The Black Liquor travesty continues to mock us, rather than slink away and die from embarrassment – as it should. The Dead Tree Blog has posted an important update, IRS Brings Son of Black Liquor Back From the Dead; Ruling May Be Worth Billions to U.S. Pulp Makers . Continue Reading
Not often, but after some posts I regret being a little too aggressive. About an equal number of other posts are judged, retrospectively, to have been too soft. ”Soft” is how I felt about yesterdays two posts. We let the media and the President off too easily. It was convenient then that we received a comment from a reader. I will take the opportunity to respond to that comment here. Before going on you might want to read the two short posts dated May 11. Continue Reading
Some kraft pulp companies have been able to squeeze more funds out of U.S. tax payers for what we hope is the final quarter. The Dead Tree covers the story here.
The Dead Tree Edition has posted an important piece on the 2010 Black Liquor issue. Mr. Tree links to three media sources (not the biggest ones yet) that have caught on to the fraud. These writers don’t get the issue absolutely correct, but do understand that politicians are quite simply, lying through their teeth. I encourage you to click on the Dead Tree Edition link below and then also on the links in that post; they are interesting items.
Mr. Tree’s title Republican Senators Defend Bogus Black-Liquor Accounting is only a small part of the story. The key point is the shell game itself. This has not been a partisan issue on this Blog; our greatest criticisms have been of Maine’s Senator Snowe (Republican). Voters should teach Congress that it should never use subterfuge to pass anything. It is not nice to lie. Deceit should not be a way of life or a way of governing.
Legislative moves in U.S. might allow pulp and paper producers to claim US$1.01/gallon cellulosic fuel tax credit.
Forestweb March 17 — Recent legislative efforts said to be underway in the U.S. might allow the pulp and paper industry to claim a cellulosic fuel tax credit for production of black liquor, Deutsche Bank paper and forest products industry analyst Mark Wilde reported in a research note today. This credit would be for black liquor produced and fired between Jan. 1 and the enactment date of the new bill, said Wilde, adding that the date is likely to be in the next several days.
I received the following note this week from a good friend who works for a Canadian pulp company. Continue Reading
There are two issues here. The first is the black comedy routine Congress employs whenever it needs another $24 billion dollars. We are in March already and the black liquor subsidies ended in December – with no hope of extension. No pulp or paper company has, or will receive black liquor credits in 2010. As you know, that does not keep Congress from blatantly lying about the situation. Various members of Congress, and the President, continue to “save $24 billion” by cutting the subsidies that do not exist…again, and again, They have been able to cut health care costs by $24 billion, cut the jobs bill by $24 billion, and now pay for an extension of unemployment benefits with this same non-existent $24 billion. Continue Reading
The President and Congress, with help from the mainstream media, has morphed one of the most shameful acts in Congressional history into a populist political success. There are no words to express the disgust and disappointment that I feel after reading today’s stories. The Dead Tree Edition has been following this story parallel with Reel Time and now this Blog. Mr. Tree updates the situation today, as President Obama and his complicit media outlets have become intimately commingled in this blatant lie. Please take a minute and read the following short post, Obama Joins in on the Black Liquor Two-Step
NewPage announced results of operations for the fourth quarter and full year today. It is clear that the company has very serious financial issues, but this does not make NewPage unique in our industry. We won’t speak directly to the financials; that is not our area of expertise.
Downtime Reported: Other than the financials, there were a few other items of interest. The company reported that it took 515,000 tons of market related downtime in 2009. See below. Continue Reading
Congress wasted $10 billion on black liquor subsidies in 2009, but the next generation 2010-2012 subsidy was written in such a manner that the pulp companies would not be eligible. Nevertheless, even though funds were never budgeted or seriously considered for pulp companies, some in Congress continue to pretend that taxpayers are saving $25 billion that now can be used for other programs (had pulp companies been eligible, they could have received $25 billion during this three-year program). First this non-existent cash was going to pay for the health care program. Now, as reported here in an interesting Dead Tree Edition report, that savings which does not exist, is going to be used for the jobs program. It’s Congressional magic – imaginary money that can be used repeatedly for any and all programs.
If the mainstream press were behaving responsibly, it would make this brazen dishonesty public. That’s what real oversight is all about.
Its a Mad, Mad, Mad, Mad World is not just a movie. For whatever reason, madness seems to infect those who fly too close to the black liquor subsidy. We will comment on three instances of this epidemic and them rate them according to level of absurdity. We then offer a very brief update on the prospests of pulp subsidies in 2010. Continue Reading