keep saying that or all the

Chuck Grassley

7:40:25 to 7:40:46( Edit History Discussion )

Chuck Grassley: intentions he has about what to do about that. but i know that elaborating on thee president's point, white house press secretary dana perino explained that -- quote -- "you know, i actual lip haven't spoken

Chuck Grassley

7:40:46 to 7:40:59( Edit History Discussion )

Chuck Grassley: to him about this, but i imagine what he meant as i have heard him describe it before in both public and private was that wall street let themselves get carried away and that they did not understand

Chuck Grassley

7:40:59 to 7:41:10( Edit History Discussion )

Chuck Grassley: that the newfangled financial instruments would pose to markets. that is that, she said "wall street let themselves get carried away and that they didn't underand that the risks that these newfangled

Chuck Grassley

7:41:10 to 7:41:24( Edit History Discussion )

Chuck Grassley: financial instruments would pose to the markets." so, i don't know why the bush administration and the regulatory team that they oversee wasn't doing something about this. the administration obviouslyat

Chuck Grassley

7:41:24 to 7:41:41( Edit History Discussion )

Chuck Grassley: helped in the deregulation of the financial markets. and, to me, the issue is that while wall street was getting drunk, it's really americans and the american middle class that has the hangover from

Chuck Grassley

7:41:41 to 7:41:54( Edit History Discussion )

Chuck Grassley: this situation. today the federal reserve is i struggling to contain what is almost one of the most severe credit crisis since the great depression, and american families and businesses are paying for

Chuck Grassley

7:41:54 to 7:42:07( Edit History Discussion )

Chuck Grassley: the failed decisions and inactions of this administration. during the past decade, the financial economy has repeated some of the excesses that our country has gone through before. so i wonder when

Chuck Grassley

7:42:07 to 7:42:22( Edit History Discussion )

Chuck Grassley: we are going to learn the lessons of making sure that we do our job and that regulatory agencies do their job. it's really some of the repeating ofat excesses of the 1920's when too much borrowing

Chuck Grassley

7:42:22 to 7:42:34( Edit History Discussion )

Chuck Grassley: to underwrite too many speculative bets on other people's money went too far beyond the reach of regulators settingse up an entire economy for a crash. well, in 1999, congress revealed key parts

Chuck Grassley

7:42:34 to 7:42:46( Edit History Discussion )

Chuck Grassley: of glass-steagall, an act of 1933. it allowed banks to operate any kind of financial businesses they desired. and it set up a situation where they had multiple conflicts of interest. and several kpheufpts

Chuck Grassley

7:42:46 to 7:42:57( Edit History Discussion )

Chuck Grassley: and analysts have cite -- economists and analysts cited that the repeal of this act contributed to the 2007 spaoeupl mortgage crisis and a cofounder and coeditor of "the american perspective" magazine

Chuck Grassley

7:42:57 to 7:43:03( Edit History Discussion )

Chuck Grassley: wrote in september 2004 -- quote -- "hedge funds, private equity companies, and subprime mortgage industries have two big things in common. first, each represents financial middleman, unproductively

Chuck Grassley

7:43:03 to 7:43:13( Edit History Discussion )

Chuck Grassley: extracting wealth from the real economy. and, second, each sphroeuts loopholes in what remains of financial regulations." so in 2000, we also tkreg lated -- deregulated a new volatile financial derivative

Chuck Grassley

7:43:13 to 7:43:28( Edit History Discussion )

Chuck Grassley: that is at the heart of today's housing credit crisis. and as white house press secretar y dana perino would describe it, these newfangled financial instruments that pose a risk to the market actually grew

Chuck Grassley

7:43:28 to 7:43:41( Edit History Discussion )

Chuck Grassley: into a $62 trillion industry. and so, warren buffet has called these the financial weapons of mass destruction. so the proliferation of these newfangled financial instruments has resulted in huge profits

Chuck Grassley

7:43:41 to 7:43:55( Edit History Discussion )

Chuck Grassley: and losses without a penny changing hands. and so, of course, yes, i come to the floor asking my colleagues when are we going to learn this lesson? of course we can't forget the great depression in the

Chuck Grassley

7:43:55 to 7:44:10( Edit History Discussion )

Chuck Grassley: 1929 stock market crash when just like in the recent housing bubble, it was financed by dangerously highly leveraged borrowing, and after the crash many banks failed, causing a ripple effect that devastated

Chuck Grassley

7:44:10 to 7:44:22( Edit History Discussion )

Chuck Grassley: our nation's kpheufplt well after the 1929 crash, congress stepped up and changed the bankruptcy laws to eliminate some of theso abuses that had led to the crash. that's right, again, after the crisis

Chuck Grassley

7:44:22 to 7:44:42( Edit History Discussion )

Chuck Grassley: congress acted. what i want to know is whether we're going to learn the lesson and do the protection in advance or before we have the pwufrbting of the bubble -- bursting of the bubble. we can look

Chuck Grassley

7:44:42 to 7:44:54( Edit History Discussion )

Chuck Grassley: at the savings and loan crisis of the 1980's and 1990's all of this, of course, trace back to deregulation. although the deregulation of the savings and loans gave them many of the capabilities of banks,

Chuck Grassley

7:44:54 to 7:45:08( Edit History Discussion )

Chuck Grassley: it did not bring them under the same regulations as banks. and congress basically eliminated regulations designed to prevent lending excesses and minimize failures. deregulation then allowed lending in a distant

Chuck Grassley

7:45:08 to 7:45:21( Edit History Discussion )

Chuck Grassley: loan market on the promise of high returns and it also allowed association to participate in speculative construction activities with builders and developers who had little or no financial stake in the projects.

Chuck Grassley

7:45:21 to 7:45:33( Edit History Discussion )

Chuck Grassley: and the ultimate cost of this crisis to have totaled around $160 billion in u.s. taxpayers had to help bail this out, and these institutions to the tune of $125 billion. and this, of course, just added to

Chuck Grassley

7:45:33 to 7:45:47( Edit History Discussion )

Chuck Grassley: our deficit in the 1990's. so i ask my colleagues: when are we going to learn this lesson? as george soros wrote in his book "documenting the credit crisis," he said -- quote -- "at the end of world war

Chuck Grassley

7:45:47 to 7:46:01( Edit History Discussion )

Chuck Grassley: ii, the financial industry, banks, brokers, and other financial institutions played a different role in the economy than they do today. banks were -- banks and markets were strictly regulated."

Chuck Grassley

7:46:01 to 7:46:12( Edit History Discussion )

Chuck Grassley: in today's banking and credit crisis teaches us that we have failed again to learn the hard lessons. we have failed to see that oversight and transparency are important areas and that when congress makes

Chuck Grassley

7:46:12 to 7:46:26( Edit History Discussion )

Chuck Grassley: reforms, they can't just disregard these important fundamentals. the only encouraging news i have seen is that it has sparked the secretary treasury, mr. paul son, to say perhaps investment banks,

Chuck Grassley

7:46:26 to 7:46:39( Edit History Discussion )

Chuck Grassley: hedge funds and other financial institutions should be regulated. well, i could go on and on for my colleagues on my own personal experience with the western energy cri sis that happened in electricity

Chuck Grassley

7:46:39 to 7:46:51( Edit History Discussion )

Chuck Grassley: in 2000. we saw that during the electricity deregulation experience that led to the crisis in the 1990, people just i go tpoerd that electricity. they thought it was just another commodity. it was

Chuck Grassley

7:46:51 to 7:47:03( Edit History Discussion )

Chuck Grassley: really a very vital element to our economy. many experts caution that in the face of deregulation, that electricity with too vital a part of our economy and way of life to let these market issues

Chuck Grassley

7:47:03 to 7:47:17( Edit History Discussion )

Chuck Grassley: go without the transparency and oversight that was essential. well, we all know the rest of the story. we saw that deregulation set the table for some of enron's spectacular manipulation schemes of

Chuck Grassley

7:47:17 to 7:47:33( Edit History Discussion )

Chuck Grassley: 2000 and 2001 and all told, more than $35 billion in economic loss and over 589,000 jobs were lost because of this crisis. so, again, after the crisis was over, congress stepped in and gave the federal

Chuck Grassley

7:47:33 to 7:47:42( Edit History Discussion )

Chuck Grassley: energy regulatory commission and now the f.t.c., more regulatory authority on energy markets. but, again, congress ises doing its job after the fact. so i ask my colleagues: when are we going to

Chuck Grassley

7:47:42 to 7:47:55( Edit History Discussion )

Chuck Grassley: learn? when are we going to quit deregulating these critical markets without much thought to transparency and oversight that are critical for markets to operate and function correctly? when are we going

Chuck Grassley

7:47:55 to 7:48:06( Edit History Discussion )

Chuck Grassley: to learn that t when we give wall street an inch, as the president says, wall street gets drunk.| now we're here today to talk about the oil futures market. we are substantially here because, like

Chuck Grassley

7:48:06 to 7:48:18( Edit History Discussion )

Chuck Grassley: in the other past examples i have talked about, we also deregulated the energy futures market in 2000 causing another crisis, another price bubble that is driving our markets to no longer be based on

Chuck Grassley

7:48:18 to 7:48:32( Edit History Discussion )

Chuck Grassley: supply-and-demand fundamentals. this deregulation did certain things that allowed a perfect storm to brew and overnight in one fell swoop we did several things. we let new fangled financial instruments

Chuck Grassley

7:48:32 to 7:48:45( Edit History Discussion )

Chuck Grassley: called swaps go unregulated and made it essentially easy to use bad debt to finance home mortgages. we also let new fangled crude oil trading called energy swaps, to go unregulated and essentially

Chuck Grassley

7:48:45 to 7:48:58( Edit History Discussion )

Chuck Grassley: allow wall street to trade without any transparency. and we allowed electronic trading of energy commodities to emerge as a new form of trading. we chose not to regulate it as simply because it was

Chuck Grassley

7:48:58 to 7:49:12( Edit History Discussion )

Chuck Grassley: traded electronically it should be exempted. and we also let wall street rewrite the rule book for all the traditional exchanges like nymex and merck which were previously done before with more cftc

Chuck Grassley

7:49:12 to 7:49:21( Edit History Discussion )

Chuck Grassley: oversight. the consequence that allows these energy speculators to move into this market as my colleagues on the floor have said, in spades, shows that, really, it's like a casino game instead of

Chuck Grassley

7:49:21 to 7:49:35( Edit History Discussion )

Chuck Grassley: playing in the legitimate playing market. and the consequence are the american people are paying hand over fist for our inability to have oversight. why are we talking about the futures market?

Jim DeMint

7:49:35 to 7:49:50( Edit History Discussion )

Jim DeMint: because that is to discover the true price based on supply and demand. as our own reporting office, the government accountability office has said, the prices for energy commodities in the future and in

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