Saturday, March 28, 2009

Obama Budget Bill explodes our National Debt

Click the image to enlarge

We keep hearing these heretofore unheard of numbers getting thrown around now for the past two months of the Obama Presidency. It is almost becoming passe' for the Democrats, just a Trillion here, a Trillion there.
We heard Obama on numerous occasions in the past few weeks tout how his budget and plan would "cut the deficit to $500 Billion" by the end of his first term. It just isn't possible. This chart clearly illustrates this fact, and it uses Obama's own OMB (Office of Management and Budget) figures. The CBO (Congressional Budget Office) just announced last week that Obama's OMB figures (the ones used below) are really Two Trillion too low, based upon the CBO's much more realistic calculations of growth and recovery than those used by the Obama administration. In 10 years by the final out year of the Obama Budget, our Federal Debt would be 80% of our Gross Domestic Product. That is unsustainable and impossible for any kind of economic growth or standard of living we are accustomed to or that we can exist under. 80% of Debt to GDP ratio is a 3rd World Nation or Banana Republic type of ratio. Another worrisome fact is what isn't included or mentioned in these deficits; that would be our entitlement programs; Social Security and Medicare. These aren't included in these figures and we know that they will be insolvent and draining the Treasury unless action is taken between now and the next 5 years or so to solve the huge increase in expenditures when the large body of Baby Boomer's start drawing down benefits. If like me, you are concerned about this spending.The Federal Reserves reckless and devaluating policies of printing currency and jeopardizing the value of our dollar and monetary system, and the ramifications of these policies not just for us but also for our future generations, please contact your Congressional Representative and Senators and tell them to STOP THE SPENDING. STOP THIS BUDGET BUSTER BILL. Go to this link and in the MY ELECTED OFFICIALS BOX is a place to put in your zip code and that will get you where you need to get for contacting your Congressperson, and Senators.

I would like to close with a press release by Nancy Pelosi in August, 2003 on Budget Deficits.

Pelosi Statement on New CBO Budget Estimate (from her own Congressional Website)

August 26, 2003

Washington, D.C. -- House Democratic Leader Nancy Pelosi released the following statement today on the Congressional Budget Office's new budget forecast, which estimates record budget deficits of $401 billion for 2003 and $480 billion for 2004:

"Today's estimate from the CBO is yet another reminder of just how appalling President Bush's economic record is. The President's holiday from fiscal responsibility has given our country a parade of abysmal economic statistics.

"President Bush has presided over a loss of more than 3 million jobs and a $9 trillion decline in our nation's fiscal health -- from the $5.6 trillion surplus he inherited from President Clinton to a $3.5 trillion and growing deficit today. The deficits that the CBO predicts for the next two years are the largest in history, and the forecast makes clear that they are not going away.

"Where does it end? The President does not have a plan to bring the budget back into balance. He continues to promote tax cuts for the wealthy that we cannot afford, sticking our children with the bill. Every penny he adds to the debt, our children will have to repay with interest.

"Today's CBO estimate would be shocking if it were not so predictable from this Administration."

Nancy Pelosi was mostly right then. She makes the Democrat often repeated falsehood of citing a non-existent Clinton Budget surplus as though this projected surplus of the out years in Clinton's budget like it was sitting in the Treasury. It never existed because that projection never forecast what the nation suffered with the Dot.Com collapse in 2000 thereby wiping out 3 Trillion in wealth. Bush, like Obama also inherited a recession and budget/spending outlays of a predecessor to contend with. He accepted the responsibility and led. Then came 9/11. How quickly we forget the layoffs and economic upheaval of every sector of our economy? People stopped traveling, buying cars, and business responded with huge layoffs and cutbacks. Bush found himself engaged in a Worldwide War on Terror with an enemy that had challenged us on our own soil in a way we had never experienced in our History.
Yes, he spent to engage the enemy, whenever and wherever necessary. He spent to bolster our safety and security right here at home.

In many respects with 9/11 and the horror of that attack freshly seared into America's psyche and the uncertainty of what else would come after it, Bush had greater challenges to face than Obama.

The difference was how he solved the challenges and bombshells dropped on his economy. He slashed the tax rates for every American across the board. And he unleashed the Economic engine of our Private sector, Corporations, Small Businesses and Entrepreneurs. He unshackled the indomitable spirit of Americans to do what they always have done, rise to a challenge. And it worked. He added millions of new jobs, and saved millions more. His policies generated terrific revenue increases and personal/governmental wealth generation and economic growth.

Bush fell down when it came to spending restraint. He failed to cut or hold non-war/security related spending in line. In that respect he failed miserably against the fiscal Conservatism that his party and Conservatives have always stood for. His Congress controlled by Republicans were no better putting budgets laden with pork and earmarks before his pen. But even on Bush's worst day, he will never be as good as Obama, Pelosi, Reid and Geithner when it comes to spending. In just two months of this Coalition of the Clueless, led by Obama, they have put more spending and deficits on the books on the way to the tune of 12.5 Trillion than George W. Bush did in his entire 8 years of his Presidency. Bush was in full- blown War mode footing at the time.

Yet today the budget deficits and spending Pelosi criticized when not Speaker, are now all of the sudden okay? They are O.K. evidently only if they are TRIPLE or QUADRUPLE what Bush had done? Pelosi ignores truth now for her political agendas expediency because she is intoxicated with power. Her statement above shows what a liar she and her party have become. They have one goal in mind to achieve and it is obvious they intend to do so at any and all costs; to make Government the central authority and provider in American lives. Socialization of our Economic, Business,Governmental, Social, Health, Energy, Environmental and Entitlement arenas are their ultimate goal of attainment. They are well on their way to stripping us of our liberty with a tyranny of lunacy unless Americans wake up and stop it cold.

Michael R. Bednarz