Budget

Many people look back on the 1990’s, the last time the budget was balanced and ask why can’t it be done again. The answer is the peace dividend. Following the Cold War's end, the US "peace dividend" resulted in over 30% cuts to the defense budget and over 60% cuts to procurement in the 1990s, with ~80% of $81 billion in savings used to reduce the federal deficit. Many observers think that it is impossible to cut federal government spending as a percentage of Gross Domestic Product (GDP). But it can be done. And the evidence is hidden in plain sight: it’s called the 1990s. Between 1990 and 2000, federal spending fell from 21.85 percent of GDP to 18.22 percent, a drop of 3.6 percentage points. Most of the reduction was in defense spending after the Cold War ended. By the 2000’s the defense spending was back up to the cold war levels.

Europe

For those who remember the end of the cold war, the world looked forward to a peace dividend, meaning less need for defense spending. During the cold war Europe was spending 3% of its GDP on defense but since the war ended that number dropped to 1.4%. The US also experienced a peace dividend but within a few years the defense budget increased and was soon higher than it was during the cold war. Europe spent the post cold war years relying on the US for defense and they now realize that they have to start taking care of the own defense. The US, with $39 trillion in debt, can no longer afford to protect Europe. The news reports this as our allies are no longer friendly. Europe is being hit with this additional defense spending, at a time when government decisions on energy policy have caused steep rises in energy cost. On top of that they allowed too many immigrants to enter too fast and the social net cannot absorb the cost.

Closing nuke plants

When it comes to energy, it is a topsy turvy world. Using one example, that can be duplicated in many ways is the German giant chemical company BASF. This is the world’s largest chemical manufacturer. Back in the 1970’s the German Green Party was born with the sole purpose of shutting down nuclear power. It was only later that they added climate change to their agenda. The whole country embarked upon a program to replace fossil fuels with wind and solar and thus the price of electric power began to rise. With cost today at 40 cents per kwh, BASF is investing $10 billion in China where electricity cost is 9 cents per kwh. In China 60% of the electric power is produced by coal. China mines and processes the materials needed for solar panels and wind turbines, using once again, 60% coal. China is destroying its ground water and suffering from air pollution to make the solar panels that they ship to Germany. It is as though the people have forgotten that we all live on the same planet. To add insult to injury, Germany is now considering reopening its coal and nuclear plants. The original impetus to close nuclear was an emotional decision and made without evaluating the long term consequences.

Cost per kwh

The cost for electricity here is relatively inexpensive at 12 cents per kWh well below the national average of 17 cents but other charges add to the bill. Cost this month include Electric usage $53.09 Fixed charge $10.00 Interim rate charge $5.99 AGI recovery fee $.74 MN state sales tax $4.80 Metro reg sales tax hous $.17 Metro reg sales tax trans $.52 Dakota County transit $.17 This brings the total cost up to 20 cents per kWh

Fraud

One of the outcomes of the government investigation into waste, fraud and abuse known as DOGE was the release of information that led to local investigation the most notable being Nick Shirley finding fraud in MN. Since then, there have been more investigators around the country. The regular press finds investigative journalism too expensive so the door is open for young local people to fill the gap. They use leg work, a cell phone camera and social media to investigate and put their stories on YouTube. Some recent examples of fraud: Childcare and Welfare, Food programs, Medicaid and Healthcare, Housing, Autism, Hospice and the ever-present Medicare fraud.

Terror group

The emphasis placed on retrieving the 970 pounds of 60% enriched uranium from Iran is misplaced. Russia or even North Korea could replace that within a few days. It takes only 33 pounds of weapons grade uranium to achieve critical mass meaning a nuclear explosion. This could create a 250-kiloton bomb which would be ten times the power of the bombs dropped on Japan. In fact, either country could send them a completed bomb. The US would not be directly threatened because of the distance and the resulting retaliation but a terrorist group could smuggle a bomb into the US or any other country. The only way to be reasonably assured that a rogue country would not use nuclear weapons is to have a society where the people have the power. Iran will not be safe until the military is no longer in control. As of now their whole reason for existing is death to America. They appear willing to starve their people to achieve this goal.

Pay down debt

Once again California is showing the way for the rest of the country. They are about to pass a millionaire’s tax to collect $100 billion to fund healthcare, education and food assistance with no intention to use the money to pay down debt. The state has the highest bond debt at $118 billion and estimates of unfunded pension liabilities totaling $1.5 trillion. This means passing on the debt problem to the next group to take office. It is hard to imagine that the people would vote for a tax increase to pay down debt and it would take real leadership to make such a proposal.