Tag: bankruptcy

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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The Democrats in the Senate passed their first budget in four years yesterday.

9:19 am

Pigs fly! The Democrats in the Senate passed their first budget in four years yesterday.

The budget cuts practically nothing while increasing taxes by almost $1 trillion, which essentially illustrates how little the Democrats want to bring the debt under control. That four Democrats who face a tough election in 2014 voted against the budget also suggests that the Democrat’s traditional spendthrift approach might finally be becoming dangerous at the polls.

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NASA has issued a clarification specifically excluding its press announcements from the suspension of all public outreach efforts.

9:00 am

NASA has issued a clarification specifically excluding its press announcements from the suspension of all public outreach efforts due to sequestration.

I am not surprised. These budget cuts are aimed at grabbing the most publicity as possible, without harming NASA’s ability to lobby for funding. Ironically, the truth is that much of NASA’s education and outreach work can be cut, will not be missed, and so these cuts should illustrate this fact quite effectively.

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Obamacare may cost small business as much as 65% of their profits.

8:44 am

Obamacare may cost small business as much as 65% of their profits.

At these levels, the question that will soon occur to the business owner is “Why am I bothering?” If he can shrink his business to less than 50 employees and avoid the Obamacare costs, he will.

And in related news: Health insurers are privately warning brokers that premiums may double next year for many individuals and small businesses due to Obamacare.

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According to a federal report, businesses nationwide remain reluctant to hire because of Obamacare.

9:51 pm

According to a federal report, businesses nationwide remain reluctant to hire because of Obamacare.

Earlier this month, the Fed released its latest “beige book” – a monthly report on economic conditions across the country. The book noted that employers across the country have “cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff.”

And it is only going to get worse. Read the whole article. The new taxes imposed by Obamacare are going to crush the healthcare industry.

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NASA has clamped down on travel expenses, reducing it by 30 percent in the past year.

7:11 pm

My heart bleeds: NASA has clamped down on travel expenses, reducing it by 30 percent in the past year.

I’ve been to too many science conferences where there was a whole slew of NASA engineers and scientists from all across the country, there because they were getting a free ride from the taxpayer. Often it was absolutely worthwhile for NASA engineers or scientists to be there. More often, it was a complete waste of money that could have been used elsewhere to better effect.

In related news: NASA’s inspector general has suggested the agency could save a lot more money by closing many of its almost 5,000 facilities nationwide.

Here too I’ve visited many NASA operations and found the work being done there redundant, completely unnecessary, or there was no real work being done at all. In the last case a lot of what I’ve seen is featherbedding, this time imposed by Congress to keep the money flowing to their constituents as pork. Unfortunately this last fact will probably make it very difficult to shut any of these facilities, as our representatives, from both parties, appear completely uninterested in serving the country. They’d rather act as union reps for these government employees.

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The budget battle at NASA

10:49 am

Two stories today highlight not only the budget problems at NASA, but also illustrate the apparent unwillingness of both Congress and Americans to face the terrible budget difficulties of the federal government. In both cases, the focus is instead on trying to fund NASA at levels comparable to 2012, before the Obama administration or sequestration had imposed any budget cuts on the agency.

It is as if we live in a fantasy world, where a $16 trillion dollar debt does not exist, and where money grows on trees and we can spend as much as we want on anything we want.
» Read more

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The Democrats in the Senate are about to introduce their legally required annual budget — for the first time in four years.

9:16 am

Pigs fly! The Democrats in the Senate are about to introduce their legally required annual budget — for the first time in four years.

Not that this budget will do much to solve the federal debt, as it will likely continue the out-of-control spending and is expected to be loaded with new taxes galore.

On that note, has anyone but me noticed this tendency of the modern Democratic Party to grab and grab and grab? They want a blank check in spending, for their own uses, while repeatedly demanding as much money from everyone else as possible. In another time, this behavior would have been perceived as somewhat power-hungry, even tyrannical.

And then there’s this: “We don’t have a spending problem.” Guess who said it.

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The dirty little secret of electric cars.

6:17 pm

The dirty little secret of electric cars.

A 2012 comprehensive life-cycle analysis in Journal of Industrial Ecology shows that almost half the lifetime carbon-dioxide emissions from an electric car come from the energy used to produce the car, especially the battery. The mining of lithium, for instance, is a less than green activity. By contrast, the manufacture of a gas-powered car accounts for 17% of its lifetime carbon-dioxide emissions. When an electric car rolls off the production line, it has already been responsible for 30,000 pounds of carbon-dioxide emission. The amount for making a conventional car: 14,000 pounds. …

So unless the electric car is driven a lot, it will never get ahead environmentally. And that turns out to be a challenge. Consider the Nissan Leaf. It has only a 73-mile range per charge. Drivers attempting long road trips, as in one BBC test drive, have reported that recharging takes so long that the average speed is close to six miles per hour—a bit faster than your average jogger.

In other words, government subsidies for electric cars are nothing more than another feel-good program, accomplishing nothing.

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