Obama Says ‘We Don’t Need A Balanced Budget Amendment.’ What We Don’t Need Is This Fool-In-Chief

Barack Obama is on the record saying, “We don’t need a balanced budget amendment,” he said. “We simply need to make these tough choices and be willing to take on our bases.”  Obama says, “I think it’s important for everybody to understand all of us believe we need to get to the point where we can balance the budget,” Mr. Obama said at a White House press conference. “We don’t need a constitutional amendment to do that.”

We desperately need a balanced budget amendment.  What we DON’T need is Barack Hussein Obama and his endless rhetorical posturing.

The national debt that is acknowledged is currently more than $14.5 trillion.

Let’s take a brief trip down national debt memory lane.  Now, let’s see.  When Ronald Reagan left office, the national debt was $2.6 trillion.  By the time Bush I left office, the national debt was $ trillion.  By the time Bill Clinton left office, the national debt was $5.6 trillion (which is quite strange, given the constant claim that Clinton balanced the budget).  By the time Bush II left office, the national debt was $10.6 trillion.  It is currently at over $14.5 trillion, and Obama is not even through his first term yet.  He wants it increased to more than $16 trillion now.  Again, before the end of his first term.

And, of course that’s actually NOTHING.  $14.5 trillion, or even $16 trillion, is actually really chump change to how much the United States REALLY owes.  Read this figure published in a peer reviewed International Monetary Fund publication article that provides the grim reality:

News from globeandmail.com
The scary real U.S. government debt
Wednesday, October 27, 2010
NEIL REYNOLDS
Ottawa — reynolds.globe@gmail.com

Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.”

Writing in the September issue of Finance and Development, a journal of the International Monetary Fund, Prof. Kotlikoff says the IMF itself has quietly confirmed that the U.S. is in terrible fiscal trouble – far worse than the Washington-based lender of last resort has previously acknowledged. “The U.S. fiscal gap is huge,” the IMF asserted in a June report. “Closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 per cent of U.S. GDP.”

This sum is equal to all current U.S. federal taxes combined. The consequences of the IMF’s fiscal fix, a doubling of federal taxes in perpetuity, would be appalling – and possibly worse than appalling.

Prof. Kotlikoff says: “The IMF is saying that, to close this fiscal gap [by taxation], would require an immediate and permanent doubling of our personal income taxes, our corporate taxes and all other federal taxes.

“America’s fiscal gap is enormous – so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems – as well as military and other discretionary spending cuts.”

He cites earlier calculations by the Congressional Budget Office (CBO) that concluded that the United States would need to increase tax revenue by 12 percentage points of GDP to bring revenue into line with spending commitments. But the CBO calculations assumed that the growth of government programs (including Medicare) would be cut by one-third in the short term and by two-thirds in the long term. This assumption, Prof. Kotlikoff notes, is politically implausible – if not politically impossible.

One way or another, the fiscal gap must be closed. If not, the country’s spending will forever exceed its revenue growth, and no one’s real debt can increase faster than his real income forever.

Prof. Kotlikoff uses “fiscal gap,” not the accumulation of deficits, to define public debt. The fiscal gap is the difference between a government’s projected revenue (expressed in today’s dollar value) and its projected spending (also expressed in today’s dollar value). By this measure, the United States is in worse shape than Greece.

Prof. Kotlikoff is a noted economist. He is a research associate at the U.S. National Bureau of Economic Research. He is a former senior economist with then-president Ronald Reagan’s Council of Economic Advisers. He has served as a consultant with governments around the world. He is the author (or co-author) of 14 books: Jimmy Stewart Is Dead (2010), his most recent book, explains his recommendations for reform.

He says the U.S. cannot end its fiscal crisis by increasing taxes. He opposes further stimulus spending because it will simply increase the debt. But he does suggest reforms that would help – most of which would require a significant withering away of the state. He proposes that the government give every person an annual voucher for health care, provided that the total cost not exceed 10 per cent of GDP. (U.S. health care now consumes 16 per cent of GDP.) He suggests the replacement of all current federal taxes with a single consumption tax of 18 per cent. He calls for government-sponsored personal retirement accounts, with the government making contributions only for the poor, the unemployed and people with disabilities.

Without drastic reform, Prof. Kotlikoff says, the only alternative would be a massive printing of money by the U.S. Treasury – and hyperinflation.

As former president Bill Clinton once prematurely said, the era of big government is over. In the coming years, the U.S. will almost certainly be compelled to deconstruct its welfare state.

Prof. Kotlikoff doesn’t trust government accounting, or government regulation. The official vocabulary (deficit, debt, transfer payment, tax, borrowing), he says, is vulnerable to official manipulation and off-the-books deceit. He calls it “Enron accounting.” He also calls it a lie. Here is an economist who speaks plainly, as the legendary straight-shooting film star Jimmy Stewart did for an earlier generation.

But Prof. Kotlikoff’s economic genre isn’t the Western. It’s the horror story – “and scarier,” one reviewer of his book suggests, than Stephen King.

And what’s Obama’s response to all of this?

 

We are so screwed it is absolutely unreal.

And that’s just what the UNITED STATES government owes.  Let’s consider the leftist People’s Republic of Californication and see what IT’S actual debt is:

California’s $500-billion pension time bomb
April 06, 2010|By David Crane

The staggering amount of unfunded debt stands to crowd out funding for many popular programs. Reform will take something sadly lacking in the Legislature: political courage.

The state of California’s real unfunded pension debt clocks in at more than $500 billion, nearly eight times greater than officially reported.

That’s the finding from a study released Monday by Stanford University’s public policy program, confirming a recent report with similar, stunning findings from Northwestern University and the University of Chicago.

Most other states are facing catastrophic implosion due to government union workers massive unfunded pension liabilities.  Take Obama’s own state of Illinois, for instance.

Yeah, you’re right, Mr. Fool-in-Chief.  We don’t need a balanced budget amendment.  Let’s go with your plan instead.  Let’s dig our own graves, slit our own throats, and then fall into a hole never again to crawl out.  Let’s sacrifice our children’s children’s children’s children and put the weight of a debt they will never be able to possibly repay as we continue to selfishly and wickedly vote ourselves benefits at their expense.  Let’s guarantee that the United States becomes a banana republic in the next fifteen years.

We’re going to collapse soon.  When it happens, it will seem to come out of the blue, but we will have been working steadily toward our own doom for generations.

Obama’s Keynesian approach has utterly and completely failed.  And only fools refuse to see that by now.

The beast is coming.  And Barack Obama, the Democrat Party and every single fool who votes for these fools, will be his useful idiots.

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2 Responses to “Obama Says ‘We Don’t Need A Balanced Budget Amendment.’ What We Don’t Need Is This Fool-In-Chief”

  1. Scott Says:

    Bush raised the debt ceiling multiple times after taking office with a three trillion dollar deficit.
    Where were you when we went to the first war, in 2001, and sent our men and women to Afghanistan, and then Iraq, without proper camo, body armor or armor for their most widely used form of transportation…the Humvee? Where were you in 2007 when the home crisis started? Where were you when the hurricanes hit Florida in 2004 and FEMA screwed millions? Where were you when they did the same to New Orleans in 2005?
    I was directed to your pathetic site when I Googled the name of a Viet Nam Veteran, Clebe McClary, that you are crucifying for his evangelical beliefs. This is only an issue because he is speaking at a luncheon at the Air Force Academy. Don’t like his message? Don’t attend! I am certainly not evangelical but his story of duty and honor and what happened on that hill in Viet Nam is something everyone should hear.
    Get your heads out of your asses, or the Republican parties asses. Have some dignity or at least have some respect for those who sacrifice. I actually have a better idea…run for Dictator or Czar since you can’t seem to wrap your wee brains around the concepts of President, sacrifice or faith. You can’t, can you? Because then the skeletons you have in your closets or your views will be exposed. If you cannot learn to work as a team why don’t you move to IRAN. They have that whole Dictator thing laid out perfect for people like you.

  2. Michael Eden Says:

    Scott,

    First of all, is there anywhere you can show me where I said anything about never raising the debt ceiling? Because whether you’re a deliberate liar or simply too dumb to think for yourself, I never do that. It’s not that Obama wants to raise the debt ceiling that pisses me off to no end. It’s that Obama viciously and personally demonized George Bush for wanting to raise the debt ceiling, then voted NO on raising it with a sanctimonious speech in which he lambsted Bush as a failed leader for trying to raise the debt ceiling, and now he’s telling us that Republicans are evil if they even THINK of DOING THE EXACT SAME THING THAT HE DID. Now, perhaps your argument is that you too are a vile piece of hypocrite filth just like your messiah Obama, and you don’t mind that level of deceit and hypocrisy.

    Whether we raise the debt ceiling or not is not the issue nearly as much as we simply have GOT to cut our massive spending and pass a balanced budget amendment to guarantee that we spend within our means. Which Democrats will never do.

    With regards to your attack on Bush for not having all the latest and greatest protections when he went to war, I hope you say Democrats were a THOUSAND TIMES WORSE given your same “logic.” Bush sent troops to war without all the proper equipment? JUST HOW IGNORANT ARE YOU??? You read about World War II and you tell me that our soldiers had everything they needed in terms of the best equipment when we went to war against Japan and Germany. You stupid pathetic dumbass. You tell me that Truman had us all set to fight when we went to Korea. You profoundly deranged loser. You tell me that Lyndon Baines Johnson sent our soldiers into Vietnam with everything they needed to win. You morally imbecilic jackass. Because in each case it is an absolute FACT that the United States was woefully unprepared.

    How DARE you criticize Bush that way, given the experience of EVERY SINGLE WAR DEMOCRATS HAVE GOTTEN US INTO OVER THE LAST HUNDRED YEARS, INCLUDING LIBYA RIGHT NOW.

    Donald Rumsfeld probably put it best: you go to war with what you have. And then you make improvements as you can. As Bush most certainly did.

    As for you garbage about Hurricane Katrina, a few things. Number one, that was a catastrophic disaster that NO administration would have been ready for. It overwhelmed our federal resources. 2) Democrats at every local level from New Orleans Mayor to county to Democrat Governor screwed up something fierce. You should know that Democrat Mayor Ray Nagin kept 2,000 school busses locked up where they could be flooded. Those school busses would have easily rescued every single person. But you blame Bush for Nagin being an idiot Democrat dumbass, don’t you???

    The vultures of the venomous left are attacking on two fronts, first that the president didn’t do what the incompetent mayor of New Orleans and the pouty governor of Louisiana should have done, and didn’t, in the early hours after Katrina loosed the deluge on the city that care and good judgment forgot. Ray Nagin, the mayor, ordered a “mandatory” evacuation a day late, but kept the city’s 2,000 school buses parked and locked in neat rows when there was still time to take the refugees to higher ground. The bright-yellow buses sit ruined now in four feet of dirty water. Then the governor, Kathleen Blanco, resisted early pleas to declare martial law, and her dithering opened the way for looters, rapists and killers to make New Orleans an unholy hell. Gov. Haley Barbour did not hesitate in neighboring Mississippi, and looters, rapists and killers have not turned the streets of Gulfport and Biloxi into killing fields.

    Then there’s these facts about Obama’s own handling of disasters: https://startthinkingright.wordpress.com/2010/07/16/the-catastrophic-obama-failure-that-the-mainstream-media-forgot-as-predicted/ and https://startthinkingright.wordpress.com/2010/01/18/bush-katrina-economy-obama-haiti-economy/

    So maybe you should do a little less talking smack and a lot more shutting the hell up.

    You ought to be ashamed of yourself, Scott.

    As for your personal attack on me for claiming that I attacked Clebe McClary, I don’t know how overflowing with stupid you are, but I think it’s time to take the pump nozzle out of your ear.

    Here is the only article I have written about Clebe McClary. I will let others decide between us just who is the wretched lunatic. https://startthinkingright.wordpress.com/2011/01/24/secular-humanist-left-so-tolerant-they-want-to-purge-anyone-who-isnt-just-like-them/

    Anyone with half a functioning braincell (I realize that probably excludes you, Scott) will immediately be able to see that I was OUTRAGED by the LEFT’S attack and exclusion of this patriot.

    Which is to say, again, that you are so filled with hypocrisy to go along with stupid it is positively UNREAL. It was LIBERALS who sought to have McClary excluded. And it was CONSERVATIVES like me who screamed about it. You just turn truth on its head and make everything a lie, don’t you???

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