Archive for the ‘Waste and Fraud’ Category

Texas vs. California: Dog Days of August Edition

Monday, August 27th, 2012

It’s late August, and California’s slide toward insolvency continues apace.

  • How badly underwater is CalPERS? Try $884 billion.
  • Speaking of California unions, here’s how they’re trying to block reform.
  • California’s recovery is much slower than the already slow pace of the rest of the nation.
  • Things have gotten so bad that Moody’s is rexamining the outlook on all California cities.
  • What California should learn from Wisconsin.
  • CalTrans spends $22.5 million on unneeded home repairs, with a hefty side-helping of graft. (Hat tip: Dwight)
  • So what happened to all those Solyndra glass tubes? Can you say modern art?
  • Texas snags it’s lowest bond interest rate ever at 0.225%. That makes sense. Broke ass California getting a 0.43% rating doesn’t.
  • Texas has five of the ten fastest growing counties (including Williamson).
  • California’s “urban forest” offset scam.
  • Texas Vs. California: August 16, 2012

    Thursday, August 16th, 2012

    Looks like California has done such a good dog of screwing the pooch that I may have to start doing these roundups weekly:

  • Although bankrupt, California is about to add another outrageous benefit to its already bloated pension plan.
  • The Road Warrior‘s future as California’s present.
  • Creditor demands that Stockton reduce it’s outrageous pension plans.
  • In deed, CalPERs and state and local governments have combined to screw both taxpayers and bond-holders.
  • Hermosa Beach meter maids make make nearly $100,000 a year.
  • Could Fresno be the next California city to declare bankruptcy?
  • That is, unless the next California city to declare bankruptcy is Los Angeles.
  • How Obama Has Recalibrated My Outrage Scale

    Tuesday, August 7th, 2012

    Back in 2008, this sort of news would probably get my dander up. The upshot is that the federal Highway Bridge Program is going to force various levels of Texas government to pay for replacing little-used bridges rather than repairing them, even if some only get 25 cars a day and there are alternate routes available, in order to keep getting federal funds.

    There’s lots wrong with the program: Taxpayer money wasted for one, and the principles of Federalism violated for another; there’s absolutely no reason for the federal government to take money from taxpayers in the various states, put it in a big pot, rake off their bureaucratic maintenance fees, and then redistribute it to states, counties, etc. Let counties and states repair their own bridges, and decide which ones to repair and how to pay for them.

    But even given all that, my outrage meter is barely quivering. Unlike so many Obama-era boondoggles, at least we’re getting something tangible and useful. At least it didn’t line some corrupt solar power company CEO’s pockets before his firm went bankrupt. At least it didn’t screw non-union pensioners to line the coffers of the UAW. At least it’s not a multibillion dollar high speed train boondoggle that will never be finished. At least here’s a public works project that’s actually shovel ready. And, as long as you think that there should be public roads in the first place (there’s a libertarian case for completely private roads, but that ship sailed a long, long time ago), then at least we’re getting something at least vaguely within the purvey of some government entity.

    And at least the program didn’t end up killing a border patrol agent and 300+ Mexican civilians.

    So corrupt, incompetent and scandal-ridden is the Obama Administration that I have a hard time working up indignation over the fact that a significant fraction of $150 million will probably be wasted on bridges we don’t really need, mainly because I’m sure Obama or his cronies will find a brand new way to waste ten times that one something completely useless sometime over the next week…

    Texas vs. California: A Quick Roundup

    Wednesday, July 11th, 2012

    Spent most of the day checking things off my list and web-surfing Creepy Pasta. So here’s a quick roundup of Texas vs. California tidbits:

  • A ballot initiative could derail the union stranglehold over California.
  • Among all states, Texas has the most adequately funded pension plan.
  • Endemic corruption in California cities.
  • California tosses another $4.7 billion down the high speed rail rathole. Hell, even Mother Jones says that it’s a money-wasting boondoggle.
  • Texas has a market that works just fine for electricity when government lets it: “California pretended to have a deregulated electricity market, but it was really a poorly designed, government-controlled system that eventually collapsed under its own weight. Texas’ economy is outperforming the rest of the country because we put fewer burdens on markets. This is why Texas has the most competitive and successful electricity market in the United States, if not the world. If we let it work, the world-class Texas electricity market will power Texas’ future.”
  • You know, if I were looking to save money, eliminating the state’s open meeting law is about the last thing I would cut. California at every level government needs more transparency, not less. (That probably true for the other 56 49 states as well.)
  • Obama continues his efforts to harsh California’s buzz by shutting down the state’s largest marijuana dispensary.
  • Finally, I want to note that Dwight has created a tag to track all mentions of the No Longer Golden State on his blog, so you can read his roundups on police incompetence, municipal corruption, and bankrupt locales such as Vernon, Bell, San Bernardino, Cudahy, Maywood, and Zalgo.
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    Just How Far Does The John Wiley Price Corruption Story Reach?

    Monday, June 4th, 2012

    Sometimes you know there’s a big, juicy story swimming just under the threshold of public consciousness, but don’t have the tools, sources or knowledge to bring it to the surface. Such is the case with the FBI’s ongoing investigation of Dallas County Commissioner John Wiley Price, a powerful, long-serving fixture in the Dallas black political power structure. Right now the story involves current Dallas Mayor Mike Rawlings and money that may have improperly made it’s way from Rawlings’ campaign chest to Price’s pocket via political consultant Kathy Nealy. The FBI raided Price’s office last year.

    The lefty Dallas Observer is more blunt in what the FBI is alleging: “The affidavit claims a pay-for-play scheme existed in which businesses would pay handsome consulting fees to Nealy’s company at about the time they were seeking to win a contract with Dallas County. A portion of that money would be funneled to Price, who would steer the favored contractor through the Commissioner’s Court.”

    Not living in Dallas, the first time I ran across John Wiley Price’s name was in connection to the previous mayor of Dallas, then-aspiring Senate candidate Tom Leppert. Leppert and Price seem to have cooperated in killing Richard Allen’s Inland Port project, Leppert allegedly because it competed with a similar project by backer Ross Perot, Price allegedly because Allen wouldn’t pay Price and his cronies $1 million in shakedown money. I should hasten to add that Price, who has been a fixture on the Dallas political scene long before Leppert even moved there, is to the best of my knowledge not one of Leppert’s cronies, or even particularly close to him. However, Willis Johnson, who was allegedly part of the shakedown effort, is one of Leppert’s cronies, and was (along with the late Lynn Flint Shaw) one of Leppert’s conduits into the Dallas black community.

    Price has an, ahem, interesting history. He was arrested for felony assault charges, of which he was acquitted just after the Rodney King riots. And his protege Aaron McCarthy is a member of the New Black Panther Party.

    But if Price committed the crimes alleged in the FBI affidavit, the question is: How deep does the corruption go? How many other Dallas political players were paying off Price, and in exchange for what? Price has been in office a long, long time. It’s quite possible he has enough skeletons in his closet to make it an ossuary.

    I don’t have the answers, and I don’t even have the knowledge or connections to properly dig for those answers. But I suspect we’re going to find out in the near future anyway…

    EuroDoom for a Weekend in June

    Friday, June 1st, 2012

    How about a nice slice of EuroDoom to ease you into the weekend?

    With all the post-primary news, the European Debt Crises news has been chugging along for a while now. let’s look at some, shall we?

  • Heh. “The Euro cannot be destroyed by any craft that we here possess. It was made in the fires of Frankfurt. Only there can it be unmade. It must be taken deep into the heart of the European Central Bank, and cast back into the fiery chasm from whence it came!”
  • If the Leftists win the next round of voting in Greece, they promise to cancel the EU-sponsored bail-out and re-nationalize banks and companies. Way to calm the markets, dude! Not to mention reenacting Clevon Little’s famous scene from Blazing Saddles. “Experience is a dear teacher, but fools will learn from no other.”
  • “It is no longer a question of if, but how, Greece will leave the euro.”
  • The money flight from Greek banks continues.
  • And there’s this: “I can see only one mechanism that could force a collapse of the eurozone: a generalised bank run in several countries.”
  • In the showdown between Greece and the IMF, both sides deserve to lose.
  • NEIN! “Almost 80% of Germans reject eurobonds and 60% are against Greece remaining in the euro.”
  • Germany and Greece play chicken over the euro. That’s like a Mercedes playing chicken with a [ERROR: NO GREEK AUTOMAKER FOUND. ANALOGY ABORTED.]
  • Ireland votes yes on the Fiscal treaty, and then turns around with an implied “Now fork it over, Otto.”
  • Why Germany is great and Spain is totally screwed.

    It’s a winner-take-all world. Countries that do well have to do a few things extremely well. Germany makes the world’s best machine tools, some of the best heavy engineering equipment, not to mention autos. German manufacturing dominates innumerable key niches. The Spanish don’t do anything well. They haven’t done anything well since the Spanish Empire outsourced its manufacturing to Flanders in the 16th century.

  • And Spain is really screwed.
  • Which is why the Germans seem inclined to let them have more rope.
  • Though at least one source says reports of Spanish bank runs are exaggerated.
  • But even Germans are getting nervous. Also this:

    As a journalist told me yesterday, he worries whether the money in his pocket will be worth anything a year from now. Others worry about Germany’s increasingly negative image among recession-hit southern and eastern Europeans. Americans will understand this feeling well: you pay and pay to help others, only to have them turn on you in hatred and wrath, accusing you of horrible hidden motives and denouncing your selfishness.

  • Eurobills instead of Eurobonds?
  • EuroDoom #Grexit Update: Greeks Already Printing Drachmas?

    Thursday, May 24th, 2012

    Are the Greeks already printing Drachmas? So says a completely unverified tweet from a random Twitter user. Really, what better source could you possibly ask for?

    The Internet is alive with buzz on Greece exiting the Euro (see #grexit for a sip from the firehose). Sadly, there seems to be no buzz at all on reigning in the cradle-to-grave European welfare state that caused the crises in the first place.

    More Grext/European debt crises news:

  • The Fraud of Austerity.
  • The European debt crises as the world’s longest root canal with the world’s dullest dental drill.
  • How lovely: diseases unknown to Europe are making a comeback thanks to the Greek government’s colossal mismanagement.
  • Problem: Greece’s government will seize their citizens’ Euros to forcibly convert them into Drachmas. Solution: Withdraw your cash in Euros. Problem: Burgler’s have figured this out too.
  • Spain’s Prime Minster: Screw the long term Euro plans, I need the European Central Bank’s sweet low rates right now.
  • Maybe because his government just pumped €9 billion into failing banks.
  • Who’s most exposed to the grexit? Italian and Spanish insurers.
  • There’s no conflict between real austerity and pro-growth polices. Too bad no one in Europe is willing to try them.
  • Wait, The Guardian actually printed an editorial by John Bolton? (“And the moon became as blood…”) It’s a good one, too:

    “Growth” to social democrats means growth in government’s size and reach, not growth in the real economy. This approach directly contributed to our current predicament; and more of the same will only exacerbate it.

  • Euro Update: The Euro is “An Unbridled Doomsday Machine”

    Monday, May 21st, 2012

    Though markets have calmed a bit, the desperate search for a lever that will actually steer Europe away from the looming wall of a EuroCrash continues. Meanwhile, certain repeating motifs are detected:

  • “Now that times are bad, the single currency has turned into an unbridled doomsday machine. Merkel continues to insist that she’ll do whatever it takes to save Europe’s “destiny”. The continued insistence on fiscal austerity and debt repayment tells a different story. Is Germany really prepared to bankroll a wider monetary union by putting its money where its mouth is, or is the game finally up?”
  • Boris Johnson also calls the Euro a Doomsday Machine:

    Europe now has the lowest growth of any region in the world. We have already wasted years in trying to control this sickness in the euro, and we are saving the cancer and killing the patient. We have blighted countless lives and lost countless jobs by kidding ourselves that the answer to the crisis might be “more Europe”. And all for what? To salvage the prestige of the European Project, and to spare the egos of those who were wrong and muddle-headed enough to campaign for the euro.

    Johnson is right about the cancer, but slightly wrong about the cause: The European cradle-to-grave welfare state is the cancer; the Euro just made it slightly more malignant.

    But with two separate commentator’s calling the Euro a Doomsday Machine, I feel a new meme coming on:

    Not to mention much better chances of being linked by Jonah Goldberg and James Lileks…

  • Europe is awakening from its Utopian dream.
  • Greece’s invisible bank run.
  • Greece is happy to stay in the Euro…as long as other countries are footing the bill. They want more subsidies and an end to even the #fakeausterity. Not only do they want to continue to dig their deficit spending grave, they insist on digging it as fast as possible. How to get Germany to agree to continue footing the bill is the one flaw in their otherwise cunning plan…
  • Why the Blue State model doesn’t work: Cheap money doesn’t mean welfare states balance their budgets, it just means they spend that much more:

    Greece, Spain, Ireland, Portugal and Italy (and California). In each case, the promise of more bailouts and a steady flow of cheap money only produced more reckless behavior, excessive levels of government spending and record levels of debt.

    Johan Norberg, a senior fellow at the Cato Institute, summarizes the results: “From 1997 to 2007, government expenditures increased by around 6 percent annually in Spain, Portugal and Greece, while population remained mostly stable. Spending increased by 4 percent a year in Italy — even while the economy shrank.”

    Consequently, “Between 2000 and 2010, Portugal increased its public debt as a share of GDP from 49 percent to 93 percent, France from 57 percent to 82 percent, Italy from 109 percent to 118 percent, and Greece from 103 percent to 145 percent,” reports Norberg.

  • Greece and California are headed down the same path to disaster, and for the same reason.
  • In addition to budget deficits, the EU suffers from a deficit of democracy:

    The European crisis is as much a crisis of politics as economics. The current paralysis of the Greek political system demonstrates the point very clearly. EU policy has actively contributed to this crisis by effectively sealing off discussion of the political problems thrown up by austerity.

    Budgetary policy is at the core of traditional democratic politics in Europe but the management of the euro zone is increasingly being effected not through democratic institutions but via a centralised and depoliticised form of technocratic fiat. The “stability” narrative has triumphed over the need for legitimacy as the crisis in Europe has deepened.

    Ivan Krastev, the eminent political scientist, argues that we have now arrived at a point where national governments have politics but are no longer in control of policy, including budgetary policy, which is moving via the fiscal treaty and other measures to the EU level.

    On the other side of this divide the European Union has policies but no politics, since decisions are increasingly being made by technocratic managers rather than directly elected representatives of the European public. The euro zone crisis has thus amplified an existing problem – the absence of both a European citizenry and a transparent European level political process.

  • A long meditation on what a Greek exit would mean involving Frankenstein, Old Maid, and David Brin.
  • The EU sends inspectors to find out why Spain’s deficits are so high. Offhand I would say the solution to the mystery might be “because they’re spending more money than they’re taking in.” Obviously such thinking will never get you anywhere in the EU civil service…
  • EuroDoom Weekend Update

    Saturday, May 19th, 2012

    Good evening. I’m not Chevy Chase, and you’re not either. (Unless the real Chevy Chase is reading this, in which case: 1. Loved you on the original SNL, and 2. Stop being such a total dick.)

    The EuroZone crises has now reached the stage where European media is doing live updates.

    Take a look at this update: “German Chancellor Angela Merkel has mooted the idea that Greece should hold a referendum on the euro alongside its second round of elections next month.” Well, no use even pretending that the Greeks have a say in their own future, is there?

    The Zuckermutterobergroupenführer has spoken!

    In other EuroDoom news:

  • Paul Krugman is hardly a fat lady, but when even he says the Euro may end “in months, not years,” then maybe maybe the Euro’s opera bouffe is finally nearing the curtain. And just think: This Nobel Prize-winning economist is only two years behind Mark Steyn (not to mention myself).
  • The G8 leaders are trying to be more generous with Germany’s money.
  • The Wall Street Journal staff cover endgame scenarios.
  • Bank runs continue in Greece
  • and in Spain.
  • While the European Central Bank has cut off loans to four (unnamed) Greek banks because they’re insolvent. The only wonder is that any Greek banks are considered solvent.
  • No wonder Moodys is downgrading Spanish banks.
  • How bad will the Euro-collapse be? “This type of shock could produce instability at least as extensive as the aftermath of the collapse of Lehman Brothers.”
  • Why the Euro is doomed to fall apart. Besides all the obvious reasons.
  • Der Spiegel goes all Amityville Horror on Greece: GET OUT.
  • Speaking of prominent German media outlets slamming Greece (insert your own Cartman’s Mother joke here), can anyone tell me why the Greek finance ministry offices look like an episode of Hoarders? My German is a bit rusty to watch a 45 minute documentary, but what are in the garbage bags? Tax returns?
  • Spain is going to miss its deficit targets Also, unemployment is going to top 25%.
  • The difference between America and Spain.
  • Spain’s housing bubble gets compared to Ireland’s housing bubble, including how it’s getting ready to drag down the banking sector. Actually, it also sounds an awful lot like Japan’s housing bubble. But Spain’s economy isn’t nearly as strong as Japan’s…
  • One of the many ways France screws growing businesses.
  • No matter what Greece does, “the country faces years of austerity after years of mismanagement, whatever the election result. Even at the height of the global financial crisis, it was obvious the museum-piece economies of Europe, weighed down by bulging public payrolls, entrenched welfare state systems and archaic work practices, faced greater upheavals and decades of poorer living standards than the US.”
  • Record shorting against the Euro.
  • Obama wants Europe to keep digging. After all, the longer they can keep up the charade, the brighter his already-dimming re-election chances…
  • And given how much America is spending under Obama, we’re in no position to cast stones.
  • George Will Makes the Case for Drug Legalization

    Thursday, April 12th, 2012

    Or, to be more specific, George Will summarizes the same case made in Mark Kleiman, Jonathan Caulkins and Angela Hawken’s Drugs and Drug Policy: What Everyone Needs to Know. It focuses on the sheer economic idiocy of continuing the War on Drugs:

    A $200 transaction can cost society $100,000 for a three-year sentence. And imprisoning large numbers of dealers produces an army of people who, emerging from prison with blighted employment prospects, can only deal drugs. Which is why, although a few years ago Washington, D.C., dealers earned an average of $30 an hour, today they earn less than the federal minimum wage ($7.25).

    I oppose the War on Drugs for reasons of general principles (it’s not the purpose of government to save people from themselves), the specific application of constitutional federalism (the Commerce Clause should not apply to the regulation of drugs manufactured and sold within the confines of a single state), and for reasons of budgetary philosophy (making drugs illegal has expanded the size and power of the federal government while increasing the budget deficit; legalizing, regulating and taxing drugs would reduce both the deficit and the harm to individuals and society). Frankly, I’d be for the immediate legalization of methamphetamine tomorrow if it meant we could stop ID-ing people with colds trying to buy Sudafed.

    There has been slow but steady progress in the conservative movement for saner drugs laws, from William F. Buckley arguing for the decriminalization of marijuana, to National Review declaring that “The War on Drugs is Lost” in 1996, to Republican Presidential candidates like Ron Paul and Gary Johnson (who, like Paul once did, bolted for a doomed Libertarian Party run) making the same case.

    Despite growing sentiment, almost no legislative headway has been made on the issue because there’s no consensus in the Republican Party (or the American people) for that change. When an initiative for the total legalization of marijuana fails in California (though poor wording helped contribute to the defeat), where can it succeed? But the lack of a consensus for legalization is no reason to avoid fighting for saner laws at the state or national level or trimming funding for the DEA.

    Another question is how come we never hear anything about legalization from the supposedly pro-freedom Democratic leadership? If Obama, an admitted recreational drug user in his youth, has ever made a speech as President supporting legalization or decriminalization of any drugs, it’s evaded my attention. Indeed, not only does he not support decriminalization, he’s actively hostile to the idea.

    George Will thinks more seriously and clearly than Barack Obama on the issue of drug legalization. Then again, the first ten words in the preceding sentence are pretty much true all the time,,,