Tag: bankruptcy

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.

Leave a comment

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

One comment

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

11 comments

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.

10 comments

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.

One comment

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.

Leave a comment

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.

Leave a comment

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.

10 comments

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.

One comment

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.

2 comments

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

15 comments

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.

Leave a comment

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.

11 comments

One week before the sequester cuts took effect, the TSA issued a $50 million contract for new uniforms.

9:14 am

Someone’s lying: One week before the sequester cuts took effect, the TSA issued a $50 million contract for new uniforms.

I find these quotes from the article most interesting:

The TSA employs 50,000 security officers, inspectors, air marshals and managers. That means that the uniform contract will pay the equivalent of $1,000 per TSA employee over the course of the year.
…
The TSA provides uniforms to new employees, but requires its employees to buy their own replacements. “You will be measured for your new uniforms at your first orientation session,” the fact sheet says. “TSA will provide your initial uniform issue consisting of 3 long sleeve shirts, 3 short sleeve shirts, 2 pairs of trousers, 2 ties, and one belt, sweater, socks, and jacket.”

$1,000 per uniform? And only for first time employees? At a time Janet Napolitano is claiming they will be forced to lay off workers because of sequestration? As I said, someone is lying. Or they are so incompetent words fail me.

Leave a comment

The Democratically controlled Senate is about to mark up its first budget in four years!

7:20 pm

Gasp! The Democratically controlled Senate is about to mark up its first budget in four years!

It appears that sequestration and the expiration at the end of this month of the most recent continuing resolution is finally forcing the Democrats to act responsibly and actually do their job. If (and that’s a very big word) the Republicans stand firm in the House, they might be able to force the Democrats in the Senate to write a reasonable budget. For one thing, if a real budget is passed instead of the continuing resolutions we’ve been stuck with for the past four years — because of the Senate’s refusal to pass a budget — we might finally be able to stop paying for Obama’s so-called onetime 2009 stimulus bill, year after year after year.

4 comments

Hail Armageddon

8:59 am

“Hail Armageddon.”

The Obama administration has every incentive to make the sky fall, lest we suffer that terrible calamity — cuts the nation survives. Are they threatening to pare back consultants, conferences, travel and other nonessential fluff? Hardly. It shall be air-traffic control. Meat inspection. Weather forecasting.

A 2011 Government Accountability Office report gave a sampling of the vastness of what could be cut, consolidated and rationalized in Washington: 44 overlapping job training programs, 18 for nutrition assistance, 82 (!) on teacher quality, 56 dealing with financial literacy, more than 20 for homelessness, etc. Total annual cost: $100 billion-$200 billion, about two to five times the entire domestic sequester.

Are these on the chopping block? No sir. It’s firemen first. That’s the phrase coined in 1976 by legendary Washington Monthly editor Charlie Peters to describe the way government functionaries beat back budget cuts. Dare suggest a nick in the city budget, and the mayor immediately shuts down the firehouse. The DMV back office, stacked with nepotistic incompetents, remains intact. Shrink it and no one would notice. Sell the firetruck — the people scream and the city council falls silent about any future cuts.

After all, the sequester is just one-half of 1 percent of GDP. It amounts to 1.4 cents on the dollar of nondefense spending, 2 cents overall.

The only reason sequestration will cause a shut down of government services will because Barack Obama and his administration choose to do so. Keep that in mind if you discover that lines at the airport have suddenly grow to hours.

4 comments
1 … 82 83 84 85 86 … 89