Free Markets, Free People

Bruce McQuain


Budget Voodoo

Barack Obama is about to submit his first budget to Congress.

Finally, because we’re also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget.  - President Barack Obama to a joint session of Congress, Feb 24, 2009

That’s the promise.  The reality, as the Washington Post observes, isn’t quite in keeping with the promise:

President Obama’s spending plan is built on the assumption that lawmakers can resolve some hugely contentious issues — and it relies on a few well-worn budget tricks.

The tricks?  The usual stuff – calling something what it isn’t and inflating future spending numbers to make the future real numbers appear to be “savings”.  For instance:

And though Obama told Congress on Tuesday that his budget team has “already identified $2 trillion in savings” to help tame record budget deficits, about half of those “savings” are actually tax increases, administration officials said. A big chunk of the rest of the savings comes from measuring Obama’s plans against an unrealistic scenario in which the Iraq war continues to suck up $170 billion a year forever.

The tax increases, of course, include an increase in taxes on the top 2%.  And further savings are based on pretending that the Bush administration planned on spending $170 billion (seems like a small number when compared to the numbers being thrown around these days, doesn’t it?) beyond 2011 when it planned on pulling the bulk of the troops out of the country.

“It’s a hollow number,” said Sen. Judd Gregg (R-N.H.), the senior Republican on the Senate Budget Committee, who recently withdrew as Obama’s nominee to head the Commerce Department. “You’re not getting savings if you’re assuming spending that isn’t actually going to occur.”

What accounts for the other major source of income?

 But to pay for it, the president counts on a big infusion of cash from a politically controversial cap-and-trade system, which would force companies to buy allowances to exceed pollution limits. 

The promise that energy costs are going to skyrocket seems one promise he’s bent on keeping.  That of course will require more spending to offset the consequences (but don’t figure on being in on the subsidy, you probably won’t qualify).  And then there’s the redistributionist “spread the wealth” bonus to be realized from cap-and-trade:

Obama also wants to use the money to cover the cost of extending his signature Making Work Pay tax credit, worth up to $800 a year for working families. That credit, which will cost $66 billion next year, was enacted in the stimulus package, but is set to expire at the end of 2010.

Cover the cost is a way of saying, making the program permanent.

Then there’s the deficit promise.  Obama has set a goal of cutting the deficit in half by the end of his first term.   As observers say, there’s absolutely nothing difficult about reaching that goal:

This year’s budget deficit is bloated by spending on the stimulus package and various financial-sector bailouts, expenses unlikely to be repeated in future years. The nonpartisan Congressional Budget Office recently predicted that the deficit could be halved by 2013 merely by winding down the war in Iraq and allowing some of the tax cuts enacted during the Bush administration to expire in 2011, as Obama has proposed. That alone would cut the deficit to $715 billion, according to the CBO.

Notice that final number, folks.  That’s “half” of the deficit.  In other words he’s going to be running a deficit north of $700 billion dollars and trying to convince you how well he’s done.  In fact, all he’ll have done is add several trillions to the debt with several trillions more to come if reelected.

The era of big deficit financed government isn’t just back, it’s back on steroids sitting in a rocket sled pointed at economic  hell.

~McQ


Healthcare: A 634 Billion Dollar “Downpayment?”

The Washington Post tells us:

President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion.

I put those words in bold so you would understand that even the WaPo considers his plan to be “a vast expansion”.

Now, a question for you – when is the last time you remember “experts” who projected anything to do with the cost of a government program coming anywhere close to the ultimate cost? Or overestimating the cost?

So what can we really expect the true “ultimate” cost to be? Well if history is any guide somewhere around 2 to 3 times what they’re “projecting.”

And how will he pay for this?  Why the same way Medicare has – by shifting costs to patients with private insurance and letting them pick up the slack:

Obama aims to make a “very substantial down payment” toward universal coverage by trimming tax breaks for the wealthy[tax increases - ed.] and squeezing payments to insurers, hospitals, doctors and drug manufacturers, a senior administration official said yesterday.

 BOHICA

Of course, understand that when the cost of your private health insurance benefit goes up because of all the “squeezing” (i.e. cost shifting) going on, your company will either cut benefits, raise your insurance premium or both.  And you shouldn’t at all be surprised that if given the option of dropping health care insurance for a government run system or continuing to pay through the nose for a private one, your company takes the first option.  That is also part of this plan, although unstated.

~McQ


AGW: Not Impressed In Nippon

 A Japanese scientific report breaks with the “consensus”:

Scientists in the Land of the Rising Sun have concluded that it is the sun itself that is the major cause of Global Warming, not man.

It has been the sun for millions, if not billions of years previous to this warming trend. I have no idea, other than Al Gore, why we should believe this one is different.

Japanese scientists have made a dramatic break with the UN and Western-backed hypothesis of climate change in a new report from its Energy Commission.

Three of the five researchers disagree with the UN’s IPCC view that recent warming is primarily the consequence of man-made industrial emissions of greenhouse gases. Remarkably, the subtle and nuanced language typical in such reports has been set aside.

One of the five contributors compares computer climate modelling to ancient astrology. Others castigate the paucity of the US ground temperature data set used to support the hypothesis, and declare that the unambiguous warming trend from the mid-part of the 20th Century has ceased.

The report by Japan Society of Energy and Resources (JSER) is astonishing rebuke to international pressure, and a vote of confidence in Japan’s native marine and astronomical research. Publicly-funded science in the West uniformly backs the hypothesis that industrial influence is primarily responsible for climate change, although fissures have appeared recently. Only one of the five top Japanese scientists commissioned here concurs with the man-made global warming hypothesis.

Note the bold – that is precisely why this one is different. In previous warming trends, government funded scientists weren’t trying to prove it was man who was warming the earth. I also loved the bit about the models and ancient astrology.

~McQ


This Is Definitely Not The Thing To Do

I‘m a big booster of the military (yeah, yeah, I know, big surprise) but when it or members of the military do dumb, stupid or illegal things, I call them out.  This is one of those times:

A U.S. soldier on active duty in Iraq has called President Obama an “impostor” in a statement in which he affirmed plans to join as plaintiff in a challenge to Obama’s eligibility to be commander in chief.

The statement was publicized by California attorney Orly Taitz who, along with her DefendOurFreedom.us Foundation, is working on a series of legal cases seeking to uncover Obama’s birth records and other documents that would reveal whether he meets the requirements of the U.S. Constitution.

“As an active-duty officer in the United States Army, I have grave concerns about the constitutional eligibility of Barack Hussein Obama to hold the office of president of the United States,” wrote Scott Easterling in a “to-whom-it-may-concern” letter.

As Neptunus Lex says, “this is a guy way out of his swim lane”.  Lex mirrors my reaction exactly:

I’m no particular fan of the president’s agenda, but this smells too like the actions of those refuseniks who insisted that the 2000 presidential election was invalid because the result failed to conform to their preferences. Only this is worse, because the individual in question is an active duty officer serving in a combat zone. It’s going to create a huge headache for both his soldiers and their chain of command, all of whom have much better things to do with their lives – like preserve them – than to coddle the whimsies of a rogue 2LT.

He swore an oath to support and defend the Constitution of the United States. This is mere vanity.

And it is utter stupidity. I don’t support this LT any more than I supported the LT who refused to deploy because he had decided that the Iraq war was “illegal”. They need to get this guy out of Iraq where his divided attention might end up getting someone killed. Then they should help him quickly learn to reassimilate into civilian life again (where he will surely become the darling of a few far-right fringe groups).

~McQ


Schumer – Take It Or Leave It

Sen. Chuck Schumer has decided he, not the Constitution, should be final arbiter as to whether states take the stimulus money or not:

“No one would dispute that these governors should be given the choice as to whether to accept the funds or not. But it should not be multiple choice.”

So he sent a letter to the OMB Director, Peter Orszag in which he said:

As you know, Section 1607(a) of the economic recovery legislation provides that the Governor of each state must certify a request for stimulus funds before any money can flow. No language in this provision, however, permits the governor to selectively adopt some components of the bill while rejecting others. To allow such picking and choosing would, in effect, empower the governors with a line-item veto authority that President Obama himself did not possess at the time he signed the legislation.

Well, Chuckie, no language in there says they must accept it all either. And, btw, many governors do enjoy line item vetoes.

And then there’s that pesky 10th amendment.

~McQ


“Climate Change” And The Obama Administration – Huge Power Grab In The Offing

No doubt this will somehow end up being blamed on “global warming”:

A rocket carrying a NASA global warming satellite has landed in the ocean near Antarctica after an early morning launch failure.

The mishap occurred Tuesday after the Taurus XL rocket carrying the Orbiting Carbon Observatory blasted off into the pre-dawn sky from California’s Vandenberg Air Force Base.

“Orbiting Carbon Observatory”? It is apparently now the “Submerged Carbon Observatory”.

In other climate change news, it seems the new “Climate Czar” is ready to rock and roll on the question of carbon regulation:

President Barack Obama’s climate czar said Sunday the Environmental Protection Agency will soon issue a rule on the regulation of carbon dioxide, finding that it represents a danger to the public.

The White House is pressing Congress to draft and pass legislation that would cut greenhouse gases by 80% of 1990 levels by 2050, threatening to use authority under the Clean Air Act if legislators don’t move fast enough or create strong enough provisions.

Note that last line – certainly what one would expect an unelected “czar” to do, wouldn’t you say? Note also that the EPA intends to declare CO2 a “danger to the public”. Yes friends, the gas you exhale as a part of your respiration, the one that plants use in photosynthesis, is suddenly going to be a “danger to the public”.

Officially recognizing that carbon dioxide is a danger to the public would trigger regulation of the greenhouse gas emissions from coal-fired power plants, refineries, chemical plants, cement firms, vehicles and any other emitting sectors across the economy.

All those economic sectors and industries which are supposedly going to be engaged in our recovery via infrastructure improvement, providing critical power and fuel or on the list to be rescued by bailout funds. Does that make any sense at all?

Critics of putting an expensive premium on carbon say that such a schedule may be overly optimistic given the global financial crisis and the ramifications that putting a cap on greenhouse gases would have across nearly every sector of the economy. Tough action too fast, they say, not only could curb manufacturing and create an energy crisis by halting new power plant construction, but also could force a rapid migration of businesses overseas to cheaper energy climes.

But zealots don’t really care about such things – I mean, this is about “saving the planet” you know? And this isn’t just about Browner. She has some powerful backing:

Specifically, Obama wants an economy-wide law – instead of just some major emitting sectors – and to auction off 100% of the emission credits, which analysts say could exponentially increase the cost of emitting, as well as the pay-off for low-carbon projects.

So, given this, does anyone still doubt that we’re going to be in this recession for quite some time once the Czar throws the lever on this little power play (no pun intended)?

Wait, there’s more.  If you’re at all concerned with the expanded power this gives the federal government, you ain’t seen nothin’ yet:

Separately, Browner said the administration was also going to create an inter- agency task force to site a new national electricity transmission grid to meet both growing demand and the President’s planned renewable energy expansion. Siting has been a major bottleneck to renewable growth, and lawmakers and administration officials have said they’re likely to seek greater federal powers that would give expanded eminent domain authorities.

Hope and change.

~McQ


The 10th Amendment Movement Continues To Grow

And it’s about time:

State governors — looking down the gun barrel of long-term spending forced on them by the Obama “stimulus” plan — are saying they will refuse to take the money. This is a Constitutional confrontation between the federal government and the states unlike any in our time.

In the first five weeks of his presidency, Barack Obama has acted so rashly that at least 11 states have decided that his brand of “hope” equates to an intolerable expansion of the federal government’s authority over the states. These states — “Washington, New Hampshire, Arizona, Montana, Michigan, Missouri, Oklahoma, California…Georgia,” South Carolina, and Texas — “have all introduced bills and resolutions” reminding Obama that the 10th Amendment protects the rights of the states, which are the rights of the people, by limting the power of the federal government.

Although critics have panned these refusals as sour grapes by Republicans or attempts to thwart President Obama’s stimulus of the economy, in fact it is a fight the states should have undertaken years ago.

One reason is many of the laws passed at a federal level mandate funds be provided for the program at a state level as well. I’d be interested in anyone who can find Constitutional backing for such a requirement by the federal government, but it is what has happened in the past.

Secondly, there’s the matter of law. Much of what is driving this 10th Amendment movement is the realization that the Fed is attempting to extend its control deeper and deeper into the states. Many are driven by what some would call “wedge issues”, but as Bryan points out in his “MYOB” post, states more accurately reflect their citizenry than does the federal government and the imposition of “one-size-fits-all” legislation, especially when it exceeds the constitutional reach of the Federal government, is something to be resisted:

For example, Family Security Matters reports that Missouri’s “House Concurrent Resolution 0004 (2009) reasserts its sovereignty based on Barack Obama’s stated intention to sign into law a federal ‘Freedom of Choice Act’, [because] the federal Freedom of Choice Act would nullify any federal or state law ‘enacted, adopted, or implemented before, on, or after the date of [its] enactment’ and would effectively prevent the State of Missouri from enacting similar protective measures in the future.”

The resolution in Montana grew out of concerns over coming attacks on the 2nd Amendment, thus its preface describes it as, “An Act Exempting From Federal Regulation Under The Commerce Clause Of The Constitution Of The United States A Firearm, A Firearm Accessory, Or Ammunition Manufactured And Retained In Montana.”

New Hampshire’s resolution actually references certain federal actions that would be nullified within that state were they pushed by Obama’s administration, according to americandaily.com. Among these are “Any act regarding religion; further limitations on freedom of political speech; or further limitations on freedom of the press, [and any] further infringements on the right to keep and bear arms including prohibitions of type or quantity of arms or ammunition.

I sincerely hope this trend continues and that we see some states challenge the Federal government in court over 10th amendment issues in an effort to stop the mandates and the attempts to modify or change state law.

For those who have forgotten what the 10th Amendment says or aren’t familiar with it, it reserves to the states and people those powers not explicity delegated the federal government:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

I’d also remind everyone that the 10th amendment is a part of the Constitution known as the “Bill of Rights”. As we’ve all observed over the years, the rights of states have been all but rendered null and void. To regain a semblance of the federalism under which the nation was founded, movements like this are not only critical but necessary. It is one very important way we can curb the growth of the Federal government – assuming the Supreme Court agrees (which is not at all a given) since I’m sure this argument will eventually end up being settled there.

~McQ


Afghanistan – No Longer The “Good War”?

Apparently not to the usual suspects.

Bill Ayers was interviewed:

Ayers had this to say about President Barack Obama committing an additional 17,000 troops to Afghanistan: “It’s a mistake. It’s a colossal mistake. And, you know, we’ve seen this happen before, Alan. We’ve seen a hopeful presidency, Lyndon Johnson’s presidency, burn up in the furnace of war.”

Ayers thereby joins the rest of the moonbat contingent:

“I’m very upset; he promised change, and this is not change. It’s just going to create more deaths on both sides and create more terrorists,” said Jodie Evans, co-founder of Code Pink. The group, known for protests and targeting Bush administration officials, posted a statement Thursday condemning Mr. Obama’s decision and urging him to replace the combat troops with “humanitarian troops.”

“Afghanistan needs troops of doctors, farmers, teachers, not more troops,” the statement says.

It is apparently beyond Ms. Evan’s abilities to wonder how those “troops” of doctors, farmers and teachers are supposed to do their thing when, in the absence of our troops, the countryside is controlled by the Taliban. I assume she isn’t aware of the fact that the Taiban has a tendency to behead many of those she’d commit to A’stan.

Interesting though, isn’t it? Now we’re beginning to see that many of the supposedly “anti-Iraq” crowd, were just the usual anti-war bunch.

~McQ


For Once I’d Actually Like To See Reid Be Right About Something

Sen. Harry “the SURGE has failed” Reid is again in the analysis business:

Senate Majority Leader Harry Reid (D-Nev.) said on Monday that the banking industry is “very close” to being stabilized and the nation’s economy is starting to rebound.

“We tend to talk about the negative. … Things are beginning to turn and I think the American people are going to feel that very soon,” Reid said during an appearance on MSNBC’s “Morning Joe” show. 

Great.

Cancel the “stimulus” and cut the deficit by 789 billion.

Fiscal responsibility somewhat restored (well, except for Social Security, Medicare and Medicaid).

~McQ