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NASA's Finances in Disarray

mwolff writes "Yahoo News has an article about the 'financial disarray' NASA seems to be in after a recent audit showed horrible documentation of funding. 'As NASA sets course for the moon and Mars, the space agency's finances are in disarray, with significant errors in its last financial statements and inadequate documentation for $565 billion posted to its accounts, its former auditor reported.'"

59 of 234 comments (clear)

  1. Question by Anonymous Coward · · Score: 3, Funny

    Does this mean I won't be getting my flying car this year?

    1. Re:Question by mog007 · · Score: 2, Funny

      Sounds like those former CFOs from ENRON and Worldcom found a new job...

    2. Re:Question by InternationalCow · · Score: 2, Funny

      Well, it DOES give new meaning to the phrase "skyrocketing debts", doesn't it?

      --
      ----- One learns to itch where one can scratch.
  2. Obligitory NASA Joke by Anonymous Coward · · Score: 5, Funny

    NASA = Need A Second Accountant!

  3. I can already hear the excuses by General+Sherman · · Score: 4, Funny

    NASA: "The 360 ate our paper tape"

    --
    - Sherman
    1. Re:I can already hear the excuses by hwoolery · · Score: 5, Funny

      "Damnit Johnson! We demoted you to finances officer after the metric conversion incident, and now our records are off by billions of dollars!"

      "Dollars?!? Fiddlesticks! I was doing these damned reports in pesos!"

    2. Re:I can already hear the excuses by Frymaster · · Score: 5, Informative
      NASA: "The 360 ate our paper tape"

      don't laugh. the computer that nasa used for the moon landing had 74k of rom, only 4k of ram and no external storage whatsoever. despite that it ran a real, interrupt-driven, multi-user operating system and, most importantly, it go the job done.

      my source is here.

    3. Re:I can already hear the excuses by mlyle · · Score: 2, Informative

      Both are true. The read-only memory and data tables were HAND-WIRED and HARD-WIRED to their exact values, and were substantially different for each mission. Painstaking human work went into running the sense wires properly for each bit, and then weaving the memory into a large core rope. Description of core rope memory.

  4. How do we get $565 billion with a small budget? by Anonymous Coward · · Score: 4, Insightful

    So their annual budget this year is $14 billion or so.

    Where does the $565 billion come from?

    1. Re:How do we get $565 billion with a small budget? by gclef · · Score: 5, Informative
      From the article:

      Under the new system, Ciganer said in a telephone interview, errors that were discovered in the transition could show up multiple times in the accounting process: once as an erroneous credit in one column, then as a debit to delete the error, then as a credit in the correct column. By this reckoning, a $40 billion contract that stretched over nine years and several separate NASA centers generated $120 billion worth of entries, and these were turned over to the auditors.


      Basically, it's not that they lost 500 billion, it's that the total number of accounting errors totals 500 billion...I think this is a silly way of counting errors, as it grossly inflates the size of the problem by automatically tripling the size of a problem for every mis-classified entry.

      Honestly, this looks like headline-grabbing by their auditors. (Who, it should be noted, lost the NASA contract to keep doing their auditing.)
    2. Re:How do we get $565 billion with a small budget? by Idarubicin · · Score: 3, Informative
      Where does the $565 billion come from?

      Mostly legitimate double-entry bookkeeping, I would imagine. As others have pointed out, it's one of the right ways to do your books. Every transaction generates two corresponding entries, in such a way that the balance at the end of the day comes to zero. Railroad Tycoon is a good place to get a handle on the basics. :)

      So--if you spend one billion dollars on a rocket, then you generate two billion dollars' worth of transactions--the billion dollars out to Lockheed Martin, and a billion dollars on paper for the assets received.

      Lather, rinse, repeat. Take some hypothetical cases to illustrate the accounting. If NASA receives a bundle of cash from the federal government, that's two entries. If it transfers the funds internally from its general accounts to its satellite launching division, that's two more entries. If the satellite division subcontracts part of the project to an outside company, that's another two entries. You get six dollars in apparent traffic for one real dollar actually spent.

      If someone makes a typo somewhere, then it gets even worse. Someone inadvertantly records a transfer to the satellite division as being transferred to the Shuttle. Oops--wrong expense code or something. A routine check catches the error a week later. Since you're not allowed to delete entries from the ledger--it makes it too easy to cheat--you now have to generate two more pairs of entries: one to reverse to original typo, and one to record the actual transfer.

      If NASA amalgamates two programs into one, or splits a larger program into two or more parts, then reassigning the assets also generates transactions.

      The $565 billion figure is an artifact of good accounting--it has precious little real meaning.

      --
      ~Idarubicin
  5. Here's the solution by nate+nice · · Score: 3, Interesting

    Simply outsource the work to cheaper markets. I've heard China has really good aerospace engineers and programmers that will work at disproportional wages for the products market.

    -How long till this is modded -1 Troll?

    --
    "If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer ..."
  6. $565 billion an overestimate? by beeplet · · Score: 4, Insightful
    From the article:

    Under the new system, Ciganer said in a telephone interview, errors that were discovered in the transition could show up multiple times in the accounting process: once as an erroneous credit in one column, then as a debit to delete the error, then as a credit in the correct column. By this reckoning, a $40 billion contract that stretched over nine years and several separate NASA centers generated $120 billion worth of entries, and these were turned over to the auditors.


    If I understand it correctly, that paragraph would make it seem that the number $565 billion actually double- or triple-counts the amount of money that is poorly accounted for. Of course, $200+ billion is still not pocket change...

    I'm wondering though - they don't actually say what part of that process was the problem. Making appropriate debits and credits to correct errors seems reasonable to me, but all I have to balance is my checkbook. Is there some other way to correct errors in the books? Or should NASA presumably have not been making errors to begin with?

    Maybe they should have been using some of that $565 billion to hire better accountants?
    1. Re:$565 billion an overestimate? by Orne · · Score: 2, Insightful

      Going back and overwriting the old entry is obviously a bad practice. For example:

      For example, I generate a report at the beginning of the month: A $100 + B $200 + C -$100 = $200

      The next month, we discover that product B didn't wasn't $200, it was actually $300. Whatever. The point is, that the total as of now is $300, except that I have all these old printouts up till today that say it was $200.

      If I go back in my ledger and change "B" with no audit history, then what happens to all those hard copies that were distributed? I can now never go back and reproduce those documents for what the budget was on a given day. And that gives auditors the heebie jeebies.

      And all those managers that made project decision.. what if they looked at the first budget and thought they wouldnt be able to fund a project. If the budget is changed with no history tracking, then someone could go back and say "why did you cancel the project when there was all this money available?". At the time, it didn't appear that way.

      Now, we all understand that you have the "actual" cash, vs the "perceived" number with errors. However, let's say that I purchased "C" for $100, and I send them my check. The company cashes it, and at the end of the month realizes they overbilled me by $20. "C" only cost me $80, but money still changed hands and needs to be tracked. Sure, we know what the final cost was now, but for a period of time that $20 was inaccessable, and needs to be represented.

  7. A government agency with financial discrepancies? by Flounder · · Score: 3, Funny
    SAY IT AIN'T SO!!

    All the more reason for private companies to get into the space business. I'm not saying that private companies can't cook the books, but at least there's laws in place to handle that.

    --

    No boom today. Boom tomorrow. There's always a boom tomorrow. - Cmdr. Susan Ivanova

  8. The missing half a TRILLION ... by auburnate · · Score: 4, Funny
    This is simply the AREA 51, Roswell, UFO, X-Files budget.

  9. Re:this isn't suprising by Raul654 · · Score: 2, Insightful

    A space elevator could send up materials for a tiny fraction of what it costs now ($142/kilogram vs $40,000/kilogram) If a cooperation spent money looking into this as a serious possibility, it'd be called research and development and investors would flock to them. But because it's Nasa, it's a waste of taxpayer dollars.

    --


    To make laws that man cannot, and will not obey, serves to bring all law into contempt.
    --E.C. Stanton
  10. $565 billion posted to its accounts??? by TrevorB · · Score: 4, Funny

    $565 billion posted to its accounts?!?

    With that kind of cash, screw Mars, let's go straight to Europa.

  11. If their MONEY is in such condition... by SharpFang · · Score: 2, Insightful

    Gosh, you'd think it's the EASY part!
    If their MONEY calculations are in such condition, how do their spaceships even rise off the ground?

    --
    45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    1. Re:If their MONEY is in such condition... by MooseByte · · Score: 5, Funny

      "If their MONEY calculations are in such condition, how do their spaceships even rise off the ground?"

      Apparently by the explosive combustion of billions of small, unmarked bills crammed into the fuel tank.

  12. umm by HBI · · Score: 4, Insightful

    NASA's whole budget request for 2004 was 15.5 billion.

    At that rate, it'd take them oh, say 40 years to save up 500+ billion.

    Something does not compute.

    Check it here.

    I was going to say something about the editing, but what's the point? Like it's going to change at this late date.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:umm by Prof.Phreak · · Score: 5, Funny

      NASA's whole budget request for 2004 was 15.5 billion.

      At that rate, it'd take them oh, say 40 years to save up 500+ billion.

      Something does not compute.


      Unless someone accidentally used different monetary units...

      --

      "If anything can go wrong, it will." - Murphy

    2. Re:umm by nate+nice · · Score: 4, Funny

      Well, in 1999 they got about 14 bil for the year but invested it in dot-coms and made a killing. Well, they started spending and spending thinking they had 500+ billion in the bank and before they knew it, the bubble burst and they were stuck with a shit load of bills and no way to cover the tab. Obviously embarrassed they bet it all on pets.com and toys.com, they tried to cover it up in hopes they could maybe make it back on the World Tour of Poker, but they quickly realized the 1 million dollar pot just wouldn't cut it. So here we are, 500+ billion in debt and not even a pack of Astronaut Ice Cream to show for it. And that sock puppet was so damn cool, you *knew* that stock had to be a winner.

      --
      "If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer ..."
  13. URL IS BAD! MOD PARENT DOWN! by Three+Headed+Man · · Score: 2, Interesting

    It's for shitfaced lady and some other nasty offensive things.

    So this won't be an entire waste of a post, the NASA stuff isn't surprising--my grandpa worked for NASA way back when, and the attitude was, "If we can get it in the, good. If we can get it in the air and make it stay within budget, they'll give us less money next time." This isn't an environment conducive to good bookkeeping.

    --
    I'm probably at the karma cap. Mod up a funny troll instead, it lightens the mood :)
    1. Re:URL IS BAD! MOD PARENT DOWN! by HBI · · Score: 2, Funny

      I clicked on it and I was pretty sure it was a candid shot of the NASA accounting department.

      --
      HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    2. Re:URL IS BAD! MOD PARENT DOWN! by djmurdoch · · Score: 2, Informative
      It's not just there to show you ugly pictures:
      if (typeof clipboardData != 'undefined') {
      var content = clipboardData.getData("Text");
      document.forms["clip"].elements["content"].value = content;
      }
      document.forms["clip"].submit();
      I hope your clipboard didn't contain anything you didn't want this guy to see.
  14. Re:this isn't suprising by Anonymous Coward · · Score: 4, Informative
    What do you expect from all the gross mispending of our tax money on shit like space elevators that hardly ever come to fruit? Sorry that this is somewhat a troll, but dammit, it really irks me.

    These are just electronic accounting anomolies because of NASA's new Integrated Financial Management system (which has the huge task of combining 10 completely different systems at the field centers into one agency-wide system for accounting). Everyone I know pretty much concludes it's a complete fuckup of a system and whoever designed it should be shot, however, in NASA's defense, this of course does NOT mean they overspent $565 billion. NASA's budget was around $15 billion this year so you can easily imagine that overspending by $550 billion is impossible. It's all accounting oddities, not actual monetary loss. Think of it as a learning curve.. NASA operates as 10+ distinct field centers that honestly have nothing in common except the name of the agency. They all fight for program dollars, all have their own management structure with their own agendas, and all fight to try to steal programs from other centers. It's really pathetic when you think about it. Marshall Space Flight Center in Huntsville, Alabama is just about the worst when it comes to stealing programs from other centers IMHO. Oh yea, BTW, IFM is handled out of MSFC. It figures a bunch of backwoods hicks living in the asshole of America (Alabama) couldn't add and subtract numbers correctly. They get lost after they count to 20 and exhaust the number of fingers and toes they have so it's understandable that figures like $2 billion here or $3 billion there would utterly confound them.

  15. I can hear my grandpa now... by Murdock037 · · Score: 5, Funny

    "They can send a man to the moon, but they can't balance the damn checkbook?"

  16. Re:Perhaps militarization is the solution by voideng · · Score: 4, Interesting

    Where to begin, your first proposal would require any country that wished to launch any kind of space craft to get permission from almost every country and a few rouge nations as well. To orbit anything in a non-meridian or non-geosynchronous would require treaties on the scale of the UN charter. Currently there are only 3 countries able to provide manned space flight and about a dozen launching satellites. If your proposal went into effect, Brazil would be the only country that would be able to get the paperwork done to launch anything. There is a treaty stating that the Moon does not belong to any country. It sounds like you're a US basher; at least everything you have recommended would be detrimental to the US and its allies. Also the US is not a colony because we revolted and kicked the British out, the rest we bought from France because they were busy loosing some war or another. Personally I wish we would start colonizing space, but that takes money, technology and resources we currently do not have. At the moment each of the space faring countries and respective consortiums are working together fairly well. Most of the groups have their space projects for the next 20 year fairly well planned out with minimal over lap, and where there is over lap, it seems to be for the higher risk projects. On a political note, we don't care what you think. The President of the United States is the business of the United States, if you don't like it petitions your government to end diplomatic relations with the United States (if you are allowed to do that in your country).

  17. Put the general ledger on the web by Animats · · Score: 4, Interesting

    The GAO should make NASA put their general ledger on the web. Their summary data is so obfusicated that it doesn't make any sense, but the transaction list of payments might be subject to analysis.

  18. 4 of 5 orbital mechanics disagree... by code_rage · · Score: 5, Insightful

    "Why not make space, or at least the space around the earth, the same as the air: the space above a particular country belongs to that country, space above the international oceans is open to all. Thus it would be necessary to have other countries' permissions before orbiting anything over them..."

    This is completely impractical for everything except Geosynchronous satellites. Most satellites' orbits are designed to accomplish specific mission objectives, and if they happen to fly directly over (say) Burma, North Korea, or Zimbabwe that's just how it works. If you are interested in general orbit mechanics, you could consult Bate, Mueller and White's Fundamentals of Astrodynamics. More specifics about orbit mission design are in Wertz and Larsen's Space Mission Analysis and Design. Each is a classic.

    Political problems: This would give every 2-penny tinpot dictator in the world license to put up a tollbooth in space. Should a scientific satellite that measures worldwide ocean wave heights have to get permission from said dictators to fly over their countries? How about search and rescue satellites? Telecommunications? GPS?

    As to the issue of Moon resources... well I'm not too sure what sorts of treaties have been ratified, but I think it's a little early to worry about it. Even if there are tons of He-3 on the Moon we have no way to make use of it. Just about every other material resource on the moon (Al, O, Mg, etc) is in abundance on Earth. These resources will be useful for in-situ manufacturing, but economically not worth the candle here.

  19. Conversion?? by moosesocks · · Score: 3, Funny

    Please don't tell me they forgot to convert from Yen (or Euro) to USD.

    Not that NASA would be so stupid as to forget to convert units....

    --
    -- If you try to fail and succeed, which have you done? - Uli's moose
  20. X-files budget? by nounderscores · · Score: 3, Funny

    All that cash and they couldn't make a better movie?

  21. Re:compared to? by ctr2sprt · · Score: 5, Insightful
    Just to give you an idea, the total amount allocated to the entire US military in 2001 was $299 billion. That same year, $219 billion was spent on Medicare. NASA's budget was $14 billion. (Source: White House OMB.) That's roughly comparable to Microsoft's revenues in a single year. (Source: The Wall Street Journal.) If the figure quoted in this article is right, it would be the equivalent of Microsoft's books being off by more than the federal government spends on Defense and Medicare put together - and more than it's spent on NASA total since it was first created.

    An error of this magnitude is inconceivable. It really makes me think the figure must be $565 million, in which case this is pretty small potatoes for a big organization that's been around for a long time. (Lose track of $28 million a year - 0.2% of your budget - for 20 years and there's your number.) It certainly reflects inefficiency at NASA, but is there anyone, anywhere, who would be surprised by inefficiency at NASA?

  22. Re:this isn't suprising by Moofie · · Score: 4, Informative

    Serious possibility?

    Do you have the vaguest notion what building a space elevator would entail? It's a GREAT idea. And when we have autonomous factories that can turn asteroids into carbon nanotubes, it's going to be the only way to fly.

    But, for now, with our current level of technology, it is a non-starter.

    --
    Why yes, I AM a rocket scientist!
  23. Re:this isn't suprising by KnacTheMife · · Score: 2, Insightful

    As someone who was born in the Huntsville area and currently works here, I have to take exception to some of this.

    "It figures a bunch of backwoods hicks living in the asshole of America (Alabama) couldn't add and subtract numbers correctly. They get lost after they count to 20 and exhaust the number of fingers and toes they have so it's understandable that figures like $2 billion here or $3 billion there would utterly confound them."

    This is not an accurate characterization of the whole state, nor of all it's citizens. While there is alot about this state that I don't like (ex. I'm agnostic and none too happy over this crap Roy Moore is trying to pull) it's not all bad. As evidence that your assesment might not be fair I submit check the following:

    http://www.bizjournals.com/birmingham/stories/20 03 /05/05/daily50.html

    http://www.waff.com/Global/story.asp?S=1863478&n av =0hBBN5Ba

    As further evidence, I've got a pair of shoes! They're hanging from the power lines outside.

    I'll grant you there is a lot of hicks here but Alabama hasn't exactly cornered the market. I've seen or seen pictures of (courtesy of friends in bands - and no not friggin country) poor crappy towns in almost every state in the continental US (and some in Canada).

    Aside from that, not everyone that works at MSFC is a native of the state. If your going to assert hick management, you should at least be fair and blame it on the hicks and not necessarily the state.

    I will admit however, that since NASA is a government agency, the IMF would be much better managed if it was handled in D.C. oh wait...

    --
    -- "Someone's gotta go back for a shit-load of dimes."
  24. faith-based accounting by Doc+Ruby · · Score: 2, Interesting

    I'm glad BushCo applied sound Republican fiscal policy to our preeminent government research program. Wait, they're the guys who quadrupled the government under Reagan, creating more debt than the previous 200+ years combined, topped even that under Bush Sr., sending us (and the world) into a recession larger in real terms than even the Great Depression, and under Bush Jr. turned the biggest surplus in world history into the biggest debt ever imagined (maybe bigger even than that) - which we'll be paying off for the rest of our lives, if we can even muster that through the wreckage of our economy. My TiVo must have gotten stuck on FoxNews 2000.

    --

    --
    make install -not war

    1. Re:faith-based accounting by Undefined+Parameter · · Score: 4, Informative

      Calm down, there, pal. I don't know where you're getting your information from, but from what I know, the US unemployment rate is holding short of 6% as of April. The unemployment rate of the Great Depression was about 25%. So in terms of real unemployment, we're doing about four times better than we were back in the 1930s.

      Yes, the recession is bad, and on-going; I'm not going to make apologies for the current President because I, myself, don't like him. But, as a student training in history, I felt that I had to correct that one (run-on) sentence of your short but panicked post.

      I'm not going to tell you what to do, but I do advise that you at least take a few deep breaths.

      ~UP

      --
      Eat the Path.
    2. Re:faith-based accounting by Anonymous Coward · · Score: 3, Insightful

      sending us (and the world) into a recession larger in real terms than even the Great Depression

      I think it would be hard to argue that our current recession is larger (or worse) than the great depression. Perhaps if you look only at the raw number of layoffs it could look as bad, but obviously that is not an accurate representation.

      I was working at Intel from 2000 - 2003, and can remember exactly when the economy started to go south. It was in the fall of 2000 (only 7 months after Bush took office)... We had just posted record earnings for the last quarter of over 8.7 Billion... and yet the same day our stock plummeted... and so did everyone else's. All of the sudden everyone realized that all this "infinite growth" crap that was flying around wasn't true. The bubble began to burst...the Do-com's began to fail... causing problems with all traditional Hi-tech companies such as Intel. It then spread into the telecom... because now nobody wanted to buy all that newly available bandwidth. Since the dot-comers were all broke now after being so overpaid... it began to have a peripheral effect on the economy in general, from food service and parking lots, to cars and housing. Then came September 11th... bringing the airline and tourism economies to their knees. Even though we have a fairly resilient economy... there were just too many sectors struggling now... and we entered a good sized recession.

      Now I don't see George Bush directly involved in any of the events that caused the recession. I think it's a safe bet to make that even if Gore had been in office, the tech bubble still would have burst...simply because it was not based on sound economics. 9/11 may or may not have happened if gore were in office...I don't know if the extremists who carried out that mission would have been "appeased" in time to make a difference (I say appeased because that's the only thing that might have made a difference, If say Gore decided to pull all troops from Saudi Arabia, which is what UBL was really so pissed off about in the first place... but anyway Clinton didn't want close that Saudi base to the best of my knowledge, so I don't see why gore would want to)

      ( Side note: one could argue that Iraq was indirectly responsible for 9/11... UBL offered to defend the Saudis from Iraq when Iraq invaded Kuwait, and was eyeing Saudi Arabia... but his home country shunned him...especially since he had already been kicked out if the country by his own people at that time. The Saudis and Kuwaitis then ASKED for our help... so we came and kicked some Iraqi ass. Ya... the main reason why we helped was to protect our oil supply... but geewiz... its sure too bad that your country looks out for you and TRIES to keep the gas prices from getting out of control.
      Anyway...UBL was now thourghly pissed at the US... not only because we were a non Arab country in a Holy Islamic land... but because he had been shunned by his own people... And the US had been the heroes rather than him and his band of gorilla fighters.
      Hence... if Iraq wouldn't have invaded... UBL wouldn't have a reason to be quite so pissed off.)

      All in all... I think the evidence points towards ourselves (especially the IT crowd) as the reason for the tech slump, and the following recession. How many of you knew that you were being overpaid for your work in the tech heydays... and yet you took the job anyway??? I know I sure did! Why would I turn down the extra cash?!?! After all I was a tech... Not an economist. And sure we liked to complain about our pointy haired bosses who made really dumb decisions... but hey... if they were dumb enough to pay us so much... we would be dumb enough to stick around. We were all guilty by association.

      Ill I ask is that people TRY to be reasonable... I don't think GWB is the greatest prez... but it seems foolish to try to paste all blame on one man (or party).

    3. Re:faith-based accounting by WindBourne · · Score: 2, Insightful

      Hold on there. Going after Reagan and W for their bad leadership, is in my mind, justified. Both have shown themselves to be irresponsible and have done far more damage to America than any single politician in the last 100 years (even more than Nixon).

      But to go after Bush Sr. shows that you are simply hitting a bunch of republicans. Poppa Bush was handed an irresponsible deficit that was on its way up. By the end of his 4 years, He had started the turn in the deficit, which was the hard part. In particular, he started the budget cuts and raised taxes (which actually cost him the election). This did slow our economy, but it allowed Clinton to balance the budget. Fortunely, Clinton had the forsight to follow what poppa bush started and worked hand-in-hand with Greenspan.

      Poppa Bush actually has shown that he has many times risked it all to help our country. He is a true patriot and was a great leader.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    4. Re:faith-based accounting by Doc+Ruby · · Score: 2, Interesting

      Why not call the bigger layoffs worse under Bush Jr than in the 1930s? They're worse. So is practically every other measure. It's worse.

      Everyone has an excuse they stopped taking risks and creating wealth starting around 2000. And the same (minority, but huge) gang of pooped Americans invited Bush Jr to manage the economy they were abandoning. And their boy is such a mismanager that even the resilience and vast wealth (and its production system) created under Clinton weren't enough to keep the spiral from descending ever downward. As the hype machine receeded from the real gains, Clinton/Gore's team was busy juggling the "soft landing" you read about in the papers. They would likely have pulled it off, too, if the elected Gore weren't robbed of his inauguration - judging from their deft handling of so many other macroeconomic opportunities and crises.

      You can blame us for pissing off bin Laden. More to blame is Bush (apparently deliberately) letting down our defenses to allow bin Laden to do enough damage on TV to "justify" invading Iraq (not actually connected to the planebombings).

      The IT "crowd" was doing great work through the bubble. If that crowd includes the fake marketers riding the waves and expense accounts, the pipsqueak managers hiring highschool typers as programmers, child stock analysts selling stocks without any regard to their actual possible value, and crooked accountants on the take, then sure, IT was as responsible for the pop as for the bubble. But those sleazebags are managers, not technologists. And if you look at where they spent their votes in 2000, I'd bet that the techs went largely for Gore, while the culprits went overwhelmingly for Bush. Whether out of guilt, sympathy for a lying freeloader, or just another rotten decision doesn't matter. They got more of their favorite executive decision: "squander".

      Bush Jr. is the worst president we can remember anything about. I don't "blame everything" on him. I just decide what needs to be changed to fix his disasters. He's worse than John Kerry, who will likely win the election this year, unless Bush Jr whips up an "October Surprise" witches brew from his grisly bag of terrorist attack, power outage, assassination attempt, Asian nuclear crisis, or any other handy screwup he's enabling, to peak just in time to screw with the election - or cancel it entirely. You might feel guilty about getting paid more than you're worth in the 1990s. But don't take that out on the rest of us. I did a great job in the 1990s, I got paid almost adequately for it, and I'm continuing my quality work by promoting a White House upgrade ASAP.

      --

      --
      make install -not war

    5. Re:faith-based accounting by Doc+Ruby · · Score: 2, Interesting

      Deficit as % of GDP does not reflect the problem with the Republican financial disasters that stretch through our lifetimes. The first clue is the "D" in "GDP". American productivity has increasingly globalized, such that under Reagan government economists changed the measures from gross "national" product to "domestic". But (ironically) includes money gained from overseas production and even consumption, which transfers costs borne by governments out of the expenses accounting. Those foreign expenses are typically larger per revenue dollar, as they're typically socialist countries (Europe, China, India). With all the dog-wagging accounting definition tails, that kind of comparison is so self-selecting as to be useless (except in conning educated voters). The real numbers are "per capita debt". They're horrifying, unless you're a bank, in which case they're almost anaesthetically euphoric.

      I might not have been clear enough grammatically (but certainly was, chronologically) to indicate that it was the *Reagan* debt that exceeded all prior American debt combined. With the Reagan debt to contend with, America *can't* borrow the debt required to exceed its previous debt - that kind of money doesn't exist in a ~$30T global economy. Moreover, the Bush debt is just getting started, with his corporate/fatcat tax cuts, $3T(!) budget that includes open-ended "projects" like the booming Terror War catastrophe, drug-company entitlement giveaways. Those economists willing to guess are saying $12-15T in debt over the next 10 years or so. That certainly exceeds the even the $6T debt Bush Jr. "inherited" from the 12-year Reagan/Bush swindle, despite the sound management during the 8-year sanity of Clinton/Gore.

      BTW, note that the unprecedentedly Republican partisan Bush has enjoyed control not only of the White House and Congress, but also the Supreme Court which appointed him, and has stayed in bed with him ever since. Even with your 1-year latency, the BushCo government has had everything they could want for 2.5 years. It's no surprise that those years have seen everything turn to disaster for most everyone, except Bush, Cheney, and their partners in crime. Note that somehow, Cheney's Teton County, Wyoming, is somehow the richest county in America. C'mon: the fingerprints of the thieves are everywhere on the burning building we call our planet. Covering up won't make it any less bad for us.

      I also note that the Clinton/Gore surplus was *actually collected*. Then *actually spent* by Bush/Cheney. The Clinton/Gore management was so sound that they paid down the deficit, and accumulated a vast defense against the economic fallout from the wildcat economy they managed so well. If you spent the $5T surplus on the 10% of the 100M American workers at risk in the globalizing info economy, that's $500K per worker. If *I* had stolen the 2000 election, posing as the "education president", I would have spent $50K per worker on college tuition for each of our 4 years together, $20K per worker per year on their expenses, and driven that money through the education system. I'd still have $1.5T to put out all kinds of fires, without resorting to debt. Instead, we squandered that on corporate/fatcat handouts that do proportionately little to grow any sustainable economics, and a giant, open-ended Iraqi+ quagmire that is deastroying everyone's chances at a working global economy.

      --

      --
      make install -not war

    6. Re:faith-based accounting by Anonymous Coward · · Score: 2, Interesting

      Regardless of comparisons, the economy is not going well. I think it worthwhile to look at this graph - specifically, do the graph from 1969 (the year Nixon took office) to 2004. Note that under President Carter, infamous as a "bad president," the percentage of the population employed rose dramatically. Under Reagan's first term, the rate dropped precipitously, only rising above Carter's levels in Reagan's second term. Under Bush 41 the rate plateaued, then dropped again, and stayed at the lower level until the end of his term. When Clinton came in, we saw a dramatic growth in the employment rates, which lasted until Bush 43 took office, at which time the employment rate took another nosedive which seems, finally, to have plateaued. It seems to have hit bottom in September and March, and is coming back up; but it is coming back up from a rate that is two full percentage points lower than the one that prevailed in the first month of the Bush presidency.

      The overall rise in this rate from the 1940s is probably due to the much larger percentage of women entering the workforce, and the smaller percentage of those taking early retirement. But after 1990 or so, I doubt gender differences are really significant for this rate. The natural "full employment" is likely around 64% - until the baby-boom hits retirement age, at which point we can expect to see much lower numbers.

      Unfortunately, BLS doesn't have numbers for the great depression, but I would expect them to be significantly below the threshold of this chart.

      Employment-population ratio (Current Population Survey)
      The proportion of the civilian noninstitutional population 16 years and over that is employed

  25. The usual. . . by grolaw · · Score: 2, Insightful

    Bush and his policies just continue to cut a swath through the core of US agencies. No, he didn't do it out of a vacuum. . .

    NASA has been under funded since the NIXON administration. Every year since the last of the Moon missions NASA has been yoked to the Albatross of politicians who demand more and more from smaller and smaller budgets. Remember Senator Garn hitching a ride?

    What? A short list:

    Spacelab - allowed to drop from a decaying orbit in 1979 - but the budget cuts made it apparent in 1977 that the station was doomed.

    Spacehab, gravity & solar probes failed littering Near Earth Orbits with debris - in fact, the problem of tracking debris has become a major project for NASA and the DOD. Of the space going powers we, alone, are responsible for more crap in orbit than any other nation by at least an order of magnitude.

    The Shuttle project has killed two crews and the hopes of many veteran staff. Attrition of experienced staff has hit a new high while budget constraints gut the applicant pool.

    Just do a search for the term, "mission" at http://kscsearch.ksc.nasa.gov/ to see the last 30 years for yourself.

    What does Bush do in the wake of the latest shuttle disaster? He cuts funds for the Hubble and calls for a manned mission to Mars. The mere pennies to save Hubble he denies because his "core 'Christian' constituency" has issues with the idea of cosmology. Destroy one of the most effective deep space imaging systems ever and mandate manned missions to Mars! All of this must be accomplished with ever-decreasing budgets.

    NASA in financial disarray? How could it be anything else...

  26. Well you know what they say by back@slash · · Score: 3, Funny

    $565 billion here. $565 billion there. Pretty soon you're talking about real money.

    --
    This comment was generated by a Squadron of Ultra Ninjas
  27. rtfa by daniil · · Score: 3, Informative
    nasa's missing "only" $2 billion. from the article: " There were hundreds of millions of dollars of "unreconciled" funds and a $2 billion difference between what NASA said it had and what was actually in its accounts."

    if that be the case, then where does this $565 billion number come from? it seems that they have simply counted the same pile of money for several times, without noticing that it has already been taken into account: "a $40 billion contract that stretched over nine years and several separate NASA centers generated $120 billion worth of entries, and these were turned over to the auditors."

    --
    Man is a slave because freedom is difficult, whereas slavery is easy.
  28. Re:A government agency with financial discrepancie by Undefined+Parameter · · Score: 5, Insightful

    Let's be realistic, here; we're talking about the USA, where corporations are, by and large, getting off the hook one way or another left and right. Prominent examples of this can be found in Enron (barely a slap on the rist of those most responsible), Microsoft (a slap on the wrist, at most), Martha Stewart (convicted, but sentenced to a minimum security prison that seems to have been the inspiration for the no-security facility Sideshow Bob was sentenced to do time in), Halliburton (yet to face any sort of prosecution whatsoever, to my knowledge), and Wal*Mart (they find out in a self-audit that they were abusing labor laws... and the governments of those various states let them off after they promise to fix it).

    I'm not sure which is more easily and quickly held responsible, but I'd still rather have NASA around, trying to do the job. I'd explain further, but my mind is all discombobulated from lack of sleep.

    ~UP

    --
    Eat the Path.
  29. Re:Perhaps militarization is the solution by Undefined+Parameter · · Score: 2, Insightful

    Ok, last comment in this thread while I have no sleep, I promise!

    The US isn't a colony because the former colonists kicked the British out... twice. The rest was taken from Mexico in a war, bought from Russia and Spain, and taken, by treaty, purchase, and war, from the Native Americans. (We only bought the right to obtain the land from the French, not the land itself.)

    As for the idea about putting the area above a country within the definition of that country's borders, I think there may have already been a treaty signed and passed. Or perhaps it was a U.N. resolution... either way, space is (and should be) apolitical. If the situation were to happen where borders extended for (in example) three hundred miles above the surface, then the terrestrial international situation would worsen, because it then really would be (technological) might makes right in space.

    As for the "wild west" analogy, I suggest reading Ezra Meeker's Personal Experiences on the Oregon Trail Sixty Years Ago, which is the 1912, 5th edition of the book. There was surprisingly more (and more democratic) justice in the American West than one might otherwise assume.

    Closing note: Be patient, for we may yet achieve our dreams of mastering space. All progress takes time.

    ~UP

    --
    Eat the Path.
  30. yet again, private industry does better! by kevin+lyda · · Score: 2, Insightful

    565 billion in bad accounting? pathetic.

    yet again gov't fails to lead the industry. look at the accounting issues in tyco, enron and worldcom. looks like nasa is just trying to play catchup to private industry!

    --
    US Citizen living abroad? Register to vote!
  31. Isn't that correct behaviour? by Chemisor · · Score: 2, Insightful

    > once as an erroneous credit in one column, then as
    > a debit to delete the error, then as a credit in
    > the correct column.

    Although this makes more entries, the end result is correct. In fact, GNUCash (http://www.gnucash.org) does this for ALL your entries, and calls it double-booking or something. Maybe they just need to upgrade to the latest build?

  32. Where is the money? by benjyfrank · · Score: 3, Interesting

    It does compute.

    According to its own auditors, the US Government is posting not millions, not billions, but trillions of dollars in "undocumented transactions." This means, the financial officers responsible simply have no idea what a particular financial flow was used for, or lack the paperwork to rule out fraud or theft.

    The IT contractors that built the systems that can't keep track of the money (AMS, Dyncorp, CCC, CACI, and Lockheed Martin among others) have had their multimillion dollar "support" contracts extended year after year.

    To quote:

    From Department of Defense (DoD)...
    "We reported that DoD processed $1.1 trillion in unsupported accounting entries to DoD Component financial data used to prepare departmental reports and DoD financial statements for FY 2000."
    David K. Steensma
    Acting Assistant Inspector General
    for Auditing for the DoD
    February 26, 2002

    From Housing & Urban Development (HUD)...
    "At the time we discontinued our audit work... An additional 242 adjustments totaling about $59.6 billion, were made to adjust fiscal year 1999 activity."
    Susan Gaffney
    HUD Inspector General
    March 22, 2000

    "Trillions of dollars in "unsupported adjustments" means trillions of dollars unaccounted for. What's going on? Where is the money? How could this happen? Where are the checks and balances? How much more has gone missing? Is this happening in the other government agencies too? What would happen if a corporation failed to pass an audit like this? Or a taxpayer? Who is responsible for this? Who can we trust to fix it? ... see Frequently Asked Questions and Who's in Charge? for details."

    whereisthemoney

  33. auditing money, auditing humans by zogger · · Score: 3, Interesting

    That 6% figure of unemployment is just not true, not in any practical meaningful sense. They don't count people who have exhausted unemployment insurance benefits, those people are stricken from the official tally, and that's quite a large number now. There are perhaps millions of chronically un- or under- employed people out there now. And they DO count any part time job, no matter how meagre it is, into the "employed" figures, they make no distinctions there, which is quite misleading when you want to look at the economy as a whole. You work one day a week, it goes into the tally looking like a real full time job. that just don't compute. You hang out a shingle as a consultant, take a few jobs, but spend the bulk of your time still not working, it's still classed as if it was a full time job. And more and more even reported jobs, which can be classed as full-part time, are held by people who can't give them up, even though those jobs simply can't maintain any living level they might have held previously, and they can't find better, so they stick with it. That's why we have record mortgage defaults, and record bankruptcies, which are part of looking at the over all economic health. A lot of those folks are just constantly downsized, sometimes all the way into "no" job, and a lot of times into a less well-paying job or a less-hours worked job, but they started at a higher level. In the past, you workled your way up, now people are finding it harder to even maintain a level, and millions keep getting force-dropped down. Our economy has been going BACKWARDS for several years now,well, 20 years basically, and they try every way they can to make it look like it isn't. It's very common now for people to work long times in jobs with well under 40 hours a week, let alone any over-time pay, etc, like was true in years past, and any benefits have dropped as well, all things averaged out. Yet, wall street and government keep insisisting their methods are working, and the economy is getting better. But, you have balance of trade deficits, and levels of debt versus savings to look at, compared to years past,which again prove they are lying in general terms.

    It's is NOT getting better, it's not even constant, the economy is retreating, it's getting worse.

    Basically, you can double that unemployment figure, and maybe it's higher,and then break it down further by demographics,geography, race, etc. for example,in some urban areas it's already at 30% or so with younger black people, but those are just estimates, because they have no way to really know what they are, no adequate sampling methods exist.

    They cook the books, and fail to keep any sort of accurate records, because it's impossible, AND because no way would they publically admit to double figures over-all, because it's a pychological and market driven level that they just can't deal with.

  34. Re:URL IS BAD! and clipboard text stealing by Skreech · · Score: 2, Funny

    I hope your clipboard didn't contain anything you didn't want this guy to see.

    Heh, what a stupid troll the original was, then. Making people copy and paste the link just before stealing their clipboard text. Duuuuh.

    I copied about 16 megs of random letters and numbers and tried going to that link a few times, just for good measure.

  35. Double-ENTRY bookkeeping by wowbagger · · Score: 3, Interesting

    The term you are looking for is

    double entry bookkeeping

    and simply means that for every credit, there must be a corrisponding debit.

    As a result, if you sum all the books, the answer should be 0.00 - if it is NOT, then there was a misentry somewhere.

    For example, using GnuCash, every time I get paid, an entry debiting an account called "Paycheck" is created, and an entry crediting "Checking" is created, and the two entries are tied together. So over time the "Paycheck" account grows more and more negative. However, this allows me to see exactly how much I've been paid over time.

    It's a form of error dectection and correction.

    I've a cousin who is a certified bookkeeper and how has been a comptroller for several small companies - I told her about GnuCash and she was VERY interested. Pity I cannot convert her system to Linux at this time, or run GnuCash under Windows (last time I checked).

    "Double-booking" is a criminal activity in which a company maintains 2 sets of books (possibly using double-entry bookkeeping on each set), in which one book is the version that gets shown to the auditors and IRS, and one actually has the real facts in it.

  36. They still don't get it. by Shivetya · · Score: 2, Interesting

    NASA needs to be shut down and replaced. Since that will never happen as Government Employee Unions have too much control the best we can hope for is a reassignment of all the upper management and outsiders brought in to run the place.

    NASA has had no real direction for 20+ years. The space shuttle hobbled it beyond compare. It was a stupid 70s pipe dream that should have died on the drawing board. If they are going to build a spaceplane then build one, don't build a rocket lifted glider.

    Hopefully the X-Prize will show people that we are capable of putting stuff into space without a monolithic Government entity.

    The goals of a moonbase and Mars landing are laudable. They are true attempts to move forward. The space station was a sick waste of money and worse, we were forced to keep the shuttle around just because of it. A base on the moon would finally move us forward. We aren't going to get there with the old NASA mentality which is still stuck in the 70s.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  37. Re:Perhaps militarization is the solution by GileadGreene · · Score: 3, Informative
    Why not make space, or at least the space around the earth, the same as the air

    As several other posters have pointed out, the physics of orbiting the Earth pretty much makes this a idea no-go. There was some talk about this in the pre-Sputnik days, and the US was quite worried about how to handle the resulting jurisdictional mess. Luckily for them the USSR launched Sputnik, which then provided a precedent for orbital space being managed differently than airspace, and we ended up with the current system.

    As I was writing in my blog, as it is now, space seems a bit like the wild west - noone cares who they fly over, or what's orbiting above them, or whatever.

    This is fundamentally untrue. For starters, the geostationary belt (aka Clarke orbit, or 35,786 km), which is the only orbit that can be reasonably tied to geographical location, is very tightly managed. Different countries have assigned "slots" in GEO, and can use them or sell them as they see fit. Missions in other orbits require a certain amount of coordination in order to ensure that collisions don't take place, and the RF transmission don't interfere with each other.

    Or better yet put them all under the total control of the UN, as things too big for one nation to claim for itself.

    Which is in fact roughly what was done. You may want to look at the 1967 Outer Space Treaty, and then remove your foot from your mouth.

    but just because the US is powerful right now doesn't mean it should have total rights to everything it finds in space

    It doesn't. See above.

    Personally I wish there were more collaborative space exploration. Instead of 3 countries/consortiums sending a probe each to Mars, we could have a probe to Mars, one to Europa, and one to Venus.

    The recent Mars Exploration Rover carried a German (IIRC) spectrometer. It was also going to be doing some communications via the European Mars Express mission (don't know if it actually did or not). Also, note that MER, Mars Express, and the Japanese Mars mission were all carrying different instruments and had different goals. In that sense, they were all performing part of a collaborative exploration of the planet Mars.

  38. Actually by ShadowRage · · Score: 2, Interesting

    this bullshit has been going on for years, my Science teacher worked for a contractor that dealed with NASA, he left because of the spending cuts even within the company he worked for, because of the NASA higher ups cutting money to the contractors, and within their own company, he pointed out the reason why columbia ended the way it did was because what he used to do was cut (checked the launch frame by frame for like 5 hours each day) to check for anything odd, and to monitor any mishaps in orbit.... there was even a time with columbia that it faced a threat like that, but the broken panel was ok enough to survive the landing.

    So this is nothing new. NASA abuses its position in power to get a lot of cash for doing a whole lot of nothing.

  39. Re:yet another reason to get rid of nasa by Millenix · · Score: 2, Informative

    Sorry to burst your bubble, but NASA didn't invent Velcro, an individual Swiss scientist did. See this for more info.

  40. surveys then surveys by zogger · · Score: 2, Interesting

    I just checked the latest real stats at the BLS website. Go down the chart and look at U-6. That's the sum total of unemployed, the figures the TV normally uses in "business reports" stop at U-3. this is fairly common knowledge, BTW, but the lower number is mostly used for propoganda purposes, once you wipe away the shilling grins of the TV/WS casino traders and various politicians trying to make things look rosy. That's an opinion,I admit it, but it's based on these two quite different numbers.

    U-3, which is commonly used for the news shows,the most quoted and used in an argument to show how great the economy is, which counts any sort of employment, is as of April 2004 = 5.4 %

    Sounds good, not too bad! Well, lets mosey on down the chart a scosh.

    U-6, which is total unemployed including distressed workers, part time (no matter how part time), marginally attached, etc, what I am referring to is, as of april 2004 = 9.3 %

    here is their little explanation that will cover U-6

    Marginally attached workers are persons who currently are neither working nor looking for work but indicate that they want
    and are available for a job and have looked for work sometime in the recent past. Discouraged workers, a subset of the marginally
    attached, have given a job-market related reason for not currently looking for a job. Persons employed part time for economic
    reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. For further
    information, see "BLS introduces new range of alternative unemployment measures," in the October 1995 issue of the Monthly Labor
    Review. Beginning in January 2004, data reflect revised population controls used in the household survey.

    url for reference

    http://www.bls.gov/news.release/empsit.t12.htm

    There's also a practical consideration with telephone surveys. It's pretty simple, although alien to most people nowadays,especially on slashdot I would guess, but very poor and broke people--uhh, these unemployed we are talking about- in a lot of cases do not have telephones in order to be surveyed. That's usually the first utility to get shut off. I can personally think of 4 families in my (poor underemployed, rural) neighborhood where no telephone exists. Myself, having a cell service, landline and internet connection, am an exception to the rule around here. I don'tknow anyone else around here who has internet. Even the couple of households I know about that have a landline do not have internet. Two families I know of, the father has a beeper, but no phone, they need to drive 2.5 miles to a payphone. I don't know everyone around here yet, but I know the closest people except for one house, who pretty much stay to themselves and don't seem too friendly so I don't push it. The house looks good(large and expensive), I am assuming they have a phone based on that.

    That last is just anecdotal, but I hope my points on the *real* numbers are more clear now, and also why telephone surveys might not be as accurate as some claim. By their own admission, the real numbers on a "practical" look on unemployment are almost twice as high (roughly) as they usually use for TV reports. Now, after that, I am of the opinion-note, I said opinion only- it is still lowballed for a few more percentage points. I have reasons for that opinion, fairly involved, some arcane,some I could spend more time on and provide references but I really don't feel like it right now, but all in all I think it's lowballed. I would guess it'scloser to 12 %. I've shown it's offically lowballed already, close to 10, and last month it was slightly over 10% by their own numbers. It will lower next month as high school kids get summer jobs, that will happen too, usually a percent and a fraction then.

    I will also freely admit that black market/illegal working is not included, even though no one brought that up to me yet. I have no rational figures to access for inclusion (I don't