Posts Tagged 'Deficit'

Obama’s Change: Record Deficits

By Caomhin

In his State of the Union Obama talked about not rewarding failure.  Americans should keep these words in mind this November and in 2012.  Obama’s projected budgets cast deficits as far out as projections allow, and for the fiscal year of 2011 Obama is determined to set records:

Republicans on Monday slammed President Obama’s $3.8 trillion budget as a fiscally irresponsible spending spree, casting doubt on the administration’s claim that the budget reflects cutbacks and hard choices.

The fiscal year 2011 budget, sent to Congress Monday, includes new jobs-creation programs and additional funding for the wars in Iraq and Afghanistan, but is projected to add nearly $1.3 trillion in deficit spending on top of the current year’s projected $1.6 trillion deficit. As he unveiled the budget, Obama warned the federal government to stop treating taxpayer dollars like “Monopoly money.”

Obama has the nerve to utter that last line, failing to recognize his utter destruction he has perpetrated against this nation’s finances.  He is proposing a $1.6 TRILLION DEFICIT. This doesn’t even include his government run health care plan.  This is on top of the $1.56 Trillion dollar deficit he ran last year.  Remember, this is before he and his liberal allies ram even more programs and spending bills down our throats.  Assuming Congress does nothing else, at all, about anything, until next year, Obama will have increased the deficit by $3.16 Trillion in 2 years.  That number is sure to grow.  So for Obama to say that government should stop treating the taxpayer dollar like “Monopoly money,” when he is in fact, the one doing it, it is offensive to anyone who pays taxes and lives in this nation.  He is putting our nation into levels of unsustainable debt and we will all feel the repercussions of this.  The liberals need to go, for the good of our nation, for its survival, they must be voted out.

Another key fact to note from this article:

According to White House estimates, the budget’s deficit for fiscal year 2013 would drop to $700 billion before jumping back up to $1 trillion in 2020, the furthest out that budgeters will predict.

He has projected deficits as far out as they can even project.  Additionally, his budget proposes eliminating most of the Bush Tax cuts that actually spurred investment and economic activity, bringing tax relief to all Americans, and greatly helped American small businesses.  He is also assuming an unemployment rate of close to 10% if not higher for the next two years.  He proposes raising taxes during a depression and spending uncontrollably for as long as he is in office and he thinks somehow, this can fix things.  He is wrong, the liberals are wrong, and they must go.  We cannot continue to pay the price for our “leadership’s” failure.  They must be voted out.

Obama has shown no restraint and refuses to take responsibility for his actions, always pointing the finger at others.  His hubris is so deep that he cannot even recognize the harm he is doing to our nation from the ability of families to maintain purchasing power from a strong dollar to our reputation globally as he continues to undermine our economy.  No amount of rhetoric can mask the reality of the situation.  It is dire and demands immediate action.  Rather than remedy the situation Obama and the liberals choose to exacerbate it, to the detriment of all Americans.  It is unconscionable.  We deserve better and Obama and the liberals must be voted out.

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Obamanomics is Kneecapping America

By Caomhin

Sound harsh?  In reality, that’s not harsh enough.  We here at ToOurRepublic.com have been trying to sound the alarm even while Obama was on the campaign trail and we spoke against against President Bush’s bailouts as well.  Liberals and big government GOPers are still trying to say that these plans are working.  They are not.  Obama, while hiding on vacation, released the horrendous news, unemployment to stay at near 10% (far above where he said it would be if his Stimulus Porkfest passed), with deficits exploding by over 22% over the next 10 years due to his spending…in 7 months.  Worse yet, they are killing our ability to be productive in the present and in the future:

The federal government faces exploding deficits and mounting debt over the next decade, White House officials predicted Tuesday in a fiscal assessment far bleaker than what the Obama administration had estimated just a few months ago.

Figures released by the White House budget office foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May. Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.

Obama economic adviser Christina Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year. Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

I wonder people like Arlen Specter still feel good about themselves about passing that deficit exploding bill that produced nothing except an unemployment rate that will continue to climb into 2010.  I distinctly recall, not even three weeks ago Obama saying,

“While we have rescued our economy from catastrophe, we have also begun to build a new foundation for growth.”

Bumping the national debt up to $9 trillion dollars and unemployment staying near 9.8% in 2010 is not a “catastrophe?”  Does Obama even know what economics or reality is?  He can not truly believe this.  This has to be his ego talking.  Nobody can be that disillusioned about the economy.

Some members of the media are seeing the extreme danger in Obama’s deficit bloating and are calling him out on it, not even allowing him to use his “Blame Bush,” excuse anymore, because, well, it’s a huge lie:

President Barack Obama’s budget would produce $9.3 trillion in deficits over the next decade, more than four times the deficits of Republican George W. Bush’s presidency, congressional auditors said Friday.

Worst of all, CBO says the deficit under Obama’s policies would never go below 4 percent of the size of the economy, figures that economists agree are unsustainable. By the end of the decade, the deficit would exceed 5 percent of gross domestic product, a dangerously high level.

White House budget chief Peter Orszag said that CBO’s long-range economic projections are more pessimistic than those of the White House, private economists and the Federal Reserve and that he remained confident that Obama’s budget, if enacted, would produce smaller deficits.

Even so, Orszag acknowledged that if the CBO projections prove accurate, Obama’s budget would produce deficits that could not be sustained.

Oh, so we’re supposed to feel good about Peter Orszag saying the he thinks the CBO is too pessimistic?  This is he same guy in whom Obama relied to tell us that unemployment would not go above 8% if his Stimulus Bill passed, the man who was so far off the mark in all his projection (all on the wrong side) that people are starting to demand he resign.  This is who they roll out to try and convince the American people that Obama knows what he’s doing and that his numbers can be trusted?  From all appearances, I wouldn’t let this guy balance my check book.  Remember this picture, which it now appears that the CBO was probably too optimistic when it came up with their figures?

bushobamadeficit

If you haven’t already read Pete DuPont’s article from The Wall Street Journal entitled, “The High Cost of Liberalism,” you owe it yourself to do so.  It’s a stunning look into the future at just some of the tax increases that are going to have a tremendously negative impact on all Americans, from Main Street to Wall Street.  For the record, he mentions that it’s possible that the Democrats will keep most of President Bush’s tax cuts (which need to stay into place…and FYI if you have a a Roth 401(k) that was a result of Bush’s tax legislation as well) but I don’t buy it.  The Democrats have put us in such dire straits that they’re going to look for every penny they can get their hands on.  The people who will face the greatest impact if the Bush Tax Cuts expire?  The people making between $26,500 and $32,500 who face an 87% tax increase if they let the Bush tax cuts expire.  We’re losing our ability to compete and maybe even earn a decent living in the present and the future if we continue down this path.  The madness must be stopped.

Has the Administration Gone Insane?

By Caomhin

I don’t think the Administration is stupid, or oblivious, so I’m starting to wonder just how far disconnected they are from reality.  The word insane comes to mind, but that’s rather harsh I suppose, however, this type of spin is pure desperation, and if it’s not, well then, the only thing it can reasonably be is craziness.  Have a better idea?  I’m all ears.  Allow me to introduce you to the new White House fairy tale as you anxiously await your unicorn to arrive:

White House Chief of Staff Rahm Emanuel told The New York Times Obama intends to use the news conference as a “six-month report card,” to talk about “how we rescued the economy from the worst recession and the legislative agenda moving forward, including health care and energy legislation.

Really, they think they rescued the economy?  How, by blowing the deficit up to astronomical proportions, the fact that they’ve readily admitted that unemployment is going to keep growing, that both producer and consumer price indexes are already rising, housing prices keep falling, and so on?  That’s a RESUCE?  Seriously?  How far in the tank can the media be?  They can’t possibly spin this and have any shred of decency left.  On the plus side, we all know they’re full of it, so maybe the media will finally show it’s hand in full and the public will see just what it is they’re doing.  Think this is an isolated statement?  Nope.  Get ready for this to be their new re-occurring theme despite it being completely, and utterly, false:

it is becoming increasingly clear that the economy is no longer on the brink of disaster.”

That according to Obama budget director Peter Orszag, who is incapable of producing budget numbers before Congress leaves for recess.  Also, he says that it’s consensus that private economists are saying that the US will have positive economic growth by the end of the year.  Yet almost all indicators I’ve seen and all reports I’ve seen equates to the possibility of a slight uptick in GDP and no reduction in unemployment until 2010.  Don’t think for a minute that they don’t know that everyone is going to get hit with a tax increase in 2010 unless they extend the Bush Tax Cuts.  The money that will be leaving the private sector will also harm the economy right about the time that it’s supposed to be recovering and we still have not yet figured out a way to pay the $787 billion Obama spent on his “Stimulus” alone.  He’s spent a great, great deal more than that already.  That’s not saving anything at all, let alone an entire economic system.

This is all about politics to them and that is unforgiveable.  These are people’s lives we’re talking about and all they can do is lie and say that they’ve “saved” the economy?  Are they on drugs?  This is beyond dishonest.  Obama even went on TV tonight to spew this garbage while telling you that because his policies on economics have went so well that you should trust your healthcare, your life, to be in his hands and the hands of the people who think that the economy is “fixed.”  This is the their new meme, that they’ve “fixed” the economy, that they’ve “saved” us.  This is our reality, Obama’s policies, in under six months, may have created a new natural unemployment rate that approaches 7% instead of what it has always been in the United States, 3.5%.  Unforgiveable.

Obama Quotes of the Day

By Caomhin

Quite literally too, and conveniently rolled into one small article by the Philly Examiner.  The first:

At a prime-time news conference marking six months in office, Obama said health care legislation was key to a strong economic recovery, and he added, “If we do not control these costs, we will not be able to control our deficit.”

Says the man who has sent the deficit to way past anywhere Neil Armstrong or Buzz Aldrin ever set foot.  Remind yourself of this picture illustrating the deficits under Bush v. the deficits under Obama:

bushobamadeficit

This is, of course, under Obama’s assumptions that unemployment wouldn’t hit 9% and it currently stands at 9.5% and promises to rise above 10%.  Net effect, the deficit is already going to GROW because his assumptions were so far off.  He overestimated revenue greatly.  He also neglects the fact that the CBO says his healthcare bill will increase the deficit by over $230 billion in the early years before ballooning in later years.  Unbelievable.  I wonder what he was offering the CBO head in that highly unusual meeting he called for after that report was published.  You may also notice that he’s pushing so hard for more spending and yet, he cannot bring himself to release the budget numbers.  Gee….I wonder why.

Say, while we’re talking about the economy and as we move toward what is now universally accepted and inevitable 10% unemployment, Obama’s claiming that…he saved the economy “from the brink”:

“As a result of the action we took in those first weeks, we have been able to pull our economy back from the brink,” he said.

When you know that the unemployment rate is going to keep raising, that the housing market is still lowering, that the stock market is stagnant, consumer confidence is down, wholesale prices and consumer prices are inching upward as we move toward higher inflation rates, one gets the sense that he has no clue what he’s talking about.  In fact, the new liberal meme is going to be that Obama saved the economy and they’re going to pick and choose just a few economic indicators to try and sell the public on this nonsense.  That’s all well and fine and very much needed, but we haven’t even leveled out unemployment and it’s going to keep rising over the next few months at least.  So go tell that to people who are losing their jobs, their houses, who can’t afford to feed their families, or can barely make ends meet Obama.  Despite all this you think people should trust you with another trillioin or so dollars to experiment with our health treatment?  Has more than 30 days passed since you took office when you didn’t roll out another $500+ billion program?  Stop the madness.

Don’t Let Obama Get Away with Stimulus Lies

By Caomhin

I mentioned before that Hot Air was all over this but this needs to repeated. The Obama Administration is now lying through it’s teeth in order to say that the “Stimulus” Bill was actually a “Stabilization” bill and the media is letting them slide on this. Here’s the article:

“This legislation was designed to cushion the downturn,” said White House Press Secretary Robert Gibbs. “That’s why we have always talked about this as one function of economic recovery.”

When pressed about the change in terminology, Gibbs said he was not trying to temper expectations after the fact. “I can probably find 15 or 20 occasions when I said this in the lead up,” Gibbs said, explaining that he had always defined the AARA as part of a “multi-legged stool.”

Total lie and they know it.  Now, on the same day he’s spinning this garbage, Joe Biden is out there saying that the “stimulus” is working.  They can’t even get their own stories straight.  They put us into a level of crushing debt with nothing to show for it and they know it.  At no time in my life has the economy ever been so bad and worse yet we’ve reached a level of debt that is nearly impossible to repay and Obama wants more and more and yet none of his programs are working.  Not even the “small” $50 Billion dollar ones. Don’t buy into his spin and under no circumstances should we allow the media to do this for him.  In fact, if you see the terminology change to provide flank to the White House, turn off that channel immediately, don’t visit their website and don’t visit their sponsors.  These tough economic times demand us to spend our dollars very wisely. Here’s some videos to remind you of what Obama’s pork laden, unicorn promising, ill conceived, debt exploding plan was:

Here’s some basic math for you Obama: spending $787 Billion you don’t have is by it’s very definition creating a deficit.  You do know we have to pay that back right?  But I’m sure we’ll be OK with your 10% unemployment rate you’ve pinned on us.  The market would have led us to recovery, you’ve lead us straight into an economic tornado.

Obamanomics in Pictures

By Caomhin

Just thought I’d put up a couple of pictures and just a little bit of text to illustrate where our economic future is heading under Obama.  The first picture is from the Heritage Foundation, a graph that compares the deficits under President Bush and Obama:

bushobamadeficit

Just show that to a Liberal next time they screech about President Bush.  Keep in mind this graph is old and the deficit is set to surge much, much higher in the face of growing unemployment, which the current Administration said would be much lower than where it currently stands if they were allowed their gigantic Porkfest.  Result: Epic Fail, one we and our children will be paying for year and years to come.  Second point to keep in mind here, this does not account for the ginormous deficit expansion that will result if the Healthcare bill is allowed to go forward.  This is disastrous.  The same facts apply to the following graph from the non-partisan CBO.  By the way, they also blasted the Democrat’s Healthcare Proposal.

Federal Debt Held By Public

Notice the enormous spike in in 2009?  The graph represents the expansion of debt under CURRENT law, so any and all spending proposals the Dems are set to unleash will push this monstrosity higher, and even more rapidly.  This mindless spend, spend, spend philosophy has already put a crushing burden on our backs and it truly is mindboggling just how much money Obama and his allies on the Left have spent is just 6 months.  They’re already talking about ANOTHER STIMULUS.  Oh yea, that’s right, for those of you who are Orwell fans, you’ll be pleased to know that Obama never said his horrific kickback spending plan was a Stimulus, but merely a stabilizer.  Hot Air’s all over this one.    You can see where this is all going.  It’s bad enough most of our elected officials have no concept of economics; they apparently have no concept of basic mathematics or ethics either.

Obama’s Looking at the US Economic Picture, Right?

By Caomhin

Obama keeps insisting that the economy is on the right track.  Think about that for a moment.  This is the man who swore that the unemployment rate would never reach 10% and that the jobs would come calling pretty damn quickly if his pork laden spending bill called the “stimulus” or “recovery” or whatever else they want to label it passed.  It didn’t produce jobs, but it sure made the deficit skyrocket.  He’s out there now saying that it was always a two year plan despite the fact that we were told that everything would implode if we didn’t pass the bill ASAP.  Here we are, are things much cheerier for you, your neighbors, friends, etc?  Of course they’re not.  Absent the spending bill, I have full faith that the recession would be ending much sooner and in much more dramatic fashion than when recovery actually comes, which it will.  It always comes, if we allow the market to work.  The problem, of course, is that such overreaching and substantial market interference by the Administration is going to slow down and distort recovery, all while he keeps insisting things are fine, but are they really?  Do you feel that they are better than you did in January when he took office?

Let’s take a gander at some of the news off the wires today.  First up, let’s take a snapshot at our nation’s current deficit:

The U.S. recorded a federal budget deficit of $94.3 billion in June, pushing the cumulative deficit so far this year to a record $1.08 trillion, the Treasury Department reported Monday.

At this time last year, the cumulative federal budget deficit was just $285.8 billion.

The Obama administration expects a deficit of $1.84 trillion for the full fiscal year, which ends in September. However, that number is likely to be revised higher later this month, since the economy has been much weaker than when the original estimate was made.

You can distinctly recall the media going absolutely bonkers over the deficit for years under President Bush, as many of us did as well.  It is always solid policy to minimize and eliminate debt, but some levels of deficits can in certain circumstances be beneficial, as Alexander Hamilton has taught us.  We all wanted the deficit to be reduced.  Now, a year later, the $285.8 billion deficit has nearly quadrupled, and yet, how often do you hear the media attacking Obama over this?  There should be a TREMENDOUS outcry over this runaway and unsustainable deficit. You’ll also notice he EXPECTS a $1.84 trillion deficit which in fact, will be much, much higher, as even he was forced to admit his stimulus was a catastrophic failure in job creation and that unemployment will grow for MONTHS.

Let’s glance at some more news out today.  Remember when I (and countless others) were warning about a coming spike in inflation that was going to come as a result of a loose monetary policy coupled with flooding the market with dollars?  Of course you do, and once upon a time the media did too, when they actually cared about doing their jobs as opposed to being partisan hacks.  Have a look at the Producer Price Index:

U.S. producer prices rose 1.8% in June, beating economists’ expectations, the Labor Department reported Tuesday. It was the biggest increase since November 2007. Excluding volatile food and energy prices, the index was up by 0.5% in June. Economists surveyed by MarketWatch were expecting producer prices to climb by 1.2% in June.

What that equates to is higher prices that will undoubtedly be passed along to consumers.  When the PPI beats expectations, it’s not a good thing, it’s a bad thing, and the higher the spread, the worse the news is for businesses and consumers.  It appears the effects of the “stimulus” are being felt in other ways that will impact us, but not in a positive way.  With the average work week shrinking, equating to lower paychecks, virtually no one receiving increases in base pay, and an increase in the cost of goods, what effect do you think that will have on the economy as whole, especially for people on the lower end of the spectrum?

Two other spending proposals, which at this point equate to nothing more than throwing a ton of money on a credit card, were also introduced today by the Administration.  $27 billion in funding for community colleges and a plan to allow homeowners who are forced into foreclosure to “rent” their houses as they revert ownership to the bank.  Ideas and sentiments can be noble in theory and have the best intentions but result in complete disaster.  Thus far the Administration has not displayed honest and true intentions, but rather political games designed to score votes and savagely attack their opponents as opposed to being a statesman.  He has done virtually no analysis of the situations around him and into admitting they have “misread” things from the jump.  Even as they recognize their assessments are wrong, they have not slowed down to further analyze the situation to come up with a better fix.  Rather, like a spoiled child, they want what they want, when they want it, no matter what consequences be damned.  I suggest you read this piece in the Wall Street Journal for even more perspective on what we’re up against.

There are thing we can afford to do and things we can not afford to do, and while we, the average citizen, agonize when we’re forced to put a $50 grocery bill on our credit card, Obama and his administration roll out plans on a monthly basis that can be measured in fractions of trillions of dollars without second thought.  We’ve become so desensitized to him in six months that I’m betting when you read about the $27 billion in funding for community colleges you didn’t even blink and didn’t click on the link at all.  We have a problem, and whether Obama, the media, or even we ourselves care to admit it, it’s going to have to be dealt with and quickly.