“The move is part of a growing trend. Over the last decade, other large police departments in Chicago, Baltimore, Washington, D.C., and Portland have all encrypted their radio communications or are planning to do so. Departments say broadcasting in the clear gives criminals advance warning. Beltran said encryption would also protect the information of crime victims and block pranksters who jam up NYPD frequencies. (The NYPD regularly leaks information on arrestees and even victims for political purposes.)
However, scanner enthusiasts, news organizations, and elected officials complain that encrypted radio is cutting off a longstanding and useful source of information on police activity.”
“In the last 50 years, when the budget process has been in place, Congress has managed only four times to pass a budget on time and through the regular process. Seventeen times, members of Congress haven’t bothered to pass a budget at all. That hasn’t stopped them from spending money they didn’t have, or from making promises to voters they wouldn’t be able to fulfill. I doubt I need to remind you that it’s gotten worse. In the last half-decade, Congress added $5 trillion to the already elevated and growing federal debt with no plan for repayment.
Nor should I need to remind this column’s readers that government interest payments are growing quickly, propelled by higher interest rates applied to an expanding debt level. That’s the result of years of excuses that interest rates would remain historically low.
While you might see how legislators chose to believe that inflation and high interest rates were things of the past, there’s no excuse for ignoring the upcoming insolvency of programs like Medicare and Social Security. This looming calamity has been warned of for decades in government reports and scholarly publications.”
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“At the heart of the commission’s charge must be a commitment not just to reduce some deficits but to put the government back on a sustainable track. As my colleague and former CBO Director Keith Hall convinced me, the commission will fail if it doesn’t have a clear target from the start.”
“Inflation has fallen from the shocking highs that were reached last year, but the Federal Reserve’s efforts have not successfully returned the beast to its cage.
If rising prices are to be fully tamed, it increasingly looks like Congress will have to get the deficit under control first.
Prices are up 3.7 percent over the past year, according to new inflation data released by the Bureau of Labor Statistics on Thursday morning. But so-called “core inflation,” which filters out the more volatile categories like food and fuel prices, rang in at 4.1 percent in the newest report. Some smaller categories have seen considerably faster price hikes over the past 12 months—shelter prices, which include rents and hotel costs, are up 7.2 percent.
In an attempt to control inflation, the Federal Reserve had raised interest rates at 11 consecutive meetings starting in March of last year. Since July, the central bank has left interest rates unchanged—the Fed’s current base rate is 5.5 percent, up from 3.25 percent a year ago. Higher interest rates seem to have brought inflation down, but prices are still rising nearly twice as fast as the Federal Reserve’s target of 2 percent annually.
It’s possible that we’ve reached the limit of what the Federal Reserve can accomplish in terms of taming inflation through monetary policy. The federal government’s $33 trillion national debt and rising budget deficits are creating inflationary pressure in ways that remain underappreciated.
The big problem is that, while higher interest rates are helping curb inflation, they are worsening the federal government’s deficit. Writing at CNBC, Kelly Evans gets at the heart of this conundrum: “If we don’t quickly close the gap between spending and revenues, the debt load will keep growing, and interest costs will keep on rising, and the deficit will thus stay elevated, which grows the debt load even more.””
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“Changes to monetary policy have brought inflation down from last year’s near-record highs, but the monetary theory upon which that policy is built assumes that fiscal policy will finish the job by reducing deficits. Congress, so far, doesn’t seem interested in cooperating—so expect prices to keep rising at an annoyingly fast rate.”
“The yields on U.S. Treasury bonds are now hitting levels not seen in decades. The 10-year Treasury bond is nearing 5 percent, while the 20-year bond has already crossed that threshold—and some analysts expect higher yields to be coming”
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“Unlike most mortgages, which have fixed interest rates, much of the U.S. government’s debt is tied up in short-term bonds which periodically “roll over” into new bonds with updated interest rates. As a result, higher interest rates mean higher interest payments—and those funds come directly out of the federal budget, leaving less revenue for everything else the government might aspire to do, whether funding welfare programs or buying more fighter jets.
“That debt, borrowed at low rates, is now being rolled over into Treasuries paying interest rates between 4.5 and 5.6 percent,” the CRFB explained last month. “Though borrowing seemed cheap during those periods, policymakers failed to account for rollover risk, and we are now facing the cost.”
Interest payments on the debt will be the fastest-growing part of the federal budget over the next three decades, according to the Congressional Budget Office’s (CBO) projections. In the shorter term, interest payments are set to triple by 2033, when they will cost an estimated $1.4 trillion—a total that will only grow higher if more unplanned borrowing takes place before then, or if interest rates rise higher than the CBO expects.”
“While controlling discretionary spending is important for fiscal responsibility, for reducing government waste, and for negotiating the proper size and scope of federal activities, the current shutdown debate is largely symbolic. America’s biggest fiscal challenge lies in the unchecked growth of federal health care and old-age entitlement programs. Repeated shutdown fights and a slew of temporary continuing resolutions have gotten us no closer to reforming Social Security and Medicare.”
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“The longer Washington waits to fix autopilot spending, the more damage they’ll do. The Congressional Budget Office’s latest long-term budget outlook projects that U.S government spending will consume nearly 30 percent of the economy by 2053—almost 40 percent higher than the historical average. Congress is expected to rack up more than $100 trillion in additional deficits over those 30 years—more than four times what the U.S. government has borrowed over its entire history. Who will lend the U.S. government such vast sums?
The main drivers of this increase are heightened interest costs and the growth in health care and Social Security spending. With Medicare and Social Security responsible for 95 percent of long-term unfunded obligations, according to the Treasury Financial Report, there’s simply no way any serious fiscal reform effort can leave these programs untouched. Every other part of the budget will either stay steady or decline slightly. Other so-called mandatory programs, including various welfare programs, retirement benefits for federal employees, and some veterans’ benefits, are projected to decline as a share of the economy. Discretionary spending depends on what Congress decides to spend each year; if historical trends hold, this part of the budget will decline by one-sixth. And yet this is the part of the budget that all this shutdown fuss is about.”
“Ron DeSantis had just been sworn in as a member of the House in 2013 when he voted against sending $9.7 billion in disaster relief to New York and New Jersey, two states still reeling from the damage of Hurricane Sandy.
“I sympathize with the victims,” the Florida Republican said at the time, but objected to what he called Congress’ “put it on the credit card mentality” when it came to government spending.
Now, a day after Hurricane Idalia pummeled Florida less than a year since Hurricane Ian’s destruction, DeSantis is not objecting to federal borrowing when it’ll help his disaster-stricken state. As Florida’s governor — and a 2024 White House contender — he is in regular contact with President Joe Biden as the state seeks dollars from Washington to rebuild from the storm wreckage, assist rescue efforts and aid displaced residents.”
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” DeSantis’ vote a decade ago was based on his opposition to the Sandy package’s “additional pork spending,” a spokesperson for his presidential campaign said”
“The hike in bond yields and subsequent rise in mortgage rates caught some people off-guard since there was no comparable reaction after the Standard & Poor’s downgrade. But that took place in different economic times when the U.S. government had more room to maneuver.”
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“”Inflation is the economic equivalent of a partial default. The debt was sold under a 2% inflation target, and people expected that or less inflation. The government borrowed and printed $5 Trillion with no plan to pay it back, devaluing the outstanding debt as a result,” he cautions. “Yes, this is not a formal default. And a formal default would have far reaching financial consequences that inflation does not have. Still, for a bondholder it’s the same thing.”
Having been burned by the U.S. government’s policies, investors perceive it as an increasingly risky borrower, just as Fitch (and S&P in 2011) say. As a result, they demand a greater price to loan the feds money—hence higher bond yields. And since 10-year Treasury yields serve as benchmarks for other borrowing rates, such as mortgages, that means higher cost for average Americans who have little say in D.C.’s financial shenanigans but have to suffer the consequences.”
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“”Such high and rising debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook,” according to the CBO.
That means unpleasant consequences not just for government officials, but for those of us who live in the economy they hobble. The government will have to pay more to borrow, and so will we. We’ll do so in a country less prosperous than it should have been.”
“the changes are a significant step backward. Biden is effectively undoing a major change made by the Reagan administration—changes that were made, fittingly, to help combat inflation.
That change, made in 1982, repealed the “30 percent rule” that guided the process for determining what wages would be paid on which projects. Under the 30 percent rule, the prevailing wage for any particular area would be based on the highest wages paid to at least 30 percent of workers within the same area.
You don’t need an advanced degree in accounting to see how that mandate could artificially hike wages on federal projects. The government barred itself from even considering bids that might pay average wages, thereby obligating taxpayers to pay more than they might have had to in an open market.”
“House Republicans narrowly passed their version of an annual defense bill 219–210, after stacking it with controversial amendments on social issues that are dead on arrival in the Senate.
The debate on the National Defense Authorization Act, or the NDAA for short, now heads to the Democrat-controlled upper chamber, which is set to consider its own take on the bill later this month. Eventually, the two chambers will work to reconcile their differences between the two in the hope of finding a compromise.
The NDAA, one of Congress’s must-pass bills, effectively lays out what the military’s budget could look like for the next year and which programs will be funded. This year’s House bill authorizes $886 billion in funding, including a 5.2 percent pay raise for service members and the appointment of an inspector general to oversee Ukraine funding.
Much like the debt ceiling legislation and annual spending bills, the NDAA is a prime opportunity for lawmakers to add unrelated amendments making policy changes to pet issues, since it has to pass every year. This week, Republicans capitalized on this opportunity to put forth controversial amendments favored by their right flank, including restrictions on abortion and LGBTQ rights. It’s a move that’s meant to send a message about their position on social issues, and it’s also one that makes what was a bipartisan bill much more contentious.”