Tag: Congress

NASA today unveiled for the press the Orion capsule scheduled for the program’s first test flight in 2014.

9:35 pm

NASA today unveiled for the press the Orion capsule scheduled for the program’s first test flight in 2014.

Today’s unveiling was essentially a PR event designed to boost political support for the Space Launch System (SLS) and the Orion capsule program. And though we should definitely give kudos to Lockheed Martin for its progress on Orion, it is also important to note that the building of this capsule took 8 years and about $6.5 billion. And it won’t go into space for still another two years at best. Compare that to SpaceX’s Dragon, which took about four years from concept to launch, with a cost of about $1 billion.

It is this contrast that is worrying the political supporters of SLS and Orion. Consider for example this quote from the above article:

But the Orion schedule assumes steady funding by Congress, which is an open question given the current debate over federal budget deficits, taxes and a general push to reduce federal spending. “We have to be concerned about that because we are in an era of government spending where you have to do more with a limited amount,” Nelson said. “That, of course, is going to be one of the main things we’re going to have to look at in the future.” [emphasis mine]

Nelson has been a big backer of SLS from the moment Congress decided to force it down NASA’s throat. It is very clear from his comments above however that he recognizes the political difficulties that this very expensive program faces.

As I’ve said before, I expect SLS to die sometime in the next three years. Faced with a ungodly federal deficit, the next Congress is going to look for ways to save money and — assuming the commercial space companies like SpaceX continue to have success — Congress will see this program as one of those ways.

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A Modest Proposal

9:48 am

“A Modest Proposal.”

Now that the Roberts Court has affirmed that the government has the power to mandate purchases of private goods and services as long as it’s structured as a tax, I propose that we put this new-found authority in the service of an explicit Constitutional right. For far too long, too many Americans have suffered from an inequal distribution of firearms, despite the Second Amendment’s express exhortation to “keep and bear arms,” in large part because income inequality in this nation has kept the poor and working classes from having the proper protection for themselves and their loved ones. We need to end this disparity now by applying the ObamaCare model immediately.

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The Dodd-Frank downgrade.

10:11 am

The Dodd-Frank downgrade.

What comes through in the Moody’s assessment [the credit-rating downgrade of 15 banks] and in any review of their returns on equity is that banks have lost significant ability to generate earnings to offset the inevitable losses. The lost earnings power is surely due in part to reduced leverage, which helps protects taxpayers.

But 2,300 pages of Dodd-Frank and countless other federal efforts to put sand in the financial gears are also taking their toll. The Obama tax and regulatory frenzy, of which Dodd-Frank is a part, weighs on economic growth. Those are our words, not Moody’s, but the rating agency does note that the abysmal economic environment is a drag on ratings for everyone.

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The House yesterday proposed a spending bill that would cut the EPA’s budget to $7 billion, 17% less than what it received in 2012.

3:09 pm

Progress: The House yesterday proposed a spending bill that would cut the EPA’s budget to $7 billion, 17% less than what it received in 2012.

Considering the federal debt, this is a reasonable cut, as a $7 billion budget would be comparable to the EPA’s budget numbers in the early 2000s, and would hardly cripple that agency.

On a more depressing note, the Senate is moving forward on a bi-partisan deal to pass a massive farm bill, loaded with pork that would spend almost a trillion dollars over the next decade.

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The real estate crash: We’ve only just begun

11:37 am

A real estate industry group today announced that there was a nine percent jump in foreclosures during the month of May.

RealtyTrac reported that 205,990 U.S. properties received filings last month, including default notices, scheduled auctions and bank repossessions, marking the first monthly increase since January. Bank repossessions climbed steeply, up 7% to 54,844, after hitting a four-year low in April.

The report also noted that foreclosures made up 26% of U.S. home sales in first quarter and that more than 30% of mortgage borrowers were still underwater.

As someone who just moved to Tucson and spent more than six months searching for and finally purchasing a home, I can add a bit of personal experience to these dry statistics. And my perspective is sadly not encouraging.
» Read more

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Congressman Frank Wolf (R-Virginia) has backed down and modified the language he had inserted in the NASA budget bill that would have limited the number of commercial space companies NASA could subsidize.

3:59 pm

Good news: Congressman Frank Wolf (R-Virginia) has backed down and modified the language he had inserted in the NASA budget bill that would have limited the number of commercial space companies NASA could subsidize.

From Clark Lindsey:

Rep. Frank Wolf (R-VA) , who is Chairman on the Commerce-Justice-Science subcommittee of the House Appropriations committee, put language into the recent House budget for NASA that requiree NASA to down-select immediately to one primary contractor in the commercial crew program. This would obviously eliminate competition on price and rule out redundancy in case one system is grounded. He has now relented and is willing to allow for “2.5 (two full and one partial) CCiCAP awards”.

As I wrote earlier, the success of Dragon is putting strong political pressure on Congress to support the independent commercial space companies over the NASA-built and very expensive Space Launch System (SLS) that Congress had mandated. Expect to see more elected officials back down in the coming year, with the eventually elimination of SLS from the budget.

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A bank run by an Obama bundler has gotten an Republican-led House committee to exempt that bank from provisions of the Frank-Dodd act, saving the bank $300 million.

5:07 pm

Bipartisan corruption: A bank run by an Obama fund-raiser has gotten an Republican-led House committee to exempt that bank from provisions of the Dodd-Frank act, saving the bank $300 million.

Any law that allows legislators to grant individual waivers isn’t a law at all but a form of extortion: Pay up or you won’t get your exemption. Dodd-Frank, as well as much of all the legislation passed by Congress in the past decade, should be repealed so that everyone gets the exemption.

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An economy built to stall

8:48 pm

“An economy built to stall.”

In his first two years in office, Democrats gave Mr. Obama everything he wanted, save for cap and trade and union card-check, which would have done even more harm to job creation. They passed stimulus, ObamaCare, multiple housing bailouts, Dodd-Frank and more.

Even after Republicans took the House, they gave Mr. Obama the payroll tax holiday he demanded first for 2011 and again for 2012. Far from some new fiscal “austerity,” overall federal spending hasn’t declined. Meanwhile, the Federal Reserve has delivered monetary stimulus after stimulus—QE I, QE II, Operation Twist, and 42 months of near-zero interest rates with the promise of 30 months more.

Mr. Obama has had the freest run of policy of any President since LBJ. So maybe the problem is the policies.

Maybe Milton Friedman was right that “temporary, targeted” tax cuts don’t change the incentives to invest or hire because people aren’t stupid. Maybe each $1 of new federal spending doesn’t produce a “multiplier” of 1.5 times that in added output. Maybe the historic burst of regulation of the last three years has harmed business confidence and job creation. And maybe the uncertainty that comes from helter-skelter fiscal and monetary policy has dampened the animal spirits needed for a durable expansion.

As I said yesterday, though no president or Congress is entirely to blame for the state of the economy, they both can do great harm if they make decisions that interfere with the freedom of the market. And sadly, having the government interfere with the freedom of the market has been Obama’s mantra since the day he took office.

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A U.S. senator has demanded the NIH explain how it could give a $2 million grant to a researcher previously punished for not reporting financial conflicts of interest who is also under investigation by the Department of Justice.

3:01 pm

Corruption in Big Science: A U.S. senator is demanding the NIH explain how it could give a $2 million grant to a researcher previously punished for not reporting financial conflicts of interest who is also under investigation by the Department of Justice.

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Two Democrats joined Republicans yesterday on a Senate committee to block the U.S. military from increasing its use of alternatives fossil fuels.

2:52 pm

Two Democrats joined Republicans yesterday on a Senate committee to block the U.S. military from increasing its use of alternatives fossil fuels.

What stood out to me in this article was the following quote:

As part of this support, in December the Navy agreed to spend $12 million for 450,000 gallons of “advanced biofuels,” which can be blended with petroleum in a 50:50 mixture and burned in conventional engines. The Navy and Air Force have both set a goal of using advanced biofuels for 50% of their fuel use by the end of this decade. But the current $26-a-gallon price tag angered congressional Republicans, who accuse the Obama Administration of using the military to support its green agenda. [emphasis mine]

$26 per gallon for biofuels? I find it astonishing that anyone voted for this program.

Of course the military wants options. And of course we want to reduce our dependence on fossil fuels, if only to reduce the money pouring into the hands of the radical Islamists of the Middle East. But at that price, these alternative fuels are simply not competitive or affordable.

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Cronies ‘R’ us

7:34 pm

“Cronies ‘R’ us,” an illustrative example of why conservatives don’t trust the Republican Party.

As this story points out, the problem in Washington is not merely the fact that the Democrats like to spend other people’s money like water (which they do). It is also because too many established members of the Republican party have been all too willing to join them in this spendthrift behavior.

It is for this reason the tea party movement exists, and why so many established Republicans, like Richard Lugar in Indiana, are getting kicked out of office. The movement isn’t partisan, it is merely focused on making whatever progress it can. Kick out Democrats wherever possible, and do the same for those Republicans who like to be me-too Democrats.

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Using the budget balancing rules Congress imposed on private companies, the federal deficit turns out to be five times greater than the official but fake numbers Congress normally publishes.

10:11 am

The day of reckoning looms: Using the budget balancing rules Congress imposed on private companies, the annual federal deficit turns out to be five times greater than the official but fake numbers Congress normally publishes.

The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.

The deficit was $5 trillion last year under those rules. The official number was $1.3 trillion. Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, according to government actuaries, but the amount was not registered on the government’s books.

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Only 65% of the political class and only 61% of Democrats are aware that federal spending has gone up in the past ten years.

1:58 pm

Pitiful: Only 65% of the political class and only 61% of Democrats are aware that federal spending has gone up in the past ten years.

Interestingly, 85% of the general public knows this basic fact, which might explain why the intellectual elites of our country — from both parties — are continually being blindsided by the rise of the tea party movement and its continued success in elections.

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Shut it down

8:25 am

Our government in action: An NIH nationwide study to track hundreds of thousands of children from birth to age 21 is wracked with budget and management problems.

All told, this study has already cost the taxpayers almost a billion dollars for the enrollment of only 4,000 children, not the 100,000 envisioned. That’s about $250,000 per child, an amount that seems incredibly high.

In addition to the above problems, it appears there are scientific ones as well:
» Read more

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Senator Bill Nelson (D-Florida) on Monday attacked the House version of NASA’s budget that required the agency to make a quick decision on its commercial manned launch company.

5:37 pm

Senator Bill Nelson (D-Florida) on Monday attacked the House version of NASA’s budget that required the agency to make a quick decision on its commercial manned launch company.

Nelson faces a difficult election campaign from the right. Thus, I suspect he has realized that he is better off promoting free enterprise than local pork. It is unfortunate that the Republicans in the House haven’t yet realized this.

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Muslims are exempt from Obamacare’s insurance mandate.

8:30 am

Finding out what’s in it: Muslims are exempt from Obamacare’s insurance mandate.

ObamaCare uses the Social Security language of the Internal Revenue Code to determine who is eligible for “religious conscience” objection to the insurance mandate. Specifically, the law provides exemptions for adherents of “recognized religious sects” that are “conscientiously opposed” to accepting benefits from any insurance, public or private.

As a consequence of this provision, Muslims may claim a religious exemption that is denied Christians and Jews. Since Islam believes insurance is haraam (forbidden) and likens insurance to gambling, the religion is excluded from requirements, mandates, or penalties set forth in the bill. Others who fall into this category are the Amish, American Indians, and Christian Scientists. Although the U.S. Constitution grants all Americans equal protection of the law, some Americans are more equal than others.

Not only must this catastrophe of a law be repealed, we voters have got to remove as many as possible of the incompetent elected officials who wrote and voted for it.

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A trend, not a fluke: Indiana Republicans dump Senator Richard Lugar for a tea party favorite.

8:43 pm

A trend, not a fluke: Indiana Republicans have dumped incumbent Senator Richard Lugar for a tea party favorite.

In related news, a prison inmate has gotten the highest percentage of votes, 40 percent, of any candidate in any previous state primary against Barack Obama.

Washington politicians had better stop ignoring the fiscal concerns of the tea party. The federal budget has got to be brought under control.

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