Quotulatiousness

July 19, 2011

Walsh: This is what the debt-ceiling fight is really all about

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 09:20

Michael A. Walsh puts the real issue into focus:

Forget all the numbers being tossed around in Washington — the millions and billions and trillions of dollars being taxed, borrowed, printed and spent as the country approaches the Aug. 2 debt-ceiling deadline.

Forget the political jockeying for position between a president desperately seeking re-election in 16 months and a Congress equally desperately seeking not to be blamed for spending even more money that we don’t have.

Forget the fact that such “entitlements” as Social Security and Medicare — social-insurance programs that the public long thought to be actuarially sound — have been exposed as little more than legal Ponzi schemes, paying today’s benefits out of tomorrow’s borrowed receipts.

Instead, just ask yourself this simple question: When did it become the primary function of the federal government to send millions of Americans checks?

For this, in essence, is what the debt-ceiling fight is all about — the inexorable and ultimately fatal growth of the welfare state. If you don’t believe it, just look at President Obama’s veiled threat to withhold Grandma’s Social Security benefits if Congress doesn’t let him borrow another $2 trillion or so to get himself safely past the 2012 election.

July 16, 2011

Reason.tv: The debt ceiling debate is full of malarkey

Filed under: Economics, Government, USA — Tags: , , , — Nicholas @ 10:47

July 15, 2011

The US government’s plight, as a poker technique

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 11:05

Jagadeesh Gokhale points out that President Obama is not only bluffing, but that it’s transparently obvious what this tactic is intended to achieve:

The president’s Wednesday night warning to House Majority Leader Cantor to not “call his bluff” suggests that… well, he’s bluffing. But the president has already been playing some transparently thin cards in this game of poker, including his melodramatic — but highly questionable — hint that Social Security checks would be interrupted on August 2.

The go-to strategy in a literal train wreck is to jump off a nanosecond just before the collision. The debt-limit debate is more complicated, however, because no one really knows what the effect would be if the deadlock on budget negotiations continues through August 2nd.

Debt-rating agencies may soon downgrade U.S. debt. But does the debt of a country on a fiscal path to borrow and spend 45 percent more than its revenues — at a time when its debt already equals its annual output — really warrant a AAA rating? Won’t House Republicans really be doing investors a service by revealing a more honest debt rating?

[. . .]

Regarding a potential “bluff” by the president and high officials of the Treasury and the Federal Reserve: It’s only natural that they would sound the most dire of alarms. There is no guarantee that the government would default on its existing contractual debt and that financial markets would tank even if such a temporary technical default were to occur. But the risk of such events is not zero and no high government officials would wish to risk it on their watch.

A hint about whether and how much President Obama might be “bluffing” is his unwarranted warning that Social Security payments could not be guaranteed if the debt limit is not increased. There is every reason to believe that those payments could and would be made in full in August — and for many more months — no matter whether the budget deadlock is resolved by August 2nd.

Why a budget deal won’t work

Filed under: Economics, Government, USA — Tags: , , , — Nicholas @ 08:11

Sheldon Richman provides a few reasons to doubt that any deal worked out between congress and the President will actually solve anything:

Whether President Obama and congressional Republicans can work out a deal to let the government to borrow even more (!) money seems to hang on whether the latter will go for increased in tax revenues.

Following the zigzagging negotiations isn’t easy. First the aim was a short-term deal. Then both sides decided to go for a big package: $4 trillion in deficit reduction over ten years. That broke down when Obama said a quarter or a third of that amount should come from new revenues.

When I hear about ten-year budget deals, I first divide the aggregate number by ten so I see how little is at stake each year. I also want to know if the spending reduction is real or phony. Chris Edwards of the Cato Institute says most cuts are likely to be accounting tricks. For example, Edwards shows how the rulers could easily “reduce” the Afghanistan/Iraq war budget by $1 trillion without really cutting a penny. (Hint: pretend the wars will go on forever.)

I also remind myself that no Congress can bind a future Congress. Would you bet a substantial sum on a congressional promise to reduce the deficit over ten years? I didn’t think so. Even if Obama is reelected, he wouldn’t be in office for the last four years of the period.

Skepticism is justified. In the 1980s another deal was struck that supposedly would deliver $3 in spending cuts for every $1 in new revenue. Know what happened? That’s right.

Oh, and the various polls showing that either a majority or a significant minority of voters are willing to see increased taxes in order to get a budget deal? Remember that nearly 50% of Americans do not pay income tax — it’d literally be no skin off their noses if the other half have their taxes raised.

June 24, 2011

Cato Institute: The President doesn’t take an oath to the UN charter

Filed under: Government, Military, USA — Tags: , , , , , — Nicholas @ 11:08

June 6, 2011

Further extending the powers of the “Imperial Presidency”

Filed under: Government, Liberty, USA — Tags: , , , , — Nicholas @ 16:51

All that’s left is to start posting proscription lists and calling him “Father of his country” and getting his Secret Service detail to carry fasces1:

Let’s leave aside whether your position on bombing Libya while leading NATO from behind has anything to do with hawk or dove status. You don’t need to be the real Bob Taft or Bob Dole to start muttering about “Democrat wars.”

It’s a sad day for the Republic when insisting that the president actually, you know, get an authorization of force as kinda sorta suggested by the Constitution is seen as akin to open rebellion or creating a fifth column. What is this, Star Wars? Rome? As Tim Cavanaugh and that other super-peacenik outfit, the Washington Times, point out, between Kucinich’s and Boehner’s all-too-timid requests, three-quarters of the House of Representatives have expressed dissatisfaction when it comes to how Obama is deploying troops. The only real question is when Congress is going to take the advice of good ol’ Sharron Angle and man up already and start playing its actual role as a counterweight to an imperial presidency that has never served the nation any good.

1 The fasces were bundles of rods wrapped around an axe carried by Roman lictors who accompanied magistrates in Republican Rome. They represented the ability of the magistrate to dispense low justice (the rods, symbolizing corporal punishment) and high justice (the axe for capital punishment). The symbol was adopted by other nations and political movements after the fall of the empire.

May 19, 2011

Happy 60th day!

Filed under: Africa, Military, Politics, USA — Tags: , , — Nicholas @ 09:58

Jim Geraghty notes a special day arriving:

Happy 60-Day anniversary, War Kinetic Military Action in Libya! You’re now… pretty much illegal, but almost all of Washington will avert their eyes and pretend you’re legal. It’s kind of like how all the big people there treat their nannies.

Bruce Ackerman and Oona Hathaway are professors of law and political science at Yale, took to the pages of the Washington Post to point out that for a president who was elected by angry lefties chanting about an illegal war, it’s pretty ironic that we’re now fighting what is, pretty much, an illegal war: “This week, the War Powers Act confronts its moment of truth. Friday will mark the 60th day since President Obama told Congress of his Libyan campaign. According to the act, that declaration started a 60-day clock: If Obama fails to obtain congressional support for his decision within this time limit, he has only one option — end American involvement within the following 30 days.”

March 22, 2011

Explaining why President Obama didn’t consult congress over Libya

Filed under: Africa, France, Media, Military, USA — Tags: , , — Nicholas @ 09:46

I think Gabriel Malor has the gist of it right here:

People are overthinking the whole question of whether the President should have gone to Congress to authorize the Libya war. They’re especially overthinking why he chose not to.

It’s quite simple. The President didn’t go to Congress because he never thought he’d need to go to Congress. Obama spent three weeks dithering and then almost a full week telegraphing his intent not to intervene. But when the time came to announce his decision, he flinched and made a last-second gut decision to go to war.

The decision to commit the United States to war wasn’t out of any sudden change of heart about the value of Libyan lives. Nor did the President suddenly discover U.S. national interests in North Africa. He did it because he was getting internationally embarrassed by the French and by Secretary Clinton. He did it because he was looking bad and after three and a half weeks of polling his numbers were looking worse.

So, having failed to make any effort at all to reach out to Congress on the issue because he never expected that he would have to and with his Brazil vacation imminent, there simply wasn’t any time left to get Congressional authorization. Yes, he could have gotten it, in the sense that I’m absolutely sure the votes are there. But it would have taken a few more days and not even the MBM could pretend that he was “leading” on the Libya issue at that point.

The thought that the French would start referring to Americans as “burger-eating surrender monkeys” may have clinched it.

March 20, 2011

A different way to visualize the proposed US budget cuts

Filed under: Economics, Government, Politics, USA — Tags: , , , — Nicholas @ 10:53

Jon sent me an interesting link on a different way to visualize the relative size of the proposed budget cuts:

That struck me as a pretty good analogy. I wondered: if you do the math, what part of a Big Mac Extra Value Meal would a $6 billion budget cut represent?

The arithmetic is pretty simple, due to the extensive nutrition information that McDonalds makes available online. A Big Mac Extra Value Meal has three components: a Big Mac, a large order of french fries, and a medium soda. The McDonalds site tells us that a Big Mac has 540 calories, a large fries has 570 and a medium Coke has 210, for a total of 1,320 calories.

Meanwhile, the federal budget is currently around $3.8 trillion, which means that a $6 billion cut represents one 633rd of the total. What would be an equivalent cut in a Big Mac Extra Value Meal?

One variable is not readily available online; that is, how many french fries are there in a large order? To answer that question, I went to a nearby McDonalds at lunch time, paid for a large order of fries, and counted them. There were 87. (I counted fries regardless of size, but did not count the hard bits in the bottom of the container.)

This allows us to complete the calculation. If there are 570 calories in a large order of fries, and 87 fries per order, each french fry, on the average, contains 6.5 calories. One 633rd of the total calorie content of a Big Mac Extra Value Meal is 1,320/633, or 2.1 calories. That equals almost exactly one-third of an average sized french fry.

« Newer Posts

Powered by WordPress