Phil Gramm's recent disparaging of "a nation of whiners" complaining about a "mental recession" did more than offend the sensibilities of economically struggling Americans. His gaffe also served as a reminder that McCain had appointed one of the most reactionary, venal, and destructive political figures in recent times as his top econ man. By Sunday, the damage to the McCain campaign had grown so severe it announced that Gramm's role had been significantly reduced.

Phil Gramm attempted to invest $15,000 in "Truck Stop Women." His money ultimately helped produce a film portraying Richard Nixon wandering nude around the White House.

Gramm was an accident waiting to happen. Indeed, his gaffe represents little more than a scrap in the massive heap of wreckage he has left in his wake. Gramm's own presidential campaign in 1996 was among his most high-profile casualties. In order to win a whopping total of 8 delegates, the charisma-challenged Gramm had to spend $20 million, or about $2.5 million per delegate. This experience curiously translated into a job as one of McCain's key political advisors.

But first, Gramm returned to the Senate, where he was lobbied intensely by one of his major campaign contributors, Enron. Enron enjoyed easy access to Gramm's office; the senator's wife served on Enron's board of directors and Ken Lay was his 1992 campaign co-chair. Gramm rewarded his financial angels in 2000, slipping the "Commodity Futures Modernization Act" into a omnibus spending bill just as Congress headed off for summer vacation. His amendment instantly enabled the creation of a shadow banking system -- "weapons of financial destruction" in the words of Warren Buffet -- that directly contributed to the current mortgage foreclosure crisis. Millions of Americans have suffered as a result of Gramm's machinations.

While the destruction Gramm has caused is felt across the country, little is known about the seedy business schemes that preceded his political career. Before Gramm joined the Christian Coalition's Ralph Reed to call for the defunding of the NEA, before he attacked an opponent for taking money from a gay rights group, and before he was interviewed by the white supremacist Southern Partisan magazine, Gramm was an avidly active investor in soft-core pornography movies.

Gramm's journey into porn began in 1973, when his brother-in-law, George Caton, rushed to tell him about an exciting low-budget soft-core production called "Truck Stop Women." A promo poster for the film boasted of its buxom stars: "No Rig Was Too Big For Them To Handle." Caton, who was in charge of fundraising for the production, asked Gramm to become an investor. To entice his brother-in-law, Caton showed him scenes of Playboy Playmate of the year Claudia Jennings displaying her bare essentials (she is naked throughout much of the film).

These scenes "really got Phil titillated," Caton told journalist John Judis in 1995. Gramm enthusiastically cut Caton a check for $15,000. Because the film was oversold, however, Caton returned his brother-in-law's money, offering him an investment opportunity in an upcoming feature.

The following year, Gramm sent Caton a check for $15,000, this time to finance the production of "Beauty Queens," a soft-core flick about pageant judges having sex with contestants. But at the last moment, the director of "Beauty Queens," Mark Lester, decided to shelve his production to make the sequel to his "Tricia's Wedding," a comedy starring the drag queen troupe, The Cockettes.

Gramm contributed at least $7500 towards the sequel, a satire of the Nixon White House called "White House Madness" that featured the crazed president wandering around the White House in the nude. Gramm never saw that money again. Shot in ten days on a soundstage crudely modeled after the Oval Office, "White House Madness" tanked at the box office.

Like the rest of Gramm's endeavors, his soft-core porn career was a complete disaster.

Comments (26)

1. Blumenthat once again demonstrates why he is a minor league, petty player in the world of journalism

   Last time I looked, Phil Gramm is not running for president nor is he on McCain's list of VP candidates. So who cares about some small investments he made, good or bad.

   But as noted below, Blumenthal demonstrates his own pettiness and bush league journalism.

   "In order to win a whopping total of 8 delegates, the charisma-challenged Gramm had to spend $20 million, or about $2.5 million per delegate. This experience curiously translated into a job as one of McCain's key political advisors."

   Let's see:

   Dodd spent 18 million for zero delegates

   Edwards spent 51 million for 24.5 delegates

   Both men are being considered for either the VP position or Cabinet positions with Obama. Yet you make a point about Gramm's spending per delegate in a 1996 run for president.

   You are truly a small mind with small ideas Blumenthal.

   Posted by lvliberty1 at 07/15/2008 @ 3:28pm

2. "In order to win a whopping total of 8 delegates, the charisma-challenged Gramm had to spend $20 million, or about $2.5 million per delegate. This experience curiously translated into a job as one of McCain's key political advisors."

   Not so curious, if one reveals who gave Gramm the $20 million back than. Same old.

   Priceless, but ... so?

   Now just imagine if a close Obama advisor had done this. Fox nonstop, Larry King interviews with the "stars," Geraldo reviewing the cinema masterpieces.

   Posted by sloper at 07/15/2008 @ 3:44pm

3. You are truly a small mind with small ideas Blumenthal. Posted by lvliberty1 at 07/15/2008 @ 3:28pm

   I think he is doing this because Obama has been indicted for every person he has a connection to since the beginning of this race. Hell he has been indicted for people in his camp having connections to people. Everyone considers these things a travesty then when it happens to McCain it is considered low brow.

   Posted by Cccomfo1 at 07/15/2008 @ 3:44pm

4. I think he is doing this because Obama has been indicted for every person he has a connection to since the beginning of this race. Hell he has been indicted for people in his camp having connections to people. Everyone considers these things a travesty then when it happens to McCain it is considered low brow.

   Posted by Cccomfo1 at 07/15/2008 @ 3:44pm

   That would be acceptable CCC except McCain had already demoted Gramm's contribution to his campaign prior to Blumenthal writing this article.

   As to Obama, look at the differences.

   Rezko-big contributor and Obama was invested with him in projects. Obama has now admitted that he shouldn't have made the decisions he made with Rezko and I accept that. But it is certainly something that should have been examined.

   Bill Ayers- here is someone that Obama says is a friend and yet he is unrepentant about bombing Federal buildings. That is something legitimate to look at.

   Wright-I don't have the same level of concerns that others do, so I don't find it as newsworthy.

   Posted by lvliberty1 at 07/15/2008 @ 3:53pm

5. That would be acceptable CCC except McCain had already demoted Gramm's contribution to his campaign prior to Blumenthal writing this article. As to Obama, look at the differences. Rezko-big contributor and Obama was invested with him in projects. Obama has now admitted that he shouldn't have made the decisions he made with Rezko and I accept that. But it is certainly something that should have been examined. Bill Ayers- here is someone that Obama says is a friend and yet he is unrepentant about bombing Federal buildings. That is something legitimate to look at. Wright-I don't have the same level of concerns that others do, so I don't find it as newsworthy. Posted by lvliberty1 at 07/15/2008 @ 3:53pm

   This is true. And I do accept that Obama needs to answer for his friends. But then when the same is applied to McCain why is it so egregious? McCain obviously knew Gramm's past BEFORE he chose to make Gramm such a high player in his campaign. Just because Gramm was demoted doesn't mean he is gone. I guarantee you he is still advising McCain he is just not in the limelight anymore. The game is played both ways. If McCain wants to play the guilty by association game then when it is forwarded the other way then it has to be accepted. Wright is no longer and issue but it is still brought up. Rezko is no longer and issue but it is still brought. Ayers the same. Look at people like Libzsux and Happy if you want to see the game the McCain campaign and McCain supporters are playing. If they want to make the rules then you have to be willing to play by them.

   Posted by Cccomfo1 at 07/15/2008 @ 4:14pm

6. Give me a break.......Obama's first `hit' on a bong or snort is got to be more exciting than this! Heck, even my own first drunken spell with Boonesfarm chased w/Falstaff beer, is more memorable and worthy.......

   LVL, you hit it on the MAX head........heheheheh!

   Posted by 2HAPPY at 07/15/2008 @ 5:50pm

7. Still everyone has to agree that Gramm will fit in perfectly to a McCave- hsuB /Gannon 3rd term.

   Posted by hsuBfools at 07/15/2008 @ 6:23pm

8. What low class swill! Did Murdoch buy the Nation or just Max Blumenthal? So much for standards and ethics in the now formerly revered Nation magazine.

   What a freakin' disappointment. Did I mention the word garbage?

   Posted by glake at 07/15/2008 @ 7:28pm

9. His Commodity Futures Modernization Act and the damage its done is what I'll remember him for.

   With the movies? Well, at least he at one time had a sense of humor.

   Posted by rafollett at 07/15/2008 @ 7:52pm

10. bush league journalism.

    Posted by lvliberty1 at 07/15/2008 @ 3:28pm

    you mean like rush and hannity?

    Posted by frosty zoom at 07/15/2008 @ 7:55pm

11. Far more interesting than this porn junk which seems to have a particular resonance with "family values/law and order/anti free choice" Republicans would be Phil Gramm's interesting job at the giant Swiss bank, UBS. UBS is being investigated for helping the filthy rich, Americans et al, hide money from the tax collectors. One UBS employee helped a super rich American smuggle diamonds out of the US by shoving them into a tube of toothpaste. And where is Mr. Herr Doctor Professor in all this? Hmmmm.

    Posted by conneide at 07/15/2008 @ 7:56pm

12. Just another holier than thou, PIG republican!!

    Posted by eggcream at 07/15/2008 @ 8:15pm

13. "Bill Ayers- here is someone that Obama says is a friend," sez "lvliberty." I don't seem to recall this. Where and when did Obama call Ayers a "friend"?

    Posted by MitchellZimmerman at 07/15/2008 @ 9:03pm

14. I wonder if "lv-libertyz" would be pleazd to see a feature article on the "Commodity Futures Modernization Act" (2000) as yet another benefit of the Blumenthal piece? Bundled or tagged into the schlock story on dodgy, hypocritical investments, the real sleeze looks set to float when regulatory authorities and hostile Senate inquiries look closer at who supported and who benefitted from such financial 'instruments' being unleashed.

    By the way, did Mr Gramm have any connection with that crazed campaign to float disaster futures?

    Posted by bazdicoot at 07/15/2008 @ 9:32pm

15. If only it was Gay porn, such as was produced the faux reporter, on the scene some time ago I would lay down $10 or more!

    Posted by marvin_op at 07/15/2008 @ 10:13pm

16. like rush and hannity?

    Posted by frosty zoom at 07/15/2008 @ 7:55pm

    I think you have insulted Rush and Hannity gravely, by calling their trade "journalism".

    They are quite a few steps above journalists......they are open to challenges everyday........3 hours per day on the radio......even if Sean sometimes hang up on Loonies!

    BTW, know of any "journalist" worth $40 million a year? Rush's pay rate is that of top-tier entertainers!!

    Posted by 2HAPPY at 07/15/2008 @ 10:18pm

17. I think you have insulted Rush and Hannity gravely, by calling their trade "journalism".

    Posted by 2HAPPY at 07/15/2008 @ 10:18pm

    Right, no one would really consider Rush and Hannity journalists. And someone is certainly being insulted by calling them that. I don't think it's those two, though.

    Posted by el_presidente at 07/15/2008 @ 10:39pm

18. Rush's pay rate is that of top-tier entertainers!!

    Posted by 2HAPPY at 07/15/2008 @ 10:18pm

    right up there with wwe and pizza pops!

    Posted by frosty zoom at 07/15/2008 @ 11:15pm

19. i'll take the one on the left.

    Posted by frosty zoom at 07/15/2008 @ 11:15pm

20. All this scrutiny of Obama's ability to govern this country is a Matterhorn size pile of dog shit.I don't recall anyone openly questioning (IN THE PRESS) Fun Boy George's deficiencies in 2000 and 2004 even though they were obvious to anyone with an IQ above their shoe size. George's world geographical knowledge was a laffer.Pakistan ? Afghanistan? Hell,the man couldn't find his own ass with both hands ! Oh ! And another question. Has anyone ever seen a picture of the current first family ,I mean one with the Paris Hilton wannabe twins ?

    Posted by ordinaire at 07/16/2008 @ 01:30am

21. The connections with Enron, the mortgage crisis. and low-class movies would all be big news with Fox and ABC, etc. if those connections were with Obama or the Clintons or Kerry. America elected Bush with little foreign policy knowledge. America will elect McCain even though his grasp of the Middle East is worse than that of Bush and company.

    Posted by nccraig at 07/16/2008 @ 02:36am

22. enron was a perfect union of corrupt elements in government and business - ruthess pursuit of profit with total disregard for casualties.

    sad that so much of the public and the press were rather content to mediate over the ashes of enron than to search out its siblings - the mortgage crisis is only one of them and it, due diligence would show, was born long before (though less mercurial in its devdelopment).

    are there more? you bet - the profit motive, unmodulated by the bush/cheyney cartel (and its ilk of bought-and-well-paid-for officials at all levels of government) provides a temptation to greed of biblical dimensions.

    phil gramm is only one of the its agents - mccain only one of its dupes.

    Posted by nurrevir at 07/16/2008 @ 07:22am

23. Looks like a really good flick. Is it available in blue ray format? Or, can I simply get in on Netflix instant watch?

    Posted by GSOres at 07/16/2008 @ 07:42am

24. It is not Gramm's investments that count. What counts is what he did for Enron that was a primary enabler of the current mortgage crisis, and he made millions of of it.

    A scurrilous, pathetic individual who probably fits in very well with the McBush cast of characters.

    Posted by swanie at 07/16/2008 @ 09:44am

25. Blumenthal's article isn't just "low-class swill." It's a substantive article nicely DRESSED UP with some pungent low-class swill.

    Read the article carefully, and you will see that it recounts most of the highlights of Phil Gramm's career of financial stupidity and mentions his brief soft-porn investments of just one more example, a minor one at that. The point, in case you missed it, is that this man, who is John McCain's economic advisor, has made one bad economic decision after another, so that he has not always even benefited himself, let alone the country.

    However, "Glake" has a good point, one that has been raised also in connection with a certain cartoon that has recently appeared on the cover of the "New Yorker" magazine. Do most people who see an article with the words "Phil Gramm" and "soft porn" in its title really see anything else? Similarly, do most people who see the cartoon of Barack and Michelle Obama that matches the paranoid right-wing image of them realize that this satire is aimed at the right-wingers, not at the Obamas?

    Actually, I don't mean to censor anyone, and in fact I found that New Yorker cartoon very clever. But we need to do some public reflection about the efficacy of such admixtures of entertainment in our news. Doing so, I believe, will enhance their positive effects and reduce the impact of their harmful side effects.

    Posted by JakobFabian at 07/16/2008 @ 09:45am

26. lOVE LIBERTY? Still here after all these years - just like a cockroach that won't die!

    Posted by NO-NONSENSE at 07/16/2008 @ 11:15am