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Sunday, January 25, 2015

Suicide Capitalism at its best: Fracking

"The fracking industry in America resembles one vast ponzi scheme that is as reckless as it is criminal. Let’s take the example of Wyoming which has thousands of fracking wells. It has recently come to light how companies that once operated fracking wells have disappeared and have abandoned the wells they made huge profits from. Apparently, over 1,200 fracking wells have been abandoned in Wyoming with state officials saying there may be thousands more to come. Many of the companies that once operated these fracking wells are seeking bankruptcy and unable to pay the cost of cleaning up the land they leased. Many farmers are complaining to state officials that their land has been left in a toxic state. Take for example the case of State senator John J.Hines who is seeking *public* money to clean up the 40 fracking wells abandoned on his land by Patriot Resource Company. It appears that Wyoming state will have to pay for the clean up costs for the 1,200 abandoned wells with potentially thousands more to come.

Max Keiser, a financial commentator, has called fracking suicide economics. As he points out, many fracking companies sign contracts with farmers to lease their land knowing full well that they won’t be spending any money to clean up the toxic mess they will have created. Keiser calls fracking a ”12 to 36 month scam” by energy companies out to make a 5% return on their investment. Companies borrow money at zero per cent to pay for fracking rigs, make huge profits during the life of the fracking well then once its exhausted declare bankruptcy to avoid any clean up costs. Leaving tax payers on the hook for millions. I wonder where we’ve seen that kind of scam before?

Not surprisingly, there is a growing movement of ordinary people against this form of suicide capitalism. Over 400 counties in America have passed resolutions banning fracking operations from land in their areas. In Pennsylvania local people have delivered a 100,000 strong petition to Governor Corbett calling for a halt to fracking operations in that state. Last year 650,000 people sent messages to the Obama administration calling for a ban on fracking on public lands. As the fracking industry spreads its destructive tentacles across the globe ordinary people must fight back against the big oil and gas companies that would poison millions of people and destroy local environments. All in the pursuit of a quick buck."