Showing posts with label deficits. Show all posts
Showing posts with label deficits. Show all posts

Sunday, November 16, 2014

Opening the lens on the left's lies. Obamacare and beyond.

The lies that are central to Obama’s agenda

Damn Americans. They just don’t see the wisdom of surrendering to experts the power they need to remake the country into a progressive paradise.
Sighing with regret, liberals like Jonathan Gruber admit that they’re forced to hoodwink the citizens. For their own good.
Gruber, the MIT economist who (in the words of The New York Times) “put together the basic principles of” ObamaCare and helped Congress “draft the specifics of the legislation” is one of a long line of liberals driven by the belief that the stupidity of the American people is so insurmountable that persuasion is futile. 
Liberalism: the place where compassion blurs into condescension.
“Lack of transparency is a huge political advantage and basically, you know, call it the stupidity of the American voter or whatever, but basically, that was really, really critical to getting the thing to pass,” Gruber said, in a newly unearthed 2013 video that went viral last week.
Gruber’s jocular tone wasn’t surprising. In explaining why a huge tax increase was disguised to conceal it from the American people, he was admitting what was obvious to close observers: The law is really just a redistribution scheme. 
Even the Democrats didn’t think ObamaCare could pass by being so described.
That’s why deception, as Gruber says, was central to its design.

Profiting from deceit

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Jonathan GruberPhoto: Getty Images
Except Gruber got it wrong: The people weren’t actually fooled. Most Americans are not wonks. They simply suspected that the law was too good to be true.
ObamaCare will cut your premiums? By $2,500 a year? And reduce the deficit? While giving gold-plated coverage to tens of millions more people? Who won’t have to pay much? And none of this will result in anyone losing their current plan?
To the average person, Obama sounded like a used-car dealer shouting, “Free Ferrari. Gets 100 miles to the gallon! Did I mention it runs on rainwater?”
Americans didn’t buy it. Never did. At no time has approval for ObamaCare hit 50% in the Gallup poll.
So the Democrats pushed the program through anyway, without a single Republican vote, via legislative legerdemain.
No program of similar scope had ever been rammed through without bipartisan support. The only thing bipartisan about ObamaCare was the opposition: 34 House Democrats joined all of the Republicans to vote against it.
What’s important about Gruber’s words is that they highlight the fact that ObamaCare isn’t just “controversial” or “divisive” or “hotly debated.” It is fraudulent. Being based on lies, it is illegitimate.
The arguments made in its behalf were tainted. When Democrats including Harry Reid, Nancy Pelosi and even the elves who run the White House website wanted to push the idea that impartial experts agreed with its sunny projections about ObamaCare, they turned to…Jonathan Gruber.
“Objective Analysis Shows Reform will Help Small Businesses, Lower Premiums for American Families,” said a Nov. 4, 2009 White House blog post that referred to Gruber’s supposedly unbiased opinion.
TO THE AVERAGE PERSON, OBAMA SOUNDED LIKE A USED-CAR DEALER.”
Yet Gruber joined the HHS payroll right after Obama took office, in March 2009. He was paid $392,600 to consult on ObamaCare. Some might call this kind of arrangement “corruption.” 
It’s like an expert witness appearing in court to swear that BP never spilled any oil while working as BP’s $400,000-a-year publicist.
But that’s not the only way Gruber personally profited from the Affordable Care Act. After he “pretty much wrote ObamaCare” (liberal health-care journalist Sarah Kliff), he hit the road to promote it — and got paid via funding provided by the same law. 
Minnesota paid him $400,000 of ObamaCare money to attend one meeting, print a copy of a report and participate in an e-mail list, The Washington Times reported
Wisconsin and Vermont each paid Gruber $400,000 for similar “work.” West Virginia, Maine, Colorado and Oregon also hired him, though the Times didn’t say how much they paid him. So Gruber has made more than $1.5 million from ObamaCare — that we know of.
But don’t worry, the Government Accountability Office already investigated, and cleared him. 
Though it’s against the law for federal agencies to use funds for propaganda, and though Gruber published many op-eds praising ObamaCare without disclosing that he was a paid government contractor, GAO ruled that all of this proselytizing was simply a hobby.

‘Decontextualized bits of fact’

Modal Trigger
Photo: Getty Images
Liberals call President Bush a con artist, or worse, for launching a war because of an active WMD program in Iraq. But Bush genuinely believed Iraq had WMDs. 
So did every major foreign intelligence agency on earth, even France’s. So did Hillary Clinton and Joe Biden, who voted for the war based on the same intelligence Bush saw.
Bush acted on information he believed to be true. That is not lying.
Telling the American people something you know to be false — if you like your health-care plan, you’ll be able to keep your health-care plan, period. No one will take it away, no matter what — is lying.
Defenders scrambling to defend the administration’s lies are beclowning themselves.
“‘Stupidity’ is unfair. Ignorance is a more accurate term,” wrote Jonathan Chait in New York magazine.
To the charge that ObamaCare was crafted in a deliberately deceptive way, Chait replies that Gruber is talking about something totally different: “He was trying to explain how the law’s architects had to compromise the simple technocratic purity they might use to design the law in an academic setting to account for an irrational political system in which tiny bits of fact can be decontextualized and manipulated by demagogues.”
Nice one, Jacques Derrida. Fellas, next time you tell your wife you’re going to Phoenix to attend Aunt Sophie’s funeral and evidence emerges that you instead spent the weekend with three hookers in an EconoLodge in Reno, try this one: “I had to compromise my simple technocratic purity to account for an irrational marital-vows system in which tiny bits of fact can be decontextualized, honey!”
I don’t recall anyone saying that Todd Akin’s strange rape remarks were “decontextualized bits of fact.” Then again, let’s keep in mind the relative importance of these gotcha moments. 
Akin was idly theorizing off the cuff about a topic that had nothing to do with anything that would ever pass his desk if elected, whereas Gruber was talking about the months of strategic thinking involved in a $2 trillion law he co-wrote that is the single biggest piece of legislation in the last half century.
On MSNBC, contributor Josh Barro essayed a blame-the-victim line of reasoning: It’s “the public,” he said, that “puts politicians in a position where the only thing they can do to make the public happy is lie and so, people lied.”
Wrote Danny Vinik in a “Who cares?” piece in The New Republic, “While it’s nice to imagine a world in which politicians promoting ideas were always forthright, balanced and disinterested, that’s not realistic.” 
We’ll see if Vinik shrugs the next time he catches a Republican in a lie.

History of misleading

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Photo: Reuters
The brutal effects of the lies are still coming in. More and more Americans will see their premiums rise. More and more Americans will be tossed out of their current insurance. 
More and more Americans will become more and more angry about this.
And all of this to solve a problem that was as overhyped as “The Amazing Spider-Man 2.” 
In July 2009, six months into the Obama era, a Time magazine poll found that while there was widespread consternation with something called “the system” (i.e., what people were told about others, from news reports), 86% of Americans approved of their own personal health care.
Eighty-six percent! Abraham Lincoln wishes his approval ratings were that high. We’re talking about something that Americans liked at least as much as motherhood, the Grand Canyon and summer.
But it had to be completely redesigned, because there just wasn’t enough for the Jonathan Grubers and Jonathan Chaits of the world to do.
The reason liberals consistently mislead, or try to mislead, the public on their policies is that they don’t pass the common-sense test.
During the stimulus debate, we were told that, because of a magical fairy dust called the “Keynesian multiplier,” a dollar of federal spending would actually pump four or five dollars or six dollars into the economy. 
TODAY, IT’S THE YOUNG AND RELATIVELY POOR WHO ARE SUBSIDIZING OLDER, RICHER PEOPLE.
Worrying about the resulting debt, we were told, betrayed a misunderstanding of economic science, which we all know is completely scientific and not speculative at all.
Unlimited spending, though, sounds frightening to everyone but experts. “Why do we even bother to show fiscal restraint?” pointed out Michael Kinsley in The Atlantic. “Why have taxes at all? Why deny ourselves anything money can buy? If $15 trillion in debt can be a freebie, why not $30 trillion or $60 trillion?”
Liberal “caring” and liberal lying were partners even in Social Security. In order to win Supreme Court approval of the program, the FDR administration had to argue (truthfully) that it was a tax-and-welfare scheme — not an insurance plan. 
Problem: Americans, even in the 1930s, weren’t fond of a dole.
As William Cohen, one of the architects of the program, explained at the time, “The American public was and still is insurance-minded and opposed to welfare, the ‘dole’ and ‘handouts.’”
Yet after the Supreme Court OK’d Social Security, the people were told in a pamphlet, “Your [Social Security] card shows that you have an insurance account with the US government — federal old age and survivors insurance. This is a national insurance plan for all workers.” 
It was the opposite of what the New Dealers told the Supreme Court.
The Social Security tax taken out of your paycheck was designed as an illusion — to make you think the government is just banking the money for you instead of conducting a massive intergenerational transfer of wealth. 
Today, it’s the young and relatively poor who are subsidizing older, richer people.

Undermining government

Conservatives are skeptical about government claims in the first place. Gazing at a pothole that’s sat untouched for two years, we tend to doubt that a single law is going to fix health care nationwide for everybody.
It’s supporters of the party of government who should be most upset by government deception. As Fournier put it in National Journal, “[Gruber] called you stupid. He admitted that the White House lied to you. Its officials lied to all of us — Republicans, Democrats, and independents; rich and poor; white and brown; men and women.
“Liberals should be the angriest. Not only were they personally deceived, but the administration’s dishonest approach to health care reform has helped make ObamaCare unpopular while undermining the public’s faith in an activist government. A double blow to progressives.”
How many more “victories’ like ObamaCare can progressivism survive?

Friday, November 14, 2014

Obamacare: coming things you won't like

3 things White House doesn't want you to know about ObamaCare, plus 3 things coming in 2015 you aren’t going to like

ObamaCare architect and MIT professor Jonathan Gruber’s remarks about the "stupidity" of the American voter and the passage of ObamaCare is bad enough. What is even more disturbing are his comments about the bill’s deliberate lack of transparency. White House Press Secretary Josh Earnest’s denials Thursday were also absurd. 
The arrogance and condescension that has too often characterized the Obama administration’s policies have put the American public in the unfortunate position of having to learn about the health care changes the hard way, on their own.

Here are three crucial changes that the president clearly didn’t want you to know about:


1. HUGE DEFICITS AND NEW TAXES.
 According to the Congressional Budget Office, the latest projections for the net cost of ObamaCare over the next ten years are just over $1.4 trillion. Whereas President Obama promised in 2009 that it would cost less than $1 trillion over ten years. In order to partially pay for this, ObamaCare has added more than 20 new taxes totaling over $500 billion.
2. BUREAUCRACY. Speaking of Orwellian politics, ObamaCare includes 159 new boards and agencies to restrict and govern your health care choices.

3. STILL MORE BUREAUCRACY.
 Dysfunctional state exchanges with high deductible policies, narrow doctor networks, including federally-run exchanges in 36 states which may not be allowable under the law (SCOTUS currently considering this case). 
Here are three new things coming up in 2015 that you aren’t going to like:
1. PENALTIES WILL RISE – INDIVIDUAL MANDATE. 
In 2014, people are facing a penalty of $95 per person or 1% of income. 
In 2015, the penalty will more than triple to $325 per person or 2% of income, whichever is higher. 
If an American failed to get coverage this year, the penalty will be taken out of their tax refund in early 2015. 

2. SERIOUS RATE HIKES FOR CHEAPER OBAMACARE PLANS.
 According to Investor’s Business Daily, the lowest cost bronze plan will increase an average of 7 % in many cases, the lowest cost silver plan by 9%, and the lowest priced catastrophic policy will climb 18 percent on average. Double digit rate hikes are anticipated in several southern and Midwestern states including Kansas, Iowa, Louisiana, North and South Carolina, Tennessee, Iowa, and Virginia.  
Subsidies will continue to be a huge part of the program. In 2014, subsidies provided ¾ of the premiums for the federally-run exchanges.  

3. EMPLOYER MANDATE WILL TAKE EFFECT. 
After being delayed for a year, large businesses (100 or more employees in 2015, 50 or more in 2016) will be required to offer affordable (and subsidized) health plans to at least 70 percent of their full time employees or face a $2,000-$3,000 penalty per employee. 
This mandate will lead to fewer full time employees being hired.

The latest Kaiser Family Foundation poll in July revealed that 53 percent of those surveyed had an unfavorable view of ObamaCare. 

I expect this number to rise as more of ObamaCare’s “bells and whistles” are rolled out. Americans are experiencing ObamaCare as a cancer of the health care system. -- The more it grows, the more it infiltrates and destroys healthy tissue. 

Tuesday, September 17, 2013

Argentina has run out of other people's money. Populism, socialism, central planning and an anti business climate. What could possibly go wrong


Risk of default adds to woes for Argentina’s Fernández



In the heart of downtown Buenos Aires, it is hard to walk more than 20 paces without being accosted by hawkers buying and selling dollars. Interested customers will be led into an inconspicuous office in a nearby building.
“They’re called ‘caves’, because they’re supposed to be secret. Of course everyone knows they’re there,” said a hawker who called himself Raul. “Illegal? Of course they are! But don’t worry, the police are paid off, nothing will happen to you.”
The thriving currency black market on postcard Florida Street in the commercial centre of Argentina’s capital is a result of strict foreign exchange controls introduced in 2011 to stem capital flight. In the “caves”, dollars can be sold for close to double the official rate of 5.7 pesos.
Argentina’s artificially overvalued currency is one of an array of economic problems facing Cristina Fernández de Kirchner, president. Others include stubbornly high inflation, state subsidies that are sapping resources, and an abysmal business climate that has seen investment all but dry up.
“We have an economy that has become dysfunctional,” said Miguel Kiguel, an economist and former government official, who identifies the overvalued currency as one of the roots of the problem, undermining the economy’s competitiveness.
During Ms Fernández’s second term as president, surpluses in the current and capital accounts have shrivelled into twin deficits. This is especially bad for a country that has outlaw status on the international capital markets and cannot seek financing abroad.
That problem will only deepen if Argentina slips into a technical default, which some observers believe is all but inevitable after a US appeals court last month ruled in favour of the holdouts demanding that Ms Fernández’s government pay the $1.3bn it owes them in full, in the latest chapter in a long-running saga that began when Argentina defaulted on almost $100bn in debt in 2001.
The likelihood that Argentina will default for a second time in little more than a decade only increased when Ms Fernández subsequently proposed a new debt exchange, which congress approved last week, since if the plans are implemented in full observers say they would put Argentina in contempt of court.
The government is doing its utmost to stave off the moment of reckoning, when the US Supreme Court issues a definitive ruling on the case – something it may not do until next year – but some question how much another default will really change what is already a bad situation.
“It will just be one more stripe on the tiger,” added Mr Kiguel, who observes that Argentina is already paying default-level interest rates on its debt.
Serious economic problems are among the main reasons why the ruling Peronist movement fared so poorly in primary elections last month, making it almost impossible for the president to secure the two-thirds majority she would need in midterm legislative elections on October 27 to amend the constitution and enable her to run for a third consecutive term in office in 2015 presidential elections.
With less than two years of Ms Fernández’s presidency remaining, the battle for succession is well under way, sending local politics into flux.
Carlos Germano, a political analyst, said: “We are about to see a fierce dispute for the change of leadership of the Peronist party, as well as a realignment of forces in the opposition.
“The great unknown is how the president will react to all of this.”
Ms Fernández is losing the support of the trade unions and low-wage workers – bedrocks of the Peronist movement. Some fear that her waning power could have grave repercussions.
“Why has Argentina had these macroeconomic problems for such a long time without a crisis? Because we have had a strong government,” according to Luis Secco, an economist. “When political power weakens and there are macroeconomic problems, the possibility of a crisis increases greatly,” he said, pointing to the premature collapse of the Alfonsín and de la Rúa governments in 1989 and 2001 respectively.
Sergio Berensztein, a pollster, said: “The president’s power has weakened extraordinarily, thanks to a series of terrible decisions. She has done everything wrong.”
He added that Ms Fernández’s victory in 2011 presidential elections, with an unprecedented 54 per cent of the vote, led her to believe that she had carte blanche. “She went for everything, but she ended up with nothing.”

Wednesday, August 14, 2013

Who needs a debt limit rise when you can just fudge the numbers.

Treasury Ran $98 Billion Deficit in July--But Debt Stayed Exactly $16,699,396,000,000 


(CNSNews.com) - The Treasury Department's Financial Management Service (FMS), which publishes both the federal government's official Daily Treasury Statement and its official Monthly Treasury Statement, is reporting that in July the federal government ran a deficit of $98 billion but that the federal government's debt remained exactly $16,699,396,000,000 for the entire month.
The FMS said that the deficit went up $98 billion ($97,594,000,000) in the Monthly Treasury Statment for July, which it released on Monday.
At the same time, the FMS said the debt stayed at exactly $16,699,396,000,000 in its Daily Treasury Statements, which are published every business day. The Daily Treasury Statements show the daily value of the federal government debt that is subject to a legal limit set by Congress.
At the static $16,699,396,000,000 level that the Treasury reported for every day of July, the debt was just $25 million below the legal limit of $16,699,421,000,000 that was set in a law passed by Congress and signed by President Barack Obama.
If Treasury's daily statements were to declare that the government had borrowed an additional net $98 billion to cover the $98 billion deficit the Treasury declared in its monthly statement for July, the Treasury would be conceding that the government had already surpassed the legal limit on the debt--and has been violating the law by continuing to borrowing additional money.
Instead, even as the Treasury was running up the $98-billion deficit it reported in the July Monthly Treasury Statement, every one of the 22 Daily Treasury Statements published for July said the Treasury had closed out the previous business day with exactly $16,699,396,000,000 in debt.
The Daily Treasury Statement for Aug. 12, released Tuesday afternoon, says the debt remained stuck at exactly $16,699,396,000,000 during the first 12 days of this month, too.
On May 17, the first day the Treasury reported that the debt had hit exactly $16,699,396,000,000--and was thus just $25 million below the legal limit--Treasury Secretary Lew sent a letter to House Speaker John Boehner saying he was beginning to implement what he called "the standard set of extraordinary measures" to prevent the Treasury from exceeding the legal limit on the federal debt.
Since Lew sent that letter--announcing that he would use "extraordinary measures"--the debt has remained stuck at exactly $16,699,396,000,000 for 87 straight days.
That includes all 31 days in July when Lew's Treasury says it was running a $98 billion deficit.
When Lew stops using "extraordinary measures" to keep the debt at exactly $16,699,396,000,000, the government will have another debt-limit crisis.
- See more at: http://cnsnews.com/news/article/treasury-ran-98-billion-deficit-july-debt-stayed-exactly-16699396000000#sthash.8k4GUnDl.dpuf

Sunday, July 28, 2013

The next Detroit?

City of Chicago’s cash cushion plummets, debt triples, arrests drop, water use rises



Mayor Rahm Emanuel closed the books on 2012 with $33.4 million in unallocated cash on hand — down from $167 million the year before — while adding to the mountain of debt piled on Chicago taxpayers, year-end audits show.
Last week, Moody’s Investors ordered an unprecedented triple-drop in the city’s bond rating, citing Chicago’s “very large and growing” pension liabilities, “significant” debt service payments, “unrelenting public safety demands” and historic reluctance to raise local taxes that has continued under Emanuel.
The 2012 city audits explain why. They show that an unallocated balance that was $167 million a year ago because of Emanuel’s aggressive cost-cutting efforts has dropped to $33.4 million.
Budget Director Alex Holt blamed the $133.6 million drop on “honest” budgeting and ending the long-standing practice of carrying “ghost” vacancies.
“We’re trying to be more transparent about what we’re really spending and taking in — not just carrying a bunch of people who took up money in the budget and left money on the table at the end of the year,” Holt said.
“Let’s be straightforward about what we’ve got to spend and not pretend we’re gonna hire for a position we haven’t hired for, who know how many years when those resources are need to provide other services. ... This is about matching revenues with expenses. You don’t want to over-tax people.”
In last week’s report, Moody’s noted that the city’s total fund balance at the close of 2012 was $231.3 million and that Chicago has just $625 million in “leased asset reserves.” Had the city fully funded its $1.5 billion “actuarially required contribution” to its four under-funded city employee pension funds in 2012 alone, “these two reserves would have been entirely depleted,” Moody’s said.
The “unassigned” balance is $33.4 million. Experts recommend a cash cushion of at least $200 million for a budget the size of Chicago’s, according to the Civic Federation. The city ended 2009 with an unallocated checkbook balance of just $2.7 million.
The new round of borrowing brings Chicago’s total long-term debt to nearly $29 billion. That’s $10,780 for every one of the city’s nearly 2.69 million residents. More than a decade ago, the debt load was $9.6 billion or $3,338 per resident.
Last year, now-retiring City Comptroller Amer Ahmad argued that the city’s debt load was not “troubling” because, “We still have a very strong bond rating. Our fiscal position is getting better every year and we are aggressively managing our liabilities and obligations.”
He can no longer say that after the triple-drop in Chicago’s bond rating.
The audits by the accounting firm of Deloitte & Touche provide a treasure trove of information about city finances and operations.
Interesting nuggets include:
■ The number of “physical arrests” by Chicago Police officers declined again — from 152,740 in 2011 to 145,390 in 2012. That continues a six-year trend that coincides with the hiring slowdown that caused a dramatic decline in the number of police officers. Police made 227,576 arrests in 2006. The number of arrests has been dropping like a rock ever since.
The Chicago Police Department has long argued that it doesn’t measure the success of crime-fighting strategies simply by the number of arrests.
■ Emergency responses continued their steady rise — to 472,752. That’s up from 300,971 in 2006.
■ O’Hare Airport operating revenues were up by $23.2 million, a 3.3 percent increase, thanks to rising terminal rental and use charges. Operating expenses rose $19.1 million because of rising personnel and contracting costs. Airline ticket taxes known as “passenger facility charges” generated $154.5 million in 2012.
The number of passenger “enplanements” rose by a modest 37,000 — to 33.24 million. That’s despite a continued decline by O’Hare’s two largest carriers — from 8.7 million passenger boardings in 2011 to 7.4 million in 2012 at United Airlines and from 7.6 million to 7.2 million by American.
In 2003, United and American together accounted for 67.7 percent of O’Hare enplanements. Now, it’s just 44 percent.
■Budget-oriented Midway Airport is thriving, spelling potentially good news if, as expected, Emanuel chooses to revive the $2.5 billion deal to privatize Midway that collapsed for lack of financing.
Midway boardings rose from 9.45 million in 2011 to 9.78 million last year. Operating revenues were up just $462,000 because of decreased landing fees and terminal use charges. That’s even though concession revenues rose by $1.8 million due to an increase in parking, restaurant and auto rentals. Operating expenses rose by $4.2. Ticket taxes generated $43.9 million.
■The 55 percent subsidy to retiree health care that Emanuel wants to phase out and retirees are suing to maintain cost the city $97.5 million in 2012.
■ Daily refuse collections declined from 3,983 tons in 2011 year ago to 3,763 in 2012. Last year’s 52-ton increase had reversed a five-year trend. The amount of garbage generated by the 600,000 Chicago households was 4,451 tons a day in 2006 to 4,240 in 2008.
■Thanks to last year’s record heat and drought conditions, average daily water consumption rose by 23 million gallons — to 793 million gallons — reversing a steady decline. In 2006, Chicago’s 1.04 million households were guzzling 884.9 million gallons-a-day. Operating revenues in the city’s water fund were up by $122.1 million or 29.6 percent, thanks to Emanuel’s 25 percent increase in water rates.
■ Chicago’s 165 tax-increment-financing districts had a collective balance of $1.5 billion. Most of that money is uncommitted, fueling an aldermanic demand Emanuel has rejected: to declare a TIF surplus and use the money to reduce some of the 3,000 layoffs at Chicago Public Schools.
■ The condition of Chicago’s four city employee pension funds is growing ever more precarious. The firefighters pension fund has assets to cover just 25 percent of liabilities, followed by: Police (31 percent); Municipal Employees (38 percent) and Laborers (56 percent).
■Chicago’s historical collections and works of art are valued at $13.2 million.
■ Chicago’s principal private employers were: J.P. Morgan Chase (8,168 workers); United Airlines (7,521); Accenture LLP (5,590; Northern Trust (5,448); Jewel Foods (4,572) and Ford Motor Co. (4,187). The 2012 city payroll was 33,708 — down from 40,297 in 2006.
By July 31, Emanuel must release a preliminary city budget. It’s almost certain to include another massive deficit — strengthening the city’s case in contract talks with city unions — that will have to be closed with more layoffs, service cuts and new revenues.
Emanuel’s 2013 budget held the line on taxes, fines and fees — beyond those set in motion the year before and annual increases in parking meter rates locked into the 75-year lease. The mayor also eliminated 275, mostly-vacant jobs while making strategic investments in tree-trimming, rodent control and children’s health and after-school programs.
But, aldermen warned that it was the calm before the storm: a painful solution to the city’s pension crisis that will require both new revenues and concessions from city employees.
Former Mayor Richard M. Daley postponed Chicago’s day of reckoning by balancing his final budget with $330 million in Skyway and parking meters reserves and other short-term fixes. That left just $76 million remaining from the widely-despised, 75-year, $1.15 billion deal that privatized Chicago parking meters.

Some of the statistics here seem superfluous. For example, it's not stated why the generation of household waste declined. Recycling? Reduced packaging? Increased efficiency? You guess. 

Second, the figure of debt per person should be debt per tax payer. People on welfare or not paying taxes have no debt to pay off since they don't contribute to the tax pool. So that number in reality is far higher.


Wednesday, April 24, 2013

No cuts in Obama's entertainment budget however.


Washington airports spared sequester impacts


The chief of the FAA told Congress today that Washington-area airports will largely escape the effects of the air traffic controller furloughs — a blessing for lawmakers who fly out of the nation’s capitol.
Michael Huerta, head of the Federal Aviation Administration, told a congressional panel that the Washington region’s airports are spaced out enough and have enough spare capacity that furloughs to air traffic controllers won’t hurt as much here.


He also said Atlanta should escape major problems because the big airfield there has five runways, which makes it easier to space flights out.
That’s not the case in places like New York City, where several big airports are clustered together.
The furloughs of air traffic controllers — which the FAA said it had to do because of budget sequesters — has created delays at some airports. With fewer air traffic controllers, flights are being spaced out more, meaning planes depart their gates on time but can end up sitting on the runway for two hours awaiting clearance from the tower.


Friday, March 22, 2013

Lord Obama passes out America cash.


Obama vows extra $200m to Jordan to help Syrian refugees

US President Barack Obama has pledged to Jordan an additional $200m (£131m) to help deal with the growing number of Syrian refugees in the country.
After talks in Amman, Mr Obama said the funds - if backed by Congress - would help provide more humanitarian aid.
Some 450,000 Syrians have fled to neighbouring Jordan since the unrest began in 2011, putting huge pressure on the Jordanian authorities.
Meanwhile, Jordan's King Abdullah ruled out closing Jordan's border with Syria.
President Obama said he would ask Congress to provide additional funds as "budget support" to help the Syrian refugees.
He said this would help improve basic services at refugee camps along the Jordan-Syria border.
The US is already the largest single donor of humanitarian assistance to Syrian refugees.
The number of Syrians who have fled the country to escape the conflict between the government and rebel forces reached one million earlier this month, according to the UN High Commission for Refugees.
The UN says half of those leaving Syria are children, most of them under 11 and often traumatised by their experiences.
Along with Jordan, the many Syrians are seeking shelter in Lebanon, Turkey, Iraq and Egypt.

Friday, March 15, 2013

Democrats: It's in their bloodline to be dishonest


Democrats Use Budget Gimmicks To Hide Spending

In their first budget in four years, Senate Democrats claim to have crafted a plan that cuts federal spending a total of $975 billion over the next decade.
"This budget cuts spending responsibly," said Senate Budget Chairman Patty Murray, D-Wash., this week. "There are no sacred cows; we put everything we can on the table."
But an IBD review of the budget data shows that the Senate vastly overstates the size of its spending cuts. In fact, it could be that the Senate would, if enacted, increase federal spending by hundreds of billions of dollars.
The $975 billion figure, for example, doesn't count the $100 billion in new stimulus Senate Democrats are pushing. That alone cancels out more than 10% of the advertised spending cuts.
Changing The Baseline
Senate Democrats also appear to use a gimmick known as "baseline budgeting" to make their proposed spending look lower than current budget policies.
Put simply, the Senate budget projects that the government will spend more to finance current policies over the next decade than does either the Congressional Budget Office or the House Budget Committee.
But Senate Democrats rely on dubious assumptions. They assume that the sequester spending cuts don't happen, even though they are required by law. That boosts the baseline by $995 billion over 10 years. They also keep a refundable tax credit in place that's set to expire, adding another $164 billion.
Because of these and other assumptions, Senate Democrats claim 2014-2023 federal spending under "current policies" will be $47.2 trillion. As a result, their $46.4 trillion plan would shave hundreds of billions of dollars.
But the House Budget Committee projects federal spending under current policies will be far lower -- coming in at $46.1 trillion. By that measure, the Senate plan boosts outlays $300 billion.
Republicans on the Senate Budget Committee say that the extra spending is $645 billion.
Vowing Action, In 2016
The Senate plan could also make it harder to get long-term spending under control. The proposal would sharply boost spending from 2013 to 2015, largely via the new $100 billion stimulus plan, and then promise to get tough on cuts.
But budget experts generally agree that raising spending today will only make it harder to cut it later. House Budget Committee Chairman Paul Ryan's budget cuts spending in the first two years, then lets it gradually increase in the years following.
The Senate plan also leaves entitlements largely untouched, with spending on Social Security, Medicare, Medicaid and welfare programs virtually identical to those projected by the CBO.
But in its last budget report, the CBO warned that these programs are on an unsustainable path.
"The aging of the population, the rising costs of health care, and the scheduled expansion in federal subsidies for health insurance will substantially boost federal spending on Social Security and the government's major health care programs," CBO noted. "Unless the laws governing those programs are changed...debt will rise sharply relative to GDP after 2023."
The bottom line is that despite nearly $1 trillion in new taxes, the Senate plan never comes close to producing a balanced budget, with red ink reaching a yearly low of $407 billion before climbing to $602 billion in 2022.


Debt Limit - A Guide to the Federal Debt Made Easy

Friday, February 22, 2013

Democrats response: crickets


Rand Paul returns unused money to the government

Rick Moran
Would that our bureaucrats had this kind of attitude.
CNN:
Sen. Rand Paul cut another six-figure check to the United States Treasury Wednesday, taking the money he said he didn't need from his office's budget to make a tiny dent in the nation's massive federal debt.
"We watch every purchase," Paul, a Republican from Kentucky, said at an event next to an oversized check for $600,000. "We watch what computers we buy, what paper we buy, the ink cartridges. We treat the money like it's our money, or your money, and we look at every expenditure."
The $600,000 reflects more than 20% of Paul's annual office budget, according to a press release. Another GOP lawmaker, Rep. Mick Mulvaney of South Carolina, said he would return $160,000 to the federal government, or 12% of his office budget.

"At a time when Americans are tightening their budgets, I have made an effort to do the same with my Congressional office budget," Mulvaney wrote in a statement. "'My office has found ways to save money while continuing to provide necessary services to the constituents of the Fifth District. As requested when I returned over $160,000 last year, I ask that Speaker Boehner use this money to pay down the national debt."
Last year Paul returned $500,000 to the Treasury, and said he hoped other members of Congress would follow his cost-cutting lead. In total, Paul's office says they've returned $1.1 million that was unspent from his office's operating budget.
Last week Paul delivered a tea party-sponsored response to President Barack Obama's State of the Union address. He also said on Sunday that he would decide next year on whether he'll run for president in 2016.
So he's a politician and he had to make a big to do about - complete with the giant check suitable for the cameras. I would trust his sincerity more if he had done it in the dead of night and issued a two sentence press release.
But there's no denying that this is very effective politics, regardless of whether you support the Tea Party or not. Americans love politicians who put their money where their mouth is and if nothing else, Paul gets a leg up in the perceptions game.

Thursday, January 31, 2013

Tax and Spend

If insanity is doing the same thing over again expecting different results, then congressional Republicans who went along with tax increases on the promise of deficit reduction and spending cuts are -- you get the point. As Milton Friedman pointed out many times, giving Congress more tax money will never reduce the deficit because they always spend it all plus some. And while I feel very sorry for the losses suffered by people due to Sandy, this is what private insurance is for. I have no idea why I, as a taxpayer, need to pay for casualty losses of people who had or should've had casualty insurance.

Sandy relief bill eats up taxes on the rich


Congress is poised to clear the final $50 billion chunk of emergency aid for Superstorm Sandy relief Monday — and in one vote, it will have used up all the new tax money President Obama won by raising rates on the wealthy in the “fiscal cliff” deal.

The tax deal that Congress and Mr. Obama reached in early January cut taxes overall but let them rise on individuals making more than $250,000 a year and families with income of more than $300,000. Those increases brought the government somewhere on the order of about $40 billion for fiscal year 2013.