It’s a good thing the President has a handle on the economy now. I mean, after all, the deficit he inherited from the Bush administration was enormous. Last year’s deficit surged to $1.42 trillion, more than three times the record of the previous year. So Bush’s last year budget deficit was $454.8 billion. Obama’s budget deficit last year was $1.42 trillion. That’s nearly $1 trillion more that he added to it in fiscal 2009. This business that he “inherited a $1.3 trillion budget deficit” is a lie. It’s a lie through and through. He has added $1 trillion.
Jeb Hensarling (R-TX) went on MSNBC today to put the lie to what Obama had said at the retreat in Baltimore to rest. Hensarling . . .
If you look at the 12 years when Republicans controlled the Congress, the average annual deficit was about $104 billion. I’m not proud of that number. That’s too high. But in the three years that Democrats have controlled Congress, the average annual deficit is now $1.1 trillion. Do the math. What used to be an annual deficit under Republicans has become a monthly deficit under Democrats.
But he’s got a grip on it, or us, now. Now, his budget is built on a house of cards that takes the deficit to between $8-15 trillion dollars (depending on whose numbers you want to use) in the next 10 years. And that is dependent upon Congress voting to raise the debt ceiling another $1.9 trillion. In just this past year, his budget is a mere 35% greater than they said it would be 12 months ago. Imagine how their estimates for health care and all the other government-building spending they propose will be?
The President asked for ideas from us serfs during his SOTU speech. Here’s one. Repeal the drug program that you criticize Bush for creating, the one you voted for as a Senator. The one that you said couldn’t be paid for. OK, so kill it. Now. Viola, look how much of the deficit you just ‘saved.’
Do you get the impression that this administration doesn’t care how much they spend as long as they reach their goal of destroying the economy so as to reduce it to a socialist utopia via his facist economic policies? I do.
The house of cards, which I call this budget, is based on tax increases, it is based on the economy growing, it is based on taxes from cap and trade, it is based on costs of health care decreasing. Essentially, this budget buster is based on receiving trillions of dollars from from programs that are not in place and based on the most optimistic of projections. It is the definition of ‘smoke and mirrors.’
Here’s something else to ponder about our economic circumstances. At the current interest rate on bonds, which is at 3%, a historic low, in 5 years the interest on our debt will be nearly a trillion dollars a year. That’s over a third of our GDP and about equal to all the money raised by income taxes. What happens when China stops buying our debt, which it is already signalling it intends to do, and interest rates rise? The interest on this debt, and by this debt I mean the debt we’ve got right now. That’s not including the debt that Obama wants to pile on. When interest rates go up further, the interest payments on this debt will be more than our GDP. The only way out then is hyperinflation, the devaluation of the dollar.
After taxing the rich, the spending programs will end up taxing the rest in increase cost all the way down the scale. So what’s left for the government to get their hands on when all else is maxed out? Your retirement plans, your 401K’s, your IRA’s. Whether this happens before or after hyperinflation kicks in is just a matter of timing. They’ve already got their eyes on the trillions of dollars Americans have managed to save for themselves. If only the government ran its business like you and I have to, we wouldn’t be in this precarious economic condition.
Best bet now is to salvage what you have left before the government takes it and gives you an IOU like they did with your Social Security. Asset protection now means cashing in your retirement funds and investing it somewhere where the government can’t get its greedy little hands on it.
You’ve heard it before, but it’s worth repeating. You can’t spend your way into prosperity, nor borrow your way out of debt. Sir Winston Churchill
link: Big bang gives way to busted budget