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Sign Of The Times: Congressional Appropriations Assignments Are No Longer Coveted

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As the story goes, when President Franklin D. Roosevelt in 1942 asked Sen. Kenneth McKellar, then the ranking member of the Appropriations Committee, to quietly provide $2 billion for a secret weapons lab, the Tennessee Democrat had a brief and quick response.

“Mr. President, I have just one question. Where in Tennessee do you want me to hide it?” McKellar said, according to congressional lore about Tennessee’s Oak Ridge National Laboratory, a key part of the Manhattan Project.

It was just one instance among countless cases on Capitol Hill where appropriators — the lawmakers who hold the prized positions closest to the federal purse — found a pressing national priority fitting in neatly with local interests for economic development and the jobs that come with it.

From the funds longtime appropriator John P. Murtha, a Democrat, funneled to his hometown of Johnstown, Pa., by locating the National Drug Intelligence Center there to the federal dollars Harold Rogers, a Republican and now the House Appropriations chairman, steered toward the anti-drug nonprofit Operation Unite, which he helped found in his southern Kentucky district, the appropriations story has been one of political clout executed through the federal spending process.

That’s why legislators such as McKellar and Murtha would have been shocked at the decision Sen. Sherrod Brown, D-Ohio, made at the start of the 113th Congress, when he gave up the chance to move up the seniority ladder on Appropriations for a seat on the tax-writing Finance Committee.

Read more from this story HERE.

Fed’s Ivory Tower Just Got Smaller

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Photo Credit: fbobolasToday’s weaker than expected GDP report shows just how out of touch most professional economists remain with respect to the fundamental weakness of the US economy. After more than four years of nearly never ending monetary stimulus and more than $5 trillion worth of new federal debt, the economy remains stuck in a serious recession.

The report shows that federal stimulus and deficit spending can’t create sustainable economic growth.

Although the tepid data shocked many economists, I was not surprised. I believe zero growth is consistent with the state of the real economy. The stronger growth numbers that we saw in the second half of 2012 were likely inflated due to pre-election hopes.

The disappointing economic data takes on an even gloomier tone when considered against factors that will make recovery that much more difficult. Interest rates are making their first strong upward move in nine months. Yields on 10 year Treasury bonds are up 60 basis points since the end of July, and are over 2.00% for the first time since April 2012.

The dollar is falling against most currencies except the Japanese yen (it is down more than 11% against the Euro since July), and energy prices are rising (crude oil is approaching $100 per barrel). Although these conditions are not promising, the stock market seems blissfully out of touch. As of yesterday, the S&P 500 had advanced for 8 days in a row, its longest daily winning streak in eight years.

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Republican-led House Rules Committee Bars Amendments That Would Remove Pork From Hurricane Sandy Relief Bill

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photo credit: vsellis

The Republican-led House Rules Committee late Monday approved a rule for a massive Hurricane Sandy relief package that shuts out most GOP proposals to pare back the size of the bill.

The main bill provides $17 billion in relief, and an amendment made in order would add another $33.7 billion, for a total of $50.7 billion.

Late last week, Republicans offered amendments that would trim the bill significantly, but few of those were made “in order” by the Rules Committee on Monday. For example, Rep. Tom McClintock (R-Calif.) proposed amendments that would have slashed $22 billion from the total package, but none of them were accepted by the committee.

And Rep. Paul Broun (R-Ga.) proposed several amendments that would have cut more than $300 million from the bill. House Rules made just one of these in order — to cut $13 million in funding to “accelerate the National Weather Service ground readiness project.”

All told, Republican amendments were made in order that would cut less than $200 million from the $50.7 billion package. One of these, from Rep. Bill Flores (R-Texas), would cut $150 million for Regional Ocean Partnership grants.

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The Federal Government Now Borrowing 46 Cents Out of Every Dollar It Spends

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photo credit: david gaines

After all of his seemingly endless campaign stops and harsh rhetoric about the rich not paying “their fair share,” it turns out that the president’s proposed tax hikes on “the rich” will only raise enough revenue to run the government for about eight days. But that doesn’t really matter, of course, because it’s all about “fairness.” In other words, if Washington lawmakers are serious about reducing the federal deficit — as they claim to be — the real solution is that they must stop borrowing and spending money we don’t have. We cannot carry on like this indefinitely:

The federal government borrowed 46 cents of every dollar it has spent so far in fiscal year 2013, which began Oct. 1, according to the latest data the Congressional Budget Office released Friday.

The government notched a $172 billion deficit in November, and is already nearly $300 billion in the hole through the first two months of fiscal year 2013, underscoring just how deep the government’s budget problems are as lawmakers try to negotiate a year-end deal to avoid a budgetary “fiscal cliff.”

Higher spending on mandatory items such as Social Security, Medicare and interest on the debt led the way in boosting spending compared with the previous year, which also highlights the trouble spots Congress and President Obama are struggling to grapple with.

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Video: Senator Coburn Says ‘Whole Government’s Out of Control!’

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photo credit: senate democrats

Oklahoma Senator Tom Coburn recently authored a book entitled ‘The Debt Bomb,’ and is known as a fiscal hawk in the United States Senate. He also releases an annual report on government waste, this year outlining $68 Billion in wasteful spending that could be cut from the Defense Department’s budget.

In an appearance on The Blaze TV, Coburn talked about Congresses spending problem, stating that it is ‘usurping the power of the States’ . . . and ‘undermining . . . liberty of the people of this country.’

His conclusion? ‘The whole government’s out of control.’

See the interview below:

Read more from The Blaze HERE.

After Fiscal Cliff Comes Fiscal Avalanche, Rejection of U.S. Debt

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While Washington is preoccupied with the so-called fiscal cliff, little attention has been given to the fiscal avalanche that will occur if we continue down an unsustainable, long-term path, causing markets to turn sour on U.S. debt and leading to a spike in interest rates.

Such a eurolike crisis would make the fiscal cliff look like a dip in the road. Unlike driving off a cliff, which you can see coming and make last-minute adjustments to avert, we cannot predict with any reasonable certainty when the avalanche will break. If it does, there will be little anyone can do to prevent its devastating effects.

No one knows just how long the United States can continue to accrue massive debts before lenders lose confidence. Delaying significant fiscal restraint for yet another year will send the wrong signal to financial markets and may serve as a tipping point that could lead to disastrous consequences for our economy.

If U.S. creditors decide that our debt is no longer the safest form of investment available, demand for Treasurys will drop, interest rates will rise and the cost of servicing our debt will begin to explode. Paying interest on our national debt will quickly crowd out spending on almost all other federal priorities. At that point, any deficit reduction undertaken by Washington — including the sorts of spending cuts or tax increases being discussed today — will be too little, too late.

The Congressional Budget Office projects that under the most likely policy scenario, in 30 years, net interest payments on the debt could total $3.8 trillion in today’s dollars. That is more than total government spending for 2011.

Read more from this article HERE.

PBS: Re-Educating America’s Schoolchildren

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By Mary Grabar and Tina Trent

When most people think of the Corporation for Public Broadcasting’s education programs, they remember the gentle Mr. Rogers welcoming children to his home, or documentaries offering exciting encounters with whales and other exotic creatures.

These shows still exist. But CPB today produces lessons that glorify the Black Panthers and riots and protests of the 1960s, present rocker Patti Smith as a “patriot” for singing songs that condemn President George W. Bush, vilify Wal-Mart, and sanctify environmentalist Rachel Carson. Although their educational materials claim to be objective, the truth is that their unrelenting ideological slant that promotes the politics of protest and civil disobedience is aimed at re-educating children into becoming far-left activists.

But whenever there are attempts to cut federal funding to CPB, the corporation points to its “educational programming” as proof that the approximately $450 million it receives annually from federal taxpayers is being put to good use. Big Bird and other members of the cast of Sesame Street show up in Congress to tell members of the educational value of CPB-funded programs.

The same justification is offered by state affiliates. For example, in 2011, Georgia Public Broadcasting’s marketing vice president, Nancy Zintak, defended their executives’ salaries by explaining that “80,000 Georgia teachers have downloaded data more than 5 million times from GPB’s educational website.”[1] [1]

Georgia taxpayers directly fund half of GPB’s annual $29 million budget. Millions more are funneled through the state’s public university budgets.

Teachers across the nation do turn to Public Broadcasting for videos, classroom projects, and even entire course syllabi. National statistics are elusive, but those 80,000 Georgia teachers downloading Public Broadcasting educational materials represent 63% of all public and private K – 12 educators in the state. If Georgia’s teachers are typical of educators in other states, it is clear that most K – 12 schools rely on PBS to teach subjects ranging from arithmetic to World History.