Tag: budget

Downgrade could come as soon as Friday

9:58 am

The day of reckoning looms even closer: Credit rating downgrade for the U.S. government could come as soon as Friday. Key quote:

It’s not the debt ceiling that’s triggering a potential ratings change — it’s the trajectory of debt generated by the federal government.

And this:

The problem, as [the ratings agencies] see it, is not that America can’t pay its debts next month, but that America has grown its debt to such a degree that we can’t pay them in the long run without serious restructuring of the federal government — and this administration refuses to consider it:

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Conservatives bridle at trillions in ‘phony’ cuts

9:13 am

Trillions in “phony” cuts?

The devil is in the details,” says a Republican strategist closely involved in the debt fight. “When you’re talking about $1 trillion [over ten years], you’re talking about $100 billion a year, but it doesn’t necessarily have to be evenly distributed among the years.” Does that mean it might be loaded mostly at the end of the decade, when it might not even happen? “That’s where you get into the details,” the strategist says.

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Over-optimism in Forecasts by Official Budget Agencies and Its Implications

10:50 am

Science discovers the obvious: Government agencies are routinely over-optimistic in their budget forecasts. From the abstract:

The paper studies forecasts of real growth rates and budget balances made by official government agencies among 33 countries. In general, the forecasts are found:

  • to have a positive average bias
  • to be more biased in booms
  • to be even more biased at the 3-year horizon than at shorter horizons.

This over-optimism in official forecasts can help explain excessive budget deficits, especially the failure to run surpluses during periods of high output: if a boom is forecasted to last indefinitely, retrenchment is treated as unnecessary. Many believe that better fiscal policy can be obtained by means of rules such as ceilings for the deficit or, better yet, the structural deficit. But we also find [that] countries subject to a budget rule, in the form of euroland’s Stability and Growth Path, make official forecasts of growth and budget deficits that are even more biased and more correlated with booms than do other countries. [emphasis mine]

In related news, it is now more than 800 days since the Democratically-controlled Senate has passed or even proposed a budget, as they are required to do by law.

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The emptiness of the Democratic debt ceiling “plans”

12:30 am

The emptiness of the Democratic debt ceiling “plans”.

On Wednesday evening, I noted the absurdity of Associated Press coverage characterizing the 5-page document with 3-1/2 whole pages of text issued by the “Gang of Six” as a “plan” — 12 times, plus in the item’s headline. Though I didn’t bring it up then, an obvious point to make about any of these items floating around Washington is that if the Congressional Budget Office can’t score it, it can’t be a plan. A month ago, CBO Director Doug Elmendorf told a congressional committee, in response to a question about President Obama’s April proposal, that “we can’t score speeches.”

And then there’s this:

Obama … claimed to have a $4 trillion deficit-reduction plan. The court eunuchs of the press corps were impressed, and went off to file pieces hailing the president as “the grown-up in the room.” There is, in fact, no plan. No plan at all. No plan whatsoever, either for a deficit reduction of $4 trillion or $4.73. As is the way in Washington, merely announcing that he had a plan absolved him of the need to have one. So the president’s staff got out the extra-wide teleprompter and wrote a really large number on it, and simply by reading out the really large number the president was deemed to have produced a serious blueprint for trillions of dollars in savings. For his next trick, he’ll walk out on to the stage of Carnegie Hall, announce that he’s going to play Haydn’s Cello Concerto No 2, and, even though there’s no cello in sight, and Obama immediately climbs back in his golf cart to head for the links, music critics will hail it as one of the most moving performances they’ve ever heard.

The only “plan” Barack Obama has put on paper is his February budget. Were there trillions and trillions of savings in that? Er, no. It increased spending and doubled the federal debt.

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Boehner ends negotiations with Obama

6:19 pm

Not good: House Speaker John Boehner (R-Ohio) has broken off negotiations with President Obama over the debt ceiling.

“A deal was never reached and was never really close,” Boehner wrote. “I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward.” Boehner blamed Obama’s demand for higher taxes and opposition to “fundamental changes” to entitlement programs such as Medicare, Medicaid and Social Security.

The important thing to note here is that so far only the Republicans have put forth any specific plan. It might not have been perfect but at least it was something. And the Democrats have rejected it, without offering any detailed counteroffer.

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Perry and other lawmakers blast Obama over shuttle retirement

8:43 pm

Texas Governor Rick Perry, as well as other lawmakers from Congress, blasted Obama today over the shuttle retirement.

Bah. Perry claims to be a so-called small government conservative, yet he wants the government to spend a fortune to build and run the space program. Meanwhile, Senators John Cornyn (R-Texas) and Kate Bailey Hutchinson (R-Texas) were around in Congress when President George Bush announced the shuttle’s retirement seven years ago. Their effort since then to fund pork through NASA and thus have NASA build a giant new rocket system, either Constellation or its new Congressionally-designed replacement, has been a disaster. Right now it would be better, and far cheaper, if they stopped fighting the new commercial space companies and instead get behind them, especially since the Obama administration itself has done a very poor job of selling this new industry.

A little support from Congress could go a long way to not only reinvigorating the aerospace industry, it could speed our country’s return to manned space, with multiple competing companies.

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Obama plans birthday bash costing almost $40k per ticket on default day

12:04 pm

Tone deaf: Obama is planning a birthday bash fundraiser for himself costing more than $35k per ticket on August 3, the day the debt limit is reached and could default.

Oscar winner Jennifer Hudson is expected to perform at the birthday bash at the historic Aragon Ballroom in Chicago. The event will be one of the president’s biggest fundraisers of the year. Publicity literature featuring a red, white and blue Happy Birthday logo has already been produced. The event will be “multi-tiered,” the Chicago Sun-Times reported. The Hudson concert would cost $50; admission to the party $200; a premium seat $1,000; a souvenir photo with the president $10,000; and VIP seating and dinner with Obama $38,500.

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The Republican-controlled House today passed legislation raising the debt ceiling and cutting federal spending by $6 trillion

9:53 pm

Now it’s in the Democrats’ court: The Republican-controlled House today passed legislation raising the debt ceiling and cutting federal spending by $6 trillion.

Republicans have now passed their second bill this session that attempts to address the exploding deficits and the debt crisis, the first being Paul Ryan’s budget plan in April. Meanwhile, Democrats in the Senate haven’t bothered to pass any budget resolution in over 800 days, and the White House still refuses to offer any specific ideas.

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The dying NASA astrophysics program

11:25 am

The dying NASA astrophysics program.

With support from President Barack Obama, the agency’s Earth science budget is at an all-time high. Over the next four months, the planetary science division is due to launch three major missions: to the Moon, to Mars and to Jupiter. And the heliophysics division plans to send a probe plunging into the blistering atmosphere of the Sun, closer than ever before. But because the overall NASA science budget is relatively flat, something had to give. Since 2008, astrophysics funding has plunged relative to other NASA science and relative to physics and astronomy funding at other agencies.

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The U.S. and the rising Russian space program

12:48 pm

The Russians yesterday successfully launched their first space telescope since the fall of the Soviet Union. Here is a Google translation of a Russian article describing Spektr-R’s research goals:

[Spektr-R is] designed to study galaxies and quasars in the radio, the study of black holes and neutron stars in the Milky Way, as well as the regions immediately adjacent to the massive black holes. In addition, using the observatory, scientists expect to receive information about pulsars and the interstellar plasma. It is planned that the “Spektr-R” will work in orbit for at least 5 years.

Though this particular space telescope is probably not going to rewrite the science of astrophysics, its launch is historically significant. It indicates that Russia has just about recovered from the seventy-plus years of bankrupt communist rule that ended in 1990.
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“Re-election is the farthest thing from my mind.”

12:44 am

We need more elected officials like this:

“Re-election is the farthest thing from my mind,” said Representative Tom Reed, a freshman Republican from upstate New York. “Like many of my colleagues in the freshman class, I came down here to get our fiscal house in order and take care of the threat to national security that we see in the federal debt. We came here not to have long careers. We came here to do something. We don’t care about re-election.”

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Being tone deaf is not a good way to fund a government space program

11:59 am

Yesterday the House appropriations committee’s released budget numbers that included no additional funds for commercial space, limiting the subsidies to $312 million, the same number as last year and significantly less than the $850 million requested by the Obama administration.

This is what I have thought might happen since last year. The tone deaf manner in which the Obama administration has implemented the private space subsidies is leaving all funding for NASA vulnerable.
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NASA stalls, Texas lawmakers fume

10:12 pm

The law is such an inconvenient thing: In a bipartisan effort, Texas lawmakers roast NASA administrator Charles Bolden for not meeting mandated Congressional deadlines for Congress’s personally designed rocket, the program-formerly-called-Constellation.

The heavy-lift rocket and capsule that Congress insists NASA build is a complete waste of money and nothing more than pork. It will never get built, mainly because Congress has given NASA less money and less time to build it than they did for Constellation under the Bush administration. Unfortunately, the reason they continue to require NASA to build it is to provide pork to their districts.

In a perfect world this funding would be cut now, especially considering the state of the federal debt.
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House spending panel cuts John Holdren’s science office budget by 55%

7:18 pm

The House spending panel today proposed cutting the budget of the White House Office of Science and Technology Policy (OSTP) office, run by John Holdren, by 55%.

“OSTP has chosen to disregard a strong and unambiguous legislative prohibition on bilateral engagement with China or Chinese-owned companies,” says language accompanying the 2012 bill, to be voted on tomorrow by the full appropriations committee. “OSTP’s behavior demonstrates a lack of respect for the policy and oversight roles of the Congress.”

I think the Obama administration is about to discover that ignoring the law as passed by Congress can have bad consequences.

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Public debt and the peril of Obamacare

11:51 am

Public debt and the peril of Obamacare.

Countries with universal healthcare fall into two camps:

1. Totalitarian regimes like Cuba and North Korea, and authoritarian Third World countries in the Middle East and Africa.

2. Western nations that free-ride off of American military spending and its provision of international security, but nonetheless run unsustainable budgets with immense debts trying to pay for their social welfare states. [emphasis mine]

In other words, we had better repeal this monstrosity or we face economic collapse, probably preceded by a dictatorship.

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House Budget Bill Would Leave it to NASA To Apportion Bulks of Cuts

9:49 pm

The House bill that brings NASA’s budget back to 2008 levels essentially leaves it to NASA to figure out what to cut.

If true, what this means is that NASA itself will have to choose what it considers important. The one problem is that according to this article Congress is still requiring NASA to spend $3 billion on the program-formerly-called-Constellation. which gives the agency less flexibility in doling out the cash.

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