http://www.cato-at-liberty.org/2009/11/27/obamacares-cost-could-top-6-trillion/
One gimmick makes the new entitlement spending appear smaller by not opening the spigot until late in the official 10-year budget window (2010–2019). Correcting for that gimmick in the Senate version, Sen. Judd Gregg (R-NH) estimates, “When all this new spending occurs” — i.e., from 2014 through 2023 — “this bill will cost $2.5 trillion over that ten-year period.”
Another gimmick pushes much of the legislation’s costs off the federal budget and onto the private sector by requiring individuals and employers to purchase health insurance. When the bills force somebody to pay $10,000 to the government, the Congressional Budget Office treats that as a tax. When the government then hands that $10,000 to private insurers, the CBO counts that as government spending. But when the bills achieve the exact same outcome by forcing somebody to pay $10,000 directly to a private insurance company, it appears nowhere in the official CBO cost estimates — neither as federal revenues nor federal spending. That’s a sharp departure from how the CBO treated similar mandates in the Clinton health plan. And it hides maybe 60 percent of the legislation’s total costs. When I correct for that gimmick, it brings total costs to roughly $2.5 trillion (i.e., $1 trillion/0.4).
When we correct for both gimmicks, counting both on- and off-budget costs over the first 10 years of implementation, the total cost of ObamaCare reaches — I’m so sorry about this — $6.25 trillion. That’s not a precise estimate. It’s just far closer to the truth than President Obama and congressional Democrats want the debate to be.
Monday, November 30, 2009
Obama's Cabinet Appointments: Less Than 10% with Private Sector Expierence
http://blog.american.com/?p=7572
http://blogs.ajc.com/kyle-wingfield/2009/11/30/obamas-cabinet-this-graph-explains-a-lot/?cxntfid=blogs_kyle_wingfield
"Public sector employment has ranged since the 1950s at between 15 percent and 19 percent of the population,” yet the Obama Cabinet got more than 90 percent of its prior experience in this relatively thin slice of America. So, the current Cabinet largely lacks a practical understanding of the country and companies which it now regulates — understanding that might come in handy now that our government is more enmeshed than ever with banks and auto makers, and is pushing for radically different rules for energy and health-care producers and consumers.
Is it really any wonder then that the bailouts, the stimulus, or the ludacris spending have not worked?
Health Bills Fail to Block Illegals From Coverage
http://www.washingtontimes.com/news/2009/nov/30/health-bills-fail-to-block-illegals-from-coverage/
Hundreds of thousands of illegal immigrants could receive health care coverage from their employers under the bills winding their way through Congress, despite President Obama's explicit pledge that illegal immigrants would not benefit.
The House bill mandates, and the Senate bill strongly encourages, businesses to extend health care coverage to all employees. But the bills do not have exemptions to screen out illegal immigrants, who usually obtain jobs by using false identities and are indistinguishable from legal workers.
A rough estimate by the Center for Immigration Studies suggests that the practical effect of the mandates would be that about 1 million illegal immigrants could obtain health insurance coverage through their employers.
"If it was not bad enough that illegal immigrants take jobs that rightfully belong to citizens and legal immigrants, now they will get health care benefits that should go to Americans," said Rep. Lamar Smith of Texas, the top Republican on the House Judiciary Committee. "If they were not in the country, we wouldn't have to worry about emergency room or health insurance costs at all. And Americans would have these jobs."
Hundreds of thousands of illegal immigrants could receive health care coverage from their employers under the bills winding their way through Congress, despite President Obama's explicit pledge that illegal immigrants would not benefit.
The House bill mandates, and the Senate bill strongly encourages, businesses to extend health care coverage to all employees. But the bills do not have exemptions to screen out illegal immigrants, who usually obtain jobs by using false identities and are indistinguishable from legal workers.
A rough estimate by the Center for Immigration Studies suggests that the practical effect of the mandates would be that about 1 million illegal immigrants could obtain health insurance coverage through their employers.
"If it was not bad enough that illegal immigrants take jobs that rightfully belong to citizens and legal immigrants, now they will get health care benefits that should go to Americans," said Rep. Lamar Smith of Texas, the top Republican on the House Judiciary Committee. "If they were not in the country, we wouldn't have to worry about emergency room or health insurance costs at all. And Americans would have these jobs."
HHS Would Become Federal Giant Under Senate Plan
A quick search of the Senate health bill will bring up "secretary" 2,500 times.
That's because Health and Human Services Secretary Kathleen Sebelius would be awarded unprecedented new powers under the proposal, including the authority to decide what medical care should be covered by insurers as well as the terms and conditions of coverage and who should receive it.
"The legislation lists 1,697 times where the secretary of health and humans services is given the authority to create, determine or define things in the bill," said Devon Herrick, a health care expert at the National Center for Policy Analysis.
For instance, on Page 122 of the 2,079-page bill, the secretary is given the power to establish "the basic per enrollee, per month cost, determined on average actuarial basis, for including coverage under a qualified health care plan."
The HHS secretary would also have the power to decide where abortion is allowed under a government-run plan, which has drawn opposition from Republicans and some moderate Democrats.
And the bill even empowers the department to establish a Center for Medicare and Medicaid Innovation that would have the authority to make cost-saving cuts without having to get the approval of Congress first.
Whatever Became of ACORN’s ‘Internal Investigation’?
http://biggovernment.com/2009/11/27/whatever-became-of-acorns-internal-investigation/
Mr. Harshbarger promised to release preliminary findings of his review at the end of October. Monday is the end of November and his preliminary findings don’t seem any closer to release.
Still, ACORN has recently filed suit against the federal government to restore its federal funding. And just this week, Eric Holder’s Justice Department issued a ruling saying federal agencies could ignore Congressional bans on funding and could continue to pay ACORN for existing contracts.
Mr. Harshbarger promised to release preliminary findings of his review at the end of October. Monday is the end of November and his preliminary findings don’t seem any closer to release.
Still, ACORN has recently filed suit against the federal government to restore its federal funding. And just this week, Eric Holder’s Justice Department issued a ruling saying federal agencies could ignore Congressional bans on funding and could continue to pay ACORN for existing contracts.
Sunday, November 29, 2009
Climate Change Data Dumped
http://www.timesonline.co.uk/tol/news/environment/article6936328.ece
SCIENTISTS at the University of East Anglia (UEA) have admitted throwing away much of the raw temperature data on which their predictions of global warming are based.
It means that other academics are not able to check basic calculations said to show a long-term rise in temperature over the past 150 years.
The UEA’s Climatic Research Unit (CRU) was forced to reveal the loss following requests for the data under Freedom of Information legislation.
The data were gathered from weather stations around the world and then adjusted to take account of variables in the way they were collected. The revised figures were kept, but the originals — stored on paper and magnetic tape — were dumped to save space when the CRU moved to a new building.
SCIENTISTS at the University of East Anglia (UEA) have admitted throwing away much of the raw temperature data on which their predictions of global warming are based.
It means that other academics are not able to check basic calculations said to show a long-term rise in temperature over the past 150 years.
The UEA’s Climatic Research Unit (CRU) was forced to reveal the loss following requests for the data under Freedom of Information legislation.
The data were gathered from weather stations around the world and then adjusted to take account of variables in the way they were collected. The revised figures were kept, but the originals — stored on paper and magnetic tape — were dumped to save space when the CRU moved to a new building.
Saturday, November 28, 2009
White House: State Dinner Crashers Met Obama
http://apnews.myway.com/article/20091128/D9C8HNRG0.html
After the Secret Service insisted that President Barack Obama was never endangered by a security breach that allowed a couple to crash his first state dinner, the White House has released a photo showing that not only did the pair get close to Obama, they actually shook hands and talked to him.
I wonder if the coverage would be different if Bush was still in office?
Dubai is Just a Harbinger of Things to Come for Sovereign Debt
http://blogs.telegraph.co.uk/finance/jeremywarner/100002318/dubai-is-just-a-harbinger-of-things-to-come-for-sovereign-debt/
According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.
According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.
Dubai debt crisis: Now British Banks Face Fresh Crisis After Investing Billions
http://www.dailymail.co.uk/news/article-1231320/Dubai-debt-crisis-Fears-second-economic-crash-global-stock-markets-tumble.html
British banks were teetering on the brink of a fresh meltdown today after it emerged they had invested heavily in crisis-hit Dubai.
An $80billion debt default in the emirate has already reawakened the spectre of a global 'double dip' - that the first shoots of recovery could be wiped out by a second wave of recession.
Dubai's debt problems are a hangover from a property bubble that imploded after the financial crisis derailed its plans to become a magnet for tourists and a regional hub for everything from shipping to entertainment.
Banks' exposure to a Dubai default pales in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates U.S. and European lenders will have to make between 2007 and 2010 as a result of the credit crisis.
British banks were teetering on the brink of a fresh meltdown today after it emerged they had invested heavily in crisis-hit Dubai.
An $80billion debt default in the emirate has already reawakened the spectre of a global 'double dip' - that the first shoots of recovery could be wiped out by a second wave of recession.
Dubai's debt problems are a hangover from a property bubble that imploded after the financial crisis derailed its plans to become a magnet for tourists and a regional hub for everything from shipping to entertainment.
Banks' exposure to a Dubai default pales in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates U.S. and European lenders will have to make between 2007 and 2010 as a result of the credit crisis.
Dubai in Deep Water as Ripples from Debt Crisis Spread
http://business.timesonline.co.uk/tol/business/markets/the_gulf/article6934261.ece
Fears of a dangerous new phase in the economic crisis swept around the globe yesterday as traders responded to the shock announcement that a debt-laden Dubai state corporation was unable to meet its interest bill.
Although the scale of Dubai’s debts is comparatively modest at $80 billion (£48 billion), the uncertainty spooked the markets, with no one sure who its creditors are. Several banks rushed out statements to reassure investors that their exposure was small.
IAEA chief: Iran Investigation at 'Dead End'
http://www.breitbart.com/article.php?id=D9C7C6VG0&show_article=1
The International Atomic Energy Agency probe of Iran's nuclear program is at a dead end because Tehran is not cooperating, the chief of the U.N. nuclear watchdog said Thursday in an unusually blunt expression of frustration four days before he leaves office.
Mohamed ElBaradei also warned that international confidence in Iran's assertions of purely peaceful intent shrank after its belated revelation of a previously secret nuclear facility. And he criticized Tehran for not accepting an internationally endorsed plan meant to delay its achieving the ability to make nuclear weapons.
Iran says it is enriching only to power a future network of nuclear reactors. But enrichment can also produce fissile warhead material. Iran continues enriching, despite three sets of U.N. Security Council sanctions meant to make it freeze that activity and has built an enriched stockpile that could arm two nuclear warheads.
The International Atomic Energy Agency probe of Iran's nuclear program is at a dead end because Tehran is not cooperating, the chief of the U.N. nuclear watchdog said Thursday in an unusually blunt expression of frustration four days before he leaves office.
Mohamed ElBaradei also warned that international confidence in Iran's assertions of purely peaceful intent shrank after its belated revelation of a previously secret nuclear facility. And he criticized Tehran for not accepting an internationally endorsed plan meant to delay its achieving the ability to make nuclear weapons.
Iran says it is enriching only to power a future network of nuclear reactors. But enrichment can also produce fissile warhead material. Iran continues enriching, despite three sets of U.N. Security Council sanctions meant to make it freeze that activity and has built an enriched stockpile that could arm two nuclear warheads.
Climategate E-mails May Scuttle Barack Obama's Cap and Trade Laws
http://blogs.telegraph.co.uk/news/geraldwarner/100018034/climategate-%20%20e-mails-sweep-america-may-scuttle-barack-obamas-cap-and-trade-laws/
But the real car crash for Obama is on Capitol Hill where it is now confidently believed his Cap and Trade climate legislation is toast. It was always problematic; but with a growing awakening to the scale of the scientific imposture sweeping the world, as far as the Antipodes, the clever money is on Cap and Trade laws failing to pass, with many legislators sceptical and the mid-term elections looming ever closer.
The term that Fox News is now applying to the Climategate e-mails is “game-changer”. For the first time, Anthropogenic Global Warming cranks are on the defensive, losing their cool and uttering desperate mantras such as “You can be sceptical, not denial.” Gee, thanks, guys. In fact we shall be whatever we want to be, without asking your permission.
At this rate, Copenhagen is going to turn into a comedy convention with the real world laughing at these liars. Now is the time to mount massive resistance to the petty tyrants and hit them where it hurts – in the wallet. Further down the line there may be, in many countries, a question of criminal prosecution of anybody who has falsified data to secure funds and impose potentially disastrous fiscal restraints on the world in deference to a massive hoax. It’s a new world out there, Al, and, as you may have noticed, the climate is very cold indeed.
But the real car crash for Obama is on Capitol Hill where it is now confidently believed his Cap and Trade climate legislation is toast. It was always problematic; but with a growing awakening to the scale of the scientific imposture sweeping the world, as far as the Antipodes, the clever money is on Cap and Trade laws failing to pass, with many legislators sceptical and the mid-term elections looming ever closer.
The term that Fox News is now applying to the Climategate e-mails is “game-changer”. For the first time, Anthropogenic Global Warming cranks are on the defensive, losing their cool and uttering desperate mantras such as “You can be sceptical, not denial.” Gee, thanks, guys. In fact we shall be whatever we want to be, without asking your permission.
At this rate, Copenhagen is going to turn into a comedy convention with the real world laughing at these liars. Now is the time to mount massive resistance to the petty tyrants and hit them where it hurts – in the wallet. Further down the line there may be, in many countries, a question of criminal prosecution of anybody who has falsified data to secure funds and impose potentially disastrous fiscal restraints on the world in deference to a massive hoax. It’s a new world out there, Al, and, as you may have noticed, the climate is very cold indeed.
Wednesday, November 25, 2009
The Real Story of Thanksgiving: A Celebration of Private Property and the Free Market
http://www.freerepublic.com/focus/f-news/1742553/posts
Here is the part [of Thanksgiving] that has been omitted: The original contract the Pilgrims had entered into with their merchant-sponsors in London called for everything they produced to go into a common store, and each member of the community was entitled to one common share.
"All of the land they cleared and the houses they built belong to the community as well. They were going to distribute it equally. All of the land they cleared and the houses they built belonged to the community as well. Nobody owned anything. They just had a share in it. It was a commune, folks. It was the forerunner to the communes we saw in the '60s and '70s out in California – and it was complete with organic vegetables, by the way.
Bradford, who had become the new governor of the colony, recognized that this form of collectivism was as costly and destructive to the Pilgrims as that first harsh winter, which had taken so many lives.
He decided to take bold action. Bradford assigned a plot of land to each family to work and manage, thus turning loose the power of the marketplace.
"That's right. Long before Karl Marx was even born, the Pilgrims had discovered and experimented with what could only be described as socialism. And what happened?
It didn't work! Surprise, surprise, huh?
What Bradford and his community found was that the most creative and industrious people had no incentive to work any harder than anyone else, unless they could utilize the power of personal motivation!
But while most of the rest of the world has been experimenting with socialism for well over a hundred years – trying to refine it, perfect it, and re-invent it – the Pilgrims decided early on to scrap it permanently.
What Bradford wrote about this social experiment should be in every schoolchild's history lesson. If it were, we might prevent much needless suffering in the future.
"'The experience that we had in this common course and condition, tried sundry years...that by taking away property, and bringing community into a common wealth, would make them happy and flourishing – as if they were wiser than God,' Bradford wrote. 'For this community [so far as it was] was found to breed much confusion and discontent, and retard much employment that would have been to their benefit and comfort. For young men that were most able and fit for labor and service did repine that they should spend their time and strength to work for other men's wives and children without any recompense...that was thought injustice.'
Why should you work for other people when you can't work for yourself? What's the point?
"Do you hear what he was saying, ladies and gentlemen? The Pilgrims found that people could not be expected to do their best work without incentive. So what did Bradford's community try next? They unharnessed the power of good old free enterprise by invoking the undergirding capitalistic principle of private property.
Every family was assigned its own plot of land to work and permitted to market its own crops and products. And what was the result?
'This had very good success,' wrote Bradford, 'for it made all hands industrious, so as much more corn was planted than otherwise would have been.'
Bradford doesn't sound like much of a... liberal Democrat, "does he? Is it possible that supply-side economics could have existed before the 1980s? Yes.
"Read the story of Joseph and Pharaoh in Genesis 41. Following Joseph's suggestion (Gen 41:34), Pharaoh reduced the tax on Egyptians to 20% during the 'seven years of plenty' and the 'Earth brought forth in heaps.' (Gen. 41:47)
In no time, the Pilgrims found they had more food than they could eat themselves.... So they set up trading posts and exchanged goods with the Indians. The profits allowed them to pay off their debts to the merchants in London.
And the success and prosperity of the Plymouth settlement attracted more Europeans and began what came to be known as the 'Great Puritan Migration.'"
Here is the part [of Thanksgiving] that has been omitted: The original contract the Pilgrims had entered into with their merchant-sponsors in London called for everything they produced to go into a common store, and each member of the community was entitled to one common share."All of the land they cleared and the houses they built belong to the community as well. They were going to distribute it equally. All of the land they cleared and the houses they built belonged to the community as well. Nobody owned anything. They just had a share in it. It was a commune, folks. It was the forerunner to the communes we saw in the '60s and '70s out in California – and it was complete with organic vegetables, by the way.
Bradford, who had become the new governor of the colony, recognized that this form of collectivism was as costly and destructive to the Pilgrims as that first harsh winter, which had taken so many lives.
He decided to take bold action. Bradford assigned a plot of land to each family to work and manage, thus turning loose the power of the marketplace.
"That's right. Long before Karl Marx was even born, the Pilgrims had discovered and experimented with what could only be described as socialism. And what happened?
It didn't work! Surprise, surprise, huh?
What Bradford and his community found was that the most creative and industrious people had no incentive to work any harder than anyone else, unless they could utilize the power of personal motivation!
But while most of the rest of the world has been experimenting with socialism for well over a hundred years – trying to refine it, perfect it, and re-invent it – the Pilgrims decided early on to scrap it permanently.
What Bradford wrote about this social experiment should be in every schoolchild's history lesson. If it were, we might prevent much needless suffering in the future.
"'The experience that we had in this common course and condition, tried sundry years...that by taking away property, and bringing community into a common wealth, would make them happy and flourishing – as if they were wiser than God,' Bradford wrote. 'For this community [so far as it was] was found to breed much confusion and discontent, and retard much employment that would have been to their benefit and comfort. For young men that were most able and fit for labor and service did repine that they should spend their time and strength to work for other men's wives and children without any recompense...that was thought injustice.'
Why should you work for other people when you can't work for yourself? What's the point?
"Do you hear what he was saying, ladies and gentlemen? The Pilgrims found that people could not be expected to do their best work without incentive. So what did Bradford's community try next? They unharnessed the power of good old free enterprise by invoking the undergirding capitalistic principle of private property.
Every family was assigned its own plot of land to work and permitted to market its own crops and products. And what was the result?
'This had very good success,' wrote Bradford, 'for it made all hands industrious, so as much more corn was planted than otherwise would have been.'
Bradford doesn't sound like much of a... liberal Democrat, "does he? Is it possible that supply-side economics could have existed before the 1980s? Yes.
"Read the story of Joseph and Pharaoh in Genesis 41. Following Joseph's suggestion (Gen 41:34), Pharaoh reduced the tax on Egyptians to 20% during the 'seven years of plenty' and the 'Earth brought forth in heaps.' (Gen. 41:47)
In no time, the Pilgrims found they had more food than they could eat themselves.... So they set up trading posts and exchanged goods with the Indians. The profits allowed them to pay off their debts to the merchants in London.
And the success and prosperity of the Plymouth settlement attracted more Europeans and began what came to be known as the 'Great Puritan Migration.'"
Tuesday, November 24, 2009
Navy SEALs Face Assault Charges for Capturing Most-Wanted Terrorist
http://www.foxnews.com/story/0,2933,576646,00.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxnews%2Flatest+%28FOXNews.com+-+Latest+Headlines%29
Navy SEALs have secretly captured one of the most wanted terrorists in Iraq — the alleged mastermind of the murder and mutilation of four Blackwater USA security guards in Fallujah in 2004. And three of the SEALs who captured him are now facing criminal charges, sources told FoxNews.com.
Ahmed Hashim Abed, whom the military code-named "Objective Amber," told investigators he was punched by his captors — and he had the bloody lip to prove it.
Now, instead of being lauded for bringing to justice a high-value target, three of the SEAL commandos, all enlisted, face assault charges and have retained lawyers.
The military is sensitive to charges of detainee abuse highlighted in the Abu Ghraib prison scandal. The Navy charged four SEALs with abuse in 2004 in connection with detainee treatment.
What has this country come to? So what if soldiers punched this terrorist coward that had US citizens murdered, burned, dragged through the streets, and hung from a bridge? These SEALs should be commended for their bravery, risking their lives to bring this sleazy ball to justice. Bringing our own soldiers up on charges does not make the rest of the world think more of us, it confirms our enemy's beliefs that we are weak and morally bankrupt.
Navy SEALs have secretly captured one of the most wanted terrorists in Iraq — the alleged mastermind of the murder and mutilation of four Blackwater USA security guards in Fallujah in 2004. And three of the SEALs who captured him are now facing criminal charges, sources told FoxNews.com.
Ahmed Hashim Abed, whom the military code-named "Objective Amber," told investigators he was punched by his captors — and he had the bloody lip to prove it.
Now, instead of being lauded for bringing to justice a high-value target, three of the SEAL commandos, all enlisted, face assault charges and have retained lawyers.
The military is sensitive to charges of detainee abuse highlighted in the Abu Ghraib prison scandal. The Navy charged four SEALs with abuse in 2004 in connection with detainee treatment.
What has this country come to? So what if soldiers punched this terrorist coward that had US citizens murdered, burned, dragged through the streets, and hung from a bridge? These SEALs should be commended for their bravery, risking their lives to bring this sleazy ball to justice. Bringing our own soldiers up on charges does not make the rest of the world think more of us, it confirms our enemy's beliefs that we are weak and morally bankrupt.
FDIC Fund Sinks Into the Red
http://online.wsj.com/article/SB125907631604662501.html?mod=WSJ_hpp_MIDDLTopStories
The government insurance fund that protects more than $4.5 trillion of U.S. bank deposits slipped into the red at the end of September, after fifty banks collapsed during the third quarter.
The deposit insurance fund dropped by $18.6 billion during the third quarter of 2009 to negative $8.2 billion, as the Federal Deposit Insurance Corp. set aside $21.7 billion in provisions for additional bank failures. This is the second time in the agency's history that the balance has fallen into negative territory.
The government insurance fund that protects more than $4.5 trillion of U.S. bank deposits slipped into the red at the end of September, after fifty banks collapsed during the third quarter.
The deposit insurance fund dropped by $18.6 billion during the third quarter of 2009 to negative $8.2 billion, as the Federal Deposit Insurance Corp. set aside $21.7 billion in provisions for additional bank failures. This is the second time in the agency's history that the balance has fallen into negative territory.
Climategate
http://blogs.telegraph.co.uk/news/jamesdelingpole/100017393/climategate-the-final-nail-in-the-coffin-of-anthropogenic-global-warming/
When you read some of those files – including 1079 emails and 72 documents – you realise just why the boffins at Hadley CRU might have preferred to keep them confidential. As Andrew Bolt puts it, this scandal could well be “the greatest in modern science”. These alleged emails – supposedly exchanged by some of the most prominent scientists pushing AGW theory – suggest:
Conspiracy, collusion in exaggerating warming data, possibly illegal destruction of embarrassing information, organised resistance to disclosure, manipulation of data, private admissions of flaws in their public claims and much more.
When you read some of those files – including 1079 emails and 72 documents – you realise just why the boffins at Hadley CRU might have preferred to keep them confidential. As Andrew Bolt puts it, this scandal could well be “the greatest in modern science”. These alleged emails – supposedly exchanged by some of the most prominent scientists pushing AGW theory – suggest:
Conspiracy, collusion in exaggerating warming data, possibly illegal destruction of embarrassing information, organised resistance to disclosure, manipulation of data, private admissions of flaws in their public claims and much more.
Wave of Debt Payments Facing US Government
http://www.cnbc.com/id/34104722
Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.
In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.
An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.
Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.
Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.
In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.
An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.
Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.
Monday, November 23, 2009
Climate Emails Stoke Debate
http://online.wsj.com/article/SB125883405294859215.html?mod=WSJ_hpp_sections_world
The correspondence between dozens of climate-change researchers, including many in the U.S., illustrates bitter feelings among those who believe human activities cause global warming toward rivals who argue that the link between humans and climate change remains uncertain.
A partial review of the hacked material suggests there was an effort at East Anglia, which houses an important center of global climate research, to shut out dissenters and their points of view.
In another, Phil Jones, the director of the East Anglia climate center, suggested to climate scientist Michael Mann of Penn State University that skeptics' research was unwelcome: We "will keep them out somehow -- even if we have to redefine what the peer-review literature is!"
The correspondence between dozens of climate-change researchers, including many in the U.S., illustrates bitter feelings among those who believe human activities cause global warming toward rivals who argue that the link between humans and climate change remains uncertain.
A partial review of the hacked material suggests there was an effort at East Anglia, which houses an important center of global climate research, to shut out dissenters and their points of view.
In another, Phil Jones, the director of the East Anglia climate center, suggested to climate scientist Michael Mann of Penn State University that skeptics' research was unwelcome: We "will keep them out somehow -- even if we have to redefine what the peer-review literature is!"
Obama's Nice Guy Act Gets Him Nowhere on the World Stage
http://www.spiegel.de/international/world/0,1518,662822,00.html
By: Gabor Steingart
When he entered office, US President Barack Obama promised to inject US foreign policy with a new tone of respect and diplomacy. His recent trip to Asia, however, showed that it's not working. A shift to Bush-style bluntness may be coming.
There were only a few hours left before Air Force One was scheduled to depart for the flight home. US President Barack Obama trip through Asia had already seen him travel 24,000 kilometers, sit through a dozen state banquets, climb the Great Wall of China and shake hands with Korean children. It was high time to take stock of the trip.
Barack Obama looked tired on Thursday, as he stood in the Blue House in Seoul, the official residence of the South Korean president. He also seemed irritable and even slightly forlorn. The CNN cameras had already been set up. But then Obama decided not to play along, and not to answer the question he had already been asked several times on his trip: what did he plan to take home with him? Instead, he simply said "thank you, guys," and disappeared. David Axelrod, senior advisor to the president, fielded the journalists' questions in the hallway of the Blue House instead, telling them that the public's expectations had been "too high."
The mood in Obama's foreign policy team is tense following an extended Asia trip that produced no palpable results. The "first Pacific president," as Obama called himself, came as a friend and returned as a stranger. The Asians smiled but made no concessions.
Lost Some Stature
Upon taking office, Obama said that he wanted to listen to the world, promising respect instead of arrogance. But Obama's currency isn't as strong as he had believed. Everyone wants respect, but hardly anyone is willing to pay for it. Interests, not emotions, dominate the world of realpolitik. The Asia trip revealed the limits of Washington's new foreign policy: Although Obama did not lose face in China and Japan, he did appear to have lost some of his initial stature.
In Tokyo, the new center-left government even pulled out of its participation in a mission which saw the Japanese navy refueling US warships in the Indian Ocean as part of the Afghanistan campaign. In Beijing, Obama failed to achieve any important concessions whatsoever. There will be no binding commitments from China to reduce greenhouse gas emissions. A revaluation of the Chinese currency, which is kept artificially weak, has been postponed. Sanctions against Iran? Not a chance. Nuclear disarmament? Not an issue for the Chinese.
The White House did not even stand up for itself when it came to the question of human rights in China. The president, who had said only a few days earlier that freedom of expression is a universal right, was coerced into attending a joint press conference with Chinese President Hu Jintao, at which questions were forbidden. Former US President George W. Bush had always managed to avoid such press conferences.
Relatively Unsuccessful
A look back in time reveals the differences. When former President Bill Clinton went to China in June 1998, Beijing wanted to impress the Americans. A press conference in the Great Hall of the People, broadcast on television as a 70-minute live discussion, became a sensation the world over. Clinton mentioned the 1989 Tiananmen Square massacre, when the government used tanks against protestors. But then President Jiang Zemin defended the tough approach taken by the Chinese Communists. At the end of the exchange, the Chinese president praised the debate and said: "I believe this is democracy!"
Obama visited a new China, an economic power that is now making its own demands. America should clean up its government finances, and the weak dollar is unacceptable, the head of the Chinese banking authority said, just as Obama's plane was about to land.
Obama's new foreign policy has also been relatively unsuccessful elsewhere, with even friends like Israel leaving him high and dry. For the government of Israel Prime Minister Benjamin Netanyahu, peace is only conceivable under its terms. Netanyahu has rejected Obama's call for a complete moratorium on the construction of settlements. As a result, Obama has nothing to offer the Palestinians and the Syrians. "We thought we had some leverage," says Martin Indyk, a former ambassador to Israel under the Clinton administration and now an advisor to Obama. "But that proved to be an illusion."
Even the president seems to have lost his faith in a genial foreign policy. The approach that was being used in Afghanistan this spring, with its strong emphasis on civilian reconstruction, is already being changed. "We're searching for an exit strategy," said a staff member with the National Security Council on the sidelines of the Asia trip.
'A Lot Like Jimmy Carter'
An end to diplomacy is also taking shape in Washington's policy toward Tehran. It is now up to Iran, Obama said, to convince the world that its nuclear power is peaceful. While in Asia, Obama mentioned "consequences" unless it followed his advice. This puts the president, in his tenth month in office, where Bush began -- with threats. "Time is running out," Obama said in Korea. It was the same phrase Bush used against former Iraqi dictator Saddam Hussein, shortly before he sent in the bombers.
There are many indications that the man in charge at the White House will take a tougher stance in the future. Obama's advisors fear a comparison with former Democratic President Jimmy Carter, even more than with Bush. Prominent Republicans have already tried to liken Obama to the humanitarian from Georgia, who lost in his bid to win a second term, because voters felt that he was too soft. "Carter tried weakness and the world got tougher and tougher because the predators, the aggressors, the anti-Americans, the dictators, when they sense weakness, they all start pushing ahead," Newt Gingrich, the former Republican speaker in the House of Representatives, recently said. And then he added: "This does look a lot like Jimmy Carter."
Translated from the German by Christopher Sultan
By: Gabor Steingart
When he entered office, US President Barack Obama promised to inject US foreign policy with a new tone of respect and diplomacy. His recent trip to Asia, however, showed that it's not working. A shift to Bush-style bluntness may be coming.
There were only a few hours left before Air Force One was scheduled to depart for the flight home. US President Barack Obama trip through Asia had already seen him travel 24,000 kilometers, sit through a dozen state banquets, climb the Great Wall of China and shake hands with Korean children. It was high time to take stock of the trip.
Barack Obama looked tired on Thursday, as he stood in the Blue House in Seoul, the official residence of the South Korean president. He also seemed irritable and even slightly forlorn. The CNN cameras had already been set up. But then Obama decided not to play along, and not to answer the question he had already been asked several times on his trip: what did he plan to take home with him? Instead, he simply said "thank you, guys," and disappeared. David Axelrod, senior advisor to the president, fielded the journalists' questions in the hallway of the Blue House instead, telling them that the public's expectations had been "too high."
The mood in Obama's foreign policy team is tense following an extended Asia trip that produced no palpable results. The "first Pacific president," as Obama called himself, came as a friend and returned as a stranger. The Asians smiled but made no concessions.
Lost Some Stature
Upon taking office, Obama said that he wanted to listen to the world, promising respect instead of arrogance. But Obama's currency isn't as strong as he had believed. Everyone wants respect, but hardly anyone is willing to pay for it. Interests, not emotions, dominate the world of realpolitik. The Asia trip revealed the limits of Washington's new foreign policy: Although Obama did not lose face in China and Japan, he did appear to have lost some of his initial stature.
In Tokyo, the new center-left government even pulled out of its participation in a mission which saw the Japanese navy refueling US warships in the Indian Ocean as part of the Afghanistan campaign. In Beijing, Obama failed to achieve any important concessions whatsoever. There will be no binding commitments from China to reduce greenhouse gas emissions. A revaluation of the Chinese currency, which is kept artificially weak, has been postponed. Sanctions against Iran? Not a chance. Nuclear disarmament? Not an issue for the Chinese.
The White House did not even stand up for itself when it came to the question of human rights in China. The president, who had said only a few days earlier that freedom of expression is a universal right, was coerced into attending a joint press conference with Chinese President Hu Jintao, at which questions were forbidden. Former US President George W. Bush had always managed to avoid such press conferences.
Relatively Unsuccessful
A look back in time reveals the differences. When former President Bill Clinton went to China in June 1998, Beijing wanted to impress the Americans. A press conference in the Great Hall of the People, broadcast on television as a 70-minute live discussion, became a sensation the world over. Clinton mentioned the 1989 Tiananmen Square massacre, when the government used tanks against protestors. But then President Jiang Zemin defended the tough approach taken by the Chinese Communists. At the end of the exchange, the Chinese president praised the debate and said: "I believe this is democracy!"
Obama visited a new China, an economic power that is now making its own demands. America should clean up its government finances, and the weak dollar is unacceptable, the head of the Chinese banking authority said, just as Obama's plane was about to land.
Obama's new foreign policy has also been relatively unsuccessful elsewhere, with even friends like Israel leaving him high and dry. For the government of Israel Prime Minister Benjamin Netanyahu, peace is only conceivable under its terms. Netanyahu has rejected Obama's call for a complete moratorium on the construction of settlements. As a result, Obama has nothing to offer the Palestinians and the Syrians. "We thought we had some leverage," says Martin Indyk, a former ambassador to Israel under the Clinton administration and now an advisor to Obama. "But that proved to be an illusion."
Even the president seems to have lost his faith in a genial foreign policy. The approach that was being used in Afghanistan this spring, with its strong emphasis on civilian reconstruction, is already being changed. "We're searching for an exit strategy," said a staff member with the National Security Council on the sidelines of the Asia trip.
'A Lot Like Jimmy Carter'
An end to diplomacy is also taking shape in Washington's policy toward Tehran. It is now up to Iran, Obama said, to convince the world that its nuclear power is peaceful. While in Asia, Obama mentioned "consequences" unless it followed his advice. This puts the president, in his tenth month in office, where Bush began -- with threats. "Time is running out," Obama said in Korea. It was the same phrase Bush used against former Iraqi dictator Saddam Hussein, shortly before he sent in the bombers.
There are many indications that the man in charge at the White House will take a tougher stance in the future. Obama's advisors fear a comparison with former Democratic President Jimmy Carter, even more than with Bush. Prominent Republicans have already tried to liken Obama to the humanitarian from Georgia, who lost in his bid to win a second term, because voters felt that he was too soft. "Carter tried weakness and the world got tougher and tougher because the predators, the aggressors, the anti-Americans, the dictators, when they sense weakness, they all start pushing ahead," Newt Gingrich, the former Republican speaker in the House of Representatives, recently said. And then he added: "This does look a lot like Jimmy Carter."
Translated from the German by Christopher Sultan
Saturday, November 21, 2009
Healthcare Reform Tax Would Hit H1N1 Vaccine Manufacturers
http://www.politico.com/livepulse/1109/Reform_tax_would_hit_H1N1_vaccine_manufacturers_.html
In an attempt to illustrate the real world consequences of reform's taxes, Senate Republicans are pointing out a provision that would tax the makers of swine flu vaccines and drugs. The provision raises $2.3 billion annually from drug makers who sell their products through government programs.
Yeah let's get those evil drug companies, it's not like we had any kind of shortage of the H1N1 vaccine.
In an attempt to illustrate the real world consequences of reform's taxes, Senate Republicans are pointing out a provision that would tax the makers of swine flu vaccines and drugs. The provision raises $2.3 billion annually from drug makers who sell their products through government programs.
Yeah let's get those evil drug companies, it's not like we had any kind of shortage of the H1N1 vaccine.
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