HEADLINES

Friday, January 7, 2011

“New” fiscally prudent Obama cuts military personnel, raising veteran family health care premiums

http://feedproxy.google.com/~r/FloppingAces/~3/nuzLYwvLNdQ/


“New” fiscally prudent Obama cuts military personnel, raising veteran family health care premiums: "

The “new”, supposedly triangulating and fiscally prudent Obama has appeared… or has he? With a nation so fed up with the federal spending, increased size of government, and an economy that isn’t as rosy on Main Street as it is in the Obama pressers, the POTUS takes the “cut spending” midterms message to heart, and goes for the military’s jugular. But Obama’s first proposed cuts to make the news are a mixed bag. Included in the WH demands to Defense Sec’y Gates is cutting up to 47,000 troops from the Army and Marine Corps forces, and raising the Tricare military family health insurance premiums.





To make ends meet, Mr. Gates also announced that he would seek to recoup billions of dollars by increasing fees paid by retired veterans under 65 for Defense Department health insurance, even though Congress has rejected such proposals in the past. And he outlined extensive cuts in new weapons.


The Pentagon’s proposed operating budget for 2012 is expected to be about $553 billion, which would still reflect real growth, even though it is $13 billion less than expected. The Pentagon budget will then begin a decline in its rate of growth for two years, and stay flat — growing only to match inflation — for the 2015 and 2016 fiscal years. (The Pentagon operating budget is separate from a fund that finances the Afghanistan and Iraq wars.)


“This plan represents, in my view, the minimum level of defense spending that is necessary, given the complex and unpredictable array of security challenges the United States faces around the globe: global terrorist networks, rising military powers, nuclear-armed rogue states and much, much more,” Mr. Gates said.


To be sure, the actual size and shape of future military budgets will continue to be reset by annual spending proposals from the president, and those in turn will be based on shifting economic factors — decline or growth — and threats around the world, as well as by Congressional action.


But for now, the Army is expected in 2015 to begin cutting its active-duty troop levels by 27,000, and the Marine Corps by up to 20,000. Together, those force reductions would save $6 billion in 2015 and 2016.


~~~

But some — especially increases in fees for the military’s health-care system, called Tricare — require Congressional approval, and have been rejected before.


Proposals to increase Tricare fees will pit Mr. Gates against those in Congress — and veterans’ groups — who say retired military personnel already have paid up front with service in uniform. Ten years ago, health care cost the Pentagon $19 billion; today, it tops $50 billion; five years from now it is projected to cost $65 billion.


Is it just me, or does anyone else see the irony in this? Troops that are to be cut from the military will instead be Joe Citizen, pounding Main Street for jobs in an economy that has seen unemployment figures of over 9% for 20 months, and promises little hope for reprieve over the next 4-5 years, per Fed Reserve guru, Ben Bernanke. I would guess that Mr. Bernanke sauntered over to Calculated Risk Blog, and had a gander at the incoming housing bombs looming on the horizon… as noted in the various graphics showing the increased default mortgage payments of unemployed or struggling homeowners, comprising 2011′s onslaught of foreclosures.


The irony is further compounded by the POTUS who claims to make health insurance more affordable, while sanctioning raising the premiums for military families out of the other side of his forked tongue.


But the bad joke known as the Obama economy doesn’t stop there. Admittedly, while the Pentagon, like virtually all federal agencies, could use a thorough accounting house cleaning for waste, Obama has spent his time in office adding new agency after new agency for both health care, and his financial “reform”. Yet when it comes times to looking at cutting, does he consider his damage and increased spending in the health world? But of course not…. instead, he turns his attention to the defense budget, which is less than a quarter of all US expenditures.



See the breakdown detailed figures at USGovernmentSpending’s site.


Taking the military back to pre 911 Clinton days in this era is simply not a wise idea. Constitutionally, the POTUS as commander in chief is sworn, duty bound, to protect this nation. Our strong military has not only served as our protection, but is depended upon by an international community of nations who have substandard militaries and defense budgets to make up the difference. While we are not to be the police of the world, without our military strength the international conflicts over the past century would have pulled our nation into the dangerous net inevitably.


Do we need spending cuts? Absolutely. Should we also be embarking on austerity measures, like Euro nations? You betcha. But what and how we cut may make the difference to our very survival of the nation, as it was founded. It’s been a difficult enough learning curve, waiting for Obama to catch on that Keynesian policies is a dead end road. But now it’s painfully obvious that this Commander in Chief prefers his Community Organizer tasks over commanding a strong, superior military. And there is little room left under that proverbial bus for the soldiers who will not be soldiers in the wake of this, or the hardship imposed on our military families, who have sacrificed the most for our nation, with the increased costs of medical care.




"

Rush Laments the ‘Return of Clintonistas’ in Obama Administration

http://www.theblaze.com/stories/rush-laments-the-%e2%80%98return-of-clintonistas%e2%80%99-in-obama-administration/


Rush Laments the ‘Return of Clintonistas’ in Obama Administration: "

As the Obama administration welcomes a number of former Clinton administration officials — including new White House chief of staff William Daley and National Economic Council director Gene Sperling — conservative radio host Rush Limbaugh warned listeners Friday of the return of Clinton-era “crony capitalists.”


“Everybody wants this,” Rush noted, referring to the mainstream media. “The purpose of this is to create for everybody else a public impression of moderation. The Socialist-Marxist Obama finally realizing that he can’t get where he wants to go that way. He has to triangulate; he has to go to the center.”



(Click for more on William Daley and Gene Sperling.)


Rest easy, Rush. Chicago Mayor Richard M. Daley swore Thursday that his brother‘s appointment to be President Obama’s new chief of staff did not represent a “Chicago mafia” in the White House.


“(President George W. Bush) brought people from Texas. John F. Kennedy brought people from Massachusetts. Richard Nixon brought people from California,” Daley said. “Ronald Reagan brought people from California. Jimmy Carter brought people from Georgia. Bush brought people from Texas. Clinton brought people from Arkansas.”


“There’s nothing wrong with that,” Daley said.

"

Gas Prices Under President Obama in Pictures

http://blog.heritage.org/2011/01/07/gas-prices-under-president-obama-in-pictures/


Gas Prices Under President Obama in Pictures: "


Fact: President Barack Obama’s Energy Secretary Steven Chu wants to “figure out how to boost the price of gasoline to the levels in Europe.” At the time he made the statement, gas cost $7 – $8 a gallon in Europe.

Fact: Since taking office, President Obama’s entire energy agenda has made a gallon of gas more expensive:




All of these policies raise gas prices at the pump by either: 1) decreasing the availability of domestic energy supplies, or 2) increasing regulatory costs on gasoline production.


President George Bush was no saint when it came to free market energy policies either. He mandated the use of ethanol, put off opening up the Outer Continental Shelf till the end of his second term, supported the expansion of renewable energy tax credits, tried to subsidize the nuclear power industry, and caved into environmental pressure by allowing the EPA to begin the global warming regulation process.


But as two time Super Bowl winning coach Bill Parcells says, “You are what your record says you are.” And the facts are these: during the first two years under President Barack Obama, gas prices have risen 55%. You can compare that to the 5% drop in gas prices during the first two years of President Bush’s term or the 2% drop under the first two years of President Clinton’s term. Neither President Bush nor President Clinton had perfect energy policies. But neither of them appointed an Energy Secretary who wanted Americans to pay $9 for a gallon of gas either.


"

Deep-Water Drilling Permits Down 88% in Gulf Since Obama Lifted Moratorium

http://blog.heritage.org/2011/01/07/deep-water-drilling-permits-down-88-in-gulf-since-obama-lifted-moratorium/


Deep-Water Drilling Permits Down 88% in Gulf Since Obama Lifted Moratorium: "


This week’s announcement that 13 oil companies can resume activity in the Gulf of Mexico provided some hope the Obama administration might finally begin to approve drilling new permits. It couldn’t come soon enough.


Since the administration’s drilling moratorium was lifted in October, deep-water permit issuance is down 88 percent with only two new permits in that time. It’s only slightly better for shallow-water permits, which weren’t subjected to the moratorium, but are still down 11 percent.


The Gulf Permit Index, produced by GNO, Inc., in Louisiana, monitors the number of drilling permits being issued by the U.S. Department of Interior’s Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE).


The agency announced Monday that 13 oil companies “may resume previously approved exploration and production activities without submitting revised plans.”


Gregory Rusovich, chairman of the Business Council of Greater New Orleans and the River Region, said it’s a step in the right direction, but not nearly enough:


“We’re pleased that BOEMRE has stated that it is doing away with unnecessary hindrances. But we still are not seeing improvements in the number of deep-water permits being approved on a monthly basis. Without changes to the permitting process, we still face an uphill battle. And we will continue to track BOEMRE’s actions as opposed to its words.”


Investor’s Business Daily reports that “regulators have made it nearly impossible for oil firms to restart operations and have slapped strict new rules on drilling even in shallow waters.” Former president of Shell Oil, John Hofmeister, told CNN that “the moratorium is now lifted in name only,” warning that “the less we drill in the Gulf of Mexico the more dependent we become on crude oil from other countries.”


“The federal government has estimated that U.S. offshore oil production could drop 13% in 2011 because of regulatory delays and other new rules being put in place,” according to the Wall Street Journal. “Before the BP oil spill, offshore production this year was projected to increase by 6%.”


The National Commission on the BP Deepwater Horizon Oil Spill is set to release its report about last April’s explosion Tuesday, shining the spotlight once again on offshore oil drilling.

"

Former CBO director -Repealing Job-Killing Health Care Law “First Step Toward Fiscal Sanity”

http://usactionnews.com/2011/01/former-cbo-director-repealing-job-killing-health-care-law-%e2%80%9cfirst-step-toward-fiscal-sanity%e2%80%9d/


Former CBO director -Repealing Job-Killing Health Care Law “First Step Toward Fiscal Sanity”: "

Here’s a simple fact: if ObamaCare is fully implemented it will add more than $700 billion to the deficit in its first 10 years. That’s why – in a must-read post on National Review – former Congressional Budget Office (CBO) Director Douglas Holtz-Eakin says repealing the job-killing law “is simply a first step toward fiscal sanity that should happen as soon as possible.”


Posted by Don Seymour


Liberals claim otherwise and point to a CBO cost estimate to claim repealing the massive, costly entitlement would somehow increase the deficit. But as Holtz-Eakin told CNN, “by law, the [CBO] must take the information Congress sends to them — however implausible — at face value.” And the legislation Democratic leaders handed over to CBO forced them to:



  • Ignore the at least $115 billion needed to implement the law;

  • Double-count $521 billion in Social Security payroll taxes ($53 billion), CLASS Act premiums ($70 billion), and Medicare cuts ($398 billion);

  • Ignore the costly ‘doc-fix’ provision that was included in an earlier analysis; and

  • Count ten years of revenues to offset six years of new spending.


“There was never any reason to believe” that ObamaCare “reduced the deficit,” Holtz-Eakin writes. This chart from the House Budget Committee shows what happens when you take away the “wide range of budget gimmicks” CBO was forced to use in estimating the cost of ObamaCare:



This and more is explained in a report released today by the House Majority that examines the budget-busting, job-killing impact of ObamaCare. You can view the full report here. Page 15 of the report cites President Obama’s deficit commission, which found that health care spending projections under ObamaCare depend “on large phantom savings.” The commission goes so far as to recommend repealing the CLASS Act, one of the culprits for the rigged CBO score. In its final report, the commission recommends Congress pursue a “number of reforms to reduce federal health spending and slow the growth of health care costs more broadly,” goals ObamaCare was supposed to achieve.


Tomorrow, Republicans will begin keeping their Pledge to America and take what Speaker Boehner calls the “first steps to repeal the job killing health care law that was passed last year over the objections of the American people.” In a press conference today, Boehner said:


“With 10 percent unemployment and massive debt, the American people want us to focus on cutting spending and growing our economy, and that is what repealing the health care law is all about. I hope the House will act next week to repeal the job killing health care law so we can get started on replacing it with commonsense reforms that will reduce the cost of health insurance in America.”


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"

Greenspan warns of bond crisis with continued debt

usactionnews.com


Greenspan warns of bond crisis with continued debt: "

Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don’t act soon to start cutting the nation’s debt.



“Deficit spending is simply a scheme for the confiscation of wealth.” -Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966


“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money,by issuing government bonds, to finance welfare expenditures on a large scale.” – Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966


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"

Greenspan warns of bond crisis with continued debt

usactionnews.com


Greenspan warns of bond crisis with continued debt: "

Former Fed Chairman Alan Greenspan said the U.S. could face a bond-market crisis if politicians don’t act soon to start cutting the nation’s debt.



“Deficit spending is simply a scheme for the confiscation of wealth.” -Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966


“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money,by issuing government bonds, to finance welfare expenditures on a large scale.” – Alan Greenspan Gold and Economic Freedom; The Objectivist, 1966


RELATED ARTICLES:


Will The Tea Party Congress Bring Recovery?


Name The City Where 28% Of Homes And 62% Of Businesses Are Vacant


Santorum on Debt Ceiling, Spending Cuts


Debt and Ruin or American Exceptionalism – the stark choice America faces


‘We are going the way of Greece and Ireland’ ~ Michele Bachmann


Rep. Paul Ryan ‘we really do have a fiscal disaster coming’


New Year’s Resolution: Stop the Fiscal Insanity


National debt tops $14 TRILLION and rising FAST!


Reevaluating Pension Entitlements in the Public Sector


60% property tax increases possible in Chicago from union pensions


“Alarm Bells Should Be Ringing in Washington, DC”


Is the national debt too big to estimate?


Liberal Self-Dealing And Financial Crises


World’s biggest bond fund head says avoid Illinois


Obama says debt increase ‘a sign of leadership failure’


Do we just keep raising our debt limit?


After record spending for two years in a row, White House warns failure to raise debt ceiling would bring ‘economic crisis’


Getting a Grip on the Deficit


Sluggish growth best to hope for in 2011?


How Government Failure Caused the Great Recession


Will troubled states file bankruptcy?


17 National Debt Statistics Which Prove That We Have Sold Our Children And Grandchildren Into Perpetual Debt Slavery


As 2010 Comes to An End, Bad Economic News Continue


Illinois Governor Wants to Borrow $15 Billion to “Balance” the Budget; Illinois Total Unfunded Liabilities Exceed $200 Billion Already


No hope for bipartisan spending cuts?


The Working Poor


2011 – What’s Coming


The Shattered American Dream: Unemployed Workers Lose Ground, Hope, and Faith in their Futures


Ex-Shell president sees $5 gas in 2012


70% give Obama negative ratings on economic job


Balance the Budget Now


111th Congress Added More Debt Than First 100 Congresses Combined: $10,429 Per Person in U.S.


Sen. Tom Coburn ‘We must live within our means’


Cooking the Books: The 2010 Deficit Was $2.1 trillion


Alabama Town’s Failed Pension Is a Warning


Here’s The Triple Threat That Could Spin The Globe Into A Deeper Recession


Government Waste: 20 Of The Craziest Things That The U.S. Government Is Spending Money On


US as Argentina


10 Trends for 2011


The Federal Reserve: Aging Magician of the Welfare State


Say Bye-Bye to Consumer Spending


Financial meltdown in state budgets: Day of Reckoning


Late-Stage Animal Farm


The Market Is Overbought, Overextended And Overvalued


Expose the Public Pension Mess


When the money runs out


John Williams: Hyperinflation Will Start in the Next Couple Months


10 Signs That Confidence In U.S. Treasuries Is Dying And Financial Armageddon Approaches


The Only Thing That Will Save Us Now Is Fear Itself


Outlook for the economy – grim


US may lose Aaa credit rating with flawed tax deal


Is the GOP ignoring anti-spending message?


State and local pension shortfalls over $3.5 TRILLION


Will 2011 Be The Year The Von Mises Prophecy Comes True?


The Lesson of the Tax Deal and the Deficit: Teach Your Kids Chinese


Washington Orders Another Free Lunch


Obama’s Emerging Enabling Act


The Fed creates money out of thin air


Is the Fed losing control?


Persian Gulf Economists Are Giving Up On The Dollar, Encouraging Move To Gold


Fact, Fiction & Finally the Fix


The Dollar Meltdown: Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments


OPEC: If America Wants To Devalue The Dollar Then It Better Be Ready For $100+ Oil


Soaring Gold and a Sinking Dollar Signal Trouble Ahead


Gold at $8,250?


Will the dollar’s death surprise you?


Factors that will Determine the Future


Senator Judd Gregg on the inevitable fiscal meltdown


Banking System is Hopelessly Insolvent


Top Republicans caution the Fed on printing money


Has the Fed Been a Failure?


A REAL SIMPLE explanation of how the FED is ruining your economy


Economic Suicide the Keynesian Way


Inflation is a sneaky tax


What’s Next? Buckle Up


Death of the Dollar


The Great Weaponless Conquest of America


Bernanke’s Cowardice Has Sealed Our Fate


Ben Bernanke and QE must be STOPPED


Federal Reserve celebrates 100 years of enslaving America


The Fed is running the country right into the ground as a result of their ignorance


Soros Bets on U.S. Financial Collapse


How Did A Single Unconstitutional Agency Become The Most Powerful Organization In America?


The Fed’s “War on Wealth” and the Risk of Default


This guy is in charge of the economy?


Beck: Devaluing the Dollar


Food, apparel prices rising


Fed to Buy Extra $600 Billion of US I.O.U’s


I have not yet begun to fight!


Fed Easing May Mean 20% Dollar Drop: Bill Gross


Hyperinflation Forecast


The US $200-Trillion Debt Which Cannot Be Named


A Society of Beggars? Obama Battles Reagan


Mad Fed Should Beware Unquantifiable Outcomes


Burning your money?


Global food crisis forecast as prices reach record highs


The Fed is lying about inflation


Dollar fall sparks stability warnings


Fed Wants to Hoodwink Public, Only Fools Itself: Caroline Baum


For Orderly Dissolution Of The Fed, Before It Does Us Even More Harm


Will the Fed Burn More of Your Money?


The Disgraceful State of Our Government


Is Keynesianism a socialist Maneuver?


Economic Forecasts and Why They Should Not be Trusted


Three Horrifying Facts About the US Debt “Situation”


Obama and Ben Bernanke Have Us Facing the Abyss


Bernanke Tells the Truth: The United States is on the Brink of Financial Disaster


Greenspan Says U.S. Creating `Scary’ Deficit as Borrowing Rises


Interview with Garland Tucker on “The High Tide of American Conservatism”


Fed Officials Mull Inflation as a Fix


The Psychopathology of Government and its Agents


A fair warning of where we are headed


The Feds’ Disease: Spending! (Part 1)


IMF Warns Western Economies Mired in ‘Near Depression’


With Obama taxes are about ideology not economics

"

Gallup Finds Unemployment at 9.6% in December

by Editor www.usactionnews.com



Gallup Finds Unemployment at 9.6% in December: "

Unemployment increased to 9.6% at the end of December — up from 9.3% in mid-December and 8.8% at the end of November. Underemployment rose to 19.0% in December from 17.2% at the end of November.


by Dennis Jacobe, Chief Economist – Gallup



Copyright © 2011 Gallup, Inc. All rights reserved.


Results are based on telephone interviews conducted as part of Gallup Daily tracking Nov. 30-Dec. 29, 2010, with a random sample of 18,071 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia, selected using random-digit-dial sampling.


For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±1 percentage point..


From Monty Pelerin’s World:


Gallup Report on Employment


Much like Claude Rains, I am “shocked, shocked” that anyone would suggest that the government manipulates data to its advantage. Zerohedge is not shocked.


They have an interesting post on the new Gallup Results which indicate that employment is not improving:


Unemployment, as measured by Gallup without seasonal adjustment, increased to 9.6% at the end of December — up from 9.3% in mid-December and 8.8% at the end of November.


According to Gallup:


“Whatever the government reports about unemployment on Friday, Gallup’s U.S. underemployment data for the end of 2010 show that nearly one in five Americans continue to be unemployed or employed part-time looking for full-time work. In turn, this underscores the importance of job creation as a top national priority.”


Zerohedge believes that Gallup has come as close as it dare to calling government job numbers fictitious and manipulated:


And here is the kicker: as Gallup can not openly accuse the government of manipulating data, it has to apologize on behalf of the BLS of having seasonally adjusted data which skews it (unlike Zero Hedge which openly surmised that the November NFP number was a disaster only to encourage the passage of the latest stimulus, with us also suggesting that the December number will be stellar merely confirming that the stimulus is doing miracles to the “economy”). In other words, the biggest beneficial fudge factor that the government continues to rely on: the various seasonal adjustment (not to mention the birth death model), may well push some imaginary number not grounded in anything close to reality well into the 7 digit range, and result in the S&P jump by a double digit percentage. And as the BLS is wont do to, it will eventually revise the number to something closer to reality, but by then the market will have long forgotten about the most recent manipulation. Bottom line: all in a day’s work for the department of truth.


Because the Gallup unemployment measure is not seasonally adjusted, it tends to more accurately reflect what is actually taking place in the U.S. job market — and may not agree with the government’s estimate that is seasonally adjusted. Further, Gallup’s data tend to be more up-to-date than the government’s because Gallup polls on the unemployment situation continuously. Combined, seasonal adjustments and timing differences likely explain much of the disparity between Gallup’s measures of underemployment and unemployment, compared with those reported by others.


Gallup’s politically correct conclusion is spot on: no matter the spin, the illusion, or the data manipulation

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