Posts Tagged ‘waste’

If I want to teach my children about finance, I can never let them learn about government

Monday, June 23rd, 2008

From ProPublica:

An Arab-language television network and radio station, founded by the Bush administration to promote a positive image of the United States, has aired anti-American and anti-Israeli viewpoints, has showcased pro-Iranian policies and recently gave air time to a militant who called for the death of American soldiers in Iraq.

So far, U.S. taxpayers have spent nearly $500 million to fund those broadcasts. The television station, called Alhurra, and the radio network, Sawa, were meant to provide an American perspective on world events and counter the wave of global criticism that had been building against the Bush administration since the invasion of Iraq in 2003.

During a visit to Alhurra’s studios in June, reporters, producers, cameramen and technical staff were busy preparing broadcasts for an audience half-way around the world. Conniff, who is the president of Alhurra and Radio Sawa, sat in on a morning editorial meeting but could not understand it – his Middle Eastern staff discussed the day’s stories in Arabic and no one offered Conniff a simultaneous translation.

“There is no adult supervision there by people who know what is on the actual broadcasts,” said William Rugh, who served as U.S. Ambassador in Yemen and the United Arab Emirates. “You need bilingual managers who understand both languages and cultures and understand journalism.”

Financial accountability also appears to be lacking. In its four years, the network has been unable to provide full documentation to auditors to account for its spending, according to two people familiar with the records and a 2006 report by the Government Accountability Office.

Is there any other time when a $.5b waste of money would be largely ignored by the American public? Especially when that waste involves inadvertently airing calls for death to American soldiers? It’s a testament to the absolutely lack of confidence we have in American government that at this point stories like this just seem like business as usual.

The rising cost of a penny for your thoughts

Tuesday, April 1st, 2008

From the New Yorker

A penny minted before 1982 is ninety-five per cent copper—which, at recent prices, is approximately two and a half cents’ worth. Luhrman, who had previously owned a company that refined gold and silver, devised a method of rapidly separating pre-1982 pennies from more recent ones, which are ninety-seven and a half per cent zinc, a less valuable commodity. His new company, Jackson Metals, bought truckloads of pennies from the Federal Reserve, turned the copper ones into ingots, and returned the zinc ones to circulation in cities where pennies were scarce. “Doing that prevented the U.S. Mint from having to make more pennies,” Luhrman told me recently. “Isn’t that neat?” The Mint didn’t think so; it issued a rule prohibiting the melting or exportation of one-cent and five-cent coins. (Nickels, despite their silvery appearance, are seventy-five per cent copper.) Luhrman laid off most of his employees and implemented his corporate Plan B: buying half-dollars from banks and melting the silver ones (denominations greater than five cents aren’t covered by the Mint’s rule); mining Canadian five-cent coins (which were a hundred per cent nickel most years from 1946 to 1981); and lobbying Congress.
Luhrman’s experience highlights a growing conundrum for the Mint and for U.S. taxpayers. Primarily because zinc, too, has soared in value, producing a penny now costs about 1.7 cents. Since the Mint currently manufactures more than seven billion pennies a year and “sells” them to the Federal Reserve at their face value, the Treasury incurs an annual penny deficit of about fifty million dollars—a condition known in the coin world as “negative seigniorage.” The fact that the Mint loses money on penny production annoys some people, because one-cent coins no longer have much economic utility. More than a few people, upon finding pennies in their pockets at the end of the day, simply throw them away, and many don’t bother to pick them up anymore when they see them lying on the ground. (Breaking stride to pick up a penny, if it takes more than 6.15 seconds, pays less than the federal minimum wage.)

I tend to refuse pennies. They are literally not worth the hassle of using. It’s absurd that a coin worth less than its face value would have to be protected by federal law. Obama threw his weight behind ditching it earlier today, so perhaps we can eliminate this useless and wasteful part of American currency soon.

Best $16b photo I’ve ever seen

Tuesday, March 18th, 2008

I’m sure Nasa spent $16b in 2007 on more than just this photo. But aside from this development from Mars, I’m not sure what we have to show for it.
While I may not have the firmest grasp on what else you could buy for $16b, I do have a few ideas. Perhaps a crazy moon base, another Halliburton no-bid contract for contaminated water for the war in Iraq or enough computers for every person in Angola.
Pretty photo, though.