Cut spending to avoid deficit disaster

The Obama budget with $2 trillion dollar deficits isn't going to work. Obama has jacked federal spending up to 25% of GNP. That's way way up from the historical average of 19% going back to WWII. And it's way way short of tax revenues which have sunk to 14% of GNP due to Great Depression 2.0. The deficit (difference between spending and tax revenues) come out to 11% of GNP.
The only way to survive is to cut the spending. Not freeze it, cut it back to 19% of GNP, or farther. This is hard, 'cause those receiving our tax money will fight like tigers to keep receiving it. The general taxpayers don't get as motivated as the feeders from the federal trough do. Perhaps the Tea Party can help out here.
What to cut? Answer, anything you can.
Start with farm subsidies. There aren't very many farmers in the country, we ought to be able to out vote them.
Turn off the federal highway program. We built the Interstate system in the '60's and 70's. It's finished, done. we have superb highways to every corner of the nation. Let the states do the maintainance and stop rebuilding them.
Close down EPA. They were created to clean up smog over the cities. That's done, air over Boston, NYC, DC and Philly is clear and blue, not the yellow muckiness we had in 1970.
Close down OSHA. The real work of safety inspection is done by the insurance companies. Every business carries insurance, and those insurance companies hate paying out for injured workers. So they inspect, and tell management to make safety improvements or loose their insurance. OSHA just gets in the way.
All of the above is to show that we are serious. The real budget busters are Medicare, Medicaid and Social Security. They are taking up 75% of federal outlays, and to cut spending, we have to cut these sacred cows.
For Medicare/caid we have to reduce the costs. Start with malpractice reform. Allow interstate sale of health insurance, that's competition and competition always lowers costs. Allow duty free import of drugs from any first world country (Canada!) to bring the price of drugs down out of the stratosphere. Getting these three simple changes thru would make a big improvement. There is a lot more that can be done, but lets make a start.
Social Security is harder. We have paid in all our working life and planned our retirement on the basis of social security income. About all that can be done is raise the retirement age. When Social Security was started, the retirement age was set at 65, and the life expectancy was only 65. In 2010 the retirement age is still 65 but life expectancy has soared up into the 80's. Surely we could arrange to move increase the retirement age, slowly, up to 68 or 70.

The passing game

Super Bowl puts on one helova show. Both sides played a passing game. The quarterbacks were incredibly accurate, it seems like every pass connected, every receiver was covered, the quarterback was always protected. Each pass gained ten yards and first down. Possession of the ball was retained, the teams marched down the field and touchdown.
The passing didn't used to work so well. Used to be a running game, where fast and powerful ball carriers attempted to jam themselves and the ball right thru the defensive line. Not last night, it was all airborne work.
Halftime was spectacular as usual, the singers (the Who) kept their clothes on. The Who is one of my favorites, and were in fine voice last night. Although I did wonder why a band that old was the best pick for Superbowl halftime. Aren't there any newer bands that people like?

Financial regulation, need there fore

Great Depression 2.0 was caused in part by Wall St bank high stakes gambling. We ought to cool the market down by regulating the things that banks are allowed to invest/speculate in. Real banks take deposits and have taxpayer backed FDIC insurance. If the government guarantees the bank's deposits, then the government had the right to limit the kind of risks the bank can run. In my view banks should not invest/speculate in common stocks, secondary mortgages, mortgage backed securities, credit default swaps, and commodities, including gold. These things are very risky, and do nothing to finance real economic growth or jobs. The purpose of banks is to finance real estate and loan to business and individuals. We ought to write a bank regulation law to forbid bank speculation in risky and unproductive things.
There are a lot of other things out there that look like banks, talk like banks, but don't have deposits and FDIC insurance. They are fake banks. They can speculate to their heart's content, but the government should make absolutely clear that it will never bail them out.
In fact, we should require display of a fake bank sign on the offices of fake banks. Something like "Deposits are NOT insured"

Miracle Health Food, Chicken Soup

At least all Jewish mothers proclaim the value of chicken soup to cure nearly anything. Homemade is easy.
Take a soup pot with lid. Add about a pound of uncooked chicken. Fill pot with water, and bring to a boil. Back off the heat and add some Bell's Poultry Seasoning. Simmer just at the boiling point for a couple of hours. Add veggies. Celery, onion, and carrots are mandatory. Then anything else you like. Peas, mushrooms, parsnip, green beans, rice, just about anything. Cook another hour or so until the veggies and rice are tender. It's good.
Occasionally Mac's has a sale on chicken trimmings for $0.50 a pound, which makes a pot of chicken soup ridiculously cheap.

Don't weep for me, Toyota

Poor Toyota. Getting slammed by recalls, Transportation secretaries, lawsuits, and endless terrible publicity, shutting down production.
One big question.
What's wrong with turning off the ignition and taking the car out of gear if the engine runs away?
Is this "Sudden Acceleration" thing really all that bad?

AIG bonuses

The Federal salary master was on TV yesterday explaining that he couldn't do anything about AIG paying $100 million in bonuses. There was a contract to pay the AIG turkeys who ran the company into the ground he claimed and contracts are unbreakable.
Got news for him.
1. Contracts have to be enforced in court. AIG should refuse to pay and let the fat cats sue for their ill gotten gains.
2. Publish the names and contact information of all bonus recipients.
3. Find and prosecute the people who wrote such foolish contracts. Bonuses should never be paid if the company is losing money, and AIG has lost more money than God. Paying bonuses when the company is broke, and worse, paying them to the folk who caused the disaster, should NEVER be part of any employment contract, ever.
4. Tell AIG no more bailout money if they pay any bonus to anyone until ALL $150 billion taxpayer bailout is repaid.

Another $2 trillion in the hole

The US House just raised the federal debt limit by another $2 trillion. And it's all Bush's fault. We are heading for a crash. Pretty soon, the Treasury won't be able to borrow the extra money, plus borrow enough to roll over the T-bills that are expiring.