Tag: bankruptcy

A GAO audit of NASA’s Orion capsule says the program faces delays and budget overruns.

2:46 pm

A report by NASA’s inspector general of the Orion program says it faces delays and budget overruns.

I’m not surprised. The audit [pdf] tried to put a good spin on NASA’s effort to build this capsule, but you can’t make a beauty queen out of a cockroach. Even though I truly believe that the agency has worked hard to try to contain costs and meet its schedule, it is impossible for NASA to succeed at this under the constrains imposed on it by Congress.

And then there is this:

Meanwhile, although [the] report focused on Orion, it also reiterated an oft-repeated point: The money NASA has said it will spend on SLS, Orion and associated ground systems is not enough to stage a mission to any extraterrestrial surface. “Given the time and money necessary to develop landers and associated systems, it is unlikely that NASA would be able to conduct any surface exploration missions until the late 2020s at the earliest,” the report says. “NASA astronauts will be limited to orbital missions using” Orion.

In other words, this very expensive project will not go anywhere for almost two decades. Doesn’t that just warm your heart?

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The federal treasury had a $98 Billion deficit in July, yet the total debt was left unchanged at $16,699,396,000,000

10:32 am

Fraud: The federal treasury had a $98 Billion deficit in July, yet the total debt was left unchanged at $16,699,396,000,000.

At the static $16,699,396,000,000 level that the Treasury reported for every day of July, the debt was just $25 million below the legal limit of $16,699,421,000,000 that was set in a law passed by Congress and signed by President Barack Obama.

The total debt has remained unchanged now for almost three months, despite continuing month deficits. In other words, someone is lying and committing outright fraud.

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Pigs in space

10:11 am

Today I have an op-ed in the Wall Street Journal, entitled “No liftoff for these space flights of fancy.” It is essentially a more detailed reworking of my rant on the John Batchelor Show on July 30.

My point is that the federal space program mandated by Congress, the Space Launch System (SLS), is never going to go anywhere, and is nothing but pork that should be cut as fast as possible. (See my essay from November 2011 on how NASA and the federal government can better use this money to get more accomplished in space, for less.)

The comments to the article have generally been positive and in agreement. Those who disagree mostly question the $14 billion cost per launch that I claim SLS will cost. That number comes from John Strickland’s very detailed analysis of what it will cost to build, complete, and operate SLS. However, it doesn’t require much thoughtful analysis to realize that this number is not unreasonable.
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How Obamacare discourages people from making more money, discourages businesses from hiring, and discourages everyone from becoming better than they are.

4:42 pm

How Obamacare discourages people from making more money, discourages businesses from hiring, and discourages everyone from becoming better than they are.

But we all know that the real and only reason I mention these unfortunate facts about Obamacare is because Obama is black and that I’m a racist.

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In its minority small business program, supposedly designed to help minorities, the federal government has instead given millions to firms owned by fictitious people.

9:15 am

In its minority small business program, supposedly designed to help minorities, the federal government has instead given millions to firms owned by fictitious people.

This article illustrates how deep and extensive the corruption is in Washington DC. Things have gotten so bad that we hardly notice a story like this, even though it involves a level of fraud and illegality involving millions of dollars that has become almost routine within the small business and minority set-aside programs of the federal government.

The programs were designed, with noble good intentions, to encourage new businesses run by minorities or women. Instead, a minority or woman sets up a fake company and then subcontracts the work out to others (even though such subcontracting is forbidden). No one in the federal government notices or cares, and the fraud escalates, until in examples like the one at the link, it becomes so egregious that someone in government feels obligated to prosecute. And even then, it appears that the woman charged is only obligated to return some cash and a car. It does not look like she will serve any prison time.

Just imagine how much other fraud and corruption continues to go on in other federal feel-good programs that no one has bothered to stop or notice. The possibilities are numbing.

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An inspector general report has found that the 24 health co-ops formed under Obamacare are going bankrupt, even before they have opened.

9:20 am

Our government at its best: An inspector general report has found that the 24 health co-ops formed under Obamacare are going bankrupt, even before they have opened to their first customers.

And that’s not all:

Examiner Watchdog investigative reporting project focused on the co-ops began in 2012 and has since uncovered extensive evidence of financial mismanagement, conflicts of interest, failure to file required tax returns, inadequate capitalization and evasion of public disclosure requirements such as the federal Freedom of Information Act. A recent Examiner survey found, for example, that all but one of the 24 co-ops failed to file required tax returns, and several may invoke a highly questionable loophole allowing them to avoid doing so in the future. Even more troubling, two of the co-op loans were awarded to organizations headed by individuals with questionable backgrounds, the Examiner has learned, including an insider trading conviction and a history of child sexual abuse.

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The Obama administration has given Congress and its staff a waiver so that they will not have to pay the full cost increase imposed by Obamacare.

4:09 pm

The law is for the little people: The Obama administration has given Congress and its staff a waiver so that they will not have to pay the full cost increase imposed by Obamacare.

No waiver for anyone else, however. You gotta pay, tough luck. You ain’t an important member of the Washington elite, the royal class, the superior smarter set that makes the laws you (and not they) have to follow.

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My rant Thursday against politicians on the John Batchelor Show

10:43 pm

On my Thursday appearance last week on the John Batchelor Show John and I devoted the entire segment to talking about the sad state of NASA and how the partisan bickering in Congress is not only failing to deal with those problems, that bickering is intentionally disinterested in actually fixing them. As I say,

What both those parties in Congress and in the administration are really doing is faking a goal for the purpose of justifying pork to their districts, because none of the proposals they’re making — both the asteroids or the moon — are going to happen.

I intend to elaborate in writing on this subject in the next day or so. In the meantime, here is the audio of that appearance [mp3] for you all to download and enjoy.

Note that I specifically talked about the following stories during this appearance:

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Two graphs that show the depressing trends of the work force for the past twenty years.

12:40 pm

Two graphs that show the depressing trends of the work force for the past twenty years.

Both reveal that, since the crash in 2008-2009, there has been absolutely no uptick, despite the desperate repeated claims of the Obama administration. The American work force, and the economy that work force represents, has shrunk, and shows no signs of recovery.

There is a solution, but no one really wants to risk trying it in our Soviet-style society.

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The state of SLS construction.

10:40 pm

The state of SLS construction.

The article is mostly focused on the engineering challenges of building a new rocket out of old pieces of the space shuttle. Kind of reminds me of Frankenstein. Nonetheless, I do get the impression for the first time that this heavy lift rocket will be built, and will fly at least once.

After that, however, I expect it to die from lack of funds. In fact, its history will probably parallel that of the Soviet Union’s Energia rocket, which flew twice, once to launch their shuttle copycat Buran and once to lift a failed payload whose purpose has never been clearly revealed. Soon thereafter came bankruptcy and the end of the Soviet Union, which couldn’t afford such a monstrosity. SLS will likely see a similar fate.

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The cost of complying with Obamacare is forcing insurance companies to abandon many state markets.

6:23 pm

Finding out what’s in it: The cost of complying with Obamacare is forcing insurance companies to abandon many state markets.

In February 2010, a month before passage of the law, Obama explained at a bipartisan health care summit at the Blair House, “What we’ve said is that if you join one of these exchanges, you will have choice and you will have competition. You will have a menu of private insurance options that you’ll be able to purchase.”

Increasing the number of insurance options for individuals was one of the key ways in which Obama claimed the law would be able to drive down insurance costs. But with less than 70 days before the exchanges are set to open, large insurers are pulling out of states as a result of the health care law, resulting in less choice for consumers, not more.

This is exactly what happened in New York in 1992 when the state legislature passed a law with many of the same components as Obamacare. Insurance companies fled the state, and premiums went up.

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Congress fiercely divided over completely blank bill that says and does nothing.

6:05 pm

If only all bills were this lacking in details: Congress fiercely divided over completely blank bill that says and does nothing.

A blank piece of legislation that says nothing, does nothing, and contains no text whatsoever has been the source of heated debate in Washington this week, and has sharply divided Congress along partisan lines, Beltway sources confirmed Thursday. Known as S.0000, the bill, which doesn’t have sponsors, co-sponsors, or an author, has reportedly drawn starkly contrasting opinions from legislators in both the Senate and House of Representatives, and has paved the way for a major legislative battle in coming months.

Read the whole thing. It accurately captures the reality of present day Washington, with the Democrats pounding the table for this bill and the Republicans pounding the table against it.

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A GAO report has found that heath insurance premiums will skyrocket next year when Obamacare takes effect.

9:31 am

Finding out what’s in it: A GAO report has found that heath insurance premiums will skyrocket next year when Obamacare takes effect.

Starting next year, a 30 year-old earning $35,000 per year would have to pay $2,739 annually for a cheap “bronze plan” on the new health insurance exchanges, even after receiving subsidies, according to the Kaiser Family Foundation’s subsidy calculator. That’s more expensive than any state in the current system, and seven times more expensive than in the cheapest state, Nebraska, where premiums are currently as low as $349 annually.

Even an otherwise comparable 30 year-old earning $25,000 next year, who would qualify for more generous Obamacare subsidies, would have to pay $1,142 annually for a “bronze plan.” That’s still more expensive than current cheap rates in 45 states, and double the current cost in 19 states.

The article has a fascinating table outlining the minimum cost for healthcare in all fifty states. Not surprisingly, in the states that have Obamacare-type regulations, such as Massachusetts and New York, the cost for heathcare is far higher.

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Detroit today filed for bankruptcy, the largest city in U.S. history to do so.

2:54 pm

What a half-century of Democratic Party rule gets you: Detroit today filed for bankruptcy, the largest city in U.S. history to do so.

Though I personally dislike Democratic Party policies and think they accelerated this disaster, the real problem was a willingness of voters to accept the idea of one-party rule. Not once during those fifty-one years of continuous and disastrous Democratic Party rule did Detroit voters even once consider the idea of firing these guys to give someone else a shot at running the city.

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The Washington Post admits that most of the Democratic claims that sequestration would cause disaster were either outright lies or a gross exaggeration.

10:43 am

The Washington Post admits that most of the Democratic claims that sequestration would cause disaster were either outright lies or a gross exaggeration.

I said it then that they were lying about the consequence of sequestration. I say now that they will be lying again when the the next sequestration cuts arrive in October.

I suspect you could cut the federal budget by at least one third, bringing the numbers back to what they were about ten years ago, and not notice any loss of service.

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The toxic combination of Obamacare and the proposed Senate immigration bill would create a big financial incentive for employers to hire non-citizens.

5:52 pm

Congress passes a law: The toxic combination of Obamacare and the proposed Senate immigration bill would create a big financial incentive for employers to hire non-citizens.

Under Obamacare, businesses with over 50 workers that employ American citizens without offering them qualifying health insurance could be subject to fines of up to $3,000 per worker. But because newly legalized immigrants wouldn’t be eligible for subsidies on the Obamacare exchanges until after they become citizens – at least 13 years under the Senate bill – businesses could avoid such fines by hiring the new immigrants instead.

Not surprisingly, the idiots who voted for this immigration bill haven’t read it and have no idea this problem exists.

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Detroit announces that it will default on its debt today.

10:01 am

Coming soon to a blue state near you! Detroit announces that it will default on its debt today.

The City currently faces approximately $17 billion in total liabilities. Detroit is insolvent and cannot meet its financial obligations without a significant restructuring.

It is important to note that Detroit has been run exclusively by Democrats for about a half century. Thus, this bankruptcy is an entirely partisan event, supported by voters who blindly insisted on one-party rule, and never questioned the incompetence or corruption of that Democratic Party.

And please, don’t argue with me by mentioning examples where Republicans screwed up. They have their own lock on stupidity, corruption, and failure. The point here, however, is to recognize that the failure in Detroit, as well as all of the recent other cities that have gone bankrupt, is because of decades of liberal Democratic rule, where money got funneled to unionized city employees at the expense of the taxpayers, with no regard to cost or affordability.

And if you doubt me, read this history of Detroit’s last fifty years.

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According to Ohio’s Insurance Department, Obamacare will cause healthcare rates to rise next year by 88 percent.

9:55 am

Finding out what’s in it: According to Ohio’s Insurance Department, Obamacare will cause healthcare rates to rise next year by 88 percent.

What are the drivers of the increase? According to Milliman, the two biggest drivers are (1) risk pool composition changes, such as forcing the young to subsidize the old, and the healthy to subsidize the sick; and (2) Obamacare’s required expansion of insurance benefits, particularly its mandated reductions in deductibles and co-pays.

This is a significant concept to understand. Some people have the impression that the main reason that rates are going up under Obamacare is because of the law’s requirement that insurers cover people with pre-existing conditions. But that accounts for only a fraction—around a quarter—of the rate hike. The rest comes from all the other things that Obamacare does, such as forcing people to buy richer insurance benefits; to buy products with all sorts of add-ons they might not need; to pay Obamacare’s premium tax; and to pay a lot more, if they’re young, to subsidize older individuals.

In other words, you won’t be able to buy the plan you want. Obamacare forces you to buy a more expensive plan, even if you don’t need it.

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A new report from Social Security has raised its predicted unfunded liabilities over the next 75 years by one trillion dollars.

2:23 pm

The day of reckoning looms: A new report from Social Security has raised its predicted unfunded liabilities over the next 75 years by one trillion dollars, for a total of $9.6 trillion.

According to the report, “Through the end of 2087, the combined funds [OASI and DI] have a present-value unfunded obligation of $9.6 trillion.” That is “$1.0 trillion more than the measured level of $8.6 trillion a year ago,” states the report, in reference to the data available for 2011. That $9.6 trillion shortfall equals approximately $83,894 per household based on the Census Bureau’s latest estimate that there are 114,430,000 households in the country.

The report also looks farther into the future and saw the shortfall rise to $23 trillion.

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After warning repeatedly last year that the sequester would damage the economy, NBC now says “Nevermind.”

5:26 pm

Doing the work of the Democratic Party: After warning repeatedly last year that the sequester would damage the economy, NBC now says “Nevermind.”

It wasn’t just NBC. I can’t count the number of news sources and politicians that screamed “We’re all gonna die!” because sequestration was going to cut the federal budget a mere few percent. I said it then and I say it now: They were lying.

That news organizations participated in this lie however was particularly shameful. It didn’t take much research or thought to realize that these were lies. For NBC and other mainstream news organizations to not do that research tells us a great deal about how unreliable they are.

And by the way, remember the long lines threatened at the airports due to sequestration? We had those for about one day, and then things returned to normal. More evidence that it was all lying crap coming from this administration, forced upon travelers to make some dishonest political points, which were further aided and abetted by a lapdog press.

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The journal Science struggles to find the harm done from NIH’s 5% cuts from sequestration.

9:35 pm

The journal Science struggles to find the harm done to NIH from sequestration’s 5% cut.

Given that sequestration lopped off a staggering $1.55 billion from the National Institutes of Health’s (NIH’s) budget this year, it shouldn’t be hard to find examples of how the cut is harming research labs. Although sequestration “has already dealt a devastating blow,” said NIH Director Francis Collins at a Senate hearing last week, it turns out it’s not that easy to spell out the damage.

First of all, this cut was hardly “staggering.” All it did was bring NIH’s budget down to $29.15 billion, which is almost exactly the budget the agency had in 2008. Somehow, NIH managed quite well with this amount of money in 2008, and in fact probably wasted quite a bit of cash even then.

Second, this fact — that the cut wasn’t really that “devastating” — might explain why Science can’t find any obvious damage to any program. In its budget articles the journal routinely makes it a point to lobby for more money for scientists. Thus, we shouldn’t be surprised when it tries to spin any cut — or even a small reduction in the rate of growth — as a disaster. The fact that Science still has trouble making that spin seem believable in this case is solid evidence that sequestration was a good idea, and that there was a great deal of fat that could be trimmed from the budget.

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New estimates of the 2013 federal deficit show it will be the lowest deficit since 2008.

9:40 am

Good news? New estimates of the 2013 federal deficit show it will be the lowest deficit since 2008.

The CBO claims that much of the reduction comes from new revenue, but I suspect that the real cause was sequestration, which actually forced real cuts in federal programs for the first time since Obama took office.

I put a question mark on the “good news” above in that the deficit will still be higher than $600 billion, and that spending is still out of control. This drop is merely the tiniest glimmer of hope in a black storm of disaster.

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Seventeen of the nation’s largest healthcare insurance companies now say premiums will rise from 100 to 400 percent under Obamacare.

8:23 pm

Finding out what’s in it: Seventeen of the nation’s largest healthcare insurance companies now say premiums will rise from 100 to 400 percent under Obamacare.

The key reasons for the surge in premiums include providing wider services than people are now paying for and adding less healthy people to the roles of insured, said the report.

Now ain’t that a surprise? The rates go up when you require insurance companies to provide more services while simultaneously requiring them to insure more sick people! Who wudda thunk it?

Actually, every Republican and conservative in the nation, as well as millions of Americans at townhall meetings in 2010, were screaming these basic facts of reality to the Democrats. They just refused to listen.

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Senator Harry Reid (D-Nevada) says the federal government isn’t spending enough to implement Obamacare.

4:23 pm

Gee what a surprise: Senator Harry Reid (D-Nevada) says the federal government isn’t spending enough to implement Obamacare.

Even if the federal government was not spending money it doesn’t have and was in the black, there will never be enough money to fund this monstrosity. Too bad Reid and the rest of the Democrats couldn’t figure that out. (Or maybe they did and simply wanted the country to go bankrupt. I wonder.)

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America the fallen: Twenty-four signs that our once proud cities are turning into poverty-stricken hellholes.

10:18 pm

The day of reckoning looms: America the fallen: Twenty-four signs that our once proud cities are turning into poverty-stricken hellholes.

It is important to note that every single one of the cities cited in this article has been under Democratic Party rule for decades. While the decline is not entirely their fault, their tax-and-spend policies combined with a passion for heavy regulation certainly share much of the blame.

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