Posts Tagged ‘expand’

Obama Government Like Red Giant Sun About To Explode

September 14, 2010

Obama is a grandiose narcissist, so in a way I’m doing him a favor by comparing the government which he has recreated in his own image to the sun.

But let me assure you, I’m not being complimentary.

Like the U.S. government, the sun is the largest thing in our world by a whole bunch.  It’s huge and it’s powerful.  And it will go on and on, as long as things work the way they’re supposed to work.

But toward the end of a sun’s life, things start to go very wrong.  And it’s that “very wrong” direction that Obama has hugely accelerated us in.

As long as a sun is burning its legitimate source of hydrogen fuel, it is incredibly stable.  But then there comes that point where the hydrogen is burned up, and it starts to feed on itself.  It grows bigger – more than 200 times its previous stable size – and to an ignorant eye, it would appear that the sun was much more powerful than it had been before.  But in reality it is dying; it is burning the wrong kind of fuel; in reality it is about to explode.

That’s where Obama has taken us.  We’re burning through debt-spending at an astonishing and frankly astronomical rate.  For the last six decades we’ve grown huge with deficit spending; but never anything like what we’re seeing now.  Like the red giant sun, we’ve massively expanded beyond what is healthy or sustainable.  And it doesn’t take an astrophysicist to see that we’re nearing our end.

FDR massively expanded our federal government in his day; and it has been growing and growing and growing ever since.  But now Barack Obama has entered the scene and:

There’s little question that the anvil will fall on the US economy due to the near doubling of the national debt as Obama adds a projected $9.7 trillion to the $11.7 trillion black hole of debt we’re already in.  Obama is borrowing 50 cents on the dollar as he explodes the federal deficit by spending four times more than Bush spent in 2008 and in the process “adding more to the debt than all presidents — from George Washington to George Bush — combined.” And most terrifying of all, Obama’s spending will cause debt to double from 41% of GDP in 2008 to a crushing 82% of GDP in 2019.

What will be the result of all this insane spending, and not very far off? A quote from a CNS News story should awaken anyone who thinks the future will be rosy:

By 2019, the CBO said, a whopping 82 percent of the nation’s gross domestic product (GDP) will go to pay down the national debt. This means that in future years, the government could owe its creditors more than the goods and services that the entire economy can produce.

and:

By comparison, from the day Mr. Obama took office last year to the end of the current fiscal year, according to the Office of Management and Budget, the debt held by the public will grow by $3.3 trillion. In 20 months, Mr. Obama will add as much debt as Mr. Bush ran up in eight years.

and:

In the first 19 months of the Obama administration, the federal debt held by the public increased by $2.5260 trillion, which is more than the cumulative total of the national debt held by the public that was amassed by all U.S. presidents from George Washington through Ronald Reagan.

and:

Deficits of that magnitude would force the Treasury to continue borrowing at prodigious rates, sending the national debt soaring to 90 percent of the economy by 2020, the CBO said. Interest payments on the debt would also skyrocket by $800 billion over the same period.

As in “$800 billion a year.”  Every year from then on.

But it will likely be even more frightening than that:

The Obama administration is desperate to minimize the size of the budget deficit, which has become a huge political liability. It is gambling that interest rates will stay low. But, as I argue in “Boomergeddon,” the 30-year era of declining interest rates on sovereign debt is coming to a close. Interest rates will rise sharply in the decade ahead. And thanks to Treasury’s short-term actions, there will be very little to buffer the country from massive increases in interest on the debt. Between the mounting size of the debt itself, rising interest rates and short maturities, the interest burden could quadruple — perhaps even quintuple — by the end of the decade. By 2020, the U.S. could well be paying $1 trillion a year in interest.

$1 trillion a year in interest, only ten years away.  That amounts to paying for 1.16 Obama stimulus programs every single year, until we go the way of the Dodo bird.

Only we won’t just go away.  We’ll implode as an economic system and as a society, and then we’ll explode.

Near the end of a sun’s life cycle it turns into a red giant.  When our sun does this, it will grow so large that it will expand a minimum of 200 times its present size, and the planet Mercury and probably even Venus will be completely swallowed up.

To the uninformed, it would probably look as though the sun has become bigger and stronger than ever.  But to those who know, they will recognize that the red giant sun will be living on its last gaps before its collapse.  When it explodes, it will take most of the solar system – and very definitely planet earth – with it.

That’s the way our government is now, I believe.  Our government – especially under Barack Obama – has grown so huge beyond its legitimate or sustainable capacity it is simply unreal.  Someone who doesn’t understand the reality might think that we’re too big and powerful to explode.  But as our sun itself proves, the bigger we are, the harder we’ll fall.  We have either got to cut back the size of our government, or it’s expansion will consume itself and it will collapse before not very much longer.

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How ‘Failed Policies’ Of Democrats Were Responsible For Financial Crisis

October 1, 2008

Why should anyone blame Democrats for the housing finance crisis?  Because they laid virtually all the landmines that would eventually explode in the first place, and then they wouldn’t allow Republicans to reform or even regulate the impending disaster before it occurred, that’s why.

From the New York Times in September 30, 1999:

“Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. . . .

Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.” . . .

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” . . .

The LA Times writes on May 31, 1999 that:

It’s one of the hidden success stories of the Clinton era. In the great housing boom of the 1990s, black and Latino homeownership has surged to the highest level ever recorded. The number of African Americans owning their own home is now increasing nearly three times as fast as the number of whites; the number of Latino homeowners is growing nearly five times as fast as that of whites….

Under Clinton, bank regulators have breathed the first real life into enforcement of the Community Reinvestment Act, a 20-year-old statute meant to combat “redlining” by requiring banks to serve their low-income communities. The administration also has sent a clear message by stiffening enforcement of the fair housing and fair lending laws. The bottom line: Between 1993 and 1997, home loans grew by 72% to blacks and by 45% to Latinos, far faster than the total growth rate.

Lenders also have opened the door wider to minorities because of new initiatives at Fannie Mae and Freddie Mac–the giant federally chartered corporations that play critical, if obscure, roles in the home finance system. Fannie Mae and Freddie Mac buy mortgages from lenders and bundle them into securities; that provides lenders the funds to lend more. . . . .

Another article in the New York TImes from September 11, 2003:

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

This reform – and another in 2005/06 – were blocked by Democrats who threatened to filibuster the bill in the Senate.

In that 2003 New York Times article, we find the extent of Republicans’ concerns, and of Democrats’ intransigence:

Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.

The regulator has not only been outmanned, it has been outlobbied,” said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ”Being underfunded does not explain how a glowing report of Freddie’s operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.”

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.

Democrats such as Watt and Maxine Waters played the race card to label any effort to prevent poor and black families from buying homes they couldn’t afford as racist.

But when the fecal matter hit the rotary oscillator as a direct result of Democrats’ policies, Nancy Pelosi trots and says:

“The — what we have now is a manmade disaster, a disaster that sprang — comes from the Bush failed policies, the failure of the Bush administrations to steward our economy in a responsible way.”

I am telling you, if you vote for Democrats in November, you will be putting the very people who caused this disaster in power, and you will be entrusting the people who created a crisis in charge of averting the very crisis they caused.  By putting these irresponsible demagogues in charge of our economy during one of the most vulnerable periods in our nations’ history, you will in effect be saying, “I want the Great Depression.  I want my children to suffer.”