Lou Dobbs Tonight – June 10, 2008

Senator Charles Grassley (R) from Iowa has introduced legislation that would continue the mandatory use of the E-Verify system for contractors and subcontractors used for federal projects. The present legislation is due to expire this fall, and President Bush has signed an executive order requiring the same that is due to go into effect this fall after a 60 public comment period.

Senator Grassley reminds us that it only makes sense that contractors used by the federal government should be required to use the same system used to employ federal employees. This is especially important when considering that persons involved with terrorist organizations have been found working on US Army bases.

A hedge fund of $19 billion by the name of TCI, based in London, wants to place five directors on the CSX board. CSX is the largest Railroad east of the Mississippi. CSX connects 23 different states and connects 70 ports along with 13 military bases. CNN’s Kitty Pilgrim explains that TCI owns four percent of shares and 11 percent of economic interest in CSX. TCI wants to cut capital expenditures and increase rail rates. Most disturbing, is that TCI will not disclose its investors and is under no obligation to do so. Six senators who serve on the banking committee have written to the Treasury Department asking for a CFIUS review on national security grounds.

TCI claims that no one needs to worry about who the investors are (citing that only 1 percent of their assets are sovereign wealth funds).

Senator Evan Bayh (D) of Indiana believes TCI should be reviewed to be sure that this move would not raise national security concerns.

TCI insists this is political posturing and there are no national security concerns.

Lou Dobbs of CNN claims that President Bush and the treasury secretary Henry Paulson look foolish by “going around the world with their hats in hand trying to get foreign capital.” Dobbs believes it is obscene that hedge funds are not regulated in the US, let alone a foreign hedge fund. Dobbs points out that CSX is an important national security asset to this country and should be held to a higher standard accordingly.

Dobbs also points out that Japan raised the same concerns over TCI when they tried to raise their investment in J Power, an important utility and national security asset for the Japanese.

Congressmen Pete King and Walter Jones are insisting that the President and the Democratic leadership stop stalling and get moving on the Secure Fence Act. Over 260,000 signatures from grassfire.com have been presented in Washington DC in efforts to get the border secured. Congressman King (R) of NY points out that building this fence was mandated 2 years ago and claims language was added, literally in the middle of the night, to the appropriations bill last year that has slowed this down.

Lou Dobbs of CNN claims that attempts to contact Homeland Security Committee chairman, Benny Thompson’s office and Congresswoman Sanchez were made and both declined to comment.

King, a ranking member of the committee also commented that the Chairman of the committee has not only made it clear that there is no rush to get the job done, but is actually suing in order to keep the fence from being built.

Lou Dobbs stated “With this Congress, with fewer than ten weeks remaining to do the work of the people over the past 17 months the 110th Congress not a single bill addressing the issue of border security or illegal immigration has been passed by this Congress.”

King blames the non action on an “unholy alliance” between Democrats and Republicans in Washington. The Democrats are pandering to special interests and certain communities while the Republicans are pandering to businesses who like the cheap labor.