Category Archives: Industry Jobs Oil Economics

Hillary’s Pay for Weapons State Department

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There is not much we can point to when it comes to tangible and valuable achievements within the Hillary Clinton State Department of 4 years. Perhaps she and her deputies were busy processing orders and depositing checks.

Further, if the world was not so unbalanced and in complete turmoil due to civil wars, terror groups and evacuations of those fleeing their home countries, would countries really need to increase their weapons arsenals? This unto itself is a failure of Barack Obama’s lack of leadership and strategy, that lil miss Hillary exploited.

Too bad she could not find time to approve the Keystone XL pipeline…

Clinton Foundation Donors Got Weapons Deals From Hillary Clinton’s State Department

IBTimes: Even by the standards of arms deals between the United States and Saudi Arabia, this one was enormous. A consortium of American defense contractors led by Boeing would deliver $29 billion worth of advanced fighter jets to the United States’ oil-rich ally in the Middle East.

Israeli officials were agitated, reportedly complaining to the Obama administration that this substantial enhancement to Saudi air power risked disrupting the region’s fragile balance of power. The deal appeared to collide with the State Department’s documented concerns about the repressive policies of the Saudi royal family.

But now, in late 2011, Hillary Clinton’s State Department was formally clearing the sale, asserting that it was in the national interest. At a press conference in Washington to announce the department’s approval, an assistant secretary of state, Andrew Shapiro, declared that the deal had been “a top priority” for Clinton personally. Shapiro, a longtime aide to Clinton since her Senate days, added that the “U.S. Air Force and U.S. Army have excellent relationships in Saudi Arabia.”

These were not the only relationships bridging leaders of the two nations. In the years before Hillary Clinton became secretary of state, the Kingdom of Saudi Arabia contributed at least $10 million to the Clinton Foundation, the philanthropic enterprise she has overseen with her husband, former president Bill Clinton. Just two months before the deal was finalized, Boeing — the defense contractor that manufactures one of the fighter jets the Saudis were especially keen to acquire, the F-15 — contributed $900,000 to the Clinton Foundation, according to a company press release.

The Saudi deal was one of dozens of arms sales approved by Hillary Clinton’s State Department that placed weapons in the hands of governments that had also donated money to the Clinton family philanthropic empire, an International Business Times investigation has found.

Under Clinton’s leadership, the State Department approved $165 billion worth of commercial arms sales to 20 nations whose governments have given money to the Clinton Foundation, according to an IBTimes analysis of State Department and foundation data. That figure — derived from the three full fiscal years of Clinton’s term as Secretary of State (from October 2010 to September 2012) — represented nearly double the value of American arms sales made to the those countries and approved by the State Department during the same period of President George W. Bush’s second term.

The Clinton-led State Department also authorized $151 billion of separate Pentagon-brokered deals for 16 of the countries that donated to the Clinton Foundation, resulting in a 143 percent increase in completed sales to those nations over the same time frame during the Bush administration. These extra sales were part of a broad increase in American military exports that accompanied Obama’s arrival in the White House. The 143 percent increase in U.S. arms sales to Clinton Foundation donors compares to an 80 percent increase in such sales to all countries over the same time period.

American defense contractors also donated to the Clinton Foundation while Hillary Clinton was secretary of state and in some cases made personal payments to Bill Clinton for speaking engagements. Such firms and their subsidiaries were listed as contractors in $163 billion worth of Pentagon-negotiated deals that were authorized by the Clinton State Department between 2009 and 2012.

The State Department formally approved these arms sales even as many of the deals enhanced the military power of countries ruled by authoritarian regimes whose human rights abuses had been criticized by the department. Algeria, Saudi Arabia, Kuwait, the United Arab Emirates, Oman and Qatar all donated to the Clinton Foundation and also gained State Department clearance to buy caches of American-made weapons even as the department singled them out for a range of alleged ills, from corruption to restrictions on civil liberties to violent crackdowns against political opponents.

As secretary of state, Hillary Clinton also accused some of these countries of failing to marshal a serious and sustained campaign to confront terrorism. In a December 2009 State Department cable published by Wikileaks, Clinton complained of “an ongoing challenge to persuade Saudi officials to treat terrorist financing emanating from Saudi Arabia as a strategic priority.” She declared that “Qatar’s overall level of CT cooperation with the U.S. is considered the worst in the region.” She said the Kuwaiti government was “less inclined to take action against Kuwait-based financiers and facilitators plotting attacks.” She noted that “UAE-based donors have provided financial support to a variety of terrorist groups.” All of these countries donated to the Clinton Foundation and received increased weapons export authorizations from the Clinton-run State Department.

Hillary Clinton’s presidential campaign and the Clinton Foundation did not respond to questions from the IBTimes.

In all, governments and corporations involved in the arms deals approved by Clinton’s State Department have delivered between $54 million and $141 million to the Clinton Foundation as well as hundreds of thousands of dollars in payments to the Clinton family, according to foundation and State Department records. The Clinton Foundation publishes only a rough range of individual contributors’ donations, making a more precise accounting impossible.

Click here to get the interactive chart data.

Winning Friends, Influencing Clintons

Under federal law, foreign governments seeking State Department clearance to buy American-made arms are barred from making campaign contributions — a prohibition aimed at preventing foreign interests from using cash to influence national security policy. But nothing prevents them from contributing to a philanthropic foundation controlled by policymakers.

Just before Hillary Clinton became Secretary of State, the Clinton Foundation signed an agreement generally obligating it to disclose to the State Department increases in contributions from its existing foreign government donors and any new foreign government donors. Those increases were to be reviewed by an official at the State Department and “as appropriate” the White House counsel’s office. According to available disclosures, officials at the State Department and White House raised no issues about potential conflicts related to arms sales.

During Hillary Clinton’s 2009 Senate confirmation hearings, Sen. Richard Lugar, R-Ind., urged the Clinton Foundation to “forswear” accepting contributions from governments abroad. “Foreign governments and entities may perceive the Clinton Foundation as a means to gain favor with the secretary of state,” he said. The Clintons did not take Lugar’s advice. In light of the weapons deals flowing to Clinton Foundation donors, advocates for limits on the influence of money on government action now argue that Lugar was prescient in his concerns.

“The word was out to these groups that one of the best ways to gain access and influence with the Clintons was to give to this foundation,” said Meredith McGehee, policy director at the Campaign Legal Center, an advocacy group that seeks to tighten campaign finance disclosure rules. “This shows why having public officials, or even spouses of public officials, connected with these nonprofits is problematic.”

Hillary Clinton’s willingness to allow those with business before the State Department to finance her foundation heightens concerns about how she would manage such relationships as president, said Lawrence Lessig, the director of Harvard University’s Safra Center for Ethics.

“These continuing revelations raise a fundamental question of judgment,” Lessig told IBTimes. “Can it really be that the Clintons didn’t recognize the questions these transactions would raise? And if they did, what does that say about their sense of the appropriate relationship between private gain and public good?”

National security experts assert that the overlap between the list of Clinton Foundation donors and those with business before the the State Department presents a troubling conflict of interest.

While governments and defense contractors may not have made donations to the Clinton Foundation exclusively to influence arms deals, they were clearly “looking to build up deposits in the ‘favor bank’ and to be well thought of,” said Gregory Suchan, a 34-year State Department veteran who helped lead the agency’s oversight of arms transfers under the Bush administration.

As Hillary Clinton presses a campaign for the presidency, she has confronted sustained scrutiny into her family’s personal and philanthropic dealings, along with questions about whether their private business interests have colored her exercise of public authority. As IBTimes previously reported, Clinton switched from opposing an American free trade agreement with Colombia to supporting it after a Canadian energy and mining magnate with interests in that South American country contributed to the Clinton Foundation. IBTimes’ review of the Clintons’ annual financial disclosures also revealed that 13 companies lobbying the State Department paid Bill Clinton $2.5 million in speaking fees while Hillary Clinton headed the agency.

Questions about the nexus of arms sales and Clinton Foundation donors stem from the State Department’s role in reviewing the export of American-made weapons. The agency is charged with both licensing direct commercial sales by U.S. defense contractors to foreign governments and also approving Pentagon-brokered sales to those governments. Those powers are enshrined in a federal law that specifically designates the secretary of state as “responsible for the continuous supervision and general direction of sales” of arms, military hardware and services to foreign countries. In that role, Hillary Clinton was empowered to approve or reject deals for a broad range of reasons, from national security considerations to human rights concerns.

The State Department does not disclose which individual companies are involved in direct commercial sales, but its disclosure documents reveal that countries that donated to the Clinton Foundation saw a combined $75 billion increase in authorized commercial military sales under the three full fiscal years Clinton served, as compared to the first three full fiscal years of Bush’s second term.

The Clinton Foundation has not released an exact timetable of its donations, making it impossible to know whether money from foreign governments and defense contractors came into the organization before or after Hillary Clinton approved weapons deals that involved their interests. But news reports document that at least seven foreign governments that received State Department clearance for American arms did donate to the Clinton Foundation while Hillary Clinton was serving as secretary: Algeria, Oman, Qatar, Kuwait, Thailand, Norway and Australia.

Under a presidential policy directive signed by President Bill Clinton in 1995, the State Department is supposed to specifically take human rights records into account when deciding whether to approve licenses enabling foreign governments to purchase military equipment and services from American companies. Despite this, Hillary Clinton’s State Department increased approvals of such sales to nations that her agency sharply criticized for systematic human rights abuses.

In its 2010 Human Rights Report, Clinton’s State Department inveighed against Algeria’s government for imposing “restrictions on freedom of assembly and association” tolerating “arbitrary killing,” “widespread corruption,” and a “lack of judicial independence.” The report said the Algerian government “used security grounds to constrain freedom of expression and movement.”

That year, the Algerian government donated $500,000 to the Clinton Foundation and its lobbyists met with the State Department officials who oversee enforcement of human rights policies. Clinton’s State Department the next year approved a one-year 70 percent increase in military export authorizations to the country. The increase included authorizations of almost 50,000 items classified as “toxicological agents, including chemical agents, biological agents and associated equipment” after the State Department did not authorize the export of any of such items to Algeria in the prior year.

During Clinton’s tenure, the State Department authorized at least $2.4 billion of direct military hardware and services sales to Algeria — nearly triple such authorizations over the last full fiscal years during the Bush administration. The Clinton Foundation did not disclose Algeria’s donation until this year — a violation of the ethics agreement it entered into with the Obama administration.

The monarchy in Qatar had similarly been chastised by the State Department for a raft of human rights abuses. But that country donated to the Clinton Foundation while Hillary Clinton was running the State Department. During the three full budgetary years of her tenure, Qatar saw a 14-fold increase in State Department authorizations for direct commercial sales of military equipment and services, as compared to the same time period in Bush’s second term. The department also approved the Pentagon’s separate $750 million sale of multi-mission helicopters to Qatar. That deal would additionally employ as contractors three companies that have all supported the Clinton Foundation over the years: United Technologies, Lockheed Martin and General Electric.

Clinton foundation donor countries that the State Department criticized for human rights violations and that received weapons export authorizations did not respond to IBTimes’ questions.

That group of arms manufacturers — along with Clinton Foundation donors Boeing, Honeywell, Hawker Beechcraft and their affiliates — were together listed as contractors in 114 such deals while Clinton was secretary of state. NBC put Chelsea Clinton on its payroll as a network correspondent in November 2011, when it was still 49 percent owned by General Electric. A spokesperson for General Electric did not respond to questions from IBTimes.

The other companies all asserted that their donations had nothing to do with the arms export deals.

“Our contributions have aligned with our longstanding philanthropic commitments,” said Honeywell spokesperson Rob Ferris.

“Even The Appearance Of A Conflict”

During her Senate confirmation proceedings in 2009, Hillary Clinton declared that she and her husband were “committed to ensuring that his work does not present a conflict of interest with the duties of Secretary of State.” She pledged “to protect against even the appearance of a conflict of interest between his work and the duties of the Secretary of State” and said that “in many, if not most cases, it is likely that the Foundation or President Clinton will not pursue an opportunity that presents a conflict.”

Even so, Bill Clinton took in speaking fees reaching $625,000 at events sponsored by entities that were dealing with Hillary Clinton’s State Department on weapons issues.

In 2011, for example, the former president was paid $175,000 by the Kuwait America Foundation to be the guest of honor and keynote speaker at its annual awards gala, which was held at the home of the Kuwaiti ambassador. Ben Affleck spoke at the event, which featured a musical performance by Grammy-award winner Michael Bolton. The gala was emceed by Joe Scarborough and Mika Brzezinski, hosts of MSNBC’s Morning Joe show. Boeing was listed as a sponsor of the event, as were the embassies of the United Arab Emirates, Saudi Arabia, Kuwait and Qatar — the latter two of which had donated to the Clinton Foundation while Hillary Clinton was secretary of state.

The speaking fee from the Kuwait America Foundation to Bill Clinton was paid in the same time frame as a series of deals Hillary Clinton’s State Department was approving between the Kuwaiti government and Boeing. Months before the gala, the Department of Defense announced that Boeing would be the prime contractor on a $693 million deal, cleared by Hillary Clinton’s State Department, to provide the Kuwaiti government with military transport aircraft. A year later, a group sponsored in part by Boeing would pay Bill Clinton another $250,000 speaking fee.

“Boeing has sponsored this major travel event, the Global Business Travel Association, for several years, regardless of its invited speakers,” Gordon Johndroe, a Boeing spokesperson, told IBTimes. Johndroe said Boeing’s support for the Clinton Foundation was “a transparent act of compassion and an investment aimed at aiding the long-term interests and hopes of the Haitian people” following a devastating earthquake.

Boeing was one of three companies that helped deliver money personally to Bill Clinton while benefiting from weapons authorizations issued by Hillary Clinton’s State Department. The others were Lockheed and the financial giant Goldman Sachs.

Lockheed is a member of the American Chamber of Commerce in Egypt, which paid Bill Clinton $250,000 to speak at an event in 2010. Three days before the speech, Hillary Clinton’s State Department approved two weapons export deals in which Lockheed was listed as the prime contractor. Over the course of 2010, Lockheed was a contractor on 17 Pentagon-brokered deals that won approval from the State Department. Lockheed told IBTimes that its support for the Clinton Foundation started in 2010, while Hillary Clinton was secretary of state.

“Lockheed Martin has periodically supported one individual membership in the Clinton Global Initiative since 2010,” said company spokesperson Katherine Trinidad. “Membership benefits included attendance at CGI annual meetings, where we participated in working groups focused on STEM, workforce development and advanced manufacturing.”

In April 2011, Goldman Sachs paid Bill Clinton $200,000 to speak to “approximately 250 high level clients and investors” in New York, according to State Department records obtained by Judicial Watch. Two months later, the State Department approved a $675 million foreign military sale involving Hawker Beechcraft — a company that was then part-owned by Goldman Sachs. As part of the deal, Hawker Beechcraft would provide support to the government of Iraq to maintain a fleet of aircraft used for intelligence, surveillance and reconnaissance missions. Goldman Sachs has also contributed at least $250,000 to the Clinton Foundation, according to donation records.

“There is absolutely no connection among all the points that you have raised regarding our firm,” said Andrew Williams, a spokesperson for Goldman Sachs.

Federal records show that ethics staffers at the State Department approved the payments to Bill Clinton from Goldman Sachs, and the Lockheed- and Boeing-sponsored groups without objection, even though the firms had major stakes in the agency’s weapons export decisions.

Stephen Walt, a Harvard University professor of international affairs, told IBTimes that the intertwining financial relationships between the Clintons, defense contractors and foreign governments seeking weapons approvals is “a vivid example of a very big problem — the degree to which conflicts of interest have become endemic.”

“It has troubled me all along that the Clinton Foundation was not being more scrupulous about who it would take money from and who it wouldn’t,” he said. “American foreign policy is better served if people responsible for it are not even remotely suspected of having these conflicts of interest. When George Marshall was secretary of state, nobody was worried about whether or not he would be distracted by donations to a foundation or to himself. This wasn’t an issue. And that was probably better.”

UPDATE (7:38pm, 5/26/15): In an emailed statement, a spokeswoman for the Taipei Economic and Cultural Representative Office told IBTimes: “Taiwan’s 2003 donation was for the fund to build the Clinton Presidential Library. This was way before Mrs. Clinton was made the U.S. Secretary of State. We have neither knowledge nor comments concerning other issues.”

Dept. of Energy, Fleecing of the Taxpayers

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Report: DOE Failed to Catch Solyndra’s Misrepresentations

by Lachlan Markay: Inspector general releases findings of years-long investigation into bankrupt solar company

A years-long investigation into the Department of Energy’s support for the bankrupt solar company Solyndra faults DOE officials, contractors, and the company itself for the department’s eventual loss of hundreds of millions of taxpayer dollars steered to the firm.

The DOE’s inspector general on Wednesday released the results of the investigation. It was undertaken in conjunction with the Department of Justice, which, the report reveals, decided early this year not to pursue any criminal charges in the matter.

Solyndra received a $535 million stimulus-backed DOE loan guarantee as part of the Obama administration’s early push for renewable energy subsidies. The company filed for bankruptcy in 2011 and laid off 1,100 employees, eventually costing taxpayers more than $500 million.

The company became a symbol of opposition to the administration’s green energy subsidy programs. Critics said its investors’ political connections had helped it to obtain taxpayer money despite obvious problems with its business.

Wednesday’s report, from DOE’s inspector general, notes these concerns, but says that the political factors supporting Solyndra’s government assistance were not examined during the investigation.

“While not the focus of the investigation, we were mindful of the concerns that had been raised regarding possible political pressure applied in the Solyndra decision-making process,” the report noted.

“Employees acknowledged that they felt tremendous pressure, in general, to process loan guarantee applications. They suggested the pressure was based on the significant interest in the program from Department leadership, the Administration, Congress, and the applicants.”

The report faults some unnamed DOE officials for failing to account for problems with the company’s business model shortly before it guaranteed financing for its solar panel production.

A week before the closing of Solyndra’s loan, an employee in the DOE’s Loan Programs Office (LPO) noticed a report from another branch of the department, the office of Energy Efficiency and Renewable Energy, that projected a per-watt cost of rooftop solar systems well below what Solyndra charged for its products.

According to the report, the LPO employee sent three emails to superiors noting the troubling data, yet no action was taken and DOE moved ahead with its Solyndra loan guarantee.

“This information should have raised serious questions concerning the viability of Solyndra’s financial model and Solyndra’s corresponding ability to service its debt payments. Instead, it was apparently disregarded,” the report found.

By that point, according to the report, Solyndra was already lying to the department about the company’s financial health: it inflated sales figures and misrepresented the costs of its solar panels to both DOE and engineering and financial contractors hired to assess its loan guarantee application.

The report primarily blames Solyndra for those misrepresentations, but it also faults LPO officials for failing to recognize apparent discrepancies in the information the company was providing.

In the run-up to the closing of its DOE-guaranteed loan, Solyndra assured the White House Office of Management and Budget and the credit rating agency Fitch, hired to assess the company’s financial prospects, that its panels were selling well and fetching a competitive price.

However, just weeks before, the company had provided DOE with a spreadsheet that “if read carefully” would have demonstrated to LPO officials that the company was inflating promises of future contracts and hiding the true costs of its products and that it “internally viewed the sales contracts as broken.”

“It is clear that there were shortcomings in the Department’s due diligence process,” the IG found, but it placed the bulk of the blame on the company itself for providing misleading and at times inaccurate information to department auditors and loan officials.

William Yeatman, a senior fellow and energy policy expert with the Competitive Enterprise Institute, said he was suspicious of IG findings that seemed to absolve the department of responsibility for ensuring the accuracy of information used to support the loan guarantee.

“The report raises more questions than answers,” Yeatman said in an email. “Outwardly, it passes the buck to Solyndra. But if you pay attention to the details, it demonstrates a woeful lack of due diligence by the Energy Department.”

“However, the IG refused to investigate a likely cause of this ineptitude—political pressure, which the report acknowledges was a factor—for whatever reason,” he added.

Since Solyndra’s bankruptcy, two other companies backed by the same loan guarantee program, Fisker Automotive and Abound Solar, have also filed for bankruptcy protection.

A third, Vehicle Production Group, ceased operations and laid off its entire staff in 2013. Another company, AM General, bought up VPG’s remaining assets, and its DOE-backed $50 million loan, for which it paid just $3 million.

Meanwhile:

EPA withholds mine spill documents from Congress

by Tori Richards: A congressional committee blasted the Environmental Protection Agency today for blocking release of documents related to the Gold King mine disaster, which poured deadly chemicals into the largest source of drinking water in the West.

“It is disappointing, but not surprising, that the EPA failed to meet the House Science Committee’s reasonable deadline in turning over documents pertaining to the Gold King Mine spill,” said Rep. Lamar Smith (R-TX). “These documents are essential to the Committee’s ongoing investigation and our upcoming hearing on Sept. 9. But more importantly, this information matters to the many Americans directly affected in western states, who are still waiting for answers from the EPA.”

Smith – who frequently spars with the EPA – is chairman of the House Science, Space, and Technology Committee. EPA director Gina McCarthy has been asked to appear and answer questions about the agency’s role in creating a 3-million-gallon toxic spill into Colorado’s Animas River on Aug. 5. Critics say McCarthy and the EPA have been unresponsive, secretive and unsympathetic toward millions of people who live in three states bordering the river.

For several days, the EPA didn’t notify the states of Utah, New Mexico or the Navajo Nation that the spill was coming their way. McCarthy waited a week before visiting Colorado and even then she refused to tour Silverton, the town nearest the Gold King mine where EPA contractors unleashed the toxic plume into waterways that feed the Colorado River. The agency withheld the name of the contractor working on the project and other details that are generally considered public information. Lastly, the Navajo Nation, which relies on the river for drinking water and farming, received an emergency supply from the EPA in oil-contaminated containers.

Smith also blasted McCarthy for traveling to Japan while controversy over the spill continues to swirl. He criticized President Barack Obama, as well.

“EPA Administrator Gina McCarthy is currently crusading on climate-change action in Japan while President Obama, who has yet to visit the areas affected by the spill, is touring the U.S. to tout EPA’s latest regulation that will do little to impact climate change and will only further burden Americans with higher electric bills,” Smith said.

And it’s not just the public and the media that have been frustrated by the EPA’s inaction.

“Time and again, the EPA has failed to be cooperative, forthright, or reasonable in its dealings with my Committee and with Congress in general,” Smith told Watchdog. “The agency embodies all the dysfunction, misguided priorities, and government overreach that angers so many Americans. The EPA seems to have a clear disregard for the very people it is intended to serve.”

The hearing is scheduled to last just a day and could include testimony from the firm that was contracted to stem the flow of toxic water from several mines above Silverton. Smith said in a statement last week that people affected by the spill continue to deal with limited information and uncertainty.

“As the agency entrusted by the American people to protect the environment and ensure the nation’s waters are clean, the EPA should be held to the highest standard,” Smith said. “The Science Committee needs to hear from the EPA about steps it is taking to repair the damage and to prevent this from ever occurring again.”

One official familiar with the committee but not authorized to speak said House members have been dismayed by an increased number of reports showing either incompetence or flat-out disregard in a variety of situations not limited just to the Animas River spill.

And at least one state senator has started an investigation into allegations that the EPA purposely caused the spill to create a Superfund site – a designation that the tiny town of Silverton has repeatedly rebuffed.

“EPA gets a failing grade from me for pursuing an extreme agenda at the expense of our nation’s economy, American interests, and, in this case, environmental protection,” Smith told Watchdog. “The more I review reports from the spill, the more questions I have about EPA’s faulty processes and failure to communicate with local residents and officials.”

CBO revises US Treasury runs out of money Nov.~Dec.

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Okay in the massive field of candidates running for president, who is talking about running out of money?

CBO projects that if the debt limit is unchanged, the measures that the Treasury has been taking to avoid breaching that limit will be exhausted sometime between mid-November and early December, and the Treasury will then run out of cash.

Summary

The debt limit—commonly referred to as the debt ceiling—is the maximum amount of debt that the Department of the Treasury can issue to the public and to other federal agencies. That amount is set by law and has been increased over the years in order to finance the government’s operations. In March, the debt ceiling was reached, and the Secretary of the Treasury announced a “debt issuance suspension period.” During such a period, existing statutes allow the Treasury to take a number of “extraordinary measures” to borrow additional funds without breaching the debt ceiling. The Congressional Budget Office projects that if the debt limit remains unchanged, those measures will be exhausted and the Treasury will run out of cash between mid-November and early December. At such time, the government would be unable to fully pay its obligations, a development that would lead to delays of payments for government activities, a default on the government’s debt obligations, or both.

According to the Congressional Budget Office’s estimates, this year’s deficit will be noticeably smaller than what the agency projected in March, and fiscal year 2015 will mark the sixth consecutive year in which the deficit has declined as a percentage of gross domestic product (GDP) since it peaked in 2009. Over the next 10 years, however, the budget outlook remains much the same as CBO described earlier this year: If current laws generally remain unchanged, within a few years the deficit will begin to rise again relative to GDP, and by 2025, debt held by the public will be higher relative to the size of the economy than it is now.

CBO’s economic forecast, which serves as the basis for its budget projections, anticipates that the economy will expand modestly this year, at a solid pace in calendar years 2016 and 2017, and at a more moderate pace in subsequent years. The pace of growth over the next few years is expected to reduce the quantity of underused resources, or “slack,” in the economy, lowering the unemployment rate and putting upward pressure on compensation as well as on inflation and interest rates.

The Budget Deficit for 2015 Will Be Smaller Than Last Year’s

At $426 billion, CBO estimates, the 2015 deficit will be $59 billion less than the deficit last year (which was $485 billion) and $60 billion less than CBO estimated in March (see table below). The expected shortfall for 2015 would constitute the smallest since 2007, and at 2.4 percent of gross domestic product, it would be below the average deficit (relative to the size of the economy) over the past 50 years. Debt held by the public will remain around 74 percent of GDP by the end of 2015, CBO estimates—slightly less than the ratio last year but higher than in any other year since 1950.

Outlays

Federal outlays are projected to rise by 5 percent this year, to $3.7 trillion, or 20.6 percent of GDP. That increase
is the net result of a nearly 10 percent jump in mandatory spending, offset by lower net interest payments and discretionary outlays.

CBO anticipates that mandatory outlays will be $199 billion higher in 2015 than they were last year. Federal spending for the major health care programs accounts
for a little more than half of that increase: Outlays for Medicare (net of premiums and other offsetting receipts), Medicaid, the Children’s Health Insurance Program, and subsidies for health insurance purchased through exchanges and related spending are expected to be 
$110 billion (12 percent) higher this year than they were in 2014.

In addition, outlays related to the government’s transactions with Fannie Mae and Freddie Mac and for higher education programs will be greater than the amounts recorded last year. Those increases will be partially offset by increased receipts from auctions of licenses to use the electromagnetic spectrum and by reduced spending for unemployment compensation.

Even though federal borrowing continues to rise, CBO expects that the government’s net interest costs will fall by nearly 5 percent this year—mainly because lower inflation this year has reduced the cost of the Treasury’s inflation-protected securities.

CBO anticipates that discretionary spending, which is controlled through annual appropriations, will be about 1 percent less in 2015 than it was in 2014. By the agency’s estimates, defense outlays will drop by more than 2 percent, whereas nondefense discretionary outlays will be only slightly below last year’s amount.

Revenues

Federal revenues are expected to climb by 8 percent in 2015, to $3.3 trillion, or 18.2 percent of GDP. Revenues from all major sources will rise, including individual income taxes (by 10 percent), corporate income taxes (by 8 percent), and payroll taxes (by 4 percent). Revenues from other sources are estimated to increase, on net, by 5 percent. The largest increase in that category derives from fees and fines, mostly as a result of provisions of the Affordable Care Act. Many more details here.

 

Sue Compete America, a Good Place to Start

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Imagine your own government working against it’s own citizens. Now as you read on, listen for what all politicians have to say on the matter of college educations, employment and then immigration.

Pursuit of Happiness for who exactly, worse U.S. students cannot even get a seat in a college class as foreign students have them.

Compete America posts their principles on their website. The page is titled “Compete America’s 2011 Principles for U.S. Job Creation, Innovation and Economic Growth Through Employment-based Visa Reform”, so admittedly this demonstrates the efforts against U.S. citizens. Want to know what companies participate and are members? Click here and you will see corporations you know well like Boeing, Microsoft, Coca~Cola, and even the U.S. Chamber of Commerce.

                                            

Okay now read on to learn how bad this is and what questions and actions we need to take.

NationalReview: American technology workers won a big victory in the federal courts this month. The D.C. District Court ruled that a STEM-related visa program created by the Department of Homeland Security was potentially damaging to the domestic labor market and also in violation of federal rule-making procedure. For the plaintiffs in the case, the Washington Alliance of Technology Workers, however, the fight against BigTech lobbyists and Homeland Security has only just begun. DHS’s so-called Optional Practical Training (OPT) program allows foreign nationals to live and work in the U.S. on a student visa even after graduation. In a rule promulgated by DHS in 2008, foreigners graduating in a STEM field at a U.S. school had these authorizations extended to nearly two and a half years after their graduation. U.S. employers love this because, on top of the longer work period, they have a greater chance to transition them into the H-1B program, a “professional specialty worker” visa that can last up to an additional six years. Also, employers receive a tax benefit for hiring OPT participants over Americans, as they do not have to pay Medicare and Social Security taxes for aliens on student visas.
Plaintiffs’ counsel, the Immigration Reform Law Institute (which I work for), argued in court that the OPT extension, created not by statute but entirely by DHS, was really just a way to circumvent the existing H-1B cap of 65,000 annual visa grants set down by Congress years before.
Helpfully for us, DHS had already admitted that this was the purpose for the extension. As it explained in the agency rule creating the extension, “the H-1B category is greatly oversubscribed,” which, as a result, has “adversely affected the ability of US employers to recruit and retain skilled workers.” With the H-1B cap having been held up by Congress over the last few years, DHS did the next best thing. As H-1B guru Norm Matloff describes in a blog post discussing our case, the agency simply went ahead and created “a de facto expansion of H-1B.”
Let me digress for a moment on the H-1B lottery and the “oversubscription” issue. Unlike other visas, the fees for H-1B applications are refundable; there is no penalty for oversubscribing. As a consequence, heavy H-1B users, such as the outsourcing firms that supply BigTech companies as well as BigTech companies themselves, always apply for more visas than they really want in order to get close to their target. David North at the Center for Immigration Studies explains the process here. So when you hear in the press and elsewhere that “petitions have outstripped slots yet again by two-to-one,” the numbers are merely a reflection of companies’ trying to game the lottery system.
As Matloff explains, OPT is “just as harmful as H-1B.” The two programs are now similar in size, and the benefits to BigTech are also similar. Like H-1B holders, OPTs are younger than most American technology workers, and therefore cheaper. Citing the “prevailing wage” rules that technically exist for H-1Bs, Matloff notes that “the legal wage floors for H-1Bs depend on experience” (the worker’s age, in other words), “so hiring young H-1Bs in lieu of older Americans is legal.” As he says with cases such as SoCal Edison and Disney, “age was the key factor underlying the wage savings accrued by hiring H-1Bs.” See this link for information on a similar suit against Google based on age discrimination (which the company has since settled).
In the case of OPTs, however, this “wage floor” isn’t even available; being recent graduates, they’re all young (and cheap). Further, OPT participants are even cheaper to employ because, as stated earlier, aliens on student visas are exempted from Social Security and Medicare.
Fundamentally, the OPT program, like H-1B, allows BigTech firms to flood the labor market, creating artificial competition and pressuring the standard of living we’ve earned through decades of hard-fought democratic and labor reforms. The cost savings, meanwhile, get siphoned up by private technology firms, many of which grew out of taxpayer-funded military programs. Thankfully, much of this wasn’t lost on the judge. DHS had asserted that our plaintiffs didn’t have standing to sue because (a) they couldn’t prove an OPT participant actually took one of their jobs (an impossible and unfair demand) and, in the alternative, (b) the plaintiffs were currently employed and so couldn’t show any injury — all are employed, mostly in contract positions. The judge knocked down both arguments by pointing out that “an influx of OPT computer programmers would increase the labor supply, which is likely to depress plaintiff’s members’ wages and threaten their job security, even if they remain employed” (emphasis added).
More concrete evidence was also offered. Plaintiffs showed examples of job advertisements where only OPT participants were requested to apply. As Matloff likes to note, these companies are not just using H-1Bs and OPT participants to replace American workers, as in the SoCal Edison and Disney cases; they’re also hiring them instead of American workers. And many times, it isn’t “highly skilled” types that are being imported but simply “ordinary people, doing ordinary work.” The benefits of circumventing the H-1B program are apparently big. Arguing that DHS’s chosen 29-month extension period was an arbitrary and therefore invalid decision, plaintiffs showed the court that industry lobbyists CompeteAmerica, lobbyists from Microsoft and the Chamber of Commerce, and others had all been in contact with DHS requesting the same 29-month extension. And showing just how eager it was to comply, DHS implemented the rule without going through the statutorily mandated notice-and-comment period, a window of time in which the public can criticize agency action.
DHS tried to argue in court that skipping the process was necessitated by a looming “fiscal emergency” in the U.S. economy that could be ameliorated only by letting “tens of thousands of OPT workers” join the tech industry. Whose economic analysis did DHS cite to back this up? Studies from the technology industry itself. Ultimately, although the court knocked down the OPT extension on procedural grounds, the victory is only temporary. DHS can open up the rule to notice-and-comment and try again.
Further, the judge rejected our argument that the program violates the law on other, more substantive (and less procedural) grounds. According to congressionally made statute (Immigration and Naturalization Act § 1101(a)(15)(F)(i)), student visas cannot be allocated for working purposes and may be allocated only to “bona fide students . . . solely for the purpose of pursuing such a course of study . . . at an established . . . academic institution” (emphasis added). But again, OPT, entirely a DHS creation, purports to let student-visa holders join the workforce. By ignoring the stipulations of Congress, the program exceeds DHS’s statutory authority.
By giving DHS the authority to redefine what a “student” is, the court is allowing the agency to set the duration and conditions of a student’s stay, potentially letting them occupy the labor market for years upon years. Good for the foreign “student,” good for the trillion-dollar

tech industry, but bad for the American worker. — Ian Smith is an attorney who works for the Immigration Reform Law Institute.

Green, Green and Green Obama and Harry Reid

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If you think this whole ‘green thing’ is legit, you need to read on. It is a ploy to fill politicians pockets with money and power. Coming out of the White House, it affects all government agencies including the military, violators pay fines, adding to the Treasury revenue base.

Obama Pushes Billions in Green Executive Actions

TheBlaze: President Barack Obama’s package of executive actions includes $1 billion in new taxpayer subsidies to the green energy industry and homeowners, while also promoting existing $10 billion in loan programs.

“We are taking steps that allow more Americans to join this revolution with no money down,” Obama said at the National Clean Energy Summit in Las Vegas Monday. “You don’t have to share my passion for fighting climate change. A lot of Americans are going solar and becoming more energy efficient not because they’re tree huggers – although trees are important, I just want you to know – but because they are cost cutters. And I’m all for consumers saving money because that means they can spend it on other stuff. Solar isn’t just for the green crowd anymore. It’s for the green eyeshade crowd too.”

Under the initiative, the Obama administration will invite applications for more than $10 billion in existing loan projects available. The current loans are for the Distributed Energy Projects program and solicitations will open to more potential companies to vie for funding on alternative energy.

Further, the administration will make $1 billion in new loan guarantees for distribution of alternative energy such as solar and wind. These new loan guarantees will target industries such as rooftop solar, energy storage, smart grid technology, and methane capture for oil and gas wells, according to the White House.

The administration also announced $24 million for 11 projects to assist in developing solar technologies that double the amount of solar energy available. Three of the projects are in California, two are in Massachusetts, the others are in New York, North Carolina, Pennsylvania, Texas, and Washington state.

Alternative energy is moving closer to a day when it doesn’t need subsidies, but the country can’t wait for that, said Energy Secretary Earnest Moniz in a conference call with reporters Monday.

“We support extending a variety of tax credits that is very important for clean energy and a clean energy infrastructure,” Moniz said. “Cost reductions have been incredible. Without subsidies, I would still see solar power growing, but we don’t have a lot of time to get it right. We need to address climate change early.”

Many of the loans are for companies seeking to access financing for green energy projects, some of the loans will also come through the Property-Assessed Clean Energy financing program, or PACE.

The Obama administration is also crating a Defense Department Privatized Housing Challenge, which allows companies to commit to provide solar power to housing on over 40 military bases across the United States, with the stated goal of saving military families money on energy bills and making military communities more energy secure. The DOD and White House Council on Environmental Quality convened companies that own privatized housing units for military to share best practices. Four companies are committed to provide solar power at more than 40 military bases. The companies are Balfour Beatty, Corvias, Lincoln Military Housing and United Communities.

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Green Businesses, Political Powerbrokers Mingle at Reid Cleantech Summit

Eighth annual Clean Energy Summit in Las Vegas takes place as Nevada regulators hammer out crucial solar energy measure

LAS VEGAS—Green energy businesses gathered in Las Vegas on Monday for an annual conference hailing progress in the cleantech industry and encouraging further government incentives for the types of firms that paid thousands of dollars to sponsor the event.

For a minimum $4,000 payment, businesses and other groups got a spot in the exhibit hall of the eighth annual National Clean Energy Summit, cosponsored by Senate Minority Leader Harry Reid (D., Nev.) and the Center for American Progress.

“This prestigious event brings together the investors, industry executives, entrepreneurs, policymakers and advocates who are shaping the future of clean energy,” NCES’s website says.

The exhibitor fee gets businesses access to “senior industry executives, corporate sustainability teams, leaders from all levels of government, project developers, financiers, utilities, representatives from state and federal agencies and media from across the country,” in the words of a summit brochure.

The confluence of business and policy is characteristic of the event, which this year featured speeches and discussions from President Barack Obama, Energy Secretary Ernest Moniz, Hillary Clinton campaign chairman John Podesta, former Colorado Governor Bill Ritter, and CAP president Neera Tanden.

Reid himself is one of the event’s major draws. His office has bragged about its work in securing subsidies for donors to the Clean Energy Project, a group that serves as “the fiscal agent and the coordinating entity” of the summit, according to board member Sig Rogich.

The conference highlighted green-energy-friendly policies such as the Environmental Protection Agency’s new restrictions on coal-fired power plants, which are poised to remake the U.S. energy economy. Companies on the right side of that policy equation face a tremendous financial opportunity.

“It’s a big business opportunity,” in the words of Tom Steyer, whose group Advanced Energy Economy is a CEP donor. “It’s a chance to make a lot of money.”

Steyer also serves on the board of NCES sponsor the Center for American Progress, which has been accused of acting as a de facto lobbying arm of First Solar, another CEP donor whose chief executive spoke at Monday’s summit.

The timing of the event was auspicious. Taking place in Las Vegas while Nevada energy regulators hammer out crucial details of the state’s renewable energy incentive packages, attendees could witness and participate in discussions that might directly inform policymaking that would affect the bottom lines of the conference’s participants and financial supporters.

Just days before the event kicked off, utility NV Energy, a CEP donor and NCES exhibitor, announced that it had hit a statutory cap on incentives for its solar power customers. Its proposed rates in the absence of those incentives would seriously damage Nevada solar industry, its advocates say.

Those issues received significant play at the summit during an afternoon debate moderated by Rose McKinney-James, a former CEP board member and current Nevada lobbyist.

In the latter capacity, McKinney-James represents Valley Electric and Bombard Electric, both of which are also CEP donors and were featured in NCES’s exhibit hall. Both also have a stake in the outcome of the net metering debate.

When NV Energy reached its previous net metering cap in May, McKinney-James helped broker a deal between the utility and the Alliance for Solar Choice, a rooftop solar advocacy group.

To the extent that the policy goals of various conference sponsors were opposed on the net metering issue, Reid very clearly took a stand, criticizing NV Energy’s rate proposal.

“The world’s changed, and they should change with it,” he said at a press conference opening the event.

Reid expanded on that position in the summit’s opening remarks.

“I believe Nevada can meet this challenge and begin the process of transforming our grid to fully valuing clean energy technologies,” he said.

He offered Valley Electric as an alternative, the type of company cooperating with his policy preferences rather than impeding them.

In a sign that it was aware of the ongoing controversy—and where the event’s more powerful voices stood on the issue—NV Energy adorned its exhibitor booth with signs and literature extoling the company’s commitment to renewable energy in general, and rooftop solar in particular.