BA Spending Daily September 13, 2012

Bankrupting America Marks The “Not-So-Sweet” $16 Trillion National Debt
Today Bankrupting America will be giving away 500 cupcakes on Capitol Hill to commemorate the special moment our national debt surpassed the sweet $16 trillion mark, an unprecedented sum amounting to more than $50,900 for every man, woman and child in the U.S. The “Cupcake Joy” truck will be located at Union Station from 12:00-1:00 p.m. and Federal Center from 1:15-2:00 p.m. handing out free debt-reduction cupcakes.The goal of today’s campaign is to underscore that $16 trillion in debt is nothing to celebrate, and if we continue to punt on tough decisions and put off confronting our spending crisis, our nation will be well on its way to a $17 trillion debt in 2013. Click here to read more about the “Not-So-Sweet” 16 cupcake giveaway.

As Debt Mounts, Congress Punts 
The House of Representatives today will vote on a continuing resolution to avoid a government shutdown and temporarily keep the government running for 6 months after the fiscal year ends on Oct. 1.  The continuing resolution, which sets spending at an annualized rate of $1.047 trillion, the level agreed upon on August 2011’s debt ceiling deal, would increase spending by $8 billion, a 0.6 percent increase over current-year spending.  Public Notice Executive Director Gretchen Hamel issued the following statement:

“Football fans know that you can’t win if all you do is punt.  This continuing resolution amounts to another punt by Congress on one of its most basic and important responsibilities—budgeting.  Our debt just surpassed the $16 trillion mark—a record high, yet Congress continues to opt for the politically expedient solution rather than the fiscally responsible one. Short-term extensions are not a long-term strategy, but apparently that’s all Washington has to offer. Right now our country is down $16 trillion, and Washington is just looking to run out the clock. That’s not a winning strategy for America.  And we can’t afford another losing season.”

Group of Lawmakers Call for End to Foreign Aid to Libya, Egypt
The Hill reports, “A group of House conservatives is calling for foreign aid to Libya and Egypt to be stripped from a six-month federal funding bill set for a vote on Thursday. A handful of lawmakers voiced outrage Wednesday at the Obama administration’s response to the attacks on the U.S. embassies in those countries, and suggested the inclusion of foreign aid could influence their votes. ‘It makes it easier to vote ‘no’ ‘ on the spending bill, freshman Rep. Jeff Landry (R-La.) said at a press event with conservative House Republicans at the Capitol. The House on Thursday plans to vote on a continuing resolution that would extend federal funding through March, preventing a government shutdown before the election or during a lame-duck session of Congress this fall. While conservatives pushed to avoid a shutdown fight, they have also raised alarms about the inclusion of additional welfare funding in the bill.”

“Rich-Poor Gap Widens to Most Since 1967 as Income Falls”
Bloomberg reports, “A census report showing median  household income fell last year puts a new focus on the biggest issue of the U.S. Presidential election.  And it’s likely to be deployed by both candidates to reinforce their campaign themes. The U.S. Census Bureau figures released yesterday underscored the struggles of American families in a sputtering economic recovery. The report also showed the income gap between rich and poor people grew to the widest in more than 40 years in 2011 as the poverty rate remained at almost a two-decade high  … Median household income dropped 1.5 percent last year while the proportion of Americans living in poverty was 15 percent, little changed from 2010. The 46.2 million people living in poverty remained at the highest level in the 53 years since the Census Bureau has been collecting that statistic.”

Farm Bill Continues to Stall
Politico reports that frustration is high on the stalled farm bill, writing, “Indeed, since talks at the Republicans’ national convention in Tampa, the fix has seemed in from the House GOP: no action before the election and a push later to postpone debate into the next Congress. ‘There is no good reason why we didn’t bring this farm bill to the floor,’ Minnesota Rep. Collin Peterson told the crowd. … ‘The groundswell is not out there. It is not happening at the grassroots level,’ Peterson said. … Pam Johnson, the incoming president of the National Corn Growers Association and a sixth generation Iowa farmer with her husband and sons, was miffed. ‘That angers me a lot,’ she told POLITICO. ‘It angers me a lot that now the blame is on farmers. Farmers are home harvesting right now. And they’re doing their business. They assume their representatives are here doing their business. ‘If we ran our business the way they run their business, we’d be out of business.’”

As Dollar Tumbles, New Round of Money Printing Could Be On The Way
Reuters reports, “The dollar tumbled to its lowest level since early May and stock and bond markets curbed some of their resurgent appetite for risk on Thursday as investors waited to see whether the U.S. Federal Reserve announces a new round of money printing. As the dollar suffered from expectations for QE – which would be equal to printing money and diluting the value of the currency – the euro stayed near four-month highs against the U.S. currency, helped by the signs the euro zone may be starting to get on top of its debt troubles. ‘Any good will towards risk assets, probably more so in FX land, could be undone pretty quickly if Ben Bernanke fails to live up to what is expected of him and the Fed board today,’ said Chris Weston, trader at IG Markets. A Reuters poll showed economists raised their bets of a third round of Fed bond buying known as quantitative easing (QE) to 65 percent from 60 percent in August.”

Beware of the Lame Duck
The Hill reports, “The list of major items that Congress must confront in a lame-duck session is getting lengthy, but a few House conservatives say lawmakers should not return to Washington at all after the November elections. With the House and Senate likely to close up the pre-election shop next week, action on expiring tax rates and subsidies, looming spending cuts, Medicare reimbursement rates and a cash-strapped Postal Service must wait until an abbreviated post-election session in November and December. Veteran legislators say the lame-duck session, when the political constraints of the campaign have been lifted, could be a period ripe for deal-making. But it’s exactly that sentiment that frightens lawmakers like freshman Reps. Raul Labrador (R-Idaho) and Jeff Landry (R-La.). ‘I think the decisions we make in the lame-duck session are not wise decisions for America,’ Labrador said. ‘It’s better to have the duly elected representatives, not the people that are in that lame-duck status, not our president who may be in a lame-duck status, not a Harry Reid who will be in a lame-duck status. I want the duly elected representatives making the tough decisions that need to be made.’”