Government spending at its stupidest: the top ten projects.
I like #6 the best, $484,000 to help finance a pizza restaurant in Arlington, Texas, because every business should get its own free pile of cash from the government!
Excellent choice: Former astronaut John Grunsfeld has been picked to take over NASA’s chief science post from Ed Weiler.
Not only is Grunsfeld an excellent choice, his experience as an astronaut repairing Hubble will help improve relations between the science and manned space programs. In the past, scientists have often argued against manned space, trying to get that money for their unmanned research probes. Instead, when manned space got cut, so did science, and no one won. Grunsfeld’s leadership I think will forestall these short-sighted complaints.
State governments have eliminated thousands of public employees since the beginning of the recession.
The astonishing collapse of MF Global.
The failure of broker MF Global is a unique event in the annals of American corporate history: To my knowledge, it’s the first time a CEO singlehandedly bankrupted his firm through actions that the board of directors was not only knowledgeable of, but had indeed expressly sanctioned. “That takes some talent!” quipped Roderick Hills, a former chairman of the SEC.
The article is long, detailed, and thorough. It describes a deep corruption that should chill the spine of anyone who has money in the investment world.
I must note that I do not advocate more regulations to eliminate this corruption. Such regulations never work. Take for example this quote from the article, describing the accounting systems that are required by law to prevent a client’s funds from being misused:
As noted above, it’s a major part of the CEO’s job to put the proper systems in place. In fact, regulations implemented through Sarbanes-Oxley — a bill that Corzine co-wrote while he was a senator — require that the CEO and CFO sign off on the effectiveness of the controls over financial reporting. … If those proper “controls and procedures” were in place, a breach of segregated client funds should have set off loud, blaring, obnoxious alarms that would have alerted management to that breach.
In the case of Jon Corzine and MF Global, those controls were obviously not in place, and thus the Sarbanes-Oxley bill wasn’t worth the paper that Corzine used to write the bill.
Rather than more regulations, what works is very simple and can be summed by two words: “Buyer beware.” Investors (as well as voters considering the political ambitions of Corzine and his friends) have to be more skeptical of whom they put their trust in. You have to protect yourself. You can’t ask others to do it for you.
Well duh! Deficit may be biggest threat to ObamaCare.
I always opposed ObamaCare because I oppose the use of government to run our lives. But putting that minor point aside, it made absolutely no sense for the government to add this entitlement to the nation’s balance sheet at a time when that balance sheet is so completely in the red. The only time these kinds of government programs can possible work (if ever) is when there is lots of spare cash in the bank, something we definitely don’t have right now.
Over Friday and Saturday, 61% of House Republicans and 34% of Senate Republicans voted for the omnibus megabus bill. In doing so, not only did they violate their pledge pertaining to bundled (1200-page) bills and the 72-hour layover rule and agree to fund Obamacare, Dodd-Frank, Planned Parenthood, the EPA, the PLO and the UN; they actually agreed to spend almost $9 billion more than last year. Overall, budget authority will be $33 billion higher than the House budget, while appropriations for non-defense spending will be $45 billion more. One of the members who voted in the affirmative even agreed that he had voted for a “crap sandwich.”
One reason the budget is still growing is that two-thirds of the government is still controlled by the spendthrift Democratic Party. A second reason is that there are too many wimpy Republicans willing to compromise with these spendthrifts.
Which is why we have elections. 2012 should help fix this problem.
A Democrat explains the reasoning behind the Obama stimulus package: “We didn’t know what the hell was going on.” With video.
NASA faces a $325 million additional cut in the last-minute spending deal now before Congress.
These cuts will bring NASA’s budget back to what it had in 2008, hardly a disaster for space exploration.
Another science budget update from Nature states that the budget deal will cut EPA by three percent.
This cut reduces EPA’s budget from its 2011 numbers by about $400 million. However, the agency’s total 2012 budget of $8.4 billion is still $1 billion more than it got in 2008, hardly what I’d call a draconian cut.
Once again, the inability of Congress to seriously face the deficit issue threatens to eventually destroy the U.S.’s ability to do any science. A bankrupt nation can’t do much but feed itself, as the scientists in the Soviet Union learned back in the 1990s.
The National Institutes of Health (NIH) and the science office in the Department of Energy (DOE) appear to avoid serious cuts in the proposed budget deal.
Actually, NIH’s budget remains almost identical to what it got in 2012, $30.6 billion. However, this amount is $1.4 billion more than it got in 2008, and $1.7 billion more than it got in 2007. As for DOE’s Office of Science, the $4.889 billion for 2012 is still $700 million more than the office got in 2008.
In other words, considering the budget deficits the federal government faces, these 2012 budget numbers hardly seem to be a reasonable attack on the problem. Simply bringing those budget numbers back down to 2008 numbers would hardly damage the work these government agencies are doing, and it would surely do more to reduce the deficit.
Repeal it! Another ObamaCare program has gone bankrupt, spending its full budget three years earlier than expected.
One reason we are going bankrupt: The stimulus was not a one time expense, it was built into the baseline.
Click to see the chart most of all. It will make you sick.
Germany’s space chief yesterday said he expected big battles in Europe over future funding for ISS and Ariane.
Ariane is a serious problem, as it is expensive and a money-loser, despite dominating the commercial market in recent years. And worse, it will be difficult to make Ariane competitive in the future:
ESA in 2010 hired an outside auditor to review the current Ariane 5 system to look for ways to save money. Its principal conclusion was that very few savings were possible without scrapping the forced geographic distribution of industrial contracts that preserves the political and financial support needed for the Ariane system.
The $600,000 toad statue your tax dollars paid for and you will never see in person.
A deal has been reached on a Department of Defense authorization bill that had included language allowing the military to hold U.S. citizens indefinitely without charge, both in and outside the U.S.
Not surprisingly for a modern journalist (who routinely miss the lead in their own stories), this article really doesn’t tell us whether that language is still in effect.
Why Washington is shocked, shocked by Newt Gingrich’s rise over Mitt Romney.
Look, Gingrich is by far not a perfect candidate. He has clearly taken positions in the last few years that made my socks roll up and down in horror. And when he was Speaker there were times I thought he was too willing to agree to bad deals.
Yet, he did mastermind the first Republican takeover of Congress in forty years. Yet, when he was Speaker the federal budget was brought under control, producing surpluses for four years in a row.
Finally, unlike every other Republican candidate for President since Reagan, Gingrich can debate. He not only knows how to articulate conservative ideals, he has shown himself capable of effectively pointing out liberal foolishness. In the Presidential debates to come, the country needs that as it will give strength to the conservative candidates running for the House and Senate. And that is where we really need victories. If we get a Congress that is willing to seriously cut the federal budget, it won’t matter that much who is President.
Good news: A new poll shows a record high anti-incumbent sentiment toward Congress.
For once, the taxpayer doesn’t get screwed: The electric car company Aptera has shut down due to lack of interest from investors and the lack of a loan from the government.
The California company was counting on a federal loan – and private investments to match the loan – so that it could start producing its very first electric vehicle. Aptera said it was close to securing a $150 million from the U.S. Department of Energy, but it couldn’t line up the private dollars necessary to complete the loan application process.
The budget battles continue in Europe over funding a $16 billion fusion reactor project.
Now the three statutory bodies of the European Union have agreed to cobble together €360 million from anticipated unspent funds in the still-to-be-decided 2013 budget. Another €840 million will be found by shifting money from 2012 and 2013 budget lines for farm and fishing subsidies, rural development, and environment, into the ones covering research. The remaining €100 million had already been allocated to ITER in the 2012 budget.
Sounds to me as if this whole thing has feet of clay, and is going to fall apart long before completion.
The efforts to resurrect spending on pet projects reveal the tenuous nature of current reform efforts. Two senators have publicly called out their colleagues and will introduce legislation Wednesday that would ban earmarking with the force of law. “I have heard too many appropriators say informally that they are very hopeful that we can get back to earmarking in the future with few restrictions,” said Sen. Claire McCaskill (D-Mo.), who is co-authoring the bill with Sen. Patrick J. Toomey (R-Pa.). “That has come out of the mouths of Democrats and Republicans.”
What I glean from this article is that a good number of legislators are still trying to sneak in their earmarks, but that they are finding it increasingly difficult. Unfortunately, it also appears that too many of them are still succeeding.
A fascinating short video: The competing worldviews of the Tea Party and Occupy Wall Street.
Running out of other people’s money: Shortages in the European Union’s science budget is prompting proposed cuts, which in turn is sparking outrage.
Chris Christie to Barack Obama: “What the hell are we paying you for?”
This is so good, so honest and to the point, that it deserves to be embedded everywhere.
The international development agency Oxfam is screaming disaster..
This year’s food shortages and famine are a sign of what’s to come if the world doesn’t get climate change under control, Oxfam is warning. The international development agency made a call for action the day before the UN kicks off its annual climate change conference in Durban, South Africa. . . .
» Read more
Building Boeing’s CST-100 manned capsule, the smart way.
From pressure seals used on the international space station to rendezvous and docking sensors developed for the Pentagon’s Orbital Express experiment, Boeing is drawing heavily on heritage space and aviation programs for its proposed CST-100 commercial human spacecraft.
Cheaper also.
Gingrich’s presidential campaign has gotten him no endorsements from Republican lawmakers.
Considering how incompetent these Republicans have been in getting the federal budget under control, and considering that the last time the budget was balanced was during Gingrich’s reign as speaker in the 1990s, I would consider their lack of support as the best endorsement Gingrich could get. We need real change in DC. The status quo has left us on the verge of economic collapse and bankruptcy.
The truth about the “automatic budget cuts” that are going to be imposed by the failure of the supercommittee: “They aren’t really cuts; they are a slowdown in the budget increases.”
And journalists should therefore stop calling them “budget cuts.”
The day of reckoning looms: The Congressional supercommittee has given up. The perspective of one member of the committee can be read here. Key quote:
The Congressional Budget Office, the Medicare trustees, and the Government Accountability Office have each repeatedly said that our health-care entitlements are unsustainable. Committee Democrats offered modest adjustments to these programs, but they were far from sufficient to meet the challenge. And even their modest changes were made contingent upon a minimum of $1 trillion in higher taxes—a move sure to stifle job creation during the worst economy in recent memory.
Even if Republicans agreed to every tax increase desired by the president, our national debt would continue to grow uncontrollably. Controlling spending is therefore a crucial challenge. The other is economic growth and job creation, which would produce the necessary revenue to fund our priorities. [emphasis mine]
This needs repeating: regardless of whether you think we should raise taxes in this situation, no tax increase can eliminate the deficit. The problem is out-of-control spending that needs to be seriously curbed.
Some historical context in discussing the federal debt.
When Bill Clinton was president, the national debt rose by an annual average of $193 billion; when the profligate George W. Bush was in the White House, the yearly debt increases averaged $612 billion. On Obama’s watch, by contrast, the federal debt has been skyrocketing by more than $1.5 trillion per year. It took 40 presidents and nearly two centuries, from George Washington to Ronald Reagan , for the US government to accumulate $1.5 trillion in indebtedness. The 44th president – aided and abetted by Congress – enlarges the federal debt by that amount every 12 months.
Testimony at a House hearing yesterday, including the refusal of an OMB representative to appear, lend weight to the rumors that OMB plans to end NASA’s planetary program.
