Insanity in California Budgeting

This is an astonishing abridged version of a report from the Los Angeles Times in italics. I have bolded some extraordinary facts.

After a 10-year borrowing binge, the upcoming budget is expected to spend more on debt than public universities or state parks. Next year’s repayments — $7.65 billion — could make up a quarter of the deficit.

Voters have approved borrowing in the last 10 years for such causes as stem-cell research ($3 billion), high-speed rail ($10 billion), and parks, water and the environment ($14 billion). They even took on $15 billion in debt to paper over a deficit that Gov. Arnold Schwarzenegger said would never reemerge — something economists have scolded the state for doing. California pays a premium for its loans. Taxpayers must fork over roughly $2 for every $1 borrowed — about 20% more than top-rated states, said Matt Fabian, an analyst at Municipal Market Advisors, a bond research firm.

Because of its rock-bottom credit rating, California pays a premium for its loans. Taxpayers must fork over roughly $2 for every $1 borrowed — about 20% more than top-rated states, said Matt Fabian, an analyst at Municipal Market Advisors, a bond research firm.

Amazingly Legislators have already placed an $11-billion water bond on the 2012 ballot. Nearly $1 billion in earmarks for such items as bike paths, museums, visitor centers and tree planting in key legislators’ districts were inserted to grease its passage.

Back in 2000 — in the heady days of surpluses — lawmakers placed a then-record $2.1-billion parks bond on the ballot rather than spend from the general fund to acquire undeveloped land and spruce up existing parks.Among the projects the borrowing funded were a bowling alley in Stockton, a bee colony and otter pond in San Mateo, and a dinosaur plaza in Santa Ana, complete with a giant replica Tyrannosaurus rex. About $1.2 million went to buff up a bear exhibit at the Folsom City Zoo Sanctuary near Sacramento. Caves were retrofitted with heated concrete because the cold “gets a little tough on the bones of the animals as they age,” said Robert Goss, the city’s parks and recreation director.

The shock is that we keep re-electing the same people to our legislature.

$35 Billion of Waste and More

Jon Carl of ABC World News asked Speaker of the House, John Boehner, about three projects that are total waste.

Republicans say they want to slice $1.7 billion out of the government’s budget for buildings. However, not mentioned in the Speaker’s press conference is the more than $5 billion spent every year on ethanol subsidies that neither help the environment nor save energy; $6.2 billion in tax credits for oil and gas companies flush in record profits; and $3.5 billion for an extra engine for the F-35 fighter jet that the Pentagon doesn’t want.

Mr. Carl could have also mentioned the C-17 cargo plane. The Air Force hasn’t asked for more money to buy C-17s since 2007. That year the Air Force wanted 12, and Congress bought it 22. In 2008, the Air Force wanted none, but Congress bought 15. In 2009, the request was also zero, and Congress bought eight. In 2010, the Air Force once again asked for no C-17s, and lawmakers bought 10. Since 2007, Congress has spent more than $10 billion buying C-17s.

Could the cuts have anything to do with eliminating those programs that are not in Republican districts?

A Sputnik Moment

The president may have called this A Sputnik Moment but his speech did not reflect that feeling. There was no call to a vision that inspires Americans to dream of a new day or a new goal. Sputnik inspired America to new achievements. Nothing the president said in his state of the union address prompted that kind of inspiration. There was no vision of the future. Nothing was inspiring.

At least the president should have told us about his ideas to invigorate the economy in a way that would re-employ the 7 million people that were employed before this recession started. His words were “innovation” and “education.” Neither of those events will re-employ the 6 million people who have used their 99 weeks of extended unemployment benefits.

Re-organizing the government, reducing tax incentives for oil companies, vetoing laws that have earmarks, and reducing tax breaks for the wealthiest Americans will not bring the American economy back to life.

Republicans contemplating running for the presidency will be motivated to enter the coming primaries.

Military Industrial Complex

Robert Gates, Secretary of Defense, flies to China to discuss China’s growing military size with the Chinese. Is he likely to convince them that they should not build an ever larger military organization? Obviously the answer is no. As he travels there he warns America by way of releases to the press of China’s growing military strength. Those releases telling all of us that the Chinese could become a threat to America.

The six largest military contractors earned $222 Billion in 2009. Those companies employ lots of people and are spread throughout the country. What’s the likelihood we will reduce defense spending? Not likely given the income and jobs that are at stake.

		Billions of Dollar Revenue in 2009
Lockheed Martin		45
Boeing		34
Northrop Grumman		34
Raytheon		24
General Dynamics		32
United Technologies		53
TOTAL REVENUE		222

Senator Alan Simpson Calls Seniors ‘Greediest Generation’…

This person is PISSED!!!! Wish I were the one that sent this to the beloved Senator!!!! There isn’t a word that is false and I am believing that many Americans are beginning to think along these same lines……

This article was just posted by the Associated Press today. Baby boomers near 65 with retirements in jeopardy.

From a man in Montana….who – like the rest of us – has just about had enough!

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Hey Alan,

Let’s get a few things straight!

1. As a career politician, you have been on the public dole for FIFTY YEARS.

2. I have been paying Social Security taxes for 48 YEARS (since I was 15 years old. I am now 63).

3. My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud.

4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN!

5. I, and millions of other Americans, have been paying into Medicare from Day One, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to such an extent that you need to steal money from Medicare to pay the bills.

6. I, and millions of other Americans, have been paying income taxes our entire lives, and now you propose to increase our taxes yet again. Why? Because you incompetent bastards spent our money so profligately that you just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay of YOUR debt!

To add insult to injury, you label us “greedy” for calling bullshit on your incompetence. Well, Captain Bullshit, I have a few questions for YOU!

1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?

2. At what age did you retire from your pathetic political career, and how much are you receiving in annual retirement benefits from the American taxpayers?

3. How much do you pay for YOUR government provided health insurance?

4. What cuts in YOUR retirement and health care benefits are you proposing in your disgusting deficit reduction proposal, or, as usual, have you exempted yourself and your political cronies?

It is you, Captain Bullshit, and your political co-conspirators who are greedy. It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for what? Votes. That’s right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You know it, we know it, and you know that we know it.

And you can take that to the bank, you miserable son of a bitch.

We Need a Director of National Intelligence (DNI)

What’s going on here?

James Clapper’s televised mishap masks a deeper problem: a national intelligence office that often seems out of the loop. Tara McKelvey wrote a column on this issue in the Daily Beast.

The idea of creating this office grew out of the 9/11 Commission report. If this office was functioning before 9/11/2001 perhaps the WTC would still be standing. The office was created by President George W. Bush. The idea was to have an office that could “connect the dots” and prevent another 9/11. The office has not worked well. Perhaps the reason is that other intelligence operations have not cooperated. Do all other security agencies report to the DNI? Is there a chain of command? Who is the boss?

James Clapper was caught in an on screen interview with Diane Sawyer of ABC not knowing that a terrorist plot had been discovered in the U.K. Mr. Clapper went silent. It was an embarrassing moment for everyone.

There is clearly something wrong with the job of DNI when it has been a revolving door.

John Dimitri Negroponte was the first director of national intelligence, (In office
April 21, 2005 to February 13, 2007). He resigned the position and returned to the State Dept. His successor was John Michael McConnell. Mr. McConnell held the position from February 20, 2007 to January 20, 2009. It is not clear from public information the cause of his departure.

Dennis Blair was next in the office. He was there from January 29, 2009 to May 28, 2010. He resigned. Next came David Gompert who was designated the Acting Director from May 28, 2010 to August 5, 2010 when the current director, James Clapper, took his place. Mr. Clapper is the fourth person to hold this position since April 21, 2005.

Like any organization, clear lines of responsibility are necessary. Will straightening out this situation occur after another terrorist attack?

The Republicans Win Again!

The 277-148 vote came less than 24 hours after the Senate cleared the bill, 81-19. Congress has extended Bush tax cuts and gave Republicans more than they could have possibly hoped to win.

This legislation was negotiated behind closed doors between Senate Minority Leader Mitch McConnell and the President. Along with all the other deals Obama has made behind closed doors, he has proven himself not to be the transformative president he campaigned to be. Barack Obama has proven himself to do whatever is politically expedient.

Now that this horrible piece of legislation has been approved by both houses of Congress, what to you imagine the Republicans will demand next? What ever it is, you can be certain that Mr. Obama will concede to the demand.

The worst part of this legislation is the reduction in Social Security taxes. They go down by 2% of almost everyone’s pay check (a deduction that applies to salaries up to $106,800). In one year they will have to be raised. What is the chance that the increase will occur? Republicans will fight that increase.

When I heard that FICA (Social Security) taxes would be lowered for one year with passage of the new tax bill I was excited about the positive impact on lower income families. Then, I thought , won’t that have an impact on the Social Security Trust Fund? I heard nothing about this on any of the cable news stations. Perhaps I am worrying unnecessarily. I only listened half heartedly to Bernie Sanders during his 8 1/2 hour rage.

Today I finally find that there are others who are questioning this short term stimulus that will hasten the destruction of Social Security.

Click these links to read the opinion of others.

Social Security Payroll Tax “Holiday” is No Gift to Americans

Social Security payroll tax cut is no way to give workers a break

Obama’s “Tax Holiday”: A Poison Pill for Social Security

Other Views of Social Security

The Cost of Money

Our money is costing us too much money to mint. Coin Update News posted an article this past February that advised that minting pennies costs 1.62 cents each and 5.79 cents to produce each nickel. The Canadians are considering doing away with the penny for the same reason. In addition many people believe inflation has made the lowly penny too inconsequential.

I personally do everything in my power to avoid having any pennies in my pocket because there isn’t anything left that costs just one penny. A half gallon of milk costs $1.79 at Trader Joe’s. If the price was $1.80 would anyone really care? Gasoline is so expensive why not just price it in multiples of 5 cents? After all, most of us buy gasoline in multiples of one dollar. I hand the clerk a $20.00 bill and say “twenty on pump 3”. I do not say “give me 10 gallons of gas on pump 3.”

This could be the start of an effort to make government more efficient and our lives a little simpler.

The U.S. National Debt is $13.8 Trillion!

U. S. Treasury Department report to Congress: U.S debt to rise to $19.6 trillion by 2015.

Despite these unpleasant facts our government continues to spend as if it has extra money in the bank.

On Sept. 30, 2009, public debt subject to the limit totaled $11.9 trillion with a $12.4 trillion debt ceiling.

Last February, Congress raised the ceiling on the national debt from $12.4 trillion to $14.2 trillion.

Since then, the debt has risen to $13.8 trillion — which means Congress will have to raise it yet again within a few months.

Extension of the Bush tax cuts will add $900 Billion to the national debt (reported by the Assoicated Press).

I hate to be Mr. Scrooge just before Christmas but the national debt is $13.8 Trillion. To avoid a government shutdown Congress will have to raise the current debt limit of $14.2 trillion within a few months. Continuing Bush tax cuts will add to the amount we borrow from China and the rest of the world. Currently the U.S. government borrows more than one-third of the money it spends. America appears to be following the path of Greece and Ireland.

Barack Obama’s deal with the G.O.P. proves that neither political party is really interested in reducing the spending by the Federal government.

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Visualizing Obama’s budget cuts.

This really puts it in perspective!

A student explains 100 Million Dollar Budget Cut

Trust me, you have to watch this one and I promise you’ll end up smarter in just a minute and thirty-eight seconds.

Recently Obama announced that over the next 90-days he is going to work to cut 100-Million dollars of spending out of the Federal Budget.

A university student explains.

VERY well done!

http://wimp.com/budgetcuts/

Conservative commentator David Brooks reveals his problem with Republicans

New York Times columnist David Brooks debated Republican Rep. Paul Ryan (R-Wis.) at an American Enterprise Institute forum Thursday and, amid a large degree of back-patting, the writer came to the conclusion that the GOP, in its current legislative form, is exhibiting a sort of obstinate “rigidity” that is damaging to the political process.

Here’s what Brooks had to say about the current debate over deficit control by cutting taxes and spending (transcript via ThinkProgress):

BROOKS: And my problem with the Republican Party right now, including Paul, is that if you offered them 80-20, they say no. If you offered them 90-10, they’d say no. If you offered them 99-1 they’d say no. And that’s because we’ve substituted governance for brokerism, for rigidity that Ronald Regan didn’t have.

And to me, this rigidity comes from this polarizing world view that they’re a bunch of socialists over there. You know, again, I’ve spent a lot of time with the president. I’ve spent a lot of time with the people around him. They’re liberals! … But they’re not idiots. And they’re not Europeans, and they don’t want to be a European welfare state. … It’s American liberalism, and it’s not inflexible.

Brooks also explained his vision of the Democrats’ ideology.

“They have much greater faith in planning than I do, and the health care plan that came out of that, it reflected their faith in planning that bunch of smart guys sitting around in Washington can plan the health care system in this country,” Brooks said. “They want to have — if you read what they’ve written for the past 20 years — a more actively planned society which does a little more redistribution.”

David is really a moderate. That will probably make him persona non grata at all future American Enterprise Institute forums. That is the problem with both political parties. Neither can handle disagreement with their primary view.