We spent $3,600,000,000,000 (that is 3.6 Trillion) According to the CBO figures for fiscal year ended Oct. 2012, of that about 50 cents of every dollar we spent was borrowed. So that means 1.8 Trillion of deficit spending is added on to the national debt that is now nearly $16,300,000,000,000 (That is 16.3 Trillion) Lets break such a large number down to size, shall we? October 2012 monthly spending was the largest single month of spending in our Nation's history. It came in at over $122,000,000,000 (that is $122 Billion) President Obama do you see how it's only 3 commas for a Billion instead of 4 commas for a Trillion? Ok, and a trillion is a thousand billion dollars or a million million dollars, Capiche? O.K. good. That breaks down to $3.95 Billion per day. Still with me Mr. President?
( First a little history on the opening negotiating position for Obama)
According to the N.Y. Times.
Nov. 13 The White House confirmed that President Obama’s starting point in budget talks with Congressional leaders would be the 80-page package that Mr. Obama sent Congress in September 2011. The 10-year, $4 trillion plan calls for $1.6 trillion in new revenues.
My Emphasis and added comment. (Folks, this is the budget that was presented by Obama and brought up for a vote by the GOP Controlled House, you know those wascally Republican's that oppose and block his efforts?..... So for two consecutive years they put it up and it got ZERO votes, not even one single Democrat, or Republican voted for it in the House. It received Unanimous Bi-Partisan rejection. The same budget went to the Senate controlled by the Democrats, two years running, and again offered up for a vote. Oooopsie.... again unanimous and ZERO, not one Republican, nor Democrat Senator voted for it. So this was his serious effort to avert the fiscal cliff? This was his OPENING FRAMEWORK and SALVO?)
Nov. 29 Treasury Secretary Timothy F. Geithner gave the House speaker, John A. Boehner, a detailed proposal with $1.6 trillion (my emphasis added, Whoa...What happened to the "only" $800 billion over 10 yrs. you campaigned on? Oh yeah, I forgot you came out of that meeting with AARP, SEIU, and moveON.org, the day after the election and they said you were going to double the whack-job you planned for the Rich in tax increases over 10 years) $50 billion in immediate stimulus spending, home mortgage refinancing and an end to Congressional control over the debt limit; (my terrified emphasis added) it also set a goal (my emphasis added, not cuts or reductions, just... goals..uhuh...) for $600 billion in reductions from Medicare and other social programs.
Let me just say Mr. President, if you had to sell cars you would starve. You were asking America to pay MSRP during the campaign before the election. Now you are counter-offering we Americans the car for MSRP plus a doubling of the MSRP? Wow, thats some second sticker Mr. President. Usually the second offer is lower not double the original asking price! I sure hope you weren't offended by the laughter Geithner's offer was received with by those Senators. Well since then you have "countered" your original offer that was double your campaign offer, down to your now desired New Years tax increase on the "wealthy" of "only" $1.4 Trillion from the 1.6 Trillion you sent Secretary Geithner to offer on Nov. 9. Now Mr. President, can we tell Americans this is your final answer? For now it is? Ok, well I guess we will have to go with that. (Man I sure hope you didn't let Geithner use Quicken Turbo-Tax to figure all this out) So lets not add your increased spending request, or figure there will ever be a reduction with your use of the word "goals' in your proposed entitlement spending savings. By the way great job keeping your media buddies in the mainstream media mum on the hefty Death Tax increases and your proposal to reduce the taxable estate value more than two-fold. Those are slipping right under the radar thanks to your cozy media relationship I don't think anyone will notice or cry foul until the family farms and businesses are liquidated to pay those taxes when their loved ones pass on and by then it will be too late.
O.K. but I digress... lets stick with October, 2012 Budget/Spending figures and do the math.
So we have $3.95 Billion per day of spending. If Congress agreed to the latest Obama offer and increased taxes $1.4 Trillion over 10 years that would break down to $140 billion per year in additional tax revenue, and that breaks down to a daily amount of $383 million per day or if you will, less than 10% of our daily spending amount of $3.95 Billion per day. Remember half our spending is borrowed money. So assuming we now have 10% of daily spending handled that still leaves a 40% gap to close just to get to non-deficit spending. We will not even have begun to pay down the over 16 Trillion in National Debt, Six Trillion of which, you alone Mr. President have packed on since you came into office.
Your insistence on raising taxes on the top earners and producers in America, flies in the face of all economic logic and reality ignoring the economic impacts and recent precedents of disincentivizing success. You make no provision for those about to be crucified to invest differently or divest accordingly in self-preservation of their hard earned wealth and income. You ignore the possibility that raising rates on the top earners would not follow the recent experience and precedent of increasing taxes on the wealthy in the U.K. which resulted in a reduction of revenue by 60% from the prior year after they taxes on top earners up to 50% (10% increase) on the "Rich". Well you are special so you certainly will be immune to such precedent don't you think? Just in case though, start your "campaign" speech and talking points now if you have to hit the road and explain to Americans how you will have to raise taxes on everyone to fund the shortfalls from your ill-conceived action.
So Mr. President, what is your plan to close the gap after you nail the Rich guys? How do we get there? Tell us, please. You haven't provided one single concrete proposal for a budget cut, reduction, or elimination of any Federal spending outlays, programs, entitlements, military cuts, or discretionary budget spending cuts. You offer instead "goals" instead of cuts and then have the audacity to propose new stimulus spending and programs! Well your "goals" are not legal tender in these United States anymore Mr. President. We have drawers full of IOU's with your portrait on them that say "In Obama we Trust" that promised all the Green Jobs, all the Shovel-Ready jobs. You promised us Stimulation of the economy from your Stimulus Program, and that worked like Ex-Lax ten years past the pull date. Thanks but no thanks, keep your goals. We want action, we want serious efforts and purpose to cut the bleeding that is killing America, our economy, and our future. Our National debt is in excess of 100% of our annual GDP, it was in the 70% range when you took office. This is unacceptable, you were elected to fix it. Raising taxes and pounding your chest gets us 10% of the way there, we need 40% more. Now, I have armed you with an education on Fiscal Cliff 101, so quit being such a fiscal Dummy. Oh forget it! Just follow the lead of Congress, like Bill Clinton did and do the deal with loophole eliminations, accept the GOP recommended cuts, then take the credit for their solution like the fondler-in-chief did and lets get this economy moving again.
Michael R. Bednarz
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