Tag: budget

“I like being able to fire people who provide services to me.”

1:40 pm

“I like being able to fire people who provide services to me.”

This statement was made by Mitt Romney yesterday, explaining how it is a good thing to be able to chose the company from which you buy your insurance, or any product, and how it is even a better thing to be able to dump that company if it doesn’t do its job well.

The author of the article above, along probably with much of the press, will try to stain Romney for this statement. To me, it is the best recommendation to hire him as President. With the federal government out of control, in debt, and unable to do anything it promises, it really is time to fire a lot of people. I hope Romney, if he turns out to be the candidate and wins the Presidency, has the courage to do it.

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The national debt now equals the entire U.S. economy

1:29 pm

The day of reckoning looms: The national debt now equals the entire U.S. economy.

The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion. That’s roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.

But don’t worry. The press is focused like a laser on more important issues, such as whether the states might someday consider outlawing the pill.

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The National Science Foundation has declined until 2020 to commit to funding a giant American-built ground-based telescope

9:28 pm

Bad news for American astronomy: The National Science Foundation has declined until 2020 to commit to any funding for either one of the two giant American-built ground-based telescopes.

For nearly a decade now, two university consortia in the United States have been in a race to build two ground-based telescopes that would be several times bigger than today’s biggest optical telescope. One group—led by the University of California—plans to build the Thirty Meter Telescope (TMT) in Hawaii. The other team—led by Carnegie Observatories, the University of Arizona, and other institutions—is developing a 28-meter behemoth named the Giant Magellan Telescope (GMT), which would be built in Chile. Over the past few years, both teams have raised tens of millions of dollars toward the billion-dollar-plus projects in the hope that the U.S. National Science Foundation (NSF) would come up with the balance.

But now, it turns out, neither project has a chance of receiving any significant funding from NSF for at least another decade. In a solicitation posted by NSF last week, the agency indicated that it does not expect to fund the building of any giant segmented mirror telescopes—that is, TMT or GMT—until the beginning of the 2020s. According to the solicitation, all that NSF can provide right now is $1.25 million over 5 years for the development of a public-private partnership plan that could eventually lead to the building of a large telescope, should NSF be in a position to fund such a telescope sometime in the next decade.

I suspect the NSF’s unwillingness to fund this project at this time is directly related to the budget crisis in Washington. Though the NSF got slightly more money in 2012 than in 2011, that money is all accounted for by other projects. There is no margin for anything new that will be as expensive (in the billions) as these giant telescopes will be.

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Space exploration and the unexpected consequences of government decisions

4:24 pm

On Thursday, December 15, 2011, NASA management announced what seemed at first glance to be a very boring managerial decision. Future contracts with any aerospace company to launch astronauts to and from the International Space Station (ISS) will follow the same contractual arrangements used by NASA and SpaceX and Orbital Sciences for supplying cargo to the space station.

As boring that sounds, this is probably the most important decision NASA managers have made since the 1960s. Not only will this contractual approach lower the cost and accelerate the speed of developing a new generation of manned spaceships, it will transfer control of space exploration from NASA — an overweight and bloated government agency — to the free and competitive open market.

To me, however, the decision illustrates a number of unexpected consequences, none of which have been noted by anyone in the discussions that followed NASA’s announcement back in mid-December.
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At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial.

12:16 am

“At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial.”

Tens of millions of Americans have yet to understand that the can can no longer be kicked down the road, because we’re all out of road. The pavement ends, and there’s just a long drop into the abyss. And, even in a state-compliant car seat, you’ll land with a bump. At this stage in a critical election cycle, we ought to be arguing about how many government departments to close, how many government programs to end, how many millions of government regulations to do away with. Instead, one party remains committed to encrusting even more barnacles to America’s rusting hulk, while the other is far too wary of harshing the electorate’s mellow.

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The Obama Nation: Even More Debt And Even More Store Closings

10:50 am

A nation in economic collapse.

During “the Obama Nation”, the federal government has already accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office. Of course the Bush administration was nearly as bad at piling up government debt. Between Bush and Obama (with a big helping hand from the Federal Reserve), they have done a pretty good job of wiping out the financial future of the United States. If there are future generations of Americans, they will look back and curse those that did this to them. It is absolutely immoral to steal trillions of dollars from future generations. Unfortunately, there are very, very few members of Congress that are even objecting to this madness.

The article’s listing of store closings is also quite frightening, suggesting that the economic situation of the nation is far worse than has been reported.

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Why the establishment fears Newt Gingrich

9:26 am

Why the establishment fears Newt Gingrich.

When Newt became speaker, he was focused, disciplined and tough. He insisted on moving the Contract With America intact. He abolished committees and denied “old bulls” chairmanships. He insisted on using the majority to win conservative victories such as balancing budgets, achieving welfare reform and producing 11 million new jobs with tax cuts that spurred economic growth. He made some people unhappy when he pursued legislation that could win instead of pet bills that would have divided Republicans rather than uniting them. And he negotiated with a Democratic president to get the conservative legislation being passed signed into law. Some Republicans were left unhappy in the wake of all of that activity — some of them are still complaining today.

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Former astronaut John Grunsfeld is to take over NASA’s science post from Ed Weiler

9:43 am

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.

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The astonishing collapse of MF Global

7:41 pm

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.

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Deficit may be biggest threat to ObamaCare

9:32 am

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.

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The Great Spending Betrayal

9:16 am

The great spending betrayal.

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.

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Budget deal cuts EPA by three percent

10:13 am

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.

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NIH and DOE in the proposed budget deal

10:45 pm

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.

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Germany’s space chief sees big battles in Europe over funding for ISS and Ariane

12:09 pm

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.

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Deal reached on Defense authorization bill that had included language allowing the military to hold U.S. citizen indefinitely

10:01 pm

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.

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Why Washington is shocked, shocked by Newt Gingrich’s rise over Mitt Romney

10:47 am

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.

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