The national debt is more easily understood in family-friendly terms. I guess sometimes, who need help understanding is not as obvious as the language needed to explain it.
Tag Archives: National Debt
The President gave another campaign speech disguised as a “deficit reduction plan” Monday morning, this time in the White House Rose Garden. Perhaps he hoped the the backdrop of thriving foliage would add to the illusion that his “plan” would help the economy thrive and flourish. Here are some highlights from the campaign speech:
Obama wants $248 Billion to come out of Medicare, 90% of which will come in the form of reducing over-payments to providers. Did you hear that, America? The administration that has presided over recent scandals such as Fast & Furious and Solyndra, the administration that spends $3.93 billion a day (consider that a billion seconds=31 years and let that blow your mind) wants to reduce waste and fraud in Medicare? Don’t you feel safer already? I know I do.
Obama wants to increase taxes on the wealthy. The wealthy don’t pay enough in taxes, you know. Wealthy people are selfish and evil and ugly. They steal money from the poor and keep it all in giant vaults that can only be opened with giant keys. Then they drink expensive champagne made from the tears of women, children and minorities. It doesn’t matter that according to the IRS‘ own, easily located statistics, the top 50% of earners pay 97% of all income taxes, and the top 1% pay 39%. Rich people are bad. Unless their names are Pelosi, Obama, Clinton, Kennedy, Buffet, Jobs, Gates, Frank, Rockefeller, Feinstein, Kerry, Heinz-Kerry, Gore, Edwards…..oh, you get the point.
Obama wants to put caps on itemized deductions, close tax “loopholes”, and let the Bush era tax cuts expire on individuals earning $200,000/year and couples earning $250,000/year. Thank God. Since most small business owners file as individuals and depend heavily on itemized deductions to stay afloat, this new and fresh idea should effectively kill small business growth; and if there’s anything America needs less of its small business and the jobs they create. If those businesses are allowed to thrive, they might become big businesses that earn a lot of money. Then they’ll be rich. To reiterate, rich people are bad. Its a good thing Obama is here to rescue the average American from…jobs.
Obama wants a “Buffet” tax, named for his favorite rich person, Warren Buffet. This tax would raise the tax rate on individuals earning over $1 million per year. Hey, small business owners and folks who have worked very hard to earn a nice salary -Warren Buffet wants to pay more taxes! You should want that too. But just in case you don’t, here is a plan to force you to pay more taxes. You’re welcome.
Oh, did you know Warren Buffet has a secretary? Its true. Supposedly she pays a higher tax rate than he does. Unacceptable! Also unacceptable – giving the secretary a raise so she can move into a different tax bracket. Let’s not get carried away here, folks!
Obama wants to reform the corporate tax rate while closing more of the dreaded “loopholes” (when is Hollywood going to make a horror movie about loopholes? They sound absolutely terrifying). In case you were wondering, giving hundreds of millions in stimulus money to bankrupt solar energy companies and other energy providers to help “weatherize” homes, that’s not a loophole. Its just being neighborly.
If you are feeling concerned that these “proposals” may seem a bit…one-dimensional, have no fear. President Obama went on to assure Americans that “This is not class warfare, it’s math.” Phew! No worries, everyone. Its all under control. The same White House that saved and/or created 100 bazillion jobs has done all the math for you: $14,711,883,847,986 in national debt minus stimulus money payouts to cronies and unions= YOU NEED TO GIVE GOVERNMENT MORE OF YOUR MONEY…NOW! Its a simple formula, really. Now it is all up the the Republicans in the House to pass this campaign speech right away.
Is the country being led astray once again by those on the Hill that appear to be doing business as usual? The words deficit and downgrade and debt-ceiling almost seem to be synonymous with one another when nothing could be further then the truth. Yet both sides think they are right; they have resorted to high school politics where one side blames the other, name-calling, and denial. And if that is not enough to send you into complete bewilderment, the current Bill, which was just passed, is full of idealism that will surely break the American economy, while setting in motion grave consequences for future generations. Raising the dept limit with out any structural reforms in place will be the primary force in setting the economy in a downward spiral. It is no wonder the average American is confused. So who is right?
Despite all the chaos, misrepresentation, and blame being thrown around on the Hill, and by the media, American’s seem to see the clear picture of what is going on based on current polls. For example, a July 12th Gallup poll showed 42% of Americans oppose raising the debt ceiling. The July 19th Wall Street Journal poll found that 55% of those polled felt raising the debt ceiling would be a major problem. One Gallup Poll found that Americans, by a 42% to 22% margin, want their representatives on the Hill to vote against an increase in the debt ceiling. The President of the United States, as well as some members of the Senate and House, have been reckless with spending from one generation to another, all of which have escaped accountability. Mr. Obama has spent more money during to date then that of Mr. Bush’s entire time in office. According to Karl Rove, “In 20 months, Mr. Obama will add as much debt as Mr. Bush ran up in eight years.”1 Raising the debt limit allows the president to spend more money and further the deficit. To be clear, the deficit is the amount of money we, as a country, are in debt; it is the money we owe to creditors, etc.
While the national debt continues to grow by the seconds, spending cuts continue to be nonexistent. The amount of cuts which would be required to balance the budget well exceed those suggested by congress. A downgrade would impact our AAA rating by Moody’s and S &P. Investors would view our failing economy as too much of a risk to invest in and take their business somewhere else. Whether it happens today, or five years from now, our AAA credit rating will go down if we continue to spend as though the checkbook is virtual black hole with no end in sight. In addition, to make matters worse as the United States becomes a mockery and concern for the rest of the world, institutional and foreign investors, those people or firms who invest large sums of money into securities, real property, and other types of investments, will reconsider investing in the US.
House Minority leader Nancy Pelosi regularly discussed the need for job creation and yet under this administration unemployment is at it highest level. David Axelrod, a political strategist for the president claimed the pork-laden stimulus package has been a success. But Mr. Obama told Americans that if it were passed, unemployment wouldn’t rise above 8%. It is now 10%. The president also said it would create 3.7 million jobs, 90% of which would be in the private sector. By Mr. Obama’s standards, the stimulus failed miserably.2 To create jobs we need to lower corporate taxes to be more competitive with the rest of the world. If we truly want to bring business back to this country and away from places like China and India we would need to look at the Tax code in its entirety.
There were a lot of bills on the table, the Ryan Bill, Cut, Cap, and Balance just to name a few. They were killed in the Senate by Senator Harry Reid. Cut, Cap, and Balance would have addressed the spending issues while putting measures into place to effectively balance our budget. The Connie Mack Penny plan which was discussed, but not something many people heard about, it also dealt with the excessive squandering that goes on in our government. More explicitly it would cut federal spending by one percent for six years, set a cap of 18 percent of gross domestic product in 2018, and reduce the amount of spending over a 10 year period by 7.5 trillion dollars. This plan provides the framework necessary for balancing the budget while maintaining spending regulations for future members of government. This plan has not gotten the attention it needs.
The bottom line is this: We are traveling down a path which is deeply rooted with opposition to our founding fathers and the Constitution of the United States. Both sides need to stop playing politics and address the very serious issues at hand. In addition, those people on the Hill who live with the delusion that they know more then the American people therefore they need to do all the thinking for them, need to wake up! It is about time they realize they were put there by the people, for the people, and they are accountable to the people.
Karl Rove.Obama vs. Bush on Spending.Wall Street Journal. January 21, 2010
The debt mess is a huge mess and a whole slew of people aren’t serious about cleaning it up.
Yesterday, the non-partisan Congressional Budget Office (CBO) scored John Boehner’s plan and said that it only cut the deficit by about one trillion dollars over ten years. That same office scored Harry Reid’s plan and said that it would cut twice that in the same time period. Neither are serious efforts at curtailing spending.
Our current national debt stands at $14.3 trillion dollars. We ran a $1.4 trillion deficit just this year. Boehner’s plan wouldn’t even fix the amount we overspent this year and Reid’s wouldn’t cut enough out of future deficits to remedy the amount of overspending for which Obama is to blame.
Paul Ryan was serious when he presented his framework that the DNC killed by showing images of grandma being pushed over the cliff in a wheelchair. Seriously? Of course not.
Cut, Cap and Balance was a serious proposal to finally end the runaway spending in Washington, killed by the Democrats in the Senate and Obama threatened to veto it even if it had passed.
Our members of Congress are not taking this seriously – why not? Probably because a large portion of Americans aren’t paying attention and both Republican and Democrat politicians know it. These are the moderates in America. They don’t closely follow the news, but show up at the polls after having read an article or two the weekend before. There may be no way to get those voters to pay attention other than by letting August 2nd happen without a deal.
The media isn’t taking things seriously either. They are using the same scare tactics as the Democrats. Throwing “default” and “credit rating downgrade” around as if those things aren’t going to happen within a few years one way or another. Why isn’t the main stream media revealing the truth about what August 2nd would really bring if no deal is reached?
First, on August 2nd, there will be no default – none. Not one t-bill will have its yields unpaid. In fact, the Constitution requires that Congress pay those obligations and we will have more than enough in regular revenues to service that debt for the next few years.
There is also enough revenue to pay the troops, send out Social Security checks and take care of Medicare beneficiaries. These, however, are choices that the Obama administration can make. The President could order the Treasury to pay government union employees before funding Social Security or Medicare. Only the President could decide not to pay seniors while funding one of his own priorities and he has levied a veiled threat at our retirees stating that he might just do that.
If our credit rating were to drop to AA+ from AAA, there would not be a worldwide scramble to dump U.S.-backed securities. AA+ would be on-par with other high-quality investments and would still be one of the safest in the marketplace. It is unlikely that an auction would fail or that an interest rate increase (and price drop) would be required to keep investors buying the nation’s debt.
Since Harry Reid and his band of miscreants have said NO to every single viable attempt to cut our deficits and balance the budget, the debt ceiling will do it for them. If no deal is reached, on August 2nd Congress will no longer have the authority to issue more debt. They will have to service the interest on existing debt, pay our troops, issue social security checks, pay Medicare claims and not much else until they can come to agreement on how to fix the mess that they have gotten us into. They will finally have to take the national debt seriously.
President Barack Hussein Obama recently took his 2012 reelection campaign to the island of Puerto Rico in an attempt to corrall the Puerto Rican vote here in the States. The question is did he learn anything while there from the current Governor of Puerto Rico, Luis Fortuno. Governor Fortuno was elected in the 2008 elections and recieved over 220,00 votes, the most in recent history. One fact that is sure to suprise people is that while Governor Fortuno enjoys the support of being a member of the Republican National Committee, he is also the President of the New Progressive Party of Puerto Rico!
First let’s see just what Governor Fortuno has accomplished during his time in office, and just how he accomplished it. Sixty days into his administration as Governor, Mr. Fortuno announced the formation of his new Fiscal and Economic recovery Plan. This agressive plan included cutting a whopping over $2 billion dollars from bloated government expenditures at the start of the new fiscal year of 2009. The media started screaming that Fortuno’s drastic cuts would result in over 30,000 government employees being permanently laid off. This resulted in assorted protests, marches and even eggs being thrown at the governor, which resulted in jail time for the offender, and an increased security detail to protect the governor. To quote the new Governor of Puerto Rico when he took office and discovered the massive budget deficits, and was asked if it was a mess: ” Not just a mess, we do not have enough money to meet our first payroll! ”
Governor Fortuno had the benefit of the first conservative majority in Puerto Rico in 40 years, and they immediately cut the size of the government there, which employed a whopping one out of every three workers in Puerto Rico at the time. Government had certainly gone wild in the years before Fortuno took office. Thereis also a distinct pattern of just what the government employees demanded instead of cutting the government down to size. Just like Union enabled Democrats are calling for here in the States, they demanded that Fortuno raise taxes to cover his predessor’s big government expansion! Governor Fortuno instead, signed Law 1 in 2011, which revised the entire tax code that provides, retroactive to Jan 1, 2010 tax relief which includes a tax cut of 50% for individuals and 30% for businesses! Governor Fortuno had already cut approximately 17,000 government employees off the payroll, which did make the initial unemployment numbers increase somewhat, but long-term Puerto Rico will be able to balance it’s budget while cutting taxes at the same time.
This is a prime example of how Liberal Democrats here in America dig themselves into a financial hole through big government expansion and then demand higher taxes on everyone to pay for their vote-buying schemes in order to stay in power. Upon arrival, Governor Fortuno did not have the money to meet his first payroll! Today, Puerto Rico is well on their way to increasing business and tourism, which then translates into more tax revenue for the government to operate with. So, as the title of this article asks, did Barack Obama learn anything from Governor Fortuno’s use of sound conservative principles, in how he has put Puerto Rico on the road to fiscal solvency ? Or will Barack Obama just continue with the Socialistic big government expansion that his Liberal Democrats are currently pushing him for? The very same ones that include tax increases to cover the irresponsible spending of Barack Obama and his big-spending Democrats who are racking up trillion dollar deficits and a Debt to GDP ration that will have the federal government in thesame position as Governor Fortuno found himself upon taking office? You know, the afore-mentioned position of not having enough money to meet the first payroll?
House Majority Whip Kevin McCarthy (R-CA) has unveiled some very interesting 2012 proposed budgetary numbers here. His report includes comparisons between the GOP proposal of around $6.2 trillion in cuts and the addition of $9 trillion in new deficits under President Obama’s budget proposal. That is a difference of a total of over $15 trillion dollars folks. Among the most notable items were the following:
House GOP Will Cut $6.2 Trillion In Federal Spending, Reducing Deficits By $4.4 Trillion. “Our budget, which we call The Path to Prosperity, is very different. For starters, it cuts $6.2 trillion in spending from the president’s budget over the next 10 years, reduces the debt as a percentage of the economy, and puts the nation on a path to actually pay off our national debt.
President Obama’s FY2012 Budget Would Generate More Than $9 Trillion In Deficits. “The nonpartisan agency said today the administration’s plan would generate $9.5 trillion in deficits between 2012 and 2021, compared with the $7.2 trillion forecast last month by the White House budget office.
That looks like the Whitehouse budget office just forgot to count about $2.3 trillion in additional spending deficits there, which is inexcusable, to say the least. That must be another example of that liberal math Americans are having force-fed to them at an ever-increasing rate under the current Obama administration today.
DEBT: Reductions In Debt As Portion Of Economy Vs. “Dangerously High” Levels Of Debt:
House GOP Will Reduce The Debt As A Portion Of The Economy. “For starters, it cuts $6.2 trillion in spending from the president’s budget over the next 10 years, reduces the debt as a percentage of the economy, and puts the nation on a path to actually pay off our national debt.
According To The Nonpartisan CBO, President Obama’s Budget Will Drive Debt To A “Dangerously High 87 Percent” Of GDP. “That means that by the time 2021 arrives, the portion of the debt held by investors and foreign countries will reach a dangerously high 87 percent.
When .87 cents of every dollar taken in by the federal government goes to pay off our debt, that only leaves .13 cents out of every tax dollar to try to keep the government operating. I believe that U.S. bankruptcy sums that scenario up fairly well, and also will lead to what is the now-infamous saying of shutting down the government there. Common sense dictates that Obama’s proposed budget will bankrupt America.
Last but certainly not least in McCarthy’s budget report is the fact that Obama wants to raise taxes to pay for years of deficit spending, while the GOP wants to do just the opposite, and lessen the tax burden to open up job creation, which will result in our federal revenues increasing, as has been proven to be the case throughout our history.
House GOP Will Reform The Tax Code And Lower Top Individual And Corporate Rates To 25 Percent. “This budget would focus on growth by reforming the nation’s outdated tax code, consolidating brackets, lowering tax rates, and assuming top individual and corporate rates of 25%. It maintains a revenue-neutral approach by clearing out a burdensome tangle of deductions and loopholes that distort economic activity and leave some corporations paying no income taxes at all.”
President Obama’s FY2012 Budget Contains $1.5 Trillion In Tax Hikes. “The budget calls for $1.5 trillion in tax increases over the next 10 years, with the bulk of that coming from allowing former President George W. Bush’s tax cuts for couples earning more than $250,000 to expire.
We are sure to hear that the GOP has no budget plan for specific cuts in government spending, but the above information proves that to be false rhetoric, nothing more. Keep in mind that we also have yet to see even a hint of a budget proposal from the democrats at this time. Of course, that fits their pattern of last year when they couldn’t be bothered to even propose a budget, let alone justify the trillions in deficits they ran up during the last four years of total Democratic rule of Congress. As they say, there is always truth in numbers, and the truth here is that the irresponsible deficit spending of the last decade has America teetering on the brink of bankruptcy. Will the GOP-led House save us from the most recent and current democratic deficit spending, or will Harry Reid and the still Democratically controlled U.S. Senate finish off what is left of the U.S. economy by blocking the GOP budget plan for 2012 ?
**All of the above information is referenced in the original link included in the first paragraph of this article.
Poor Ms. Higginbottom .. the name has probably given her enough grief through the years so this Congressional hearing could not have been the light at the end of the tunnel she was hoping for.
Senator Jeff Sessions asks the unwitting appointee a fairly simple question about Obama’s statement that he “would not be adding to the national debt” which she immediately tries to qualify, make excuses for and almost seems to channel Obama himself. Her confused, irrelevant testimony bordered on contempt of Congress and as we neared the end I was just waiting to hear, “uh, Senator.. let me be clear..”.
In an article posted here at CDN on Feb. 14th titled, “Upcoming Budget: Nowhere to Run*, I explained how I could see that our current Congress would not be able to even come close to passing a responsible budget for 2011 fiscal year. Looking at today’s news headlines, this budget boondoggle is following along exactly as I stated it would. Today the House passed the sixth Continuing Resolution budget in a row to temporarily fund our government. Here we are approaching the half way point in fiscal year 2011, and we are still basically running our government on a blank check drawn on the taxpayers account! No accountability will ever come out of the last four and a half years of trillion dollar deficits within our government, all because the people are letting this farce of a budget battle continue to play out like a cheap failed soap opera of the 60’s. No budget basically means no way to keep spending in check and hold these tyrants in D.C. accountable for their actions.
We recently saw the complete overthrow of the government of Egypt because the people were damned tired of tyrannical rulers sitting on gold toilets while 3/4 of the country went hungry, to sum it up in a nutshell. Meanwhile here in America the exact same thing is being done on a much grander scale, yet the people are pretty much silent. Congress is paid to do a job, and that job is to basically run the Federal Government, to produce leglislation to protect the people and businesses fairly, and last but not least, is to ensure that the taxpayer’s money is spent fairly and wisely. Ask yourself one simple question, “Is Congress doing their job as it is laid out by our Constitution today?” Then why isn’t there a national calling to shut down the government and hold Congress accountable? The self-serving tyrants in D C will just keep on spending us into bankruptcy until the people stop giving them the money to do so. It is that simple.
No taxation without proper representation, period.
In 1974, Congress passed what was then called The Congressional Budget Act.* This also spawned what we now know as The Congressional Budget Office. The CBO was created as an unbiased accounting office to supply Congress with economic data to help them draw up budget resolutions, and compile economic data projections for other proposed legislation to be based upon. The original Congressional Budget Act of 1974 has been amended several times, including in 1985, 1990, and 1997. The basic budget process can be seen here from wordiq.com* which summarizes the process nicely: (emphasis mine)
The President’s Budget
The budget process begins in February with the submission of the President’s budget. According to the act, the budget is due on the first Monday in February. At this stage, the budget is not binding but merely constitutes an extensive proposal of the administration’s intended spending for the following fiscal year. In addition to the actual proposal, the President submits volumes of supporting the information intended to persuade Congress of the necessity and value of the budget provisions. In addition to the President, each independent agency also submits its own budget proposal which will be incorporated into the final version of the budget.
The next step is the drafting of a budget resolution. The resolution is drafted concurrently by the House and the Senate budget committees. Following the traditional calendar, by early April both committees finalize their drafts and submit it to the respective floors for consideration and adoption. ( today is march 16th 2011, right around the corner)
Once both houses pass the resolution, a conference report is drafted by members of the Senate and the House. The purpose of the conference report is to reconcile any differences that may exist between the House and the Senate versions. Usually, the conference report is adopted finalizing the budget resolution.
In contrast to most legislation passed by Congress, the budget resolution is a concurrent resolution and thus does not become law and does not require the signature of the President. As a result, no money has actually been appropriated at that point. The budget resolution then serves as a blue print for the actual appropriation process.
Fast forward to today, where the House GOP leadership has proposed their budget resolution with the very necessary cuts in government spending that will be needed to avoid raising our debt ceiling to over $15 trillion dollars. The house Democrats say no, we will not approve anyserious spending cuts, and threaten to let the government shut down if they are not allowed to keep on spending us into financial Armageddon. Meanwhile, the game goes on, with the basically illegal Continuing Resolutions being passed again and again to avoid any semblance of accountability in how our tax dollars are being spent. When do the people say enough is enough here? April 15th is tax day, when millions of Americans go to write out that big fat tax payment check to the IRS, they should stop for one second and ask themselves one simple question: ” Is this taxation without proper representation? ”
Our dysfunctional Congress just passed the sixth continuing budget resolution in a row, with no firm budget resolution in sight! I normally recommend that people call their representatives and demand some sanity at this point in my articles. The people spoke up loud and clear against big government, Egyption-style self servancy and tyrannical spending in the 2010 elections, and have been speaking up ever since. In reading the above information, does it look like our representatives are listening ? Think about that come April 15th, when you write that IRS payment check out soon. The way this is going, it will be double that amount next year and probably more.
The proverbial chickens.. have come home to poop – or roost if you prefer. The world’s largest bond investment fund, Pimco’s Total Return Fund removed U.S. government debt from its holdings:
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.
As demand for Treasuries falls, so does the yield. As the yield drops, the bonds themselves become even less attractive.
Bonds are unattractive for two major reasons, the amount of debt we have/will take on and economic outlook.
Debt and Deficits
The fiscal track that four years of liberal leadership in Congress have provided is one of rapidly rising deficits and an unmanageable national debt.
America’s National Debt rose by another $63.7 billion dollars in the month of February, according to the Bureau of Public Debt*. That currently leaves us with a grand total of $14.195 trillions of debt as of March 1st, 2011.
Institutional investors look at debt to income ratios when purchasing investments. For a government, gross domestic product (GDP) is used as income. Congress holds the purse strings of government spending. The chart below illustrates how rapidly spending has grown under the recent Democrat congress and why investors are starting to balk at the United States as a solid investment
The economic outlook for the U.S. can be viewed through a few lenses: Consumer confidence (willingness to spend), spending power (ability to spend),
Are Americans Willing to Spend
As America’s economy is largely driven by consumption, consumer confidence is a key forward-looking indicator.
The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, fell more than two points on Thursday to 75.4, the lowest level measured since September 2010.
Gallup also released a poll that shows that U.S. consumers expect to have less money to spend due to anticipated fuel price increases.
As Americans lose faith in the recovery, they will start holding on to their money instead of putting it to work in the economy. This will impact business investment and hiring.
Will Americans be Able to Spend
If the recovery continues as a jobless one, there will be no increase in the ability of Americans to spend. If they aren’t working and earning, they cannot spend. Last week’s jobless numbers rose much more than expected. – up 26,000. That’s almost 30,000 more people that have filed for unemployment benefits for the first time. That doesn’t even take into account those that are still on the government roles or have already run out of benefits.
Gas prices are skyrocketing. Some predictions have gas hitting $5 by labor day and $6 by the end of the year. That will more than double the amount of money U.S. families have to spend on getting to and from work from incomes that are largely static. This will drive consumers to focus on things they need to buy and hold off on less necessary purchases. As a Weekly Stadard post put it, “..January of 2009. Hope was in the air, but more importantly, gas was under two dollars a gallon. Since then gas prices, have gone up 67 percent and it’s an ominously upward trend.”
Oil prices also affect other consumer goods as fertilizers used in farming require petroleum distillates, tractors require fuel, trucks need fuel to take the food to market and global food prices were already rising before the energy crisis that is in play.
Commodity prices have been going through the roof for months now. Cotton, lead, copper, oil, gold, silver .. you name it. This will affect the cost of tires, plastics, electronics, jewelry, clothing.. everything.
Lastly, QE2: the Federal Reserve’s strategy to push down long-term interest rates by buying up to $600 billion in U.S. Treasuries (yes, the same investment regular investors are now shedding). If you combine this with over a trillion dollars that was used to by mortgage-backed securities, a ridiculous sum of money has been pumped into the U.S. economy. More dollars chasing fewer goods = inflation.
Some or all of these pressures could create inflation, perhaps on a scale not see since the last truly progressive U.S. president, Jimmy Carter.
The Sum of it All
Investors are increasingly turning their noses up at U.S. Treasury debt. That will ultimately mean that interest rates will have to increase to offer better yields to investors. Those increased borrowing costs will cause businesses to either raise the cost of their goods (inflation) or halt investment/hiring (unemployment). Neither are positive outcomes to our government’s fiscal irresponsibility.
 – http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html
 – Chart from usgovernmentspending.com overlays from ConservativeDailyNews.com
 – http://www.rasmussenreports.com/public_content/business/indexes/
New House Speaker John Boehner, (pictured at left with House Majority Leader Eric Cantor) is proving to be a tireless Republican Leader in recent weeks of intense bud-get planning in the House or Representatives. The amount of legislation being drawn up at a furious pace to try to slow down out massive debt problem is awe-inspiring at times.
Considering the Speaker’s humble roots and his having grown up, “Doing every dirty job imaginable”, as he stated during his acceptance of the gavel from Ex-Speaker Pelosi, it should come as no surprise that he is cracking the whip at all the House leaders to get real budget reforms proposed.
For those of you not keeping track of the pace of the Republican’s serious attempts at hacking away at our national deficits and debt, Brian Darling lays it out nicely over at RedState.com*
“The House passed a long-term CR on February 19 by a 235–189 vote. The long-term CR funds the federal government for the remainder of Fiscal Year 2011 and contains $61 billion in cuts from FY 2010 levels of spending.
The House ended up with the $61 billion total after a week-long open debate with hundreds of amendments filed and a virtually unlimited amendment process. The House ended a five-day debate with over 40 hours of debate, over 500 amendments filed, over 150 amendments offered and over 100 recorded votes. This is extraordinary for the House, and Speaker John Boehner (R-OH) should be applauded for this relatively open process to consider a controversial appropriations measure.”
I have to agree with Brian here that the Speaker should receive very high marks for both his workhorse like attitude, and also for the House transparency that he promised and is now delivering. This is very refreshing after the last 4 years of Democratic demagoguery and gimmickry, in which bills were passed without proper debate or amendments. Speaker Boehner is faced with a major challenge in trying to produce the budgets cuts he has promised Americans, which include major obstruction from Obama and Senate Leader Harry Reid.
Speaker Boehner is showing his true conservative values in facing this challenge head-on without blinking, or withering under the onslaught of criticism from the very same House Democrats that never even took the time to propose a solid budget last year. It will not be easy cleaning up the mess left by the Democrats over the last 4 years of massive spending and massive growth of Government, and we need to be somewhat patient while our plow-horse of a House Speaker steadily forges ahead, tearing up the ground of the big government debt we face today. Hang in there Sir, help is on the way in 2012, when we take over the Senate, and clear the pathway for some real changes we can all believe in!
America’s National Debt rose by another $63.7 billion dollars in the month of February, according to the Bureau of Public Debt*. That currently leaves us with a grand total of $14.195 trillions of debt as of March 1st, 2011. In a behind the scenes move to try to postpone having to raise the debt ceiling, the Obama administration and Secretary of the Treasury, Timothy Geitner dipped into the treasuries cash reserves. I suppose that it would be pretty awkward to add an increase of our debt ceiling into the mixture of budget battles going on in Congress right now, and their timid attempts at trying to keep our government from shutting down.
To the left here we see President Obama signing an executive order to create a budget commission.There was lots of pomp and celebration about how Obama is taking a step forward to address our current fiscal insanity and massive debt problem. With the help of the Media puppets, this was celebrated as if someone had invented a cure for the worst plague to ever threaten America: Our National Debt. They hadn’t even held one meeting and the MSM was talking about how great the chosen one was for coming up with such a brilliant idea, to hear them tell it 24/7 at the time.
These gentlemen called all kinds of meetings, conferences, and hearings to try to come up with viable working solutions to our looming national bankruptcy. They included top business executives, past budget hawks, U. S. Congressmen and Senators. all putting their knowledge and experience together to try to find a debt solution. In the end they came up with a variety of plans, but couldn’t reach a simple concensus on even the most basic of actions needed, such as which budget cuts to make, whether to raise taxes and upon whom, and what other ways we could reduce our massive debt burden. They came up with reports that contained a variety of needed measures to avoid economic an collapse in America. They then submitted these reports to the President, The Treasury and the U.S Congress. After which, the President submitted a budget proposal to Congress that ignored every single reality and recomendation that was in the budget commission’s reports. To put it bluntly, it was all a charade to make Obama look like some kind of hero. This charade was totally exposed when Obama blatantly ignored the reality of their reports, and submitted a budget that continues to expand our national debt to the point of insolvency today.
Today many Democrats joined Republicans to pass a 2-week spending resolution, that continues to keep our government running while they attempt to hammer out a budget. The deadline is looming folks, and this vote puts extreme pressure on the U.S. Senate and Harry Reid to come to an agreement to avoid a shutdown. The final House vote was 335-91, with only 6 Republicans voting against this bill. Yes here at CDN we like to publish facts like these so here are the six Republicans who voted against this bill: Justin Amash (Mich.), Michele Bachmann (Minn.), Louie Gohmert (Texas), Walter Jones (N.C), Steve King (Iowa), and Ron Paul (Texas). Also of note is the fact that former Speaker Pelosi voted against this bill, while the number two Democrat in the House, Steny Hoyer voted for it. It will be difficult to acquire anything close to bi-partisanship when House Democrats can’t even come to an agreement within their own party on such an important bill as H. J.Res 44 to fund our government.
Many reports are coming out that lead us to believe that Harry Reid will get this bill passed in the Senate , but what I just saw on CSpan says something different. Mr. Reid just stated that they should be able to come up with something in about 48 hours. I say they should make Reid and company stay right there in the Senate until they do come up with something on this bill, instead of playing a nasty game of chicken and waiting until the last minute here. They were willing to stay there until all hours of the night on Christmas eve for their Obamacare passage, so I say make them stay there night and day and get this done.
There were some interesting statements during the floor debate before the vote on this bill.
EX-Speaker Nancy Pelosi actually had the gall to stand up on national TV and tell the world that the Democrats had not increased the deb by one penny in the last four year. I laughed so hard I actually fell out of my chair here at my desk! Let me inform the Queen of Socialism, of one small fact here: Our national debt was approx. $8.5 trillion dollars at the end of 2006, when your party took over complete control of Congress. Today, we are approaching $15 trillion in debt by the end of this year. Dear SanFranNannyState Pelosi: That equals $6.5 trillion in debt directly attributable to the Democratic Socialist Party under your leadership! Now grow up and stop telling such Utopian lies. We know better.
While pretty much everyone is saying they need to get to work to pass a real budget instead of these temporary resolutions, I just do not see this getting done any time soon. We are already 5 months into the 2011 fiscal budget year, so they are really only talking about a seven month budget here. Maybe we do need to shut our government down…..and fire every last one of these irresponsible representatives for getting us into this mess in the first place.
These reckless tyrants ran our government all of last year without any semblance of a budget. Democrats were in charge and could pass just about anything they wanted to pass, yet they spent most of their time passing un-wanted and rushed legislation onto the American people, while ringing up another record amount of debt. Today I watched Democrats stand up before the world and try to say they aren’t responsible for increasing the national debt that will crush our children in the very near future. I have about 6.5 trillion reasons to find that lie to be one of the most disgusting things I have ever heard a politician have the nerve to utter!
Grow up and get to work people!
Progressives are up-in-arms over the loss of government jobs that will occur due to the kinds of deep budget cuts House Republicans are pushing. House Speaker John Boehner’s response to them was clear, truthful and responsible
In the last two years, under President Obama, the federal government has added 200,000 new federal jobs. If some of those jobs are lost, so be it. We’re broke.
Liberals are painting the Speaker as a mean-hearted elitist for the most polarizing and honest and succinct part of the entire response – “So be it”.
Speaker Boehner isn’t saying that he doesn’t care if people lose jobs. He’s is telling it like it is. We are out of money and can no longer afford to pay all these people. Companies do it, families do it and finally our government is figuring out that it must also do so.
If a business’ model fails and it is unable to create the revenue needed to pay its bills, lay-offs occur. If a family becomes short of cash, they might stop paying to have the lawn mowed or the car washed. If the government cannot afford the 200,000 people that Obama added to the Federal pay rolls, lay-offs are required – So be it!
Our government has taken on more debt in the last two years than in the entirety of its history – all under one President and a Pelosi/Reid lead Congress. Those irresponsible policies have already cost numerous liberal Congressional members their jobs and Nancy Pelosi the leadership of the house. Failing to reverse the trend may cost more short-sighted, over spending progressives their seats – so be it!
The government is doing too much and none of it that well. If becoming fiscally responsible with our Federal checking account costs a few union-protected, unnecessary jobs in government organizations that aren’t even Constitutionally provided for – So Be It!
I recently recieved an email today that pretty much sums up our country’s status in one simple chart.
(Special thanks to my brother Bernie for the email)
After two years of Obama…
Just take this last item: In the last two years we have accumulated national debt at a rate more than 27 times as fast as during the
rest of our entire nation’s history. Over 27 times as fast. Metaphorically speaking, if you are driving in the right lane doing 65 MPH
and a car rockets past you in the left lane. 27 times faster, it would be doing 7,555 MPH!
(1) U.S. Energy Information Administration; (2) Wall Street Journal; (3) Bureau of Labor Statistics; (4) Census Bureau; (5) USDA;
(6) U.S. Dept. of Labor; (7) FHFA; (8) Standard & Poor’s/Case-Shiller; (9) RealtyTrac; (10) Heritage Foundation and WSJ; (11)
The Conference Board; (12) FDIC; (13) Federal Reserve; (14) U.S. Treasury
I am a firm believer in the saying that numbers do not lie, folks. We are in big trouble here and Obama’s recent fake budget proposal could very well finish off Americas economy. Thus the importance of supporting our representatives in Congress and our State Governors, in their quest to install some fiscal sanity into our country today.