Rebane's Ruminations
March 2013
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George Rebane

[This is the transcript of my KVMR commentary broadcast on 1 March 2013.]

It’s hard to think good thoughts about what is going on in Washington and the competency of our government.  We seem to have entered into an endless sequence of crises, questionable appointments, and scandals which literally have no end – they now stretch into the future as far as the eye can see, and then there are still more out there waiting that we can’t see.  As a political junkie even I am overwhelmed.

We just concluded cabinet appointments that made it not because of the candidates’ sterling resumes – they are arguably awful – but simply because of party loyalty.  The guy for Secretary of Defense was at a loss to explain anything that was relevant to his office, and the Secretary of the Treasury candidate told the Senate that he didn’t really know what he did in private practice, why he got those big million dollar bonuses, and what experience recommends him for the job.  Nevertheless, these two are now the worthies one of whom will maintain our national security in the face of shrinking defense budgets, and the other one will be in charge of keeping China lending us money they will never see repaid.

And the borrowing will go on forever because we will never bring our federal budget under control – all budgets and obligations call for every aspect of spending to increase indefinitely.  Washington’s claim of reducing spending is a very big fairy tale told repeatedly to a very large population of faithful morons.  The rule to spending cuts is simple – publicly plan to spend at some arbitrary and prodigious rate, then with much breast beating reduce the planned outlays to their usual budget busting levels, and then credit the difference to your having reduced spending – the sheeple will never know.  Meanwhile, the actual dollar amounts of spending just keep roaring upward year after year.


Consider that the size of government spending has doubled in the last decade, and will do so again in the next ten years along with our unpayable debt.  In return we are asked to believe all that is the result of Washington’s prudent spending cuts.  And so we come to today’s deadline to implement the now infamous ‘sequester’.  I love the misuse of that word.  Those who read know that to sequester something is to set it aside and make it available for later use.  But Washington’s sequester is a bit more draconian – it means to do away with completely.  Actually I like their definition, but wish they would have picked a more appropriate word.

All of us have listened to the way that the sequester is supposed to be implemented – namely, with across the board cuts.  Upon drafting President Obama’s recommendation into law, everyone knew that this was a ‘beyond stupid’ way to do it, but it would make the $85B sliver of a $3.8T federal budget wreak maximum havoc.   So everyone signed on believing that it would never come to pass, everyone thought our vaunted federal government would never be that dysfunctional.  Well, with the exception of President Obama, everyone was wrong – Washington has been and continues to be unbelievably broken.

President Obama knew exactly how to bring the crisis to a head – at the proper time when agreement might have been possible, and after the Democrats got their tax increase on the rich (and the middle class), Obama then ‘moved the goal posts’ and demanded that any new agreement must also include new taxes.  Oh yes, and in case you didn’t catch it, he also lied and said that the sequester was never his idea in the first place.

When renowned journalist Bob Woodward went on national TV and pointed out what the President had done, he was taken to the woodshed by the administration.  And after being yelled at for a good part of an hour, this former darling of progressives was advised “you will regret doing this.”  The White House quickly denied ever having threatened Woodward, and promised never to do it again.

The bottom line of this kabuki dance on spending is that our growing national debt burden is taking us down as a nation in more ways than we can count.  Thomas Jefferson advised us early on that there “does not exist an engine so corruptive of the government and demoralizing of the nation as a public debt.  It will bring on us more ruin at home than all the enemies from abroad …”

My name is Rebane, and I expand on this and related themes on georgerebane.com where the transcript of this commentary is posted with relevant links, and where such issues are debated extensively.  However these views are not necessarily shared by KVMR.  Thank you for listening.

[Addendum]

FedSpendingPctGDP

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59 responses to “Circus Maximus vs Sequester Minimus (Addended)”

  1. Ben Emery Avatar
    Ben Emery

    George,
    What I have found through the last year of coming to ruminations is that you are full of sh!#. You knowledge is very limited to a couple topics and the rest is lifted straight from Limbaugh or Hannity.
    Social Security is funded strictly through payroll taxes something capital gains/ dividends are exempt from paying. I pay a higher % in FICA tax since I am self employed than Romney pays in income tax.
    SS has a $2.7 trillion surplus and is solvent for another 20 years, that isn’t a crisis. If we made all income subject to the FICA tax not just $113,000 earned income the program would be solvent forever. Two things could then happen 1) benefits could increase up to 50% or 2) rate paid into could be reduced.

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  2. Ben Emery Avatar
    Ben Emery

    I mainly came here to post another Walmart fact I didn’t realize was going on.
    Walmart shut down a factory in Cambodia and tried to not pay back wages to its employee’s. Workers at the factory are making $0.50 an hour, which is up from two years ago and probably why the factory shut down. Nice business model and just think you guys celebrate the company’s “success”.
    Striking workers call on Wal-Mart to take responsibility after supplier skips country owing $200,000 in wages
    http://coztoujours.com/2013/02/01/the-plight-of-cambodias-garment-workers/
    “On Thursday morning garment workers gathered outside the US Embassy in Phnom Penh to follow up with the petition they submitted on Januray 18th, 2013 asking the US government to pressure Wal-Mart. They are owed $200,000 by Kingsland, a Hong Kong-based company that started to operate in Cambodia 10 years ago and worked with Wal-Mart and H&M suppliers.”

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  3. TheMikeyMcD Avatar

    Benn, your ideology is based on hate (and a lack of economic understanding, inability to use math…).
    SS is a PONZI scheme. Those of us at the bottom are now paying over 600% more than the original participants to insure that the current beneficiaries are paid and we will rely on future generations to pay for our benefits… all the while our government gets to spend the trust fund. This would be illegal for you or I.
    Have you ever read a SS statement?
    The trustees themselves don’t believe the fund is solvent. You cite 20 years as proof of the ponzi scheme!
    Simple question: Could the SS program pay out all liabilities (promises made) to beneficiaries if no more contributions were paid into the program?

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  4. Bill Tozer Avatar
    Bill Tozer

    Micky D: You are missing the point. There are just too many rich people. That number should be down around 400 in the entire globe, max. The reason there are so many po folk is because of rich people. Rich people bust into poor folks homes and take their old couches and Hi-Fi radios and Granny’s dentures…even been known to take Granny’s denture glue as well. Greedy things they are. They have no shame. The reason Steve Jobs and Bill Gates got to be so filthy rich is because they paid their employees slave wages. Disgusting , the whole lot of them. Ever wonder why Obama and Biden kept bringing up Warren’s Buffet’s secretary?? Cause Warren kept her chained in a closet at night and paid her a handful of rice each day in lieu of minimum wage and then made her pay taxes on top of that!! Did not even have the decency to call her his executive assistant…no, that evil Warren labeled her as a common secretary. What century is this? Kill the beast, kill the beast. Do it in the name of justice…its not fair..its not fair

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  5. George Rebane Avatar

    BenE 750am – Thank you for crediting me with at least “a couple of topics”.
    I take it that you are also lambasting the President’s OMB, and the surprising number of Democrat economists and politicians similarly filled. I think we’ll have to leave you to your burden of superior knowledge, especially in how SS is funded and works. But I do think that you owe the WH and Harry Reid a call to put their minds at ease.
    And if you’d care to check the RR record for primacy, you might discover that Limbaugh and Hannity may be secret RR readers 😉 (Unfortunately my schedule doesn’t allow fitting in those two gentlemen. I find Limbaugh’s information rate to be dismally low, he could profitably do his program in 15 minutes. But then all the entertainment value would be gone. And I don’t really know what Hannity really contributes to the Fox News smorgasbord of commentary.)
    re your 803am – An absolute perfect citation of ‘social justice’ – when a vendor defects, hold his customer responsible for his liabilities. As I’ve said here for some time, it will be a brave old Bolshevik world if/when you and yours assume power. But I must admit that with gay abandon we continue to sell you rope.

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  6. Scott Obermuller Avatar

    note: I have to add that I wrote this on a text editor and when I came back to RR to paste the comment, George had beaten me to the punch. I’ll post anyway….
    Thanks for posting the Walmart story, Ben. Once again you bring to our attention the reason the left in this country walk around with hatred and vitriol as their filter for acquiring information. There seems to be no legal basis for Walmart to address the subject of the workers that were apparently stiffed by the Hong Kong based company. This is nothing more than a bunch of communists stirring up the workers with false info about who is responsible for their dilemma. But Walmart has money, so they protest outside the US embassy and Ben just scans the headline and another bit of self-rightous anger wells up in his Marxist heart. What if you hired a contractor to renovate your bathroom and later he didn’t pay his alimony? Are you responsible to the woman he didn’t pay? Gosh, Ben, you have money and she doesn’t and she is destitute and you did business with her ex. Aren’t you ashamed? But you need your daily bit of hate to keep you going and so here we are.

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  7. George Rebane Avatar

    For those readers confused by our progressive naifs here promoting more deficit spending as the way out of our fiscal tragi-comedy, here’s Stanford’s Michael Boskin on the record of spending cuts and economic recovery.
    http://online.wsj.com/article/SB10001424127887323549204578315752295424028.html?mod=WSJ_Opinion_LEADTop
    Elsewhere, I believe it was in a Cato policy report, research showed that the ‘optimum’ recovery rates obtained in countries when they instituted an approximately 85/15 (spending cuts/new taxes) policy.

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  8. bill tozer Avatar
    bill tozer

    Here is another view of Obama’s sequester:
    http://moneymanagementradio.com/node/509

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