Tag: bankruptcy

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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Since 2010 total government spending per household has exceeded what each household earns per year.

12:55 pm

The day of reckoning looms: Since 2010 total government spending per household has exceeded what each household earns per year.

In other words, even if the federal, state, and city governments took 100 percent of your income in taxes, they still wouldn’t get enough money to pay their expenses. And since government spending has continued to rise since 2010 amid a stagnant economy, this situation has worsened, not improved. Worse, in 2012 the public voted in favor of accelerating this situation by voting for more Democrats in the Senate, while keeping a spendthrift Democratic President in power.

We are going bankrupt. It is only a matter of time.

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The words of NASA’s chief: “NASA is not going to the Moon with a human as a primary project probably in my lifetime.”

12:17 pm

The words of NASA’s chief: “NASA is not going to the Moon with a human as a primary project probably in my lifetime.”

He’s right. Instead, others will do it. And the ones who do it from the United States, privately financed for profit, will do it quickly, efficiently, and often, three things NASA has not been able to do at all since the 1960s.

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Doctors driven to bankruptcy

11:28 am

Doctors driven to bankruptcy.

What is amazing about this article about the recent spike in doctors filing for bankruptcy is how it somehow never mentions Obamacare at all. The closest the author comes is a mention of “changing regulations.” How informative!

If the author was a good journalist, which he isn’t, it should have been self evident that the advent and effects of Obamacare has to be included in this story, if only to give it the proper context.

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NASA has indicated that the first manned launch using a commercial space carrier has slipped by a year.

9:26 am

NASA has now indicated that the first manned launch using a commercial space carrier has slipped by a year.

The reasons are as yet unclear, though it is suspected that the main cause is the decision by the Obama administration to cut the funds of this program under sequestration. As Clark Lindsey notes, however, there is no reason that some of these private companies won’t go forward and fly other passengers on their spaceships, ahead of the NASA flights. Specifically, SpaceX and its Dragon capsule should easily be ready to go well ahead of 2017, and will likely be earning enough cash from its commercial launches to pay for development even if the NASA subsidies get delayed.

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The coming Obamacare chaos

10:13 am

The coming Obamacare chaos.

The article is a very detailed summary of the many problems caused by Obamacare, from increased unemployment to loss of healthcare insurance to higher premiums to higher debt. Everyone should read it. However, the most important question is laid out in the very first paragraph:

The biggest political problem faced by so-called “liberals” and so-called “progressives” in President Obama’s second term is how to prevent voters from holding them politically responsible as the public comes to realize how badly they were lied to during the first Obama term to win passage of Obamacare.

It is going to be the number one priority of all Democratic politicians and their allies in the mainstream press to somehow find a way to blame Republicans for Obamacare. The question will be whether they will succeed.

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“The SLS program should be canceled now to free up approximately $10 billion programmed for this decade.”

9:38 am

“The SLS program should be canceled now to free up approximately $10 billion programmed for this decade.”

I’m both glad and not surprised that some heavy hitters are beginning to say this. As I noted last year, as the commercial space program begins to show success the politics will increasingly favor it over the very expensive and not very productive NASA-built Space Launch System.

Be prepared for SLS to steadily lose political support in the coming years.

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An audit of California’s fiscal state has found it to be $127 billion in the red.

9:54 am

The day of reckoning looms: An audit of California’s fiscal state has found it to be $127 billion in the red.

Were California’s state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion, according to an annual financial report issued by State Auditor Elaine Howle and the Bureau of State Audits. The report, which covers the fiscal year ending June 30, 2012, says that the state’s negative status — all of its assets minus all of its liabilities — increased that year, largely because it spent more than it received in revenue. [emphasis mine]

None of this is a surprise. California voters chose Jerry Brown and the Democrats to lead them into more debt.

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The collapse of household income since 2009.

3:03 pm

The collapse of household income since 2009.

A comparison of the graph in the article above with the changing federal debt (both graphs below the fold) is quite revealing. The steep drop in household income in 2009 lines up precisely with the steep rise in federal deficits beginning in 2009. I wonder if they have anything to do with each other? The article also notes the possible negative impact of Obamacare. How could they think such a thing?
» Read more

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Science and sequestration in context

11:00 am

On March 21, the House accepted the continuing resolution proposed by the Senate for the year 2013. This continuing resolution will fund everything in the federal government though September of this year, and includes the cuts imposed on March 1 by sequestration.

As it always does, the journal Science did a specific analysis of the science portion of this budget bill. As usual, they looked only at the trees, not the forest, comparing the budget changes up or down for the 2012 and 2013 years only, noting how those changes will impact each agency’s programs. As usual, Science also took the side for more federal spending, assuming that in each case any cut was sure to cause significant harm to the nation’s ability to do cutting edge science.

I like to take a wider and deeper view. Below is a chart showing how the budgets for these agencies have changed since 2008. They give a much clearer perspective of the consequences of sequestration and the cuts, if any, imposed by Congress on these science agencies.
» Read more

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A Democratic voter discovers he’s actually a tea party racist.

4:48 pm

A Democratic voter discovers he’s actually a tea party racist.

Today was a bad day. After meeting with my tax accountant, I am now cutting a very large check to the State of California, all of which resulted from Proposition 30 and the “retroactive tax” that was levied on my 2012 income. This despite the fact that I already paid my 2012 taxes back in September.

While the law stipulates that I must surrender this money, I refuse to acknowledge this as a tax at all. This is not a tax. This is an asset seizure plain and simple. The term “retroactive tax” is a despicable euphemism. It is no different than when Hugo Chavez used the benign-sounding “nationalize” to describe his seizure of private property in Venezuela.

He then notes that he is not a tea party member or even a Republican and that he voted for Obama twice.

Wanna bet that in the next election he’ll still vote Democratic? Based on the history of the past three decades, I expect that even after this experience, he will still refuse to abandon the faction he has adopted (the Democratic Party) and change his vote.

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Cyprus has agreed to confiscate a percentage of the savings of large depositors in order to satisfy demands from the European Union creditors..

10:10 am

The day of reckoning looms: Cyprus has agreed to confiscate a percentage of the savings of large depositors in order to satisfy demands from its European Union creditors..

This is only a hint of what’s coming for us here in the U.S. Like the European Union, eventually the federal government is going to go bankrupt, and when that happens it (being the politicians in charge) will then decide that the savings and pensions of private citizens will have to save them somehow.

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