President Obama's two year spending spree is pushing the U.S. toward a financial cliff. Unfortunately, the biggest impediment to fix the problem is the most ideologically unfit and economically illiterate president, probably ever.
Under Obama, spending has soared 30% in just two years, but expecting Obama will change course and cut spending is futile. Jacob Lew, Obama's budget director, was asked the other day to quantify cuts in discretionary spending that Obama identified for the debt ceiling negotiations with the republicans. The answer was $2 Billion. A pittance.
Immediate and large spending cuts in 2012 and 2013 would have the greatest impact to reduce borrowing because the savings would occur each year going forward and set a new trajectory. No matter.
Obama and his cohorts are ideologically driven to spend and spend because that is all they know. Harry Reid, Senate Majority Leader, complained recently that heartless republicans want to cut funding for his prized Cowboy Poetry Festival in Montana. Never mind that the U.S. spends $1.5 Trillion more than it takes in each year, forcing the country to borrow 40 cents for every dollar it spends and that the credit card has reached it's limit of $14 Trillion. All this, and Harry Reid is irate about funding for a poetry festival. How did this guy get re-elected by Nevada? This is the leader of the U.S. Senate.
When Obama announced withdrawal of 30,000 surged troops from Afghanistan, to occur in Sept 2012 (timed for prior to the election), Obama said the money saved from defense cuts (the only cuts Obama really likes) would be used to "invest" at home. Any money "saved" will thus be spent. So no real spending cuts.
Obama talks a good game for the press and public. But it's nonsense.
He says the bulk of spending cuts must come from entitlements (medicare, medicaid, social security). Yet he refuses to cut from those programs, and little from anywhere else.
Neither of Obama's two budgets sent to Congress for FY2012 had cuts for entitlements. He ignored the recommendations of his own Bowles-Simpson Deficit Commission which recommended reducing spending by $4 Trillion and reforming entitlements. Obama ignored it all. Obama's 2nd FY2012 Budget (the "Do-Over" budget) sent to Congress and was rejected 97 (voted against) and 0 (voted for). Not even democrats voted for Obama's budget.
The holy grail for Obama is taxes and more taxes. This is the man that said during the run-up to the 2008 election that his goal was to redistribute wealth and "transform this country". He is sticking to this promise.
To deal with the debt ceiling, Obama now insists on a $1 Trillion Tax increase, along with relatively insignificant spending cuts to occur over a 12 year period (mostly in years 9 - 12), long after he leaves office. Thus, the cuts will mostly be illusory because cuts in "out years" can be easily reversed. Since they would have no immediate impact, it's mostly smoke and mirrors.
This is how Obama sold Obamacare.
ObamaCare was touted as having a cost of roughly $900 Billion, that would be paid for with new taxes of almost $1 Trillion, resulting in a net "savings" to the country of $100 Billion over 10 years. This is called Fantasy Island Accounting. The projected savings will never come to pass. In fact, the cost estimates for ObamaCare are now estimated to be understated by a wide margin, perhaps by a factor or 2x - 3x, or more, partially due to recent studies that reveal 30% - 50% of companies will likely terminate their health plans and up to 100 million Americans could lose their healthcare coverage and be dumped into the government exchanges. The promises of ObamaCare were more smoke and mirrors, that is other than Nancy Pelosi's "we have to pass the bill so that you can see what's in it". That idiocy was true.
Obama, the charlatan-in-chief, keeps playing the same tune.
Mitch McConnell, the Republican Senate Minority Leader, said yesterday what has been obvious to many - "that with the current president we have in the Oval Office, no real progress can be made on spending". He is correct.
He also boiled down the choices that Obama offered to republicans regarding the debt ceiling as essentially being 3 options - "Smoke and Mirrors, Tax Hikes, or Default". He is correct again.
Hooray that a prominent politician is finally calling out Obama for his deceptions!
Unfortunately, the media is mostly mute and blindly accepts the deceit. The public is starting to catch on, but many are still oblivious.
Obama reminds me of the intransigent Palestinians who never negotiate in good faith with the Israelis.
In the last couple of months, Obama's demeanor has changed and his hair has turned grey. The stress of the job, no doubt, but I think there is more to it.
The wagons are circling. Consider just these items: the ATF gun-running scheme in Mexico that may implicate Attorney General Eric Holder, or go even higher up the food chain, is now under investigation by Darryl Issa; the ill-advised War in Libya which bypassed the US Congress for approval; the uncertain fate of ObamaCare in the courts, and Obama's sinking poll numbers, including many on the left who are now turning against Obama and openly criticizing him.
One more item - the birth certificate issue is not dead, despite the media and all of Washington ignoring it - the long-form certificate released by Obama himself on April 27 is a 100% forged document. For the latest on the birth certificate issue - see the interview in two links below (total is 25 minutes) ..... ....