Entitlement Fraud

            Aren't we all getting sick of seeing President Obama give campaign speeches all over the country at taxpayers' expense? The speech never changes in tone or content; it's class warfare against wealthy Americans that he accuses of not paying their fair share.

            The top 1% of wage earners that Obama excoriates already pay 36.7% of income taxes, and the top 10 pay 71%. But that's not enough for the President. But has he ever mentioned that 47% of Americans don't pay any income taxes at all ? Has he ever asked these people to pay their fair share?

            The President asked the Simpson/Bowles committee to come up with recommendations for reducing the debt. It did. But Obama ignored them, including sound recommendations for reforming entitlements. Has the President ever proposed a solution other than raising taxes on the rich?

            The country is drowning in debt, yet we are on target to spend even more in 2012. In 2011 the House of Representatives submitted the Ryan Plan, a sound budget that addressed the problem of entitlements. But the Senate, led by Harry Reid, dismissed it out of hand. This is the same Senate that hasn't submitted a budget of its own in over two years.

            We have to borrow 40 cents on every dollar to pay for entitlements, yet the Administration and Congress can't agree on any solutions. So nothing is being done as the country sinks deeper in debt every day.

            If we can't agree on any reforms, couldn't we at least begin by eliminating the fraud? It is estimated that 20% of Medicare payments are fraudulent; up to a third of people on Medicaid shouldn't qualify; and thousands of people on disability aren't disabled at all.

            The recent investigation of Long Island Railroad employees on disability revealed that fraudulent applications abetted by complicit doctors and lawyers could cost taxpayers up to a billion dollars a year. And that's just for Long Island Railroad workers.

            The Department of Justice is now looking at law firms that specialize in helping people qualify for disability payments. One of them, Binder & Binder, has spent $20 million in advertising (you've seen the guy in the cowboy hat) and reaped a tidy profit of $88 million. How many thousands of successful applications do you think it took for the Binders to make that kind of money? And how many of them were fraudulent?

            Americans are a generous and compassionate people. Nobody wants to deny a helping hand to the less fortunate. But if we don't stop fraud and abuse by cheats and unscrupulous doctors and lawyers, we'll never get out of the hole we have been digging for ourselves.

             

A December to Remember

            December 2011 was a memorable month. It was the month we saw a captured American drone displayed on Iranian TV, and an apologetic President Obama plead for its return after rejecting advice to destroy it for fear of offending our avowed enemy.

            December is also the month in which two world leaders died. Kim Jung Il, despot of a belligerent nation with nuclear weapons and starving millions, left behind a world of diplomats completely baffled at the prospect of a 20-something Kim Jung Un taking over.

            By contrast we lost Vaclav Havel, a revered freedom fighter who led the struggle against Soviet oppression in Czechoslovakia, not with violence but with the truth. To the end, he warned that indifference to the freedom of others would lead ultimately to indifference to our own freedom. He supported our intervention in Iraq because it removed the tyrant Saddam Hussein, and I suspect he was disappointed by our policy of appeasement in Iran. His voice will be missed.

            At the same time we learned of the death of Christopher Hitchens, a brilliant  intellectual, a gifted writer, a fierce debater, and a militant atheist. He combined a great command of the English language with a sardonic wit that disarmed his opponents. Among his favorite targets were religious fanatics, the Church, and God. This is a man who called Mother Teresa a fraud and the pope a protector of those who violate the innocent, calling this a clear sign of where the Church truly stands on moral and ethical questions. He also derided President Obama's Nobel prize. He said it was "like giving someone an Oscar in the hope that it would encourage them to make a decent motion picture." Hitchens may have been outrageous, but he wasn't always wrong.

            Then we have sports, our nation's greatest obsession. In December we saw Albert Pujols demonstrate his loyalty to his adoring fans by turning down $210 million to stay in St. Louis and signing with the Angels of Anaheim for a mere $254 million plus another $10 million in bonuses.

 There were no reports of protesters occupying his front lawn.

            Meanwhile, Barry Bonds, who set home run records with the help of an assortment of performance-enhancing substances, was convicted of obstruction of justice and sentenced to 30 days of confinement in his 16,000 square-foot home. He is appealing this awful miscarriage of justice.         

            On Christmas Day NBA players returned to the court after a protracted lockout. The players, whose average annual pay is $5.84 million, had refused to play unless owners gave them more than half the profits. To demonstrate that money isn't everything, Laker forward Ron Artest changed his name to Meta World Peace.

            I guess it's all a matter of perspective.

Green Wars

            In case you haven't noticed, President Obama has declared war on fossil fuels. Delaying a decision on the Keystone XL pipeline until after the elections was a crass political move to deny Republicans a campaign issue, while reassuring environmentalists that the pipeline would never be built. Republicans were wise to force a decision in two months as part of the payroll tax holiday legislation. But that hasn't stopped the president's minions from carrying on the crusade.

            Stephen Chu, who heads the Department of Energy, is now famous for his role in the Solyndra affair. Promoting green jobs, no matter how costly to our economy, is at the top of his agenda.

            Ken Salazar, head of the Interior Department, has not only dragged his feet in approving drilling permits for oil in the Gulf, he has done even worse when it comes to issuing permits for coal mining. Tens of thousands of potential jobs have been lost in West Virginia because half of the permits take over two years for approval, causing a third of the applications to be withdrawn. And that's just one example.

            The greatest  job killer in the Administration, by far, is Lisa Jackson, head of the EPA. While we were being pounded in December by news of the political wars in Congress, Ms. Jackson was issuing a new 1,117-page regulation on coal-fired power plants that is sure to cause job losses and economic destruction, because the technology to comply with the mandate to install far-reaching emission controls will be extraordinarily expensive if not impossible. As a result, many plants will close, and, as President Obama once promised, energy costs will necessarily skyrocket.

            If the war on fossil fuels is crippling domestic energy production and costing hundreds  of thousands of jobs now, just imagine what will happen when President Obama's reelection removes any political restraints on his green agenda.

Ominous Signs

            As this contentious year nears its end, people naturally look forward to the next with a little more optimism. Not me. I'm not a pessimist by nature, but I look forward to next year with trepidation. I hope I'm wrong, but I think 2012 will be a year of worldwide catastrophe. I have long felt that if World War III becomes a reality, it will break out in the Middle East. Now I feel that it is almost inevitable. Let's look at the signs.

            What was at first called the Arab Spring has turned into the Arab Winter. Muslim extremists are in the ascendancy all across North Africa and the Middle East. Dictators and tyrants who managed to maintain some form of stability in their countries are falling one by one: Ben Ali, Mubarack, Qadaffi, Saleh, and, very soon, Assad. Royal families in Morocco, Jordan, and Saudi Arabia may not be far behind.

            Armed and inspired by Iran, Islamists are flexing their muscles everywhere: suicide bombers in Iraq, renewed missile attacks from Gaza, revolt against the army in Egypt, an attempted assassination of the Saudi ambassador on our soil, and, most recently, a government-sponsored attack on the British embassy in Tehran. I see these as signs that  the Muslim world is uniting to challenge the West with a brazenness that could very quickly turn into a broad and righteous conflict.

            Also troubling was Pakistan's response to the death of 24 of its soldiers caused by Nato bombs. Although there is some evidence that Pakistan may have been partly at fault for this tragedy, it ordered a blockade of Nato supplies into Afghanistan and permitted a huge demonstration that burned the American flag and Obama's effigy, hardly actions of a trusted ally.

            Which brings up a very important point. The Muslim world is encouraged by the weakness of the West. Europe, which is very dependent on Middle East oil, cannot afford to antagonize any more of its suppliers, especially now that the European Union is on the verge of financial collapse.

            Here at home, President Obama's policy of engagement with Iran has proven to be no more effective than Chamberlain's appeasement of the Nazis in Munich. On the contrary, it has encouraged Iran to proceed apace with the development of nuclear weapons in the full confidence that it has nothing to fear from the United States as long as Obama is president.

            Lastly, Obama's inability to distinguish between friends and allies in the Middle East provides further confirmation to Tehran that the United States will not back Israel should that country take preemptive action to defend itself.

            At some point in 2012 I fear that Israel will indeed provide the spark that ignites a global conflict. From there you can create your own nightmarish scenario.

The Smell of Corruption

            As I grow older I find that some of my senses aren't as sharp as they used to be. My eyes need contacts to see clearly, my right ear is almost completely deaf, my taste buds don't appreciate fine food and wine like they used to, and so on. But one of my senses is as sharp as ever, and that is my sense of smell. Let me explain.

            A report in the Los Angeles Times on November 13 has set my nostrils flaring in anger at the smell of corruption emanating from Washington. It seems that investigative reporters have uncovered a $433 million government contract with Siga Technologies, a pharmaceutical company from New York, to produce 1.7 million doses of an experimental smallpox drug, even if it's not certain the drug is needed or will even work.

            Now, smallpox has been eradicated throughout the world; the last documented infection was in 1978. But just in case, this country stores enough smallpox vaccine to inoculate everyone in the country at the cost of $3 per. So why do we need a new vaccine? We're told it's just in case the disease somehow reappears and someone doesn't get vaccinated in time. Of course, we don't know if this new vaccine will work, since it's impossible to test it. The story gets worse.

            The report says that the new vaccine will cost $255 per dose. Outrageous, you say? That's nothing. Siga projects that it will make 180% profit on the drug. Now that's obscenely outrageous. How could our government possibly approve such a contract?

            Well, get this. The contract was awarded to Siga as a sole source, otherwise known as a no-bid contract. If this vaccine was necessary in the first place, competition to make it should have been open to all drug manufacturers. But it wasn't. The administration cleared the way for Siga to be the sole source and, thereby, to set any price it wanted.

            And consider this, also. Siga's controlling share is held by a man named Robert O. Perelman. He is one of the richest men in the world. If he believed this drug was really needed, he could have developed it on his own without a government subsidy. So how was he able to swing such a sweet deal?

            Well, it just so happens that Robert O. Perelman is a big Obama supporter and a major contributor to the Democrat Party. Gee. I wonder if there's a connection there. Does this remind anyone of the smell of scandal in the Solyndra affair?

            I don't know about anyone else. But for me the stench is overpowering.

Punter-in-Chief

            When he was an Illinois legislator Barack Obama voted "Present" 129 times instead of taking a stand on tough issues? Well, the Punter-in-Chief hasn't changed his MO.

            The President is in full campaign mode, flying all over the country at taxpayer expense to push his jobs bill, which can't even get passed by the Democrat-controlled Senate. He assures us that his first thoughts when he gets up in the morning and last thoughts before hitting the sack in the evening are about jobs.

            Well, there just happens to be a $7 billion "shovel ready" project that would create something in the neighborhood of 20,000 jobs. All it needs is a permit from the government, i.e., a Yes or a No from our leader.  Instead, President Obama has punted once again.

            The project is the Keystone XL Pipeline that would bring crude oil from the Alberta tar sands to refineries in Texas. It would make a huge dent in the amount of oil now imported from the Middle East. We can all agree that this is a good thing. Right?

            So what's the problem? This should be a no-brainer for the President, especially since most of those 20,000 jobs would be going to his union friends. But greenies, another Obama base, have objected on the grounds that the pipeline might contaminate the air, the ground, the water, and, I suppose, be a health hazard for wildlife. Why not throw in unborn babies while we're at it?

            Faced with making a decision that would displease either his union base or his green base, Obama punted. He ordered more environmental studies beyond the extensive studies that have already been done, and put off a decision until after the elections in 2012. In the words of John Boehner, "20,000 jobs have been sacrificed in the name of political expediency."

            Is there a downside to the President's non-decision? Probably not. The greenies will continue to vote for him, and so will the unions. After all, where are they going to go?

            But what about the oil? Where is it going to go? Well, if the Trans Canada Corporation can't pipe its oil across Nebraska to get to Texas, it says it can go directly to the west coast and from there directly to....guess where? China.

            And China doesn't fumble punts.

           

Welfare, California Style

            I recently saw a video in which a young single mother in California was discussing how much assistance she was getting each month from the state. It was astounding.

            First, she mentioned a payment of $221 for general relief (GR). To that she added $179 in free food per person She then mentioned that through the WIC (Women, Infants, & Children) program she was getting free housing, free utilities, and free medical and dental care. On top of all that, she said she received money for her children's day care, money that did not go to any day care center but to her friend who watched the kids and split the money with her.

            Assessing the value of all this assistance, the woman's final comment was, "Who would want to work in America?"

            Today the media floods us with news of the impending disaster in Greece due to unfunded liabilities in overly generous government programs. Can it be any worse there than in California?

            The latest statistics have California's overall unemployment rate at 11.4 percent, with the rate in one county at 18.1 percent. Those numbers don't include people who have stopped looking for work, are working part time, or who derive their income from the underground economy. And they don't include that young woman described above who can't imagine ever getting a job, because she couldn't possibly earn the kind of money and benefits she is getting from  welfare programs.

            California is the worst example of the nanny state. Is it any wonder it is sinking under the weight of financial debt?

            Is the rest of the country far behind?