Sequestering And Washington’s Fiscal Incompetence

spending2 Sequestering And Washingtons Fiscal Incompetence

As many of you may know, if the political class does not get its act together by March 1, 2013, automatic Federal government spending cuts will kick in that will reduce government spending by over a trillion dollars over the next ten years. This “sequestering” of budget dollars was agreed to by Congress and Obama in August of 2011 in the debt ceiling negotiations.

While this is a decent first step in reining in government spending, it is still pretty meager. Overall government spending will still increase in the baseline budget view, it will just increase at a somewhat lower rate. Annual spending deficits will continue to mount up, increasing our national debt and burdening future generations of Americans with that debt.

How anemic is this effort at reducing spending? Let’s do some simple math:

  • Let’s assume that the ten year trillion dollar spending reduction averages out to about $100 billion a year.
  • According to the official White House website, the Federal government will spend about $4.5 trillion in 2017.
  • This $4.5 trillion is less than it spent in 2012 but is less than it will likely spend ten years from now, under baseline budget assumptions, so the 2017 estimate is a good ten year annual average.
  • $100 billion a year in spending cuts against an average spending budget of $4.5 trillion is only a meager 2.2% spending decrease.
  • According to the White House website  budget spreadsheet, in 2017, this $100 billion in spending cuts would still add over half a TRILLION to the national debt.

Despite this feeble attempt at expense reduction, many in the administration are choking on it. Retired Defense Secretary Leon Panetta claims our national defense would be endangered by a 2.2% reduction in spending. Secretary of State John Kerry asserted that we could not afford a meager 2.2% reduction in his budget since we needed to continue to butt into the lives of people in other countries around the world. President Obama has been spreading panic, claiming many vital government services would be slashed because of this meager 2.2% cut in spending.

Makes you wonder if these so-called leaders are 1) that out of touch with the real world, 2) want to protect their turf at any cost regardless of the impact on the fiscal integrity of the country, or 3) are just that fiscally incompetent that they do not know how to run an efficient operation and can only operate it by increasing their budget rather than decreasing their organization’s waste, redundancy, and incompetence.

To help these politicians understand why this 2.2% reduction is a very easily attainable goal, let’s point out via just a HANDFUL of examples of how wasteful, redundant and incompetent their organizations are today:

- Medicare and Medicaid lose over $100 billion a year to waste, inefficiency, and criminal fraud.

- Social Security loses over $100 billion a year to waste, inefficiency, and criminal fraud.

- The IRS admits that it is so incompetent that it fails to collect over $380 billion a year from tax evaders.

- The U.S. Navy, one of Panetta’s former organizations, spent $300 million to build two Navy ships almost to completion before spending another $10 million to turn them both into scrap metal without ever using them.

- The State Department, John Kerry’s organization, recently spent $80 million to build a consulate building in northern Afghanistan that will never be used since the $80 million is not defensible from a terrorist attack and was built by bypassing the State Department’s own building guidelines relative to terrorists.

- The Transportation Safety Agency recently bought over $180 million worth of airport security equipment that it will never use, storing it in a warehouse in its original packaging.

- Employees in the General Services Administration threw themselves a Las Vegas bash at taxpayer expense, resulting in the dismissal and resignations of GSA employees and executives.

- The Obama administration recently made the inane, indefensible decision to give Egypt over one billion dollars worth of F-16 fighter planes and tanks, weapons that could eventually impact both Department of Defense and State Department operations in the future.

- And last but not least, consider some new findings relative to the President’s economic stimulus plan, as recently reported by the Independent Journal Review. Unfortunately, these types of expenses are no confined to the stimulus program, they happen every day in every Federal government department and entity.

These insults to the taxpayer occurred even though when President Obama signed the $831 billion stimulus into law in 2009, he stated that “tough choices smart investments” needed to be made. So ask yourself: if these are the “smart investments,” you can only wonder what the dumb expenses were:

  • $250 was sent to a woman in Maryland who died in 1967.
  • $840 was spent to disassemble and assemble three desks.
  • The Lincoln Center in New York City was paid to host a “tango salon.”
  • $10,000 was spent replacing light fixtures at a fish hatchery.
  • $425,000 was spent in $250 increments to 1,700 prisons inmates for social security checks.
  • $426,000 was spent to rebuild a bridge that is used by a average of ten cars a day.
  • $500,000 was spent in subsidies for rain barrel installation.
  • $600,000 was sent to a school district in Kansas …that no longer exists.
  • $1 million was spent in New York on road signs advertising stimulus projects.
  • $1 million was used to build 250 bike lockers.
  • $1.25 million was used to use electric fish to study animal sensory information.
  • $1.75 million was spent on energy-efficient garage doors.
  • $2.2 million was spent to install skylights for a liquor store in Montana.
  • $2.8 was million spent installing toilets in New Mexico’s national forest.
  • $15 million was spent to build an airport in Ouizinkie, Alaska …a town of 165 people.

Disgraceful wastes of money. Which gets us back to our central question: Are Kerry, Panetta, and Obama out of touch, protecting turf or just fiscally incompetent? Or possibly all of the above?

The Dirty Dozen Democrats Who Could Have Prevented the Downgrade

William E. Been, FloydReports.com

While watching the debt ceiling increase by $2.4 trillion just to cover spending until the next presidential election, the scam perpetrated on the American people could not have been any more obvious. While the Republican-controlled House of Representatives negotiated with itself for weeks in an attempt to propose something that might save our great nation from financial disaster, neither the U.S. Senate nor the White House proposed any plan at all. Even worse, while listening to Barack Obama’s rhetoric about the need for a bipartisan solution, the Majority Leader of the Democrat-controlled Senate announced that bills coming from the House were “dead on arrival.” In fact, nothing coming from the House was even allowed to be debated by the overly partisan Senate leadership. This resulted in another crisis-not-to-be-wasted. As the administration-imposed deadline of August 2 approached, the Democrats’ rhetoric followed a familiar pattern as they attempted to frighten the American public with false accusations that grandma won’t get her medical care, seniors will lose their Social Security, sick children will be turned away, and that a major calamity will occur if no increase in the debt ceiling is approved by August 2.

In attempting to understand how and why our government has become so blatantly irresponsible, I heard an interview with Orrin Hatch on FOX News. Senator Hatch spoke of his past attempts to pass a Balanced Budget Amendment, specifically one in 1997 that failed to pass by a single vote. I could not help but wonder what that one vote would have meant to the current situation. With the debt being $5.4 trillion in 1997 and heading for $15 trillion in 2011, it is clear that holding at the 1997 levels would have assured that no crisis would have occurred and that the spending being generated by the Obama administration would have been dramatically reduced. As a result, it is important to understand who those senators were who accounted for the missing vote that would have facilitated financial soundness.

A familiar pattern was again evident. The vote was 66-34, with a super majority of 67 votes required to pass the Amendment. Upon review of the senators’ vote, it was once more aggravating to see the partisan politics that has ruled this country since the early 1990s. The “one vote” that killed the bill was cast by 34 Democrats as a block. They collectively killed the chance for financial sanity. Even more remarkable, every GOP senator voted for the bill, joined by 11 Democrats. Yet, the 34 Democrats blocked a bill that could have prevented the debt ceiling crisis of 2011.

Sadly, 18 of these 34 senators are still in the Senate, and still blocking all attempts to reduce spending and debt. This Group of 18 has destroyed the financial stability and strength of the greatest nation in history. Every American needs to know these senators, who will be listed as the “Dirty Dozen plus 6” at the end of this document.

Having documented the Democrats’ destruction of mortgage lending standards during the 1990s, this irresponsible destruction of a bipartisan Balanced Budget bill in 1997 coupled with the mortgage lending debacle should be an indictment of the entire Democratic Party. No theft of wealth at any level can even begin to approach what the Democrats and their allies in the Progressive movement have committed against our country. The Democrats have destroyed our financial reputation, the reserve status of our dollar, and are continuing reckless spending at the….

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Obama’s Downgrade May Last Until 2029

Ben Johnson, The White House Watch

Obama scored another historical first on Friday, becoming the first president to see the U.S. credit rating downgraded by Standard & Poor’s, from AAA to AA+. While we hope his presidential reign lasts no longer than January 2013, Americans may have to live with the consequences of Obamanomics for more than a decade to come. The chairman of Standard & Poor’s sovereign debt ratings, John Chambers, told ABC’s This Week program on Sunday the United States could be stuck with the lower credit rating between nine and 18 years. “We’ve had five governments that lost their AAA that got it back,” he said. “The amount of time that it took for those five range from 9 years to 18 years.” He forecast that digging America out of the debt ditch “could take awhile,” and that it would require two things: “a stabilization of the debt as a share of the economy and eventual decline” and “more ability to reach consensus in Washington than what we’re observing now.”

The president’s commitment to deficit spending and unwillingness to make enforceable budget cuts leave a grim prognosis. But the outlook gets worse. As this author noted Friday, there is a chance America will be downgraded yet again. Chambers placed the odds of a future downgrade at one-in-three. Scoring a AA rating would place the Land of the Free on equal terms with Spain and Qatar.

These realities had Obama in full Alinsky mode during his 1 p.m. speech (which took place at two o’clock this afternoon). He opened by saying, while Tea Party intransigence forced S&P to cut our debt rating, “The markets, on the other hand, continue to believe our credit status is AAA.” To bolster his case, he added, “Warren Buffett, who knows a thing or two about good investments, said, ‘If there were a quadruple-A rating, I’d give the United States that.’” Even as he spoke, the stock market was in free fall. The Dow Jones industrial average fell 634.76 points this afternoon. The slide capped off a string of losses so severe that CNBC reports, on this eighth day of the month, “August is already on track to be the worst month for the S&P [500] and Nasdaq since Oct. 2008,” the first full month of the economic meltdown. And despite earning the Obama administration’s seal of approval, Standard & Poor’s marked down Buffett’s Birkshire Hathaway holding conglomerate from “stable” to “negative” today.

Obama’s Surrogates Savage the Savers

Democratic talking heads did their best to pin blame on their political opponents. This weekend, both David Axelrod and Sen. John Kerry repeated the phrase “Tea Party downgrade.”

Treasury Secretary Tim Geithner eschewed presidential responsibility, as well. “Congress ultimately owns the credit rating of the United States,” he said. This would be true in the sense that Obama offered absolutely no leadership during the debate and presented no plan of his own but would overlook the president’s addiction to deficit spending and hostility to fiscal (or political) responsibility. Geithner, suddenly discovering the Founding Fathers, noted Congress has “the power of the purse in the Constitution.” That fact did not keep Geithner from publicly musing about having Obama unilaterally raise the debt ceiling in late June, leading to a chorus of Democrats demanding the president invoke the 14th Amendment to claim the power of the purse as his own.

Not everyone is reading from the same script, though. As usual, Bill and Hillary Clinton have taken the crisis to spin things in their favor. The Hill newspaper reports former Clinton administration appointees, who insisted on remaining anonymous, said Obama….

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Obama Says Libya is Not War, It’s “Noise”

Jim Emerson, FloydReports.com

When asked about his personal war against Libya and criticism about ignoring congress in a blatant disregard of the War Powers Act the President brushed both aside as just “noise”. Obama has no intention to seek congressional approval as required by law. The President wants Americans to ignore the fact that the incursion into Libya was supposed to be a US Lead effort to establish a UN mandated “No Fly Zone” and no more.

He wants us to overlook the fact that this “kinetic military exercise” which started as a NATO air operations is now an overt effort to assassinate Libyan dictator Moammar Qaddafi.

Congress Strikes Back

In an effort to justify the president’s contempt for the law, legal adviser to the State Department Harold Koh stated “From the outset, we noted that the situation in Libya does not constitute a war”. Outraged, Senator Jim Webb (D-VA) shot back, “When you have an operation that goes on for months, costs billions of dollars, where the United States is providing two-thirds of the troops, even under the NATO fig leaf, where they’re dropping bombs that are killing people, where you’re paying your troops offshore combat pay and there are areas of prospective escalation — something I’ve been trying to get a clear answer from with this administration for several weeks now, and that is the possibility of a ground presence in some form or another, once the Qaddafi regime expires — I would say that’s hostilities.”

Senator Bob Corker (R-TN) accused the White House of “sticking a stick in the eye of Congress,” saying it had done “a great disservice to our country.”

On the other hand, Senators John Kerry ( D. Mass.) and John McCain (R. Az.) have passed a resolution supporting the president’s action while asking the House and fellow senators to forget how president Obama didn’t obey….

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Congress Ignores Obama’s War-by-Fiat

Ben Johnson, The White House Watch

When Barack Obama updated Congress on the war in Libya last Friday, he claimed our role is so limited it does not require Congressional authorization. However, on Monday Hillary Clinton told the European press, “Even today, the United States continues to fly 25 percent of all sorties,” and Obama has promised there will be “no let-up.”

Apparently Congress will have no vote on the matter, either. This week, leaders in the House and Senate have refused to vote for or against the authorization of the war, as the Constitution requires.

Although the Founding Fathers vested Congress alone with the power to make war, Obama launched Operation Odyssey Dawn on the approval of the United Nations and the Arab League. Some interpret the 1973 War Powers Resolution to say the president may send soldiers into harm’s way for 60 days before getting Congressional approval, but Congress has passed no authorization 66 days into the war.

Senate Majority Leader Harry Reid said on Tuesday that the Senate will not vote on the measure before the end of this month.

A spokesperson for House Speaker John Boehner told CNN, “No decisions have been made about how to proceed.” Senate Minority Leader Mitch McConnell was equally passive on Fox News Sunday, saying, “The administration is going to have to decide whether it thinks [the War Powers Resolution] was triggered and we’ll have to respond to that.”

House Majority Leader Eric Cantor said Monday….

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