Monday, February 17, 2025

Egg Prices Are Nothing to Yolk About

Egg prices are the center or yolk of the latest political ruckus. Democrats are egging on President Trump to lower the cost of a carton of a dozen Grade A large eggs as prices, adjusted for inflation, reached a 45-year high this week.  Democrat surrogates have flocked to social media to hen peck at the issue.

"I had to dip into my 401K to buy a carton of eggs," one woman posted. Another said: "Instead of cutting the government, cut egg prices." Others clucked: "The Powerball is up to 4 dozen eggs." "Broke an egg this morning.  My insurance company is sending an adjuster."  

You get the drift.  Donald Trump has single handedly jacked up egg prices to pay off his billionaire cronies. This is what passes as Washington political theater.  Twenty-one Democrat lawmakers dispatched a letter accusing Trump of "largely ignoring" the problem in his first three weeks in office.

The letter demands Trump "lower food prices by encouraging competition and fighting price gouging at each level of the food supply chain." The lawmakers, marshaled by Massachusetts Senator Elizabeth Warren, pledged to work with the president to make eggs a great bargain again.

Democrats are the ones with egg on their faces if they believe Trump is responsible for surging egg prices.  They need to leave their cozy Washington nest and visit chicken farms in America.

Egg prices are skyrocketing because of a nationwide outbreak of avian influenza. The virus occurs naturally among wild aquatic birds (think ducks) worldwide. These migrating birds infect domestic poultry.  The highly contagious influenza spreads quickly among caged chickens. 

Euthanizing flocks is the best option to combat the spread. More than 150 million chickens have been killed in all 50 states to halt the virus since 2022, according to the Department of Agriculture (USDA).This is the largest outbreak in the United States since 2015.  

Even more worrisome, the Centers for Disease Control and Prevention (CDC) reports there have been bird flu detections in dairy cattle, including cows in Arizona. Although rare, there have been 68 human cases, including one confirmed death. CDC says the source of the human infections is unidentified.

As culling accelerates, egg prices have soared 53% since January of last year.  This past month prices for a carton of Grade A large eggs leapfrogged another 15%.  The national average price for a dozen eggs in January was $4.95.  That eclipses the record set in January 2023, when the price was $4.82.

Although prices are climbing, the demand has not slackened because high-protein eggs are considered a staple in most households. The average American eats 284 eggs a year, an increase from last year's total of 281.  (Per capita consumption is a measure of total egg production divided by the population.) 

There is little relief in sight for the American consumer.  In November, seven million chickens were destroyed. By last December, the number jumped to 18 million and rose to 23 million in January.  Despite the culling of infected chickens, the virus has been advancing like a Bataan Death March.

Most egg-laying farms maintain fewer than 100 chickens, but large producers house upwards of 100,000. Broiler farms, which bred chickens for meat, range in size from 40,000 chickens to more than 500,000. Once infections are detected, the safest course to euthanize the entire flock. 

Eggs Unlimited Vice President Brian Moscogiuri offers this perspective on the egg crisis. "In the last few months alone, since the middle of October, we've lost 45 million egg-laying hens. We've lost a significant amount of production, more than 13%." 

Eggs Unlimited is one of the largest international supplier of eggs. The firm ships eggs to major retailers, distributors and food service companies.  "For consumers, (we're) trying to limit their impact with the pricing and the supply chain shortages we're seeing right now," Moscogirui says.

Just this year about one-in-12 caged hens have been culled. Considering lifecycles, it takes about five months before hens begin laying eggs.  By comparison, chickens raised for meat are ready for slaughter after a month-and-a-half.  

With Easter on the horizon, the demand for eggs likely will shoot up. Some grocery stores are already limiting the number of cartons customers can purchase.  In a sign of the times, earlier this month 100,000 organic eggs worth an estimated $40,000 were stolen from a facility in Pennsylvania.

Consumers best hope are egg farmers. There are 48,952 businesses engaged in chicken egg production, centered in just ten states, accounting for 65% of the egg output. These small and large farms produced about 109 billion eggs in 2023, the latest year for which figures are available.

America's chicken egg-laying farms have dealt with adversity before and managed each time to scramble to restart production.   They will deliver again to  consumers who will no longer have to walk on egg shells when they search for egg cartons at the grocery store. 

Monday, February 10, 2025

Exposing The Troubled History Of The USAID

A storm of controversy swirls over a relatively unknown federal government agency that doles out billions of dollars in taxpayer funds to foreign countries.  New reporting has unearthed reports stretching over years warning about fraud, waste, sexual abuse and funding linked to terrorists.

President Trump's Department of Government Efficiency (DOGE) ignited the firestorm by uncovering reckless, wasteful spending and a lack of management accountability at the U.S. Agency for International Development.  The president shuttered USAID headquarters, locking out employees.  

USAID Background 

The agency, staffed by more than 10,000 workers, handed out $40 billion in 2023, the last year for which government figures are available. That workforce level does not include contractors.  USAID maintains more than 60 country and regional missions that develop projects to be funded. 

The bureaucracy distributed $42 billion to 130 countries, including Gaza.  In 2022, Congress appropriated an additional $46 billion to be managed partially or wholly by the agency for assistance to Ukraine. Since 2017, the USAID budget has more than doubled. 

An investigation and research by this writer found the troubled agency has a checkered history of a lack of transparency, credibility and a disregard for oversight.  Despite numerous admonishments, USAID continues to operate as if the agency is not answerable to the president or the federal government.

As a recent example, current and former USAID staff revolted when the agency's director Samantha Power voiced support for Israel after the country was attacked by Hamas in October. Many agency employees act as if they are running USAID, accountable only to themselves. 

Raising Red Flags

As far back as 2018, the Government Accountability Office (GAO) and the Inspector General for USAID sounded alarms over the agency's funneling of taxpayer money to outside groups with limited oversight. Not only did the agency ignore the red flags, it doubled down on obfuscation. 

The agency, which boasts it prioritizes diversity, equity and inclusion, gifted United Nations agencies, development banks and foreign-based non-governmental organizations (NGO) with billions to be spread across the globe, including in lawless hotspots, including Sudan, Syria and Haiti. 

These activities, in particular, attracted the attention of the Office of the Inspector General (OIG) and the GAO. The two discovered an appalling lack of oversight by the agency's practice of funneling the money through third parties.  

Here are selected highlights from reports from the Inspector General and the GAO:

  • USAID failed to document 519 instances of misconduct for funds transmitted to the UN'S World Food Program.  Instead, the USAID only reported  29 instances of potential misconduct for aid, reflecting non-compliance with the agency's own standards.
  • Investigations were hampered by UN agencies to prevent diversion of USAID funds to the terrorist organization Hamas. The OIG also listed its concern that United Nations Relief and Works Agency (UNRA) employees implicated in the October 7 attack on Israel had infiltrated USAID funded organizations. 
  • USAID failed to share with the Inspector General information about UN individuals who have been terminated for criminal and serious misconduct.  In 2023, World Health Organization officials were found to have sexually assaulted women and girls while performing USAID-funded Ebola programs in Africa.
  • OIG special agents have encountered resistance from foreign-based NGO's when requesting information about individuals alleged to have perpetuated fraud or engaged in sexual exploitation in running USAID-funded programs.
  • A GAO report noted the USAID bureaus and missions lack ability to conduct direct oversight in conflict zones to verify the funds are being used for the intended humanitarian purpose.
  • Inspectors found the USAID does not have "quality" data to support its $150 billion climate change initiative.  "Specifically, the data was not complete, accurate, accessible or current" the inspectors found. 
  • The OIG ferreted out a scheme by a non-governmental organization in South Africa to bilk USAID out of $671,914 after the group submitted false payment claims to the agency.  The OIG cited other examples of fraudulent claims in its 2025 report, including a $2.02 million payment to an  Norwegian aid group. 
  • A GAO analysis of the agency discovered the USAID sent money through a cutout organization that ended up funding China's Wuhan Institute of Virology.  To date, even Congress has been able to determine the amount of the funding. 
In its 2025 report, the OIG concluded that "theft and diversion of cash assistance, food, medicine and other commodities frustrates the intent of the United Sates" while undermining the agency's mission of humanitarian assistance. 

These reports are nonpartisan, authored by federal government employees and agencies.  The information has been available to Congress and the executive branch.  Why has there been no action to address the concerns from either political party?  That is the question no corporate media are asking.

A few in Congress have been aware of USAID's pattern of obstructionism. Iowa Senate Republican Joni Ernst revealed how the agency has been "stonewalling" her office for years as she sought documents detailing aid to businesses in Ukraine.  

USAID claimed the information was classified to deny the senator's requests.  After Ernst demanded to speak to the USAID Office of Security, the agency handed over a few documents. She discovered that 5,000 Ukrainian businesses received awards of up to $2 million each. 

DOGE Findings 

DOGE has exposed hundreds of millions of dollars for dubious USAID directed aid:
  • $2 million for sex changes and LGBTQ activism in Guatemala.
  • $1.5 million to advance DEI in Serbia's workplaces and business communities.
  • $6 million to fund tourism in Egypt.
  • $70,000 for production of a DEI musical in Ireland.
  • $47,000 for transgender operations in Colombia.
  • $2.5 million for electric vehicles in Vietnam.
  • $32,000 for a transgender comic book in Peru. 
  • $2 million for pottery classes in Morocco. 
  • $20 million for a Sesame Street workshop in Iraq to promote "inclusion, mutual respect and understanding across ethnic, religious and sectarian groups."
  • $45 million to provide food assistance and economic support for Venezuelan migrants in Columbia. 
This reality stands in stark contrast to the growing legacy media stories that have appeared since the scandal broke. They paint a picture of USAID funding for desperate people in third-world countries in need of food assistance and medicine.  There has been no coverage of the OIG and GAO reports.

The media complicity has given cover for Democrats to spend political energy haranguing unelected "billionaire" Elon Musk for the revelations. The oligarchs are ruling Washington, they shout in defiance. Where's the outrage for USAID's wasteful spending of taxpayers dollars? Crickets. 

Democrats are targeting Musk as the villain because they endorse USAID's funding of social issues.  They are furious Musk exposed the foreign aid boondoggles. 

USAID Defenders 

USAID defenders make the case that the DOGE examples of millions of dollars of waste only amount to a fraction of the agency budget. Excusing a "little" misuse of funds is an example of Washington's hubris. Massachusetts Senator Elizabeth Warren reflects the Democrat Party's attitude:

"There is nothing in the constitution that says ordinary Americans have a right to see what we're spending tax dollars on," she said. Actually, Article 1, Section 9, Clause 7 of the Constitution requires the government to publish regular statements about how taxpayer money is spent.

Secretary of State Marco Rubio has made it clear he intends to fold USAID into the State Department, thus ending the agency's autonomous operation.  The secretary wants to continue foreign aid, but with more oversight and funding supporting the administration's objectives. 

Referencing the USAID, the president said "the American's people's money must be spent to advance their priorities, not line the pockets of contractors or to maintain projects that don't work." Typical Trump, overstatement? No, that quote is from 2009 and the president was Barrack Obama.  

No government agency no matter how noble sounding its name or mission has the right to fritter away taxpayer dollars. By defending the indefensible, Democrats are showing they are out of touch with average Americans who expect efficiency, transparency and accountability in their government.   

Monday, February 3, 2025

The Resistance To Cutting The Federal Budget

Howls of protest erupted after President Trump temporarily paused federal spending to ferret out waste. A hyper-partisan cacophony in Washington claimed it was practically unAmerican to fiddle with funds that Congress had already approved as part of the 2024-2025 fiscal year budget. 

Trump's move is a precursor to the upcoming budget battle, the defining issue of his first term.  Expect a fear mongering campaign orchestrated by the media and Democrats to cast spending reductions as a threat to the poor, veterans, seniors, the unemployed and low income Americans. 

However, ignoring the federal spending binge is no longer an option. The budget ballooned to $6.75 trillion for fiscal year 2024, resulting in a deficit of $1.933 trillion.  For perspective, spending increased 45% in just a single year from 2019 to 2020, nearly 20 times the average of the previous four decades.

Deficit spending has hiked the nation's debt to more than $36.2 trillion. America's indebtedness is increasing $5.93 billion every day.  The current budget contains $952 billion allotted to servicing the debt. Interest payments on debt amount to 13% of the federal budget, eclipsing defense spending.

No amount of Congressional caterwaul should deter the Trump Administration from surgically removing pork and waste from the federal budget.  The president's Department of Government Efficiency (DOGE) is already serving up ideas to trim the fat, a lightning rod for Democrat resistance.

In its first move, the DOGE budget cleaver severed more than 104 diversity, equity and inclusion (DEI) related contracts at 25 federal agencies, saving taxpayers more than $1 billion. A total of 21 Treasury Department contracts were ended, saving $25 million in a single agency.

Democrat naysayers who huffed that shaving the federal budget was next to impossible were left red-faced. The irony is that the party of big government once championed slashing federal spending when Democrat Bill Clinton occupied the White House. 

Clinton launched a National Performance Review, nicknamed REGO, beginning in 1993. During his first term, the effort yielded a 180,000 reduction in federal government employees through buyouts and staff eliminations.  The push saved $136 billion and shrunk government to its smallest size in 30 years.

This Democrat led effort, supported by Republicans, closed superfluous government offices, cut 16,0000 pages of regulations, passed a major procurement reform bill and introduced the electronic filing of taxes, saving millions of dollars. The endeavor helped balance the federal budget. 

Trump's effort will fail unless there is the same bipartisan offensive. However, little progress will be made if lawmakers refuse to touch so-called mandatory spending, which includes Social Security, Medicare, Medicaid, food stamps, unemployment compensation and other safety-net programs.

These programs comprise about 66% percent of the federal budget and run on automatic pilot.  Each fiscal year the costs escalate as more people are added to the rolls of these programs.  Elected officials fear reprisal from voters if they even hint at addressing these programs.

There can be no significant reduction in spending without snipping at these entitlement programs. 

As just one example, the welfare roles have not shrunk one iota despite the jobless rate falling from 6.3% at the start of the Biden presidency to 4.1%.  Some 84.6 million individuals are enrolled in Medicaid, about the same as 2020. Another 42.6 million Americans receive food stamps, same as 2021.

More Americans are working yet social programs haven't seen a decline. The explanation is that the Biden Administration allowed Democratic states, such as California, to ease eligibility requirements for Medicaid funds to pay for other social spending, such as homeless housing.  

Biden bureaucrats also boosted food stamp allotments and waived work requirements for able-bodied adults.  The Wall Street Journal calculated that by simply returning to pre-pandemic Medicaid spending levels (adjusted for inflation) it would generate more than $1.4 trillion in savings over a decade.

The Congressional Budget Office (CBO) provided a range of options in December for carving addressing the federal budget, including changing cost-sharing rules for Medicare, reducing Medicare's coverage of bad debt and instituting new work rules for Social Security disability applicants.

There are a plethora of ways to place the federal budget on a diet, if Congress will act with courage.  For example, ending corporate welfare would save hundreds of billions of dollars that lawmakers regularly use to curry favor with big donors, lobbyists and industry special interest groups.

A 2022 bill known as the CHIPS and Science Act earmarked $53 billion for the country's semiconductor manufacturing industry.  One of the chief beneficiaries was Intel, which raked in $7.865 billion in taxpayer funds.  The money was supposed to create tens of thousands of jobs.

How well did that work out?  Intel announced recently it would layoff 15,000 employees, about 15% of its workforce.  A series of manufacturing missteps, the AI boom and a weak sales outlook was blamed for the layoffs.  Government has a checkered track record of funding private sector ventures. 

The so-called green energy bill, ballyhooed by the Biden Administration, shelled out $391 billion to invest in a variety of private businesses engaged in the manufacturing of solar panels and wind turbine components. Like most corporate largess, there is no accountability for results.

Another windfall for the green energy industry is tax subsidies.  The original price tag for this corporate welfare was $271 billion over 10 years.  The Biden Administration's last estimate projected a 170% jump in costs for the industry gift which was included in the laughably named Inflation Reduction Act. 

Unless Congress reins in spending, the United States is hurtling towards the debt cliff.  Mushrooming deficits and debt are unsustainable, approaching levels of third-world countries. Taxpayers should hold their elected representatives accountable for stopping the budget madness.