CBO Analysis: Budget Deal Cuts 2011 Spending by $352 Million, not $39 Billion

Boehner and Obama agree to pacify the proles with lies

This is hilarious. From the National Journal:

A Congressional Budget Office analysis of the fiscal 2011 spending deal that Congress will vote on Thursday concludes that it would cut spending this year by less than one-one hundredth of what both Republicans or Democrats have claimed.

A comparison prepared by the CBO shows that the omnibus spending bill, advertised as containing some $38.5 billion in cuts, will only reduce federal outlays by $352 million below 2010 spending rates. The nonpartisan budget agency also projects that total outlays are actually some $3.3 billion more than in 2010, if emergency spending is included in the total.

The astonishing result, according to CBO, is the result of several factors: increases in spending included in the deal, especially at the Defense Department; decisions to draw over half of the savings from recissions, cuts to reserve funds, and mandatory-spending programs; and writing off cuts from funding that might never have been spent.

According to Fox News, Congress is in a uproar about it.

Liberal Democrats remain opposed to the plan because of its trims and because of policy points, like its restriction of abortion subsidies, but a rebellion is spreading among conservative members of the House and Senate.

The problem is that in heralding the deal, Obama, Boehner and Reid played up $39 billion in cuts, which were assumed to be for the current fiscal year. But those cuts include some gimmicky accounting and the savings obtained from not tapping reserve funds for programs like Medicaid.

When the CBO crunched the numbers on how the deal would affect the projected $1.65 trillion deficit for this year, the result was a reduction of .02 percent.

So I guess we could still be headed for a shutdown? The House will vote on the bill today.

The real danger zone for the deal would be around 70 Republican defections. That would cast doubt on whether there are enough moderate Democrats [i.e., DINOs] to fill the gap and get to the requisite 217 votes. It would also be nearly a third of the Republican caucus in opposition, a weak showing for the GOP ahead of the even bigger battle over Obama’s request for an increase to the government’s $14.3 trillion borrowing limit.

Bond buyers will be watching for major fractures here. If the House GOP is in a riot, watch U.S. debt prices start to climb.

We are so f’d.


Thursday Reads

Good Morning!! I have a real grab bag of news items for you this morning.

Via Ezra Klein, a Gallup poll found that nobody, including most Republicans, wants the government fooling around with Medicare. I can’t embed the chart, but you can see it at either of the above links. Klein:

The Republican Party has a bit of a problem: Their coalition is heavily weighted toward seniors. But their agenda is heavily weighted toward cuts to entitlement programs that benefit seniors. In 2010, they handled this by relentlessly attacking Democrats for the Medicare cuts in the Affordable Care Act. In 2011, they’re trying to handle it by saying that Paul Ryan’s Medicare cuts will exempt anyone under 55 — but because he’s keeping all the Medicare cuts from the Affordable Care Act and implementing them on schedule, that isn’t, by the GOP’s own logic, actually true….

The most popular position in the GOP’s coalition isn’t that Medicare needs a complete overhaul, as Ryan thinks. It isn’t that it needs major changes, or even that it needs minor changes. It’s that we shouldn’t try and control costs at all.

ROFLOL!

Speaking of arrogant and deluded Republicans, The Smoking Gun obtained FAA documents relating to an incident in which James Inhofe “scared the crap out of” a bunch of Airport employees when the elderly GOP Senator landed his plan on a closed runway.

Newly released Federal Aviation Administration documents and audiotapes shed a scary new light on a bizarre incident late last year during which U.S. Senator James Inhofe landed his Cessna on a closed runway at a south Texas airport, scattering construction workers who ran for their lives as the politician’s plane hopscotched over them and six vehicles.

The FAA material, provided in response to a TSG Freedom of Information Act request, details how Inhofe, 76, chose to land on the main runway at the Cameron County Airport on October 21 despite being aware that it was closed and had a large ‘X’ on its threshold….

Shortly after Inhofe landed, Sidney Boyd, who was supervising construction on the closed runway, called the FAA to report that Inhofe’s plane, a twin-engine six-seater, initially touched down on the runway and then “’sky hopped’ over the six vehicles and personnel working on the runway, and then landed.”

During the call, which was recorded by the FAA, Boyd said Inhofe’s antics “scared the crap out of” workers, adding that the Cessna “damn near hit” a red truck. Referring to the vehicle’s driver, Boyd added, “I think he actually wet his britches, he was scared to death. I mean, hell, he started trying to head for the side of the runway. The pilot could see him, or he should have been able to, he was right on him.”

Inhofe agreed to “complete a program of remedial training” so he wouldn’t lose his pilot’s license.

According to a report by the Senate Permanent Committee on Investigations, released today, Goldman Sachs “Misled Clients, Lawmakers on CDOs.”

Goldman Sachs Group Inc. (GS) designed, marketed and sold collateralized debt obligations that misled investors and created conflicts of interest as the company built short positions before the U.S. housing market collapsed, a Senate panel said in its report on the financial crisis.

In the case of one CDO, Hudson Mezzanine Funding 2006-1, Goldman Sachs told investors its interests were aligned with theirs while the firm held 100 percent of the short side, according to the report released today by the Senate’s Permanent Subcommittee on Investigations. Senator Carl Levin, the Michigan Democrat who leads the panel, urged regulators to review all of the structured finance transactions described in the report.

At a briefing today, Levin said he believed Goldman Sachs executives weren’t truthful about the company’s transactions in testimony before the subcommittee at an April 2010 hearing. He said he would refer the testimony to the Justice Department for possible perjury charges.

Good. I sure would like to see some prosecutions of these lying, cheating frauds.

Via Tennesee Guerrilla Women, Ashley Judd is “speaking out against misogyny.” She wrote a couple of paragraphs in her new memoir about rap artists promoting hatred and violence against women:

While speaking about an AIDS awareness program she works with, Judd writes, “Along with other performers, YouthAIDS was supported by rap and hip-hop artists like Snoop Dogg and P. Diddy to spread the message…um, who? Those names were a red flag.”

Judd continued, “As far as I’m concerned, most rap and hip-hop music – with its rape culture and insanely abusive lyrics and depictions of girls and women as ‘ho’s’ – is the contemporary soundtrack of misogyny.”

She concludes, “I believe that the social construction of gender – the cultural beliefs and practices that divide the sexes and institutionalize and normalize the unequal treatment of girls and women, privilege the interests of boys and men, and, most nefariously, incessantly sexualize girls and women – is the root cause of poverty and suffering around the world.”

The backlash was immediate and vicious, and included death threats. Judd apologized for generalizing about all rap and hip hop music, but ended with this:

“Hatred of girls and women, I will oppose with spiritual and non-violent principles every day,” she concludes, adding that the Twitter responses to her remarks included death threats. “Abuse and violence in any form, at any time, in any expression, are never okay. Period. I, and other girls and women, are not afraid of you. You can keep on hating, but I am going to keep on loving.”

More power to Ashley Judd!

In more violence against women news, the search for bodies is continuing on Long Island. After finding ten bodies so far on beaches, searchers are looking underwater for more remains. In addition the FBI is helping out with “high-tech planes.”

“This is not an episode of CSI. This is an intensive long term investigation that includes the use of sophisticated technology as well as good old fashioned detective work,” said Suffolk County Police Commissioner Richard Dormer at a press conference today.

Dormer said that the FBI will provide investigators with planes and choppers that use sophisticated aerial imaging technology of the Long Island beach area where the skeletal remains of at least nine bodies have been found so far.

“Weather permitting this operation will commence later this week…We’re hoping the technology will help identify skeletal remains that may still be out there,” Dormer said.

Police believe that there are no links between the bodies found on Long Island in 2010 and 2011 and four bodies that were found in Atlantic City in 2006.

According to the NY Post, some of the bones found in the past couple of days could be victims of another Long Island serial killer Joel Rifkin.

The skull and torso found on a desolate Nassau County beachfront are too old to be connected to the serial killings of four Craigslist call girls — and could belong to long-lost victims of notorious Long Island butcher Joel Rifkin, a source said yesterday.

“These are so old that roots were growing around the vertebrae and the skull,” the source told The Post.

“These could be one or two of Joel Rifkin’s victims who were never found,” or the work of another killer, the source said.

Further complicating the case, the bodies of a man and a young child have been found during the search.

Austria is the latest country waking up to the abuse of its children by Catholic priests.

Over 800 cases of abuse in Catholic institutions in Austria have been reported so far, a commission tasked with investigating abuse cases announced on Wednesday.

A total 837 abuse victims approached the commission, which was set up by the Austrian Catholic Church last year after it was hit by a wave of abuse revelations, commission head Waltraud Klasnic told a press conference.

Three quarters of the victims were male, with the most cases — about 20 percent — reported in northern Upper Austria province, followed by Vienna and western Tyrol, according to a commission report summarising its first-year findings.

Back in the good old USA, Bill Donohue of the Catholic League says the kids were asking for it.

The group bought an expensive full-page ad in The New York Times Monday that places the blames for the church’s scandals on “homosexuality, not pedophilia.”

And perhaps most shockingly, it also claimed that some children were active participants in the abuse.

“The refrain that child rape is a reality in the Church is twice wrong: let’s get it straight — they weren’t children and they weren’t raped,” self-appointed Catholic League president Bill Donohue wrote in the ad.

“We know from the John Jay study that most of the victims have been adolescents, and that the most common abuse has been inappropriate touching (inexcusable though this is, it is not rape),” he added, referencing a 2004 study by the John Jay College of Criminal Justice, which was funded by the U.S. Conference of Catholic Bishops.

“The Boston Globe correctly said of the John Jay report that ‘more than three-quarters of the victims were post pubescent, meaning the abuse did not meet the clinical definition of pedophilia.’ In other words, the issue is homosexuality, not pedophilia,” Donohue wrote.

Another issue is that priests are in a position of power and should not take advantage of that position to gratify their sexual desires. But I’m sure Donohue would disagree. And where I come from adolescents are still children.

In science news, a new study revealed that Climate change affects tectonic plate movement, causing earthquakes

Understanding why plates change direction and speed is key to unlocking huge seismic events such as last month’s Japan earthquake, which shifted the Earth’s axis by several inches, or February’s New Zealand quake.

An Australian-led team of researchers from France and Germany found that the strengthening Indian monsoon had accelerated movement of the Indian plate over the past 10 million years by a factor of about 20 percent.

Lead researcher Giampiero Iaffaldano said Wednesday that although scientists have long known that tectonic movements influence climate by creating new mountains and sea trenches, his study was the first to show the reverse.

Dakninikat sent me this one from the BBC: Yellowstone supervolcano fed by bigger plume

The underground volcanic plume at Yellowstone in the US may be bigger than previously thought, according to a new study by geologists.

The volcanic hotspot below Yellowstone feeds the hot springs, mud pots and geysers that bring millions of visitors to the US national park each year.

There have been three huge eruptions of the Yellowstone supervolcano: 2.1 million years ago, 1.3 million years ago and 640,000 years ago. Two of these eruptions blanketed a large area of North America with volcanic ash.

The most recent full-scale eruption of the Yellowstone supervolcano ejected some 1,000 cubic km (240 cubic miles) of hot ash and rock into the atmosphere. There have been smaller eruptions in between the largest outpourings; the most recent of these occurred 70,000 years ago.

Of course that can’t be true because the earth can’t possibly be that old, right?

That’s all I’ve got for today. What are you reading and blogging about?


Open Thread: Joe Biden falls asleep during Obama’s deficit speech

Salon says that

Most politicos watched with rapt attention this afternoon as President Obama delivered a seminal speech on the national debt. But what of Joe Biden? The half-hour address was apparently a little too much for the vice president, who was caught on camera getting some shut-eye.

I don’t know about “rapt attention.” Timmy Geitner doesn’t look all that alert to me, and the woman sitting kitty-corner behind Biden looks sleepy too.


Why Obama and his Banker Bosses Want a Depression

Via Susie Madrak at Suburban Guerilla, Economist and historian Michael Hudson explains why U.S. elites are trying to bring about a full-fledged depression (December 16, 2010).

From the transcript:

JAY: So President Obama’s deficit commission has reported. The press, the media, and most of the political punditry all seem far more worried about government debt than depression. Why?

HUDSON: Because they’re essentially appointed by the banking interest. When the government runs into debt, it has to borrow from the banks. They want to scale down government debt in order to scale down government taxes. So it’s part of a one-to punch against the economy, basically. To the deficit commission, a depression is the solution to the problem, not a problem. That’s what they’re trying to bring about, because you need a depression if you’re going to lower wages by 20 percent.

JAY: And why do they want to do that?

HUDSON: Because they have the illusion that if you pay labor less, somehow you’re going to make the economy more competitive, and the economy can earn its way out of debts–meaning their employers, the banks and the companies–and make more profits and pay more bonuses and stock options, and somehow their constituency, Wall Street and the corporate economy, will become richer if they can only impoverish the economy.

So essentially you can think of it as between a parasite and the host economy. A smart parasite in nature actually is in a symbiosis with the host and tries to steer to new food. It wants the host to find new food, doesn’t want it to get bigger; the parasite wants itself to get bigger. But to do that, it has to take over the host’s brain and make the brain think that the parasite, in this case the host, is the industrial economy, the real economy, production and consumption.

The parasite is basically the financial sector. That’s the deficit commission. That’s the largest financier of the Obama administration. Obama appointed Wall Street lobbyists for the deficit commission, and basically their mind is a one-track mind: reduce labor’s wages. So what we have here is a dumb parasite, not a parasite. That’s the problem that’s facing the American economy today. The problem is that the parasite’s not only taken over the brain of the economy, which was supposed to be the government, but it’s taken over its own brain in the process. And it actually imagines that corporations can make larger profits and the industrial–the financial system can survive if they just bring on a depression. In fact, it’ll be the exact opposite.

Hudson predicted the housing crash in a cover story in Harpers’ Magazine in 2006: The New Road to Serfdom.

Another article he wrote for Harpers’ in 2005 was influential in killing Bush’s push for privatization of Social Security: The $4.7 Trillion Pyramid: Why Social Security won’t be enough to save Wall Street

It looks like the elites are already succeeding in turning the U.S. into a third world country. According to the LA Times, Swedish giant Ikea opened a plant in Virginia in order to take advantage of the U.S.’s slave wages and hostile atmosphere for union organizing.
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Steve Benen says that isn’t supposed to happen here in the “land of opportunity,” but according to Professor Hudson, that’s exactly what our government and the top 1% want.


Poor little Barack … He sooo wishes he could be anonymous.

Poor Barack. His high-powered job has made him so famous and powerful that he can’t go anywhere to unwind anymore except the golf course. That’s why he golfs so much. He really wishes he could be “anonymous” so he could go the car wash or the grocery store. At least that’s what he told the editors and publishers of Hearst Magazines.

“I just miss — I miss being anonymous,” he said at the meeting in the White House State Dining Room. “I miss Saturday morning, rolling out of bed, not shaving, getting into my car with my girls, driving to the supermarket, squeezing the fruit, getting my car washed, taking walks. I can’t take a walk.”

He says he enjoys golf but is not the fanatic that some have portrayed him to be because of the frequency of his golf outings.

“It’s the only excuse I have to get outside for four hours at a stretch,” he told the Hearst executives.

Awwww…poor guy. That’s so sad. He sounds so wistful about it too. He must get so stressed out when he has to made those “tough decisions” like selling out the American people to the Republicans so he doesn’t have to piss off any of his rich banker donors. No wonder he spends so much time playing golf.

Just imagine how hard it must be to be the first black president–and a Democrat too (supposedly)–and be *forced* to destroy the legacies of FDR, JFK, and LBJ! Imagine how hard it must be to realize that after he gets through, the Democratic Party will be well and truly dead.

He must really have to rush to play golf when he thinks about how he used the legacy of Martin Luther King to get himself elected, and now he has to hurt poor people, including a lot of African Americans, because those mean old Republicans are making him do it.

The President will probably have to spend a lot of time on the golf course after his speech on Wednesday. From what I’m hearing and reading, he is going to have to break it to the bottom 90% of Americans that they are utterly screwed, and explain why we must “sacrifice” our health care and our pittance of retirement from Social Security in order to make sure that the banksters don’t have to cut back at all. After all they are our betters, aren’t they?

It’s so sad that poor Barack will have to live with being the President who destroyed the social safety net in the U.S. What a terrible burden for him to carry! I just hope he can get enough stress relief from playing golf. Maybe he could also relieve his giant burden of stress with one of the Hearst magazines that he says he likes to read.

“If there are any magazines in the (White) House, they probably come from you guys,” he told the Hearst Magazine executives.

Hearst Magazines publishes periodicals including Good Housekeeping, Marie Claire, O, The Oprah Magazine, Popular Mechanics, Redbook, Esquire and Cosmopolitan, among others.

I wonder which of those magazines he like best. Maybe we could take up a collection and get him a subscription to Cosmo or something.

Poor, poor pitiful Barack!