not what Arnold Schwarzenegger did to the girls
a decade back that should raise an eyebrow. According
to a series of memoranda our office obtained today,
it's his dalliance with the boys in a hotel room
just two years ago that's the real scandal.
wannabe governor has yet to deny that on May 17,
2001, at the Peninsula Hotel in Los Angeles, he
had consensual political intercourse with Enron
chieftain Kenneth Lay. Also frolicking with Arnold
and Ken was convicted stock swindler Mike Milken.
thirty-four pages of internal Enron memoranda
have just come through this reporter's fax machine
tell all about the tryst between Maria's husband
and the corporate con men. It turns out that Schwarzenegger
knowingly joined the hush-hush encounter as part
of a campaign to sabotage a Davis-Bustamante plan
to make Enron and other power pirates then ravaging
California pay back the $9 billion in illicit
profits they carried off.
the story Arnold doesn't want you to hear. The
biggest single threat to Ken Lay and the electricity
lords is a private lawsuit filed last year under
California's unique Civil Code provision 17200,
the "Unfair Business Practices Act." This litigation,
heading to trial now in Los Angeles, would make
the power companies return the $9 billion they
filched from California electricity and gas customers.
takes real cojones to bring such a suit. Who's
the plaintiff taking on the bad guys? Cruz Bustamante,
Lieutenant Governor and reluctant leading candidate
follow the action. One month after Cruz brings
suit, Enron's Lay calls an emergency secret meeting
in L.A. of his political buck-buddies, including
Arnold. Their plan, to undercut Davis (according
to Enron memos) and "solve" the energy crisis
-- that is, make the Bustamante legal threat go
can that be done? Follow the trail with me.
Bustamante's kicking Enron butt in court, the
Davis Administration is simultaneously demanding
that George Bush's energy regulators order the
$9 billion refund. Don't hold your breath: Bush's
Federal Energy Regulatory Commission is headed
by a guy proposed by Š Ken Lay.
Bush's boys on the commission have a problem.
The evidence against the electricity barons is
rock solid: fraudulent reporting of sales transactions,
megawatt "laundering," fake power delivery scheduling
and straight out conspiracy (including meetings
in hotel rooms).
the Bush commissioners cook up a terrific scheme:
charge the companies with conspiracy but offer
them, behind closed doors, deals in which they
have to pay only two cents on each dollar they
the slap-on-the-wrist refunds won't sail if the
Governor of California won't play along. Solution:
Re-call the Governor.
Problem: the guy most likely to replace Davis
is not Mr. Musclehead, but Cruz Bustamante, even
a bigger threat to the power companies than Davis.
Solution: smear Cruz because -- heaven forbid!
he took donations from Injuns (instead of Ken
pay-off? Once Arnold is Governor, he blesses the
sweetheart settlements with the power companies.
When that happens, Bustamante's court cases are
probably lost. There aren't many judges who will
let a case go to trial to protect a state if that
a governor has already allowed the matter to be
"settled" by a regulatory agency.
think about this. The state of California is in
the hole by $8 billion for the coming year. That's
chump change next to the $8 TRILLION in deficits
and surplus losses planned and incurred by George
Bush. Nevertheless, the $8 billion deficit is
the hanging rope California's right wing is using
to lynch Governor Davis.
only Davis and Bustamante are taking direct against
to get back the $9 billion that was vacuumed out
of the state by Enron, Reliant, Dynegy, Williams
Company and the other Texas bandits who squeezed
the state by the bulbs.
if Arnold is selected, it's 'hasta la vista' to
the $9 billion. When the electricity emperors
whistle, Arnold comes -- to the Peninsula Hotel
or the Governor's mansion. The he-man turns pussycat
and curls up in their lap.
asked Mr. Muscle's PR people to comment on the
new Enron memos -- and his strange silence on
Bustamante's suit or Davis' petition. But Arnold
was too busy shaving off his Hitlerian mustache
October 8, 2003