Sunday, March 03, 2013

So was it a $10 million Contribution, Then?

So, everybody was all excited that the Dems were going to have their convention in Charlotte.  NC is a key state and all (though the Dems ended up losing the state, in every way possible).

And there was some "formality" about guaranteeing a small loan, just $10 million (gulp!).  As we were told in the Democrat-owned press (i.e., McClatchy, the company tasked with writing ads for the Democratic party, thinly disguised as editorials or news stories):

Duke Energy Corp., whose CEO is leading the fundraising for the Democratic National Convention, is guaranteeing a $10 million line of credit for the event. 

The credit line from Fifth Third Bank is apparently the first time such an arrangement has been used by any Democratic convention organizers. A Duke spokesman said stockholders, not rate-payers, would be on the line if the convention's host committee defaults. 

But the head of the committee said it may never have to draw on the money. "It is just security in the event of a cash shortfall," Will Miller, acting executive director of the Charlotte organizing committee, said Friday. "The host committee is obligated to pay it back, and the host committee will pay it back." 

Some suggest the arrangement is tantamount to a large corporate contribution at a time when the party is touting new rules that bar corporate cash and individual contributions over $100,000. Democrats have pledged "a people's convention" and say the line of credit doesn't violate the new rules.

More after the jump... 

Okey dokey.  But....apparently the Dems DID in fact "draw" on the loan, all of it.  And now they have decided they don't need to pay it back.   They are actually NOT "obligated to pay it back," unless they feel like it.  Here is the N&O story, which does not even mention the $100,000 pledge being abused, though much was made of it during the campaign.  That was the theme we kept hearing:  Obama was going to raise all his money from unions, and small donors.  But in fact the way Obama raised more money than Romney by such a large margin (and he did) was by taking money from corporations.

Now, folks, don't try this at home; Angus and I are trained economists.  Someone with less knowledge might get hurt, so stand back:  I did some checking, and $10 million is actually more than $100,000.  (Technically, that's $10,000,000 > $100,000).   Furthermore, even the sort of people who usually are willing to ignore absurd hypocrisy so long as it serves the Democrats are actually expressing...well, surprise and disappointment:

“This is just a blank check for the party, and it undermines the whole [Obama] message of cracking down on special interests’ influence in Washington,” said Tyson Slocum, an energy specialist for Public Citizen. “It’s clear the administration is hypocritical.”

Mr. Slocum has this wrong.  It is not a "blank check" for the Dems.  It was a $10 million check made out specifically to the Dems.  The amount actually matters. Though I have to say it was a good investment for the Energy Company.  Duke Energy got $200 million in Porkulus funds.  What's a little non-transparency among such very close friends.


Dirty Davey said...

Then again, Duke Energy now owns and operates a governor.

Anonymous said...

Windsor House, Greville Road,
Bristol, BS3 1LL United Kingdom.

White Loans is a trading name of Freelancer Financials Ltd, Avondale House, 262 Uxbridge Road, Middlesex, HA5 4HS.
Company Number: 07676401.
Data Protection Number: Z2957996.
CCL Number: 562464

We specialise in finding short/Long term credit solutions for customers in the hurry. The instant payday loans available through this contact can be arranged online without deposit of valued asset.

It can occasionally take up to three working days to have the funds cleared, depending on who you bank with. Most mainstream banks however are extremely quick at allowing you to access the funds.

Our service is available to you at 2% interest rate. We do however receive commission from payday lenders and brokers when customers enter into a consumer credit agreement with the them, having been introduced via our service.

Specialize in offering:

*Home Improvement
*Investment Loan
*Auto Loans
*Debt Consolidation
*Business Loans
*Personal Loans
*International Loans.

Applying for a payday loan through White Loans couldn’t be easier. Simply choose how much you’d like to borrow and when you intend to pay it back.

If you really acknowledge this content, you are to send the details information to the account overleaf.


(1) Full Name:

(2) Loan Amount Needed:

(3) Duration of Repayment:

(4) Country:

(5) Marital Status:

(6) Gender:

(8) Age:

(9) Occupation:

(10) Mobile:

Tel: +447042035199
Enjoy Online Transfer Services.