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?

Let’s Be Honest – Medicare Is Insolvent And Doctors Soon Won’t Accept It

Medicare SC Lets Be Honest   Medicare is Insolvent And Doctors Soon Wont Accept It

Now that campaigning is finished, it is incumbent on our elected government to face up to Medicare’s problems and implement thoughtful solutions. Pretending that Medicare is financially solvent while ignoring the facts about the declining acceptance of Medicare and the future of health care access for seniors under the ACA is worse than misguided policy, it is outright dishonesty. Instead of fixating on ideological differences, the first step is to agree about the urgency of the situation, so that we can keep Medicare for the long term in a form consistent with America’s core.

Regardless of the outcome of the 2012 elections, the facts about Medicare have not changed.

Medicare is spiraling into bankruptcy, owing to both the demographics of America and the realities about health care. Every year for the next two decades, roughly 3 to 4 million seniors become newly eligible for Medicare as the baby boomer generation ages. Elected officials of both parties do not dispute the seriousness of the problem described in the 2012 Medicare Trustees Report, which estimated Medicare’s unfunded obligations to be almost $38 trillion and a hospital insurance trust fund that will become insolvent in 2024.

That outlook does not even consider the bigger picture over the next decades coming as a consequence of the fantastic advances in modern medicine. As the newest “Global Burden of Disease” report in the Lancet just acknowledged, with increasing longevity come two very expensive consequences: more people are surviving to die of chronic diseases found only in old age. They require expensive drugs, diagnostics, and hospital care; and more people are living with disorders that don’t kill them, but that produce disability and reduced health.

An increasing proportion of doctors are already not accepting Medicare patients, and the primary reason is low payment for services. A 2008 report by the Medicare Payment Advisory Commission, an independent federal panel, said that 29 percent of Medicare beneficiaries who were looking for a primary care doctor had a problem finding one. In the 2008 HSC national survey, more than 20 percent of primary care doctors accepted no new Medicare patients (only 4.5 percent accepted no new privately insured patients) and about 40 percent of primary care doctors and 20 percent of specialists refused most new Medicare patients. Today, in some states, more than half of doctors already do not accept new Medicare patients.

Read More at Forbes . By Scott W. Atlas.

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Allen West Fights Back

Dr. Marvin J. Folkertsma, FloydReports.com

Amidst the rhetorical pyrotechnics surrounding July’s debt-ceiling debates, another controversy streaked across the sky like a comet, flared for an instant, then receded into the maelstrom of ongoing partisan attacks. The shooting star in question involved an exchange between two of Congress’ most controversial members, Allen West (R-Fla.) and Debbie Wasserman Schultz (D-Fla.), whose regard for one another constitutes something of a congressional equivalent to how the Earps and Doc Holliday felt about the Clanton-McLaury gang at the OK Corral.

Except in this case, only one of the participants was present, and this was the problem. Their dispute, which since has reverberated through the internet, went like this: “The gentleman from Florida,” Wasserman Schultz intoned, “who represents thousands of Medicare beneficiaries … is supportive of this plan that would increase the cost for Medicare beneficiaries. Unbelievable from a member from South Florida.” That comment was too much for former Army Colonel Allen West, who responded in an email in which he stated, in part: “You want a personal fight, I am happy to oblige. You are the most vile, unprofessional, and despicable member of the U. S. House of Representatives. If you have something to say to me, stop being a coward and say it to my face, otherwise, shut the heck up.”

Obviously, Congressman West is no one to trifle with.

All of which was dismissed as another example of hyperventilated partisan bloviating….

Read more.

Desperate Obama Turns to MediScare

Susan Stamper Brown, FloydReports.com

If indeed the road to Hell is paved with good intentions, President Obama and his cohorts in the Democratic Party must be feeling the heat on their backsides after the House voted to pass the Cut, Cap and Balance (CCB) plan.

In response to the GOP’s proposal, it should come as no surprise that White House spokesman Jay Carney would use scare tactics to suggest that the CCB bill would impose egregious cuts to Medicare. Democrats currently engaged in the debt ceiling budget debate refuse to tell the truth about the financial state of our union, and choose to continue down their spendificant pathway — which is expected to dead-end by way of a brick wall in 2019.

Republicans have done their part to sound the warning bell, and offer an alternate route, via Rep. Paul Ryan’s, (R-WI) “Pathway to Prosperity,” and more recently, Cut, Cap and Balance. Both proposals tell the unvarnished truth about America’s date with financial destruction and provide a sensible, alternative.

In April, the Congressional Budget Office produced an analysis showing Ryan’s plan would “reverse the course of fiscal history by lowering federal health care spending from 8 percent to 5 percent by 2050,” as compared to a 14 percent spending hike, should we stay on the current path toward insolvency….

Read more-.

Obama “Fixed” Medicare…With Rationing

John Goodman, FloydReports.com

While charges and counter-charges about Medicare are flying back and forth in Washington, hardly anyone seems to have noticed that Medicare’s financial problems have already been solved. They were solved by the health reform bill enacted last year, what some people call ObamaCare.

So why isn’t this front page news? Why aren’t people dancing in the street? Why isn’t the Obama administration boasting about this accomplishment far and wide? Probably because Medicare’s financial problems are slated to be solved by the unconscionable rationing of health care for the elderly and the disabled.

The most recent Medicare Trustees report conveys the same message as the last one: On the day that Barack Obama signed the health reform bill, Medicare’s long-term unfunded liability fell by $53 trillion. That sum is about three times the size of the entire U.S. economy. And, it gets better. Once the Baby Boomers work their way through the system, Medicare spending will grow no faster than the payroll taxes, premiums and general revenue transfers that pay for that spending.

So what does this mean for senior citizens who rely on Medicare?….

Read more.