Posts Tagged ‘banana republic’

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

July 16, 2011

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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Biden: ‘We Misread the Economy’ – And it’s all the Republicans’ Fault

July 8, 2009

Some distant day, many scientists believe, the earth will be devoid of human life due to some cosmic catastrophe or – ultimately – due to our depleted sun transforming into a red giant. The truly good news about such an otherwise bleak future is that the Obama administration will presumably no longer be able to blame Republicans for the economy that they “inherited.”

Biden: We ‘Misread the Economy’

July 05, 2009

Big admission from Vice President Joe Biden today.

“The truth is, we and everyone else misread the economy,” Biden told me during our exclusive “This Week” interview in Iraq.

Biden acknowledged administration officials were too optimistic earlier this year when they predicted the unemployment rate would peak at 8 percent as part of their effort to sell the stimulus package. The national unemployment rate has ballooned to 9.5 percent in June — the worst in 26 years.

“The truth is, there was a misreading of just how bad an economy we inherited,” said Biden, who is leading the administration’s effort to implement it’s $787 billion economic stimulus plan.

“Now, that doesn’t — I’m not — it’s now our responsibility. So the second question becomes, did the economic package we put in place, including the Recovery Act, is it the right package given the circumstances we’re in? And we believe it is the right package given the circumstances we’re in,” he told me.

The vice president argued more time is needed for the stimulus to work.

“We misread how bad the economy was, but we are now only about 120 days into the recovery package,” he said. “The truth of the matter was, no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having to distribute the bulk of money.”

Biden didn’t rule out a second government stimulus package, but downplayed calls from Nobel Prize-winning economist Paul Krugman this week that a second stimulus will be needed.

I pressed the vice president, who is also leading the administration’s middle-class task force, on whether he’d rule out a second stimulus package.

“So, no second stimulus?” I asked.

“No, I didn’t say that,” Biden said, “I think it’s premature to make that judgment. This was set up to spend out over 18 months. There are going to be major programs that are going to take effect in September, $7.5 billion for broadband, new money for high-speed rail, the implementation of the grid — the new electric grid. And so this is just starting, the pace of the ball is now going to increase.”

Let’s not tell anyone that liberal Paul Krugman’s warning that we need a second stimulus is secret code for, “The first stimulus didn’t work worth squat, so let’s throw more money down the toilet.” And let’s for DAMN sure not tell anyone that unemployment benefits are going to be ending for workers starting in September and things will truly begin to increasingly suck after that as the unemployment rate grows like “the other ‘green shoot'” up and up and up.

Joe Biden says, “We and everyone else misjudged the economy.” No, Joe, it just aint so. Just you and your stupid liberal friends misjudged the economy. Don’t drag anyone else into your ignorance. Business professionals back in October predicted that Obama would literally bankrupt the country within three years if he was elected. Republicans (such as Paul Ryan) widely predicted the terribly flawed and terribly partisan pork-laden stimulus would fail – which is why only three out of 239 Republicans voted for it (and you can actually make that TWO out of 239, given that one of the three “Republicans” was RINO traitor-turned Democrat Arlen Specter).

Please don’t try to involve conservatives in your party’s stupidity, Joe. It aint right to lie.

The fact is, the porkulus is a complete failure that will cost the American people’s children’s children’s children $3.27 TRILLION and produce NOTHING.

And the fact is, when the Obama White House assured the American people that his stimulus would save the day, he assumed responsibility for the economy. It is HIS baby now, and he can’t keep racking up trillions and trillions and trillions of dollars in stupid and useless spending that will literally “bankrupt the country” and blame the fact that it isn’t working on Republicans.

It’s also rather funny that Vice President Biden would say “there was a misreading of just how bad an economy we inherited.” Please realize that for the last two years – and most definitely for the last eight or nine months – Barack Obama and Joe Biden have been comparing the present economy to the Great Depression. And now they are claiming they didn’t know how bad it was? What’s worse than the Great Depression? It is beyond ludicrous that these people can spend all this time demonizing the economy as the worst imaginable, and then argue they didn’t know that it was that bad.

Here are the opening two paragraphs from a February 13, 2009 Wall Street Journal piece that proves the lie of Biden’s remark:

President Barack Obama has turned fearmongering into an art form. He has repeatedly raised the specter of another Great Depression. First, he did so to win votes in the November election. He has done so again recently to sway congressional votes for his stimulus package.

In his remarks, every gloomy statistic on the economy becomes a harbinger of doom. As he tells it, today’s economy is the worst since the Great Depression. Without his Recovery and Reinvestment Act, he says, the economy will fall back into that abyss and may never recover.

How can Biden, Obama, or Democrats claim they didn’t realize how bad the economy really was after their previous constant fearmongering of the economy?

And the most famous and oft-used line, of course, is that Democrats keep claiming that they “inherited” the economy.

For the record, the Dow Industrial Average was at 11,986.04 on November 3, 2006 when Republicans were last in control of Congress. The unemployment rate for October of 2006 was at 4.4% when Republicans last ran things. As I write this, the Dow is at 8163.60 (on July 7), and the unemployment rate is at 9.5%, respectively. Nancy Pelosi and Harry Reid have been running the House and the Senate for the last two years, and a fine job of running the country into the ground they’ve done.

Just why is it that Democrats can have control over both the House and Senate while an economy goes from prosperity to impoverishment, and still bear no responsibility for such a result? But that’s the narrative, and both the Democratic Party and the mainstream media stuck to their scripts as though the lines had been written by Shakespeare himself. Do you see the great shining lie that you’ve been told, and told over and over again?

Since the Democrats have been in charge on both branches of Congress, the housing market has collapsed, the banks have collapsed, Fannie and Freddie have collapsed, the auto industry has collapsed, and things have generally turned to the fecal matter that Pelosi’s and Reid’s head are full of, generally.

But, hey, let’s keep blaming everything on Republicans, anyway. When you have an electorate so completely ignorant that 57.4% of voters weren’t even able to identify which party controlled Congress, such demagogic claims work.

The ONLY thing that Democrats actually “inherited” was moron genes, a talent for demagoguery and deceit, and Nancy Pelosi and Harry Reid (please see “moron genes”).

Now, the OTHER thing that Democrats love to claim was that Republicans are to blame for the economic disaster because Republican George Bush was President when it happened. And we are all to conveniently forget the fact that such reasoning should likewise make Democrat Barack Obama – who is president RIGHT NOW – is thereby responsible for the current state of the disaster that he nonetheless keeps blaming on Bush.

On what possible grounds are we to blame Bush? What is it that Bush did or didn’t do that created our disaster, and which Democrats who controlled both the House and the Senate are somehow absolved from having done or failed to do? Bush, we have been repeatedly lectured, failed to regulate the housing finance industry. And that lack of regulation caused the financial industry to self-destruct. Because the government is far better able to run things than the private sector, as we all know.

Well, wrong, wrong, and wrong, respectively. But let’s stick with the Democrats’ chief script item and consider just who truly failed to regulate the housing finance industry when it actually would have done some good, and who was really in bed with the worst players who created the crisis in the first place.

First of all, Bush TRIED to regulate the housing finance industry. And the ONLY thing that kept him from succeeding was DEMOCRATS.

Let’s go back to September 11, 2003, to see what the New York Times had to say. The article begins:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

And it ends:

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

Go back to the phrase at the beginning of the article: “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.” That would refer to the Clinton Administration’s aggressive push to put even more future poison in the fangs of the terrible Community Reinvestment Act.

Democrats blocked the passage of the Bush attempt to regulate the housing finance industry. They were the ones who killed regulation, not Republicans. They said there wasn’t a problem. They said that everything was just peachy dandy.

Democrats essentially say that the American people should blame George Bush for not being able to stop Democrats from being stupid, incompetent, and depraved vermin. But how can anyone stop Democrats from being stupid, incompetent, and depraved vermin? It would be like trying to stop the wind from blowing.

Bush and Republicans tried again to REGULATE the housing finance industry in 2005. John McCain wrote a passionate letter warning of an impending collapse of the housing finance industry and urging passage of the bill (specifically, the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190). Butwithout a single Democrat vote, the bill was doomed if brought to the floor for the critical 60-vote cloture.” Housing finance reform died a death by Democrat.

As late as JUST BEFORE THE WHOLE HOUSING FINANCE INDUSTRY COMPLETELY COLLAPSED, Democrat Barney Frank is on the record saying:

REP. BARNEY FRANK, D-MASS.: I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.

You can watch Democrats fiddling with the economy just before it burned here (Youtube).

Even Bill Clinton – hardly a Republican source – blamed Democrats and NOT Republicans for refusing to regulate the housing finance industry:

Bill Clinton on Thursday told ABC’s Chris Cuomo that Democrats for years have been “resisting any efforts by Republicans in the Congress or by me when I was President to put some standards and tighten up a little on Fannie Mae and Freddie Mac.”

So the bottom line is this: Democrats blocked reform and regulation. They denied there was a problem. They continued to deny that there were any problems, and continued to block reform and regulation until right before the whole economy went down the drain.

And then they blamed the Republicans for the mess that they had created, refused to fix, and denied even existed in the first place.

What is utterly beautiful in its moronic perfection is that Barney Frank is now trying to do to the condominium market what he did to the housing market by forcing lenders to make risky loans all over again.

Okay, okay, so it was the Democrats who actually screwed up the universe, but you still have to admit that the Obama Administration inherited the problem. It clearly wasn’t in power when the fit hit the shan. Right?

Not quite so fast.

Technically, the Obama Administration is obviously not be to blame, having only began its hopefully very short life on January 20, 2009. But Barack Obama personally? You should probably know what a nasty piece of work your president was before he became your president.

Barack Obama as a Senator took more money from Fannie Mae and Freddie Mac than anybody except his fellow scumbag and fellow Democrat Chris Dodd (who had direct oversight as Chairman of the Senate Banking Committee). Obama also took more money than disgraced and bankrupted Lehman Brothers than anyone but his fellow sleazeball and fellow Democrat Chris Dodd. Now, maybe you’re one of those people who believe that corrupt and soon-to-be-bankrupted organizations give buttloads of money to politicians just because they’re feeling generous. But people who actually live in the real world understand that Fannie, Freddie, and Lehman Brothers gave money to the politicians whom they believed would be best for their corporate asses and their corporate assets.

Barack Obama as candidate for president made Penny Pritzker – who was at the very EPICENTER of the subprime loan fiasco – his national finance chair. She paid a “fine” of $460 million dollars to basically buy her way out of prison for her part in the early beginnings of the collapse that would eventually extend to the entire economy. Penny Pritzker was to the stability of the housing finance industry on Wall Street what Freddie Krueger was to the dreams of teen agers on Elm Street; just what kind of Faustian deal do you believe the politician who took more money in less time from the worst players in the crisis than anyone bar none struck to have knife-gloved Penny Krueger open up her Rolodex full of demons?

Barack Obama as a private citizen was one of the ACORN lawyers who sued Citibank in 1994 and forced – FORCED – them to reduce their credit standards and make extremely housing mortgage loans to minorities who would subsequently prove unable to pay them. And the ACORN suit took advantage of the openings created by President Bill Clinton in the 1990s. The result of that lawsuit changed the housing finance industry forever afterward – and basically doomed it as soon as housing prices started to drop.

So as President Barack Obama may have “inherited” the crisis; but as a private citizen, as a Senator, and as a candidate for President, he was at the very center of the mess that created the crisis right up to his giant Dumbo ears.

And as Obama continues to blame his inability to handle the economy on what he “inherited,” let us not forget that it was Barack Obama who swore up and down that his Generational Theft Act of 2009 would fix the economy – NOT Republicans and NOT George Bush – and it was his economic plan that completely failed to produce the promised results.

It was Barack Obama who put his credibility behind a plan that his administration promised would hold unemployment down below 8% and it was Barack Obama who has presided over an unemployment rate that is now 9.5% and rising. The Congressional Budget Office predicted that unemployment would only have gone to 9% by 2010 had we done nothing at all. And nothing would have been a heckuva lot cheaper than $3.27 trillion. I, for one, assure you that I could have sent the economy crashing for a lot lower price tag that Barack Obama has charged you.

The unemployment rate in November – when Barack Obama was elected – was a Lilliputian (by comparison to the gigantic mess Obama has since made of the economy) 6.7%. It was 7.2% a few months later when his administration assured the American people that he could keep unemployment under 8% if his stimulus plan was passed. It is now, I should say again, at 9.5% – and it many experts expect it to be 11% by next summer.

Obama’s answer is still MORE colossal spending. The first stimulus – advertised as a $787 billion package but actually costing $3.27 trillion according to the Congressional Budget Office – is now said to have been too low. We need more porkulus, they tell us. A lot more. We need to borrow more massive debt and pile up more massive deficits that will crush our economy with staggering interest payments in the very near future and ultimately cause a complete collapse of our way of life. We need to nationalize our health care so it will be more like the $86 trillion-in-the-hole runaway freight train to destruction that Medicare is. And we need cap-and-trade legislation that will cap our productivity and trade our prosperity to ensure that our economy can never hope to be productive again.

Keep blaming Bush. Keep blaming Republicans. Keep blaming “failed conservative policies.” Blame ANYONE and ANYTHING but Barack Hussein Obama and the Democratic Party that is now in total control of everything.

Just let me shout in your face that by doing so you will help create an economy that will make the Great Depression look like prosperity when the policies that you so stupidly supported implode into staggering debt and even more staggering hyperinflation. And you and your children will starve shoeless in the cold while food riots and tax rebellions erupt all around you as your once great nation is reduced to banana republic status.