Tag: debt

15 Questions The Mainstream Media Would Ask Barack Obama If He Were A Republican

9:28 am

Fifteen questions the mainstream press would ask Barack Obama if he were a Republican.

While many of these questions are simply intended as a way to attack Obama (which of course is what the press does to Republican candidates), the last three are perfectly reasonable and do address directly the actual failures of his administration.

13) Why should the American people reelect you when your 10 year budget saddles America with more debt than all previous Presidents combined?

14) Your stimulus bill cost more in real dollars than the moon landing and the interstate highway system combined. What do we have to show for all of that money spent?

15) Members of your administration promised that the trillion dollar stimulus would keep unemployment under 8 percent. Instead, we’ve had 35+ months of 8% and above unemployment. Doesn’t that mean we wasted a trillion dollars on nothing?

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On Tuesday the Treasury Department began using pension funds to keep the federal debt below the debt limit.

9:31 pm

The day of reckoning looms closer all the time: On Tuesday the Treasury Department began using pension funds to keep the federal debt below the debt limit.

This action is, at this time, only a stop-gap until the debt ceiling is raised $1.2 trillion as per Obama’s request. Nonetheless, it signals the federal government’s increasingly dire debt problems.

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Obama asks for more power to consolidate government agencies

10:18 am

President Obama today asked Congress for additional power to consolidate six government agencies.

While this at first sounds like a very good idea, I must admit that it is difficult for me to trust this man with more power, at any time. In addition, how serious can we take his claim of desiring to save money when his administration is on a pace to increase the federal debt by more than $6 trillion, exceeding the debt accumulated by all Presidents from George Washington to Bill Clinton?

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The U.S. Agriculture Department announced Monday it will close nearly 260 offices nationwide.

9:24 pm

The U.S. Agriculture Department announced Monday it will close nearly 260 offices nationwide.

Agriculture Secretary Tom Vilsack said the goal was to save $150 million a year in the agency’s $145 billion budget. About $90 million had already been saved by reducing travel and supplies, and the closures were expected to save another $60 million, he said.

Though this is probably a good thing, the article only notes the amount supposingly saved, without showing how it would actually reduce the agency’s budget. Furthermore, I am puzzled why these cuts are necessary, since the USDA’s budget in 2011 still exceeds what it got in 2008. Both facts make me wonder if these cuts are nothing more than smoke-and-mirrors, designed to make us think they are trimming the budget when they actually are not.

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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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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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