No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for the 'Politics – National' Category

July 6, 2010

Kennedy grabbing a Snickers, not going anywhere for a while

by @ 16:34. Filed under Lawgivers-In-Black, Politics - National.

(H/Ts – Ed Morrissey and Sister Toldjah)

The Daily News reports that Justice Anthony Kennedy, the most-powerful Lawgiver-In-Black as the Supreme Court’s swing vote, told friends and family he’s sticking around for at least another 3 years. Ever-so-conveniently, that places his potential retirement past the end of President Obama’s first term.

Ed notes there may well be a bit of vengenace on the part of Kennedy against Obama:

Obama certainly reveled in his prime-time, televised, cheap-shot attack at jurists who couldn’t fire back. Samuel Alito took fire from the media for having just mouthed a rebuttal. The only revenge any of them can take is to make sure that they stay in place until Obama leaves office. The “at least” part of the report almost certainly means that retirement at 80 may be just as possible as retirement at 76. After all, John Paul Stevens didn’t decide to retire until he was almost 90 years old.

When you lose the moderates,….

July 5, 2010

Monday Hot Read – Tom Blumer’s “The Most Depressing Numbers in Friday’s Employment Data”

by @ 6:27. Filed under Economy, Politics - National.

Tom Blumer explains why the June civilian labor force number justifies total depression:

The SA (seasonally-adjusted) number for June is bad enough. In fact, June’s seasonally adjusted workforce shrinkage is the largest for any June since 1963.

But the NSA (non-seasonally-adjusted) number representing what really happened is even worse. In a normal June, the workforce increases significantly, because lots of people occupied with other things during the rest of the year typically test the waters in the seasonal and summer-job market. But whereas an average of about 1.75 million did so during the past seven Junes, including almost 1.6 million last year during the recession, only 901,000 did so in June of 2010. You have to go all the way back to 1954 to find a worse June on the ground in the private sector than the June we just experienced. On a population-adjusted basis, June’s figure is the worst performance in the 63 years BLS has been tracking the data.

The only way anybody, especially Teh Won, can claim that we’re headed in the “right direction” with those numbers is if that person’s goal is to make everybody dependent on government.

July 2, 2010

The Social Security Crater – Old-Age and Survivors Insurance Edition

by @ 22:09. Filed under Social Security crater.

Last week, I took a look at the ble…er, lack of future of the Disability Insurance (DI) portion of Social Security. Depending on the assumption of outgo used, that fund will likely run out of money between June 2015 and September 2016.

Since the Social Security Trustees are late with their already-delayed annual report, I decided to take a look at the much-larger Old-Age and Survivors Insurance (OASI) portion of Social Security. The Cliff’s Notes version, for those of you who don’t want to wade through the details on a holiday weekend, is that once again, the Trustees were overly optimistic last year. The OASI “Trust” Fund will begin running annual primary (cash) deficits this month, will likely begin running overall (including interest) deficits sometime between 2014 and 2020, and will likely be exhausted sometime between 2026 and 2033, with the latter two breakpoints depending on which rate-of-cost-growth one selects.

Like the look at the DI Fund, I assumed that tax revenues and outgo would do for the rest of 2010 what they did for the first 5 months (tax revenues decreased by 4.1%, outgo increased by 4.0%), that the interest rate would be 5% (a bit higher than the current weighted average of 4.880% and significantly higher than the 2.875% new bonds/certificates of indebtedness earn), and that tax revenues would increase by 5.3% starting in 2011 (ahead of the 1996-2006 average of 5.234% for the total FICA/SECA tax). Outside of a couple of “recovery” years, that 5.3% increase in tax revenues is also higher than anticipated in the 2009 Annual Report.

Because there will be a “bubble” of retirees over the next 20 years, I could not simply use either the rate of cost increase between the first 5 months of 2009 and the first 5 months of 2010 (like I did for the “base” DI scenario) or the average rate of cost increase between 1996 and 2006 (like I did for revenues). Instead, I calculated the annual increase of outgo using the percentages from the 2009 Annual Report, using a 2-year average for 2019 and 2020 and a 5-year average after 2020 because annual numbers were not available. Since the “low-cost” estimate is unrealistically optimistic (it claimed that even the DI “Trust” Fund would never run out of money), I used the “intermediate” and “high-cost” estimates for that, and ran the numbers twice.

As a review, the 2009 Annual Report claimed that, under the “intermediate” scenario, the OASI “Trust” Fund would run a yearly primary surplus until 2020 and a yearly overall surplus until 2024. Also, it would not be exhausted until 2041. Under the “high-cost” scenario, the yearly primary surpluses would last until 2014, yearly overall surpluses would last until sometime after 2018 (a specific year was not given), and the fund itself would last until 2031.

Fast-forward to this year. Unless something drastically changes between May and July, the 12-month primary deficit in the OASI fund will begin in the August 2009-July 2010 period (that’s this month, and 4 years before the high-cost estimate from last year), with the FY2010 primary deficit of $9.781 billion and a calendar-year 2010 primary deficit of $20.779 billion.

Assuming future cost growth at the “intermediate” rates, the yearly primary balance never quite gets out of the red in the intermediate term, coming no closer than $10.592 billion between March 2011 and April 2012. The yearly overall balance would flip to the negative side in 2020, and the fund itself would run out in 2033.

Before those of you who think that there really is a pot of gold at the end of every rainbow and that unicorn farts smell like Skittles start hammering me for being pessimistic, remember that I used a high estimate of tax revenue increase. Proof of that is the results of taking the estimates further out to 2085, which is as far as the Trustees go. Because, unlike the “intermediate” model from the Trustees, revenues increase faster than costs, this model projects the OASI “Trust” Fund goes back into the black in 2058. That is rather unlikely because under the “intermediate” model, the closest the OASI operation comes to running a yearly primary surplus after fund exhaustion is sometime between 2050 (when the primary balance is -2.98% of taxable payroll) and 2060 (balance of -3.06% of payroll), and likely near 2055 (balance of -2.96% of payroll).

Now, let’s take what the Trustees assumed to be the “intermediate” case for tax revenue increases from 2011 onwards and plug that back into the spreadsheet. Since they assumed roughly a 6% increase in 2012 and 2013, the OASI “Trust” Fund does get closer to the black on a yearly cash basis, getting as close as a $7.720 billion primary deficit between February 2012 and January 2013. However, they also assume a lower increase in tax revenues the other years, which means the fund goes into a yearly overall deficit in 2019, and runs out of money in 2030, never to go into the black again for more than one month in twelve (specifically, April).

It gets worse if future cost growth is at the “high-cost” rate. That is more likely given the first 5 months of 2010 have been more costly than even the 2009 high-cost estimate projected. Assuming either the flat 5.3% tax-revenue growth the “base” scenario does or the variable tax-revenue growth assumed by the Trustees in the 2009 “high-cost” estimate, the yearly overall balance would flip to the negative side in 2016, the last monthly overall positive balances in the intermediate term (long-term using the Trustees’ tax-revenue numbers) would be in April 2022 (on the strength of taxes) and June 2022 (on the strength of interest), and the fund would be exhausted in 2026.

Revisions/extensions (7:25 pm 7/3/2010) – The power of a HotAir-lanche is truly awesome. At last check, somewhere over 2,000 of you popped in here off the Headline Ed/Allahpundit put up. I can’t thank you enough for dropping in this little corner of the ‘Tubes, and Shoebox and I hope you stick around a while.

June 28, 2010

“Interesting” how far the law can be stretched

by @ 17:50. Filed under Politics - National.

The Washington Post‘s Chris Cillizza reports that, in the aftermath of Sen. Robert Byrd’s death, Secretary of State Natalie Tennant announced the replacement appointed by governor Joe Manchin will serve until after the 2012 election. The statute in question (§3-10-3) reads (emphasis added):

Any vacancy occurring in the office of secretary of state, auditor, treasurer, attorney general, commissioner of agriculture, United States senator, judge of the supreme court of appeals or in any office created or made elective to be filled by the voters of the entire state, judge of a circuit court or judge of a family court is filled by the governor of the state by appointment. If the unexpired term of a judge of the supreme court of appeals, a judge of the circuit court or judge of a family court is for less than two years or if the unexpired term of any other office named in this section is for a period of less than two years and six months, the appointment to fill the vacancy is for the unexpired term. If the unexpired term of any office is for a longer period than above specified, the appointment is until a successor to the office has timely filed a certificate of candidacy, has been nominated at the primary election next following such timely filing and has thereafter been elected and qualified to fill the unexpired term. Proclamation of any election to fill an unexpired term is made by the governor of the state and, in the case of an office to be filled by the voters of the entire state, must be published prior to the election as a Class II-0 legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code and the publication area for the publication is each county of the state. If the election is to fill a vacancy in the office of judge of a circuit court or judge of a family court, the proclamation must be published prior to the election as a Class II-0 legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code and the publication area for such publication is each county in the judicial or family court circuit.

The certificate-of-candidacy period was between January 11 and January 30. Further, there was a court case in 1994 (H/T – Hotline via Allahpundit) that affirms the certificate-of-candidacy requirement.

I suppose I should mention that all involved in the current situation are Democrats seeking to keep the seat in their hands at a time when the voting populace seems ready, willing and able to remove them from power. As Smitty said, “The good news in all this is that, since the ruling falls in favor of the Democratic Party, we’re spared endless breast-beating about the crushing of voter expression, Republican Party thugger in general, and Rascal Rove vitriol in particular.” One could only imagine what the presstitutes would have said if it were Republicans that were desperate to keep their virtual supermajority in the Senate.

The latest evidence Obama is serving FDR’s 5th term

Ed Morrissey highlighted the latest bit of evidence that Obama is really the second coming of Franklin Delano Roosevelt. From his joint press conference with Russian President Dmitri Medvedev:

Those were the same hopes of another generation of Americans and Russians — the generation that stood together as allies in the Second World War —- the Great Patriotic War in which the Russian people suffered and sacrificed so much. We recently marked the 65th anniversary of our shared victory in that war, including that historic moment when American and Soviet troops came together in friendship at the Elbe River in Germany.

“A reporter who was there at that time, all those years ago, said: “If there is a fine, splendid world in the future, it will largely be because the United States and Russia get on well together. If it is in trouble, it will be because they don’t get on well. It’s as simple as that.”

Since Ed included the uncorrected comment in an e-mail I sent to him on this, I’ll repeat the Croats twice here as well – I think the Poles, Estonians, Latvians, Lituanians, Hungarians, Slavs, Croats, Bosnians, Romanians and Croats (among others) might have a second opinion on that.

It was the Yalta Conference, FDR’s last major decision, that abandoned Eastern Europe to the not-at-all-tenderness of Iosif Stalin.

Revisions/extensions (5:52 pm 6/28/2010) – How did I screw up the link to Ed? Sorry about that; it’s fixed now.

June 27, 2010

All you need to know about Terrence Wall’s sour grapes

Jim Klauser, who was Terrence Wall’s campaign co-chair, was quoted by the Wisconsin State Journal responding to allegations from the former Senate candidate that Ron Johnson bought his endorsement at last month’s Republican Party of Wisconsin convention:

“I looked into it and I found nothing to support it. Sadly, I think this is all a part of his imagination. I think he is conjuring it up and demeaning a reputable individual in the process.

The Johnson campaign produced documents showing a total of 6 rooms paid for by the campaign, which the Milwaukee Journal Sentinel reports was for Johnson, his wife, and 6 campaign staffers.

Specifically on the delay of the endorsement vote, one can blame the deadlock on the lieutenant governor’s 3-ballot ultimate non-endorsement. I was there Saturday, and the endorsement process for governor and lieutenant governor took 6 hours.

Just as a reminder, the votes weren’t even counted after Dick Leinenkugel’s surprise drop-out and endorsement of Johnson from the stage before the Wall campaign hit Johnson for taking the endorsement of “Doyle’s favorite Republican”.

One more thing – buying votes at a convention is not illegal. Wall was as busy as anybody else handing out (and selling) trinkets all weekend long. Quoting UW-Milwaukee professor of governmental affairs Mordecai Lee, “not exactly” a conservative, from the WSJ article:

At the end of the day, what he has accused Johnson of is not illegal, so I’m not sure what he hopes to accomplish. But I think he better stick to non-partisan elections, if he ever wants to run for office again.

I guess that, since Wall won’t be replacing Russ Feingold, he would rather keep his tenant in office.

June 24, 2010

So Obama is coming to town to talk economy

by @ 19:26. Filed under Economy, Politics - National.

The word from WisPolitics is that President Obama will be coming to a to-be-disclosed location in southeast Wisconsin on June 30 to talk about the economy. The lines are now open for suggestions on where he could hold that talk.

My choice – the being-torn-down former Delphi plant at Howell and Drexel in Oak Creek.

The Social Security Crater – Disability Insurance edition

by @ 18:08. Filed under Social Security crater.

I know; the Trustees report is due out in a few days, but there’s some things that won’t wait until then. This time, I’ll focus specifically on the Disability Insurance (DI) portion of the matter. If you don’t want to wade through the whole post, the Cliff’s Notes version is that the DI “Trust” Fund suffered its first negative April since the effects of the previous major Social Security overhaul took full effect in 1987, and that it appears even the high-cost estimate in last year’s Trustees report was optimistic, with the DI fund now looking to be exhausted by the end of 2015 instead of by the end of 2016 in the 2009 high-cost estimate and by the end of 2020 in the intermediate estimate.

Before I get to the heart of the matter, I first need to do two months’ worth of housekeeping. In April, when just about everybody with a tax bill settles up and those who make quarterly estimated payments do so in the greatest of numbers, the combined Old-Age and Survivors/Disability Insurance (OASDI) funds took in $76,672 million, including $138 million of interest, and had expenses of $58,948 million for a gross increase of $17,724 million (or 23.12% of gross income), and a primary (cash) increase of $17,586 million (or 22.98% of ex-interest/net receipts). That pushed the 12-month primary deficit to $18,732 million, and dropped the 12-month gross surplus to $99,599 million (the first sub-$100,000 million 12-month gross surplus since 10/1997-9/1998).

In absolute terms, it’s the worst primary April performance since 1999 (with a $17,506 million increase on $49,810 million of tax revenue) and the worst gross April performance since 1998 (with a $15,502 million increase on $46,804 million in gross revenue). In percentage terms, that’s the worst April since monthly records were made available in 1987.

May didn’t show any real improvement over recent months, with the combined funds posting a combined $5,087 million gross/$5,177 primary loss on $53,859 million in gross receipts ($90 million in interest) and $58,946 million in outgo. The 12-month primary deficit grew to $21,987 million, and the 12-month gross surplus shrunk to $96,268 million.

This is not the first time since 1987 that the DI Fund faced imminent exhaustion. Indeed, in 1994, it came within 2 years of running out of Treasury securities to draw upon. The fix back then was to transfer the majority of the November 1994 tax revenue from the Old-Age and Survivors Insurance (OASI) Fund and increase the portion of the FICA/SECA tax that went into the DI Fund. That fix, which worked back then because the OASI Fund was running in the black, won’t work this time because, outside the “taxation” months of January and April, the OASI Fund has been running a primary deficit since July 2009.

Specifically to April, even in April 1994, the DI Fund ran a monthly surplus of $492 million ($473 million net) on $3,722 million of receipts ($19 million of interest) and $3,230 million of outgo. Now, the DI Fund has run 13 months of consecutive monthly primary deficits (through May), with the only monthly overall surpluses coming as a result of the semi-annual crediting of interest in June and December. The latest 12-month overall deficit (6/2009-5/2010) was $17,167 million, over 8.3% of the end-of-May fund value of $194,355 million.

That leads me to the bad news on the end of the DI “Trust” Fund. I decided to plug some numbers into the spreadsheet to see just how fast the fund would cease to exist. I assumed that tax revenues would, for the rest of 2010, continue to lag behind 2009’s by just under 5.2% (as they have for the first 5 months), then increase by 5.3% (actually a bit higher than the 1996-2006 annual average of 5.234% for the total FICA/SECA tax). I also assumed that outgo would increase by the 5.464% that it went up for the first 5 months in 2010 versus the first 5 months of 2009 (significantly lower than the 1996-2006 annual average of 7.613%), even though 2010’s increase is solely due to the increased number of those drawing from Social Security, and that the interest rate would be at 5% (a bit higher than the current weighted average of 4.880% and significantly higher than the 2.875% new bonds/certificates of indebtedness earn).

With a starting point of $194,355 million in the DI “Trust” Fund at the end of May 2010, and assumptions that are actually favorable to the longevity of the “Trust” Fund, here are the projected DI “Trust” Fund balances at the end of each calendar year:

December 2010 – $178,728 million (projected to be the first “interest” month with an monthly overall deficit, with June 2010 having the only monthly overall surplus of 2010)
December 2011 – $151,653 million (again with June 2011 having the only monthly overall surplus of 2011)
December 2012 – $118,899 million (with June 2012 having the only monthly overall surplus of 2012, and June 2012 also having the last monthly overall surplus in this scenario)
December 2013 – $83,281 million
December 2014 – $43,428 million
December 2015 – EXHAUSTED (November 2015 would see a DI fund balance of $4,839 million)

Even if I were to assume the 5.3% tax growth beginning in June 2010 instead of January 2011, it doesn’t get much better. The DI “Trust” Fund barely makes it into 2017 before it disappears.

As a reminder, under current law, at the point the DI fund is exhausted, benefits would have to be cut by the percentage the tax revenues don’t meet demand. No, it can’t even tap into the OASI “Trust” Fund to avoid average benefit cuts of over 25%.

Revisions/extensions (7:05 pm 7/2/2010) – Partly because the Social Security Administration missed their delayed deadline for the annual report, and partly because I had to adjust my outgo assumptions for the OASI “Trust” Fund estimates, I have re-run the numbers using the increases anticipated in the “Intermediate” and “High-Cost” scenarios in the 2009 Trustees Report.

Since the Intermediate scenario assumes that the cost of running the DI portion of Social Security rises slower than the 5.464% it went up in the first 5 months of 2010, the DI “Trust” Fund makes it to December 2016 before being exhausted. Further, unlike the “base” scenario outlined above, the DI operations would be able to pay out the entirety of the scheduled payments for a couple Aprils after fund exhaustion.

The bad news is the “High-Cost” scenario assumes the cost of running the DI portion of Social Security rises even faster than my assumption. Plugging that back into the spreadsheet yields fund exhaustion in July 2015.

June 22, 2010

Art Imitating Life?

by @ 19:53. Filed under Energy, Politics - National.

If imitation is truly the sincerest form of flattery then President Obama’s administration is just bustin’ buttons with pride tonight!

Yesterday, Iran offered to help the US, and specifically President Obama, plug the oil leak in the Gulf.

“If Americans and Britons and also the Western companies find themselves incapable of capping the oil spill, [they can] ask Iran, [we] will study the case, and send… IRGC experts to the region to help prevent the continuation of this serious crisis,” Qasemi added.

I know, your asking, “what about this is imitation?” 

Do you really think Iran is sincere about helping to plug the leak.  Or, for that matter, do you think they have better abilities than the rest of the world?  No, neither do I!

Using Rahm Emanuel’s own approach, Iran is taunting the US, never allowing a crisis to go to waste!

In a follow up question I need to ask, Rahm, when you uttered those now infamous words, did you ever consider that the crisis that you wanted to exploit just might be a real one that required real solutions?

June 21, 2010

Who Could Have Imagined This Coming?

by @ 19:41. Filed under Health Care Reform, Politics - National.

Two headlines from today’s news.

From the AP:
Borrowers exit troubled Obama mortgage program

WASHINGTON – The Obama administration’s flagship effort to help people in danger of losing their homes is falling flat.

But the punch lines come from the reasons stated:

Treasury officials now require banks to collect two recent pay stubs at the start of the process. Borrowers have to give the Internal Revenue Service permission to provide their most recent tax returns to lenders.

Requiring homeowners to provide documentation of income has turned people away from enrolling in the program. Around 30,000 homeowners started the program in May. That’s a sharp turnaround from last summer when more than 100,000 borrowers signed up each month.

Yeah, imagine that!  People should actually be able to show that they can afford the loans they commit themselves to!  This must be an evil vast Right wing plot against low or no income people!

How about this from USA Today:

Doctors limit new Medicare patients

WASHINGTON — The number of doctors refusing new Medicare patients because of low government payment rates is setting a new high, just six months before millions of Baby Boomers begin enrolling in the government health care program.

But you have to love this quote from a Politico story about the Doc fix spat:

“This is no way to run a major health coverage program – already the instability caused by repeated short-term delays is taking its toll,” said AMA president Cecil B. Wilson. “Congress has finally taken its game of brinkmanship too far, as the steep 21 percent cut is now in effect and physicians will be forced to make difficult practice changes to keep their practice doors open.”

Ah, yeah.  That’s the same AMA that vigorously supported both the House and Senate versions of Placebocare, the final version accomplishing a “balance budget” by eliminating the perpetual doc fix!

Or this:

“I have never seen physicians more frustrated with the cuts and cynical about Congress’ willingness or ability to do the right thing for patient access,” said Bob Doherty, a senior vice president at the American College of Physicians. A short-term repair “will confirm the growing sentiment among doctors and seniors that Medicare is an unreliable and unstable partner that can’t be counted on to pay its bills, and more of them accordingly will limit how many Medicare patients and seniors they can afford to see.”
Yup, there again, the ACP was a supporter of Placebocare.
Hypocrisy, they name is thee whose particular Ox is being gored!

June 20, 2010

Israel and Arizona

by @ 18:52. Filed under Politics - National.

Nearly every time Hamas steps up its rocket barrage of Israel I hear a defender of Israel, usually someone from the Right, explain Israel’s response with an analogy similar to this:

Listen, if Mexico were lobbing rockets into Tucson, don’t you think the United States would retaliate?

I think most right minded folks, even a majority on the Left would say, “Yeah, we would and should protect ourselves.”  Yeah, that’s what I used to think but, not any more.

Last Wednesday, the US Fish and Wildlife Service closed off access to over 3,000 acres of Buenos Aires National Wildlife Refuge.  It wasn’t because of wildfires.  It wasn’t because of floods.  It wasn’t even because some rare insect, rodent or bird had been spotted and they were trying to protect it.  No, 3,000 acres of U.S. soil have been closed because violence from Mexican drug and human smugglers has become so severe that it is no longer safe for U.S. residents.

Without one shot being fired by the world’s last remaining superpower, the US has effectively ceeded 3,000 acres to Mexico.

While it’s obvious that President Obama has little knowledge or even interest in effective international relations, I would think that at the very least, his Chicago instincts would kick in in this situation.  Under rules of the Chicago Way, any ceding of territory or turf is considered a sure sign of weakness.  And, we all know that President Obama is not weak.  Apparently in this case, he just hasn’t figured out whose ass to kick!

Those Who Do Not Learn From History….

by @ 12:15. Filed under Economy, Politics - National.

Is it just me or does President Obama’s hype around “Recovery Summer,” kicked off in this photo:

Feel an awful lot like how this event was received?

By the way, what’s the deal with the guy in the lab coat? Did the PR guys have some left over from the phony Doctor photo ops for Placebocare?

June 17, 2010

The IRS being placed in charge of PlaceboCare was no accident

Philip Klein explains over at The American Spectator the strategy the Obama adminstration is using to try to short-circuit challenges to PlaceboCare (emphasis added):

Late last night, the Obama Department of Justice filed a motion to dismiss the Florida-based lawsuit against the health care law, arguing that the court lacks jurisdiction and that the State of Florida and fellow plaintiffs haven’t presented a claim for which the court can grant relief. To bolster its case, the DOJ cited the Anti-Injunction Act, which restricts courts from interfering with the government’s ability to collect taxes.

The Act, according to a DOJ memo supporting the motion to dismiss, says that “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The memo goes on to say that it makes no difference whether the disputed payment it is called a “tax” or “penalty,” because either way, it’s “assessed and collected in the same manner” by the Internal Revenue Service.

Klein goes on to explain how that is a violation of both his claims that it isn’t a tax and his his campaign pledge to not raise taxes by “one dime” on those making less than $250,000 (later lowered to $200,000 if one is single, with the $250,000 supposedly still applying to those who are married).

The Godfather Presidency

by @ 9:52. Filed under Business, Politics - National.

The Heritage Foundation explains what happened at the White House yesterday:

This time it was the executives of BP who were summoned directly to the White House to have a little chat with the President and Attorney General Eric Holder (who has threatened BP with criminal prosecution). The exact conversation may never be known, and by the end of their “no-nonsense business meeting” BP emerged from the Roosevelt Room to announce that they would “voluntarily” place $20 billion into an escrow account to begin covering claims associated with the Deepwater Horizon oil disaster and contribute another $100 million to a foundation that will support oil workers made unemployed by President Barack Obama’s indefinite ban on offshore oil drilling.

Don’t buy for a second any of the mainstream media’s line about this being good for BP. The White House made clear yesterday that the $20 billion was just a down payment and in no way represented a cap on BP’s liability. In fact, the President explicitly said that the fund would not preclude individuals or states from pressing claims in court, and that it would remain separate from BP’s liability for the damages to the environment. And these damages may include the costs of cleanup for damage far beyond what BP caused. The Washington Post today reports that a gulf restoration plan of the sort promised by President Obama could cost as much as $30 billion. That’s $50 billion in damages so far. And that does not include any future money, on top of the existing $100 million donation, the White House may press BP to pay to cover the unemployment caused by President Obama’s offshore drilling ban.

They go on to discuss what would happen if BP goes into bankruptcy, noting that the Feds have put a $20 billion lien on some of BP’s American operations. While the White House assured BP that it wasn’t seeking to drive the company out of business, I seem to recall the same promises made to Chrysler and General Motors, and after a manipulation (perversion, really) of the bankrupcy process, we now own two car companies.

I guess it’s time to break out a classic People’s Cube graphic:

June 16, 2010

Vote early, vote often – no longer just a Chicago Machine Expression

Ace dug out the memory of wanna-be Assistant General for Civil Rights Lani Guiner when he found that Port Chester, New York was forced by a Lawgiver-In-Black to give up its at-large voting system for its six village trustees and adopt “cumulative voting” in order to assure Hispanic representation, and also keep the in-person polls open for five full days.

The difference between at-large voting systems and cumulative voting systems is, in an at-large system, one can only vote for each candidate once, casting votes up to the maximum number of offices being filled. Meanwhile, in a cumulative voting system, one can apportion votes up to the maximum number of offices being filled with no limit on the number of votes cast for a particular candidate.

The reason this “works” for the “aggrieved minority”, and indeed, worked for one Luis Marino, who The Journal News cheered as the first Latino elected in Port Chester, is a minority group can multiply their votes behind a single candidate, while the “high-minded majority” splits their votes among multiple candidates. The effect is enhanced if, like Port Chester, there is no primary to narrow the field to “the number of offices plus one”.

Bear in mind that, while what Jay Weber calls the Accomplice Media notes, correctly yet incompletely, that Latinos make up close to half Port Chester’s population, there is a small detail that most of them will miss, and I will give kudos to The Journal News for mentioning it – Latinos make up only roughly 20% of the voting-age citizens in the village. The fact that, up until yesterday, no Latino had been elected to the board is more a statistical quirk than anything else.

Those who don’t remember history – The Boondoggle Edition

by @ 11:20. Filed under Politics - National.

Rep. Paul Ryan (R-WI, and my Congresscritter) and his fellow House Budget Republican members launched the Budget Boondoggle Award a couple years ago to carry on the tradition of William Proxmire’s Golden Fleece Award. Today, they turned their attention to the proposed $20 million Office of Livable Communities, with a stated goal of making car-less hyper-urban communities with promises of federal money that simply isn’t there.

It sounds a lot like FDR’s Resettlement Administration. The RA, and its predecessor Subsistence Homsesteads Division of the Department of the Interior, had a rather spotty record in attempting to set up socialist communes. For every community that survived until it could be privatized like Greendale, there was an abject failure like Hickory Ridge, Virginia.

“Shut up!”, they said – national edition

by @ 8:01. Filed under Politics - National.

(H/T – Owen)

There is a piece of legislation called the DISCLOSURE Act (H.R. 5175 on the Congressional calendar) that would, among other things, require disclosure of all donations to corporations, non-profit organizations, and unions of at least $600 to an account used for campaigning within 120 days (a new extension in and of itself) of an election (whether the entity uses a segregated political account or a mixed-use account), as well as all donations to corporations/unions of at least $6,000 regardless of purpose if said entity particpiates in campaigning.

Side note – while many are saying that this doesn’t apply to unions, that non-application, at least as of the May 25 mark-up, is a function of the way the triggers are written rather than an express exemption. Unions are already required to segregate political funds, and I don’t know of too many unions that take either $600 for that segregated political fund or $6,000 for total dues.

In order to grease the skids for shutting up the less-connected, Politico reported that the National Rifle Association negotiated a deal with the Democrats to exempt itself, and contrary to Democrat claims, other groups like AARP and the Humane Society, from the donation-reporting requirements. Specifically, the deal would “exempt organizations that have more than 1 million members, have been in existence for more than 10 years, have members in all 50 states and raise 15 percent or less of their funds from corporations”.

June 1, 2010

Another Arizona Boycott

by @ 12:54. Filed under Immigration, Politics - National.

After Arizona passed its “we’re going to enforce the law if the Feds won’t enforce the law” immigration law, numerous members of the politically correct class called for boycotts of doing business with Arizona.  It got so ridiculous that MLB continues to be challenged to pull the All Star game from Phoenix and the Arizona Tea company, whose products have no affiliation with Arizona other than their name, have been suggested as a possible boycott target.

After the initial calls for boycotts, President Obama was queried as to whether he believed boycotts of Arizona were appropriate.  His response was that while he didn’t agree with the law, yet understood the frustration of the Arizona people:

“I’m the President of the United States. I don’t endorse boycotts or not endorse boycotts.”

So, President Obama has a dilemma. He doesn’t support a law that has been enacted by Arizona but obviously wants to do something about the problem because he also understands the frustration of the Arizona people (Oh, by the way, the people of Arizona are frustrated by the lack of effort, focus, urgency by anyone at the Federal level).

Arizona Governor Jan Brewer, while approving of the Arizona law, also fees the frustration of the Arizona people.  As an executive leader who takes her position as one of action and not just show, she reached out to the White House in an attempt to meet with President Obama about their law and to discuss a future course of action supported by both Federal and State authorities.  Obama’s response? I’m too busy!

Too busy?  Doing what?  Dealing with that oil spill in the gulf?  Nope, he’s got a host of his lackey’s running interferenceso that Governor Jindal can’t do what he believes is right for his state!

Busy dealing with the events involving Gaza and Israel?  Nope, in fact, now has time on his calendar as Prime Minister Benjamin Netanyahu cancelled his visit to return home to deal with the issue himself.

Oh, I almost forgot. I’ll bet President Obama is working on that Korean issue. Opps, nope, he’s farmed that one off to the UN.

Early in his presidency, when one of his community agitator friends got in a tussle with the local police, President Obama, along with Vice President Biden, cleared their schedules to allow for a beer tasting photo op. This, over an issue that should never have elevated itself above the local community police/college relationship. Now, on an issue that clearly has national significance, President Obama is too busy to meet with Governor Brewer.

If I were the synical type, I’d think that President Obama’s shunning of Governor Brewer was in fact, his own, private boycotting of Arizona!

May 27, 2010

Wisconsin Senate updates

I’m sure you’ve heard by now that Oshkosh businessman Ron Johnson is the Republican Party of Wisconsin-endorsed candidate. There’s a few items that have happened since then.

Rasmussen Reports took a poll of 500 likely voters, and found that Russ Feingold (D-WI) holds a mere 46%-44% lead over Johnson. Feingold continues to have a 6-point lead over Terrence Wall (47%-41% this month, compared to 49%-43% in April), and a 9-point lead over Dave Westlake (47%-38% this month, compared to 49%-38% in April).

Meanwhile, George Will is singing the praises of Johnson. Will praised Johnson’s choice of reading material (“Atlas Shrugged”), and noted that, unlike John Galt, Johnson chose to run.

WisPolitics is reporting that the Senate campaign of Terrence Wall, in the wake of losing the RPW endorsement race to Johnson, is imploding. They are reporting that his campaign manager, Ryan Murray, is out, that his honorary campaign co-chairs, Jim Klauser (Tommy Thompson’s Secretary of Administration) and Mary Buestrin (the RPW national committewoman), will be endorsing Johnson (Buestrin is obligated to do so as a party official), and that his departure from the race is “imminent”.

For his part, Westlake told WISN-AM’s Jay Weber this morning he’s in it until the end.

Revisions/extensions (3:12 pm 5/27/2010) – Here’s the official statement from the Wall campaign:

With great reluctance, I am withdrawing my candidacy from the United States Senate race against Russ Feingold. Since we began this journey last October, I have been so grateful for the support of Wisconsinites hungry for real fiscal conservatism and change in their government. And no matter how much I want to stay in and fight, I feel the honorable thing to do is exit.

When I started this effort, I had two goals: First, to turn this country around before it’s too late, and second, to prove that Russ Feingold could be defeated. We did show that we could win this race and we did so running an honest, clean campaign.

Last October, the polls showed us down double-digits and few had heard my name outside of Dane County. Recent polling now shows that we have closed within the margin of error.

As I traveled across this great State, county-to-county, city-to-city and handshake-to-handshake, I realized that the vast number of people I’ve met believe that we need people just like us to bring structural change to Washington.

The Republican Party has an opportunity in this environment to bring in new and out-of-the-box candidates who have made the grassroots effort and done the hard work that is necessary to beat Russ Feingold.

I will continue to fight for fundamental change, such as those solutions I present in my Patriots’ Bill of Rights. I urge you to go to www.patriotsbillofrights.org and sign the Patriots’ Bill of Rights. Just as our politicians try to govern us, so now we must govern them.

I cannot begin to express my sincere gratitude for all of the people I’ve met on the trail who have supported me, from those who have volunteered on my campaign and provided financial support, to the thousands of honest, hardworking Americans that I’ve met as I traveled the state over the last seven months.

I’ll continue to be involved in getting our country turned around, but it’s time for me to take a step back and take a hard look at how we move our country and the Republican Party forward.

May 19, 2010

Post-primary thoughts

by @ 10:15. Filed under Politics - National.

Revisions/extensions (5:18 pm 5/19/2010) – There’s some rather good, learned takes that are better than mine out there. First up, there’s a whole series from Jim Geraghty. Then, there’s Melissa Clouthier, who linked to this missive. DaTechguy compared and contrasted PA-12 with Massachusetts. Stacy McCain filed a back-home closing dispatch after spending a lot of shoe leather in the district. Go read their takes as well.

In case you missed the toplines from yesterday’s primaries (and special election for the seat formerly held by John Murtha), Arlen “Scottish Law” Specter (D-PA) is now a lame-duck Senator, Blanche Lincoln (D-AR) is headed for a runoff in her primary, Rand Paul knocked off Trey Grayson in Kentucky’s Republican Senate primary, and the Democrats hung onto the House seat formerly held by John Murtha. Let’s see if I can make any sense out of all that.

The first two items are actually the same phenomenon – After riding the nutroot wave to power, Barack Obama has become The Establishment, and the nutroots are as anti-Establishment as ever. When old Scottish Law became Specter the Defector (credit BobNoxious’ mom for that one), Obama and the establishment in the Pennsylvania Democrat Party embraced him. Joe Stestak ran as the “real” Democrat, and won going away.

Meanwhile, Blanche Lincoln, despite voting (or perhaps because she voted) with Harry Reid and Barack Obama, couldn’t pull 50%+1 to avoid a runoff with nutroot-approved Lt. Gov. Bill Haller. I’m still waiting for the presstitute exposés on how the nutroots have taken over the Democrat Party at the state level.

That brings me to the mixed-bag main events, ones that may have implications for Wisconsin. The first is the Paul trouncing of Grayson. Paul wholly-embraced the Tea Party movement, with full reciprocity. Meanwhile, Grayson clung solely to the establishment that tried to install him. The results weren’t even close, even though (or more-likely because) it was a closed primary limited to Republican party members.

I’m sure the Mark Neumann camp would like to make hay of that result. However, they already botched the attempt to tie themselves to the Tea Party movement; while Neumann waited until February 2010, a full year after the movement began and 7 months after he entered the race, to publicly reach out to Tea Party-related groups, Scott Walker was out there early and often.

That brings me to what is being spun as the “Big Dem Win” – Mark Critz’s 7.6-point win over Tim Burns in the special election for Pennsylvania’s 12th Congressional district, the seat formerly held by John Murtha. While on the surface, it is a big win, the fact that normal primary elections happened at the same time means one can quantify just how unpopular even a Dem who ran away from the Dem agenda, as Critz did, is. In the 3-person Democrat primary for the full-term fall election, just under 81,000 Democrats participated, with just under 46,000 Republicans participating in their 2-person primary (also won by Burns), which made for a participation margin of D+27.6 points. In the special election, 10,000 of those who voted in the Democrat primary did not vote for Critz, 15,000 who did not vote in the Republican primary voted for Burns, with 3,000 voting for the Libertarian candidate. That still leaves a 20-point swing away from the Dem column and to the GOP column.

There were 22,000 23,000 (forgot to round up) votes in the Democrat primary that did not go to Critz. Somehow, I doubt 10,000 of them voted in the Democrat primary, then turned around to vote for Burns in the special election, so I’ll take the scenario that those 10,000 simply didn’t vote in the special election. Even with that assignment, Critz would have only won by 14 points, a 13.6-point swing to the Republicans.

Neither Steve Kagen (the Dem Congressman in the 8th District) nor Julie Lassa (the Dem state senator who is the anointed candidate for the 7th Congressional seat being vacated by Dave Obey) can be too happy with that bit of math. The 8th is considered a “swing” district, even after the last 2 elections, while the 7th isn’t nearly as Democratic as Pennsylvania’s 12th. Moreover, neither Kagen (who proudly proclaimed he was one of the architechts of PlaceboCare) nor Lassa (who voted for Healthy-and-Depopulated Wisconsin back in 2007) can credibly run as anything other than Huge Government Liberal Democrats.

May 18, 2010

Tuesday Hot Reads – a two-part American Thinker debt-bomb special

by @ 7:36. Filed under Economy, Politics - National.

If you’re not reading American Thinker, you are missing out on some of the brightest minds in political thought. Most outfits would put their “B-side” blog as their front page. A pair of posts from Monty Pelerin and Vasko Kohlmayer on the American debt bomb that is about to go off are prime examples of that. First, Mr. Pelerin on a possible doomsday scenario:

It is likely that Greece represents the prototype for early US responses. Political denial and cowardice will defer hard decisions. Eventually external forces will force action. The US government will become the same Pavlovian dog conditioned to respond to riots and violence. California is likely to be the first “trainer.” If the US government resists bailing out CA, then the streets of CA will be the learning center for the US Pavlovian dog. When (and I believe they will) the US government bails out CA, there is no end to the beggars that will show up. Eventually we run out of money, at least money that can be raised in financial markets. (We may be at this point already.)

My guess, and it is only that, is that the US government will do everything it can to avoid the necessary cuts and the resulting violence in the streets. That implies massive monetization to fund commitments. Ultimately that will destroy the currency and result in an hyperinflationary depression that will cause markets to cease to function other than on a barter system. Savings and fixed income pensions will be destroyed.

While printing money might buy some time, it will worsen outcomes, including worse violence. A hyperinflationary depression will destroy the country and perhaps our mode of government.

Somehow, I think that’s the goal. All the Boomers who are running things need to do is keep the plates spinning for another 20 years or so.

Next, Mr. Kohlmayer explains the nature of the public debt (link to Wikipedia removed as I don’t trust Wikipedia as far as I can throw it):

If anything, Intragovernmental Holdings – the part Mr. Hall terms “soft” – would be far more difficult to renege on than the other portion of the debt, since it concerns retirement money of Americans. One can well imagine the outrage that would erupt if one day politicians announced that we were going to simply “forget” about it. Given that senior citizens are electorally most potent demographic, no politician would ever dare to suggest that we do such a thing.

If any portion of the debt will ever get repealed it would be the Debt Held by the Public. Given that most Americans do not own government bonds, initially this form of default would directly affect only a comparatively small portion of the population. Much of the immediate loses would be, in fact, borne by foreign central banks and governments that hold US dollars as reserve currency. There would, of course, be much anger and protestations on their part. Politicians, however, would much prefer to face the wrath of foreigners than of their own citizens, since the Chinese cannot participate in our elections (or at least they are not supposed to)….

I do have to raise a point of order or two at this point. First, attempts by governments to renege on foreign-held debt have historically been met with war. Something tells me that the ChiComs aren’t simply going to walk away from north of $2 trillion, even in the “kinder, gentler” Third Millenium.

Second, that day of reckoning on the Intragovernmental Holdings is coming. It won’t affect those at or very near retirement, but those of my generation (the aptly-named GenX) are already being conditioned to accept that government won’t be there for us, even as we’re being told that we have to pay and pay and pay and pay for the lack of foresight on the part of our elders by not producing enough of us to keep the SocSecurity Ponzi scheme going while blindly depending on pensions that for the most part died before they got to use them.

The question is, will the publicly-held debt bomb explode before the Boomers die off? Something tells me that the proverbial spinning plates are already wobbling beyond stability.

Back to Mr. Kohlmayer for his close:

The dire nature of our fiscal situation has been recently pointed out by the International Monetary Fund which explicitly warned that the US national debt is soon to exceed 100 percent of GDP. The Fund cautioned that if nothing is done the figure will rise dramatically in the years ahead. Paradoxically, the IMF recommended that the amount by which the US needed reduce its structural deficits was greater than that recommended for Greece.

With the deficit projected to hit 10.6 percent of GDP this year and with long-term unfunded entitlement liabilities of some 104 trillion, the United States is indeed quickly becoming Greece on the Atlantic’s western shore.

May 17, 2010

McCallum endorses Wall

In a statement released by the Terrence Wall campaign, former Wisconsin Governor Scott McCallum said:

Terrence Wall has balanced budgets for the last 20 years as a small business owner. That’s exactly the kind of experience we need in Washington today. I’m endorsing Terrence because I know he will stand up to the power brokers in Washington – Democrats or Republicans – and fight for a balanced budget that won’t saddle our children with any more debt. As Governor, I wasn’t afraid to propose true spending cuts, and I know Terrence won’t be either.

This ties into a pledge from Wall last week to vote only for a balanced budget.

Normally, an ex-governor’s endorsement would be gigantic news. However, McCallum was a “caretaker” governor who happened to be lieutenant governor when Tommy Thompson left for the Bush administration, and his attempts to put Wisconsin on a track toward budget solvency wasn’t well-received even by his fellow Republicans.

Ron Johnson is in the Senate race

Ron Johnson, president of Pacur Inc., has announced his candidacy for the Republican nomination for United States Senate. My initial thoughts are that he is a good person, but that there are now too many people in the primary, especially considering a former Doyle cabinet member who just can’t let go of his liberal views is one of those four.

Coming Soon to a State Near You…The Third World

by @ 5:19. Filed under Politics - National.

According to the CMA Soverign Risk Monitor, California is perceived to be the eight most likely government to default on their debt.  While countries like Venezuela and Argentina are worse, Iraq with it’s continuing challenges of maintaining a stable government, is actually ranked better.

Meanwhile, California is wrestling with a $19.1 B as in Billion shortfall. Arnold, am I political fish or fowl, Schwarzenegger, has decided he’s fish in this debate and has called for an end to the California welfare system. In what has become expected, trite and completely in line with leadership shown in Washington, the Democrats, who control both houses in California, have said, “nope” and are chasing a plan to increase taxes.

In what has become a rare event, I applaud Schwarzenegger for calling out reality on this topic. California has been one of the hardest hit states during this recession. Increasing taxes will not only not close the budget gap but will exacerbate the economic challenges, likely making anywhere in Michigan a more appealing place for business development. Where I disagree wtih Arnold is that he continues to attempt to be a moderate and walk both sides of the fence.

Less than a week ago, Arnold stuck his nose into Arizona’s business. He derided the recently passed immigration laws and joked that he would likely be deported under the new Arizona law.

Estimates have California with over 2 million illegal immigrants, over twice the number of the next largest illegal population estimated in Texas. While you may say, “yeah, but they have a lot of other people,” you’d be right. But, that estimate also says that over 6 out of every 100 people are illegal immigrants in CA and the is over 3 times the national average.

Depending upon the study you choose to use, illegal immigrants cost the country somewhere between $40 and $80 billion each year. While the estimates I used earlier don’t reflect the total numbers of illegals believed to be in the US, it does likely represent the distribution across the states. That estimate showed that approximately 1/3 of the illegal immigrants in the US were in California. Let’s see…1/3 of $40 billion is about $13.3B. 1/3 of $80 billion is about $27 billion.

A quick suggestion for you Arnold, if you want to deal with your budget problem deal with the problem and not the symptom. If you want to fix the budget via an overhaul of the welfare system, you should start by fixing the problem that is causing your welfare problem to be so big…Illegal Immigration. An apology to the people of the State of Arizona would be a good place to start!

May 13, 2010

That $83 billion April deficit is worse than you think

by @ 17:50. Filed under Politics - National.

If you pay attention to financial news, you probably know the federal government ran a $82.7 billion deficit in the month of April. As JammieWearingFool notes, it’s a record-setting 19th consecutive month of monthly deficits, and only the 13th of the past 56 Aprils to post a montly deficit.

Before I get to the “how much worse”, I do have to note that the government did “accelerate” some payments from May 1 to April 30. However, that is only somewhere south of $19 billion in additional outlays, and only reduces the “natural” monthly deficit to $64 billion (give or take a couple billion).

The first two parts of the “how much worse is it” comes from Tom Blumer. Do you remember what I said about April historically being a surplus month for the feds? In April 2007, the monthly surplus was $178 billion, and in April 2008, the monthly surplus was $159 billion. Compare that to the $21 billion deficit in April 2009 and this April’s $83 billion deficit.

That flows into the second part from Tom – tax revenues are still cratering, both from before the start of The Great Recession (soon to be named The Greatest Depression) and from last year. Total federal receipts for April are down 36.1% from April 2007, and down 7.9% from April 2009.

On that note, the best instantaneous measure of income generation is, at least until the effects of PlaceboCare distort it, the portion of the FICA/SECA tax that goes to the Hospital Insurance portion of Medicare. It taxes every dollar earned at the same percentage, and despite an extra Friday, the FICA (withheld) take was 2.6% lower in April 2010 than it was in April 2009, and the SECA (that’s from the first-quarter 2010 quarterly estimated payments plus any unpaid portion from 2009) take was 4.0% lower in April 2010 than it was in 2009. The combined drop from April 2009 to April 2010 is 3.0%. If this is a “recovery”, then it’s not only a jobless one, but a payless one.

The third part comes from Karl Denninger via Dad29. The national debt increased not by $83 billion, but by $175 billion. Karl caught the usual suspect – the various “trust funds” buying more Treasuries.

There, however, is a second part, noted by Fox Business at the time and fallen into the memory hole. Back in February, the Treasury announced it was “recapitalizing” something called the Supplementary Financing Program. It was originally a “temporary” infusion of $300 billion of cash from the Treasury to the Federal Reserve back in September 2008 (that’s right, pre-TARP) to allow the Federal Reserve to do stuff like prop up AIG. Since that cash was funded with Treasury securities, it became a “victim” of the bump-up against the debt ceiling, and had dropped to $5 billion by February. Since Timothy “TurboTax” Geithner, the architect of the SFP when he was head of the New York Federal Reserve, liked the no-strings-attached slush fund so much, as soon as the debt ceiling was raised, he decided to bring it back to $200 billion between the end of February and the end of April. I wonder who the next AIG/GM is – the Communists in the Executive Branch are already planning for their next corporate takeover.

The “cute” trick is that while all that money came from the sale of bonds and remains there because said bonds are being rolled over, since it’s “cash”, the amount available to the Federal Reserve is counted as part of the Treasury’s “Operating Cash” and thus offsets the debt issued to create it. Specifically for April, $75 billion went out the door that way.

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