Friday, December 10, 2010

Chaos is almost here

Mom sent citrus! Thanks, Mom.

It rained again last night and only patches of snow remain. It looks like rain and warmer temperatures for a while, although I've heard that another arctic blast is predicted before Christmas. I moved the Virgin into the house and out of the weather, but where I can still see her every day.

Tuesday night I received an email that the state job, where I scored a 100 on the application, was frozen by The Social Security Administration. This was the day after Obama's supposed tax agreement, which I think is curious. I received a reject letter from the Housing Authority, and a 77, which is low, and a 91, which is high, on two State jobs. One State job is still pending a score. I finished a two page letter of interest for an Idaho Historical Society job and sent that application off last night, but it was a real battle to get that done. I think I fought a feeling of futility when I wrote that letter and I hope it doesn't show.

That feeling of futility and uncertainty has lasted a few days, and I wasted a bunch of time arguing politics this week, so I am going to get up on my soapbox again and get it out of my system. Now that Washington, DC is in complete chaos, I'm wondering how long it will take to spread to the rest of the country. This year I've taken many actions to get ready for something, I'm still not sure what, but I don't have much actions left and I feel like I'm waiting and I don't like it.

Anyone notice the huge FDA expansion bill that passed the Senate?
Huge expansion of the Food and Drug Administration and authority of the Health and Human Services Department with Senate Bill 510 – the Food Safety Modernization Act,
http://www.farmanddairy.com/news/food-safety-bill-promises-major-change/17886.html
http://www.csmonitor.com/USA/Politics/2010/1123/Food-safety-bill-101-What-are-the-facts-and-myths

Lets not pretend that the Dems care anything about the national debt by passing this one, and if it passes, forget your home canning business and food storage.

Then we have Obama announce an agreement with Republicans on continuing the current income tax rates. For the record, we are talking compromise here, 2 issues for Dems, 2 issues for Republicans, with both agreeing on the 5th issue (tax cuts) but disagreeing on including one group. Besides his inexcusable baby-didn't-get-his-way attitude, he doesn't say anything to any Dems, doesn't even involve them in the conversation or tell them about the agreement before he rushes to TV to have a temper tantrum. Now we have chaos and rebellion in the Senate and delays will probably go in to next year. Either Obama is incompetent, or he is smart and intended to cause chaos, you have to pick one, it can't be both.

Two tax cut bills were passed by Congress and signed by President Bush. One in 2001 and one in 2003. Following are the votes, with Dems voting against them both times:

2001 tax cut vote
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=107&session=1&vote=00170
http://clerk.house.gov/evs/2001/roll149.xml

2003 tax cut vote
http://en.wikipedia.org/wiki/Jobs_and_Growth_Tax_Relief_Reconciliation_Act_of_2003

In 2001 we had a budget surplus, and Dems still voted against it. So, again, lets not pretend that the Dems care about the budget deficit. The budget deficit increased through 2004, then headed down through 2007.

Here is the 2010 Federal budget:
http://en.wikipedia.org/wiki/2010_United_States_federal_budget

Where is the austerity, the fiscal responsibility? These are some of the increases, just from Federal fiscal year 2009 to 2010:
$11 billion (+275%) – Potential disaster costs
# $51.7 billion (+40.9%) – Department of State and Other International Programs
# $47.5 billion (+18.5%) – Department of Housing and Urban Development
# $46.7 billion (+12.8%) – Department of Education
# $13.8 billion (+48.4%) – Department of Commerce
# $10.5 billion (+34.6%) – Environmental Protection Agency
# $9.7 billion (+10.2%) – Social Security Administration
# $5.0 billion (+100%) – National Infrastructure Bank

What are "potential disaster costs" up 275%?! This is from Wikipedia and I could not find a definition. What's going on at the Department of Commerce?! Anyone know we created a National Infrastructure Bank? I don't care if just cutting all increases will not balance the budget, but I've gone through a whole lot of pain trying to balance my own budget, and that included lowering my expenses.

Then we have $110 billion of printed money that will need to be destroyed, at a cost to taxpayers of $120 million (not including the cost of the bonfire or the giant shredder):
http://www.theblaze.com/stories/fed-quarintines-over-1-billion-100-bills-after-misprint/

This has to have put a dent in the Fed's need to increase the money supply, or maybe this is the plan, the money still counts, it's just not in circulation, you can't have any.

And now we are back to the debt. According to TreasuryDirect.com, "The Public Debt Outstanding decreases when there are more redemptions of Treasury securities than there are issues." The day after Obama spoke about a supposed income tax deal, we had a US Treasuries sell-off, the largest in two years. This increases the government's cost to borrow (Treasuries sold at a higher yield) and the national debt (more issuing than redeeming.) This is the opposite of the Fed's announced Quantitative Easing 2. According to Wikipedia, "The central bank buys government bonds or other financial assets to increase the money supply, thereby increasing the excess reserves of the banking system, and raising the prices of the financial assets bought (which lowers their yield)." The US Treasuries sell-off increased our debt even more than it was. So, who cares about the national debt again?

I do not understand this financial stuff much, but something is very, very, wrong here. I'm wondering, did the new 5 billion dollar National Bank approve the sell off of Treasuries to increase our national debt? I'm reading that the Fed is propping-up stocks, will they pull the rug out the next time Obama doesn't get his way?

To learn more about the national debt, here's the site:
http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm#DebtFinance
You can even make your own, direct contribution!

2 comments:

  1. The food safety bill doesn't increase spending. It uses funds already there. It doesn't apply to small businesses. What you need is to spend more time reading, and less time writing.

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  2. If you need to tell me what to do, you could at least have a name.

    Using funds "already there" from where? An extra $825,000,000 just laying around? Already appropriated, but not needed if we did not have this bill and available to pay down the public debt? Additional staff does not increase spending? Exactly how does that work?

    From the text of the S.510 FDA Food Safety Modernization Act,

    SEC. 401. FUNDING FOR FOOD SAFETY.
    (a) In General- There are authorized to be appropriated to carry out the activities of the Center for Food Safety and Applied Nutrition, the Center for Veterinary Medicine, and related field activities in the Office of Regulatory Affairs of the Food and Drug Administration--
    (1) $825,000,000 for fiscal year 2010; and
    (2) such sums as may be necessary for fiscal years 2011 through 2014.

    (b) Increased Number of Field Staff- To carry out the activities of the Center for Food Safety and Applied Nutrition, the Center for Veterinary Medicine, and related field activities of the Office of Regulatory Affairs of the Food and Drug Administration, the Secretary of Health and Human Services shall increase the field staff of such Centers and Office with a goal of not fewer than--

    (1) 3,800 staff members in fiscal year 2010;
    (2) 4,000 staff members in fiscal year 2011;
    (3) 4,200 staff members in fiscal year 2012;
    (4) 4,600 staff members in fiscal year 2013
    (5) 5,000 staff members in fiscal year 2014

    And bullshit it does not include small businesses,

    SEC. 102. REGISTRATION OF FOOD FACILITIES.
    (a) Updating of Food Category Regulations; Biennial Registration Renewal- Section 415(a) (21 U.S.C. 350d(a)) is amended--
    (c) Clarification of Intent-
    (1) RETAIL FOOD ESTABLISHMENT- The Secretary shall amend the definition of the term `retail food establishment' in section in 1.227(b)(11) of title 21, Code of Federal Regulations to clarify that, in determining the primary function of an establishment or a retail food establishment under such section, the sale of food products directly to consumers by such establishment and the sale of food directly to consumers by such retail food establishment include--
    (A) the sale of such food products or food directly to consumers by such establishment at a roadside stand or farmers' market where such stand or market is located other than where the food was manufactured or processed;
    (B) the sale and distribution of such food through a community supported agriculture program; and
    (C) the sale and distribution of such food at any other such direct sales platform as determined by the Secretary.

    ReplyDelete