Fed chairman Bernanke goes on record: US deficit “not sustainable”
Gee, you’d think he would have noticed this a long time ago: The Federal Reserve chairman Ben Bernanke went on record today to warn that the US deficit “is not sustainable.”
Tag: debt
Are astronomers finally going to push for a replacement for Hubble?
Astronomers are considering the merger two space missions to create a new optical/ultraviolet space telescope. The mission would be designed to do both deep cosmology and exoplanet observations.
The two communities would both like to see a 4–8-metre telescope in space that would cost in excess of $5 billion. “Our interests are basically aligned,” says [Jim Kasting, a planetary scientist at Pennsylvania State University]. Such a mission would compete for top billing in the next decadal survey of astronomy by the US National Academy of Sciences, due in 2020.
This story is big news, as it indicates two things. First, the 2010 Decadal Survey, released in August 2010, is almost certainly a bust. The budget problems at NASA as well as a general lack of enthusiasm among astronomers and the public for its recommendations mean that the big space missions it proposed will almost certainly not be built.
» Read more
Will fewer humans in space lead to more robot explorers?
Eric Berger at the Houston Chronicle asks: Will fewer humans in space lead to more robot explorers?
In a word, no. In the past fifty years, every time the budget of the manned space program has been cut, the unmanned program shrank as well. And every time the budget of manned space grew, so did the budget for unmanned missions.
More Democrats Join Threat to Hold Up Debt Ceiling Vote Without Spending Cuts
This is hopeful news: More Democrats are threatening to hold up the debt ceiling vote unless there are more spending cuts.
Funding for final shuttle flight assured
Funding for the final shuttle flight this summer is now assured.
Federal Borrowing on Pace to Hit Debt Limit in Less Than Week
Time is running out: Federal borrowing is on a pace to reach the debt limit in less than a week.
Investigation of doctors who issued fake sick notes in Wisconsin goes forward
The investigation of doctors who issued fake sick notes to union protesters in Wisconsin goes forward.
Government Cash Handouts Now Top Tax Revenues
Time is truly running out: The federal government’s cash handouts to all households now exceed what those households pay in tax.
Budget chaos at NASA causes ESA to halt work on its own Mars orbiter and rover
Sounds crazy, but it’s true: The budget chaos at NASA has caused the ESA to halt work on its own Mars orbiter and rover.
Orion Program Shrinking To Save Money, Time
More on the incredibly shrinking Orion program.
It ain’t gonna fly, and if I’m wrong and it does, it will accomplish little in the process — except spend a lot of pork money we no longer can afford.
State agency spends $73,000 giving out “6,000 red superhero capes” to the unemployed
Our government at work: Red superhero capes for the unemployed!
NASA Awards Next Set Of Commercial Crew Development Agreements
NASA has awarded the next set of commercial crew development agreements, giving contracts worth from $22 to $92 million to four companies, Blue Origin, Sierra Nevada, SpaceX, and Boeing. More here and here.
The amounts that NASA is giving these companies is minuscule, compared the monies spent on the program-formerly-called-Constellation. Yet I bet they all get their rockets/capsules launched and in operation, supplying cargos and crews to low Earth orbit, before NASA even test fires its heavy-lift rocket.
Bolden says Orion to be scaled back
Surprise! NASA administrator Charles Bolden told lawmakers on Monday that with the new budget the Orion capsule had to be scaled back somehow.
Watch over the next few years as Orion and the new heavy-lift vehicle (the program-formerly-called-Constellation) slowly evaporate, even as both cost us billions in money we no longer can afford.
“Our current unfunded entitlement liabilities run about $100 trillion.”
Federal funding for IPCC back in budget
The pigs win: Funding for the IPCC restored to budget in 2011 budget deal.
No deal
No deal. Key quote:
If Democrats are not going to do even minor surgery on Medicare and Medicaid and Republicans are not going to raise taxes, there is no hope of big budget deal to cut a deficit now running at 11 percent of gross domestic product.
And that raises another question. How long can the Federal Reserve continue financing these deficits? China, choking on U.S. debt, is reportedly beginning to divest itself of U.S. bonds. Japan will need to sell U.S. bonds to get hard currency to repair the damage from the earthquake and tsunami. And the Fed is about to end its QE2 monthly purchases of $100 billion in U.S. bonds. Where is the Fed going to borrow the $125 billion a month to finance this year’s deficit of $1.65 trillion, and another of comparable size in 2012? Bill Gross’ Pimco, the world’s largest bond fund, has sold all his U.S. bonds and begun to short U.S. debt. Pimco is betting that the value of U.S. Treasury bonds will begin to fall.
We may be about to enter a maelstrom.
House approves 2011 budget deal in 260-167 bipartisan vote
With substantial numbers of Republicans and Democrats voting against, the House today nonetheless approved last week’s budget deal for the 2011 fiscal year by a vote of 260-167.
Next important deadline: on May 16 or so the federal government should reach its debt limit.
A revolt on the right over budget deal?
A revolt on the right over budget deal?
“There is a gut feeling in some quarters today that the Boehner-Obama deal could be in bigger trouble than anybody realizes.”
Taxing the rich will not solve the problem
Because it is often claimed that we can solve our federal budget problems by closing loopholes and increasing taxes on the wealthy, I thought I’d share this video from Bill Whittle, dramatizing this Iowahawk essay.
We can argue all day about whether we should increase taxes on the wealthy, but that is not going to solve our debt problem. Even if we confiscated every penny of profit from every person or corporation earning more than million dollars a year, we would still not make the slightest dent in the federal deficit.
Our federal government is simply spending money it doesn’t have. We need to cut spending, and cut spending drastically, in order to gain some control over this problem.
Unfortunately, it doesn’t appear to me the American people or Congress are yet willing to face this fact.