Obama's Lack of Veracity, and Economic Illiteracy; A Dangerous Combination for America

What is going on? Could it be the truth is so obvious that the Lamestream media including MSNBC can't even help but report the truth?   How does that old saying go? If you are going to be a good liar; you better have a good memory?  Today I actually see a story by MSNBC or whatever they call themselves now, letting the GOP get the truth and their accurate contention on the impasse out about Obama and his rejection of his own spending cuts plan from nearly two years ago;  The Sequester.

This Sequester plan and solution was all Obama's idea. He came up with the "Super Committee" Plan because he failed to lead. The other fact and hard truth that is becoming painfully obvious to America as we slip into a double dip recession with unemployment increasing and economic growth contracting; is that Obama is an economic illiterate who is Presiding over the largest economy in the Universe. We also have a problem with the veracity of our President. Obama's lack of  veracity plus his Economic Illiteracy,  is a toxic combination for America's future.  Just today he told workers in Virginia at a Submarine building yard.

"These cuts are wrong, they're not smart, they're not fair," he said. "They're a self-inflicted wound that doesn't have to happen."    
 

Seems like the only place we need gun control is the White House, so he doesn't shoot himself in the foot trying to shirk from his responsibility for his plan.

Obama went on  to blame the Republican's for the latest impasse on their unwillingness to consider new revenues and closing tax loopholes. Heard that one before? It's a broken record, Republicans are protecting the Rich, not giving the majority of American's a fair shake, they are going to make airliners crash, and babies will die because of Republicans, BLAH, BLAH, BLAH.......

Sequester was Team Obama's solution to getting past the Debt Limit increase nearly two years ago when he wasn't willing to make cuts, or work out compromises with the GOP and Democrats on a framework budget passed and proffered by the House. He also failed to lead his Senate Democrats and Harry Reid to action in coming up with a plan,  or to even finally produce a budget which they have failed to generate or pass for over FOUR YEARS and still counting.

Obama couldn't jeopardize his reelection at the time with his "gimmie, gimmie, gimmie Constituency" so Obama's the one that came up with 50-50% across the board defense and domestic cuts. A ratio that was patently unfair to begin with and one that only an Economic illiterate like Obama could have proposed. The current ratio of spending by the U.S. Government between Entitlements and Defense is 61.9% Domestic to only 18.7% Defense.

The  OMB, (Office of  Management and Budget;  the White House's Accounting and Budget Agency)  chart above clearly shows that cuts will affect our defense and National Security inordinately. Obama knew that, or should have know that but went on with the 50-50 ratio to put leverage almost two years ago on the GOP at the expense of our National Security and Defense. Now he has the audacity and hubris to use our Military members as backdrops and "prop's" for his "Roadshow" selling his Snake Oil solution of tax increases when he threw our brave men and women under the bus all along for the "Gimmie, Gimmie, Gimmie Constituency" that re-elected him.  Ironically even the Sequester cuts do not really "cut" any programs except Defense, below the rate of scheduled increases. The mandatory back-stop Sequester cuts are cuts in growth only, not zero based reductions or real cuts that reduce prior levels of funding. So, there again is a lacking of veracity on the part of Obama, particularly in light of his presentation of spending reductions as cuts on the domestic side. So almost two years ago all Obama was able to do is kick the can down the road and get us a Credit Rating downgrade for the first time in our history and bring us to another chapter of his wait until the last minute crisis management style. 

Well the Sequester and spending can has been kicked to the end of the dead end road and what does he do now?  He starts with revisionist History and disowns and disavows having any part for his own "Sequestration Cuts" backstop to his Super Committee solution that he devised and implemented. At the time the GOP put forth targeted cuts for both Defense and Domestic spending that would minimize the impact and detriment as much as possible by prioritizing need, efficacy, and impacts to social and domestic programs especially to those that needed aid the most, and in the case of the Military, priortizing National Secuirty and the well being of our Service people and their families. Those plans and proposals have been out there for nearly 16 months, awaiting action from the masters of inaction, Harry Reid, Senate Democrats, and President Obama. So now we face arbitrary,  unmangaged,  and unmitigated cuts across the board without the thoughtful  considerations that were put forth by the GOP plan(s) from the House.

By contrast we have a 'plan' by the President that decides the best action is to hit the road in "Campaign Mode" again (doing the only thing he's really good at) deciding to change the paradigm yet again by initiating the tried and true message:  Crisis Plan A) Blame Bush.  Ooops, can't do that now,  only the most banal of Obama supporters would still believe that one.  Hmmm.... OK then initiating:  Crisis Plan B) Blame Obstructionist Republicans in Congress. Damn those wascally Republicans for not working with him and after giving him his tax increases on the rich he wanted and got only two months ago; they defy me by not taxing the smack out of the rich even more now! The record is clear the alternative to the Sequester was to find "targeted" cuts, within all  Domestic and Defense spending to minimize and manage the impact on each and hit the goal of overall cut target amounts. It was not about nor ever was a plan to raise taxes, or to use Obamanomics speak, a "balanced approach". This cuts only Sequester back-stop was your plan proposed and laid out two years ago Mr. President. Now you seek to change the rules and paradigm by putting the goal posts back 20 yards inside the two minute warning?   I can hear his response by imagining I am a fly on the wall during his crisis Sequester Cuts strategy session....."Exactly, Yeah thats the ticket.... I will blame them again and demand action from them to fix it and stop blocking my efforts to solve this!  Fire up Air Force One, lets stir up the Proletariat, call the media to get our message out!

One problem though it's not the truth and the media may not be buying it. Perhaps for the first time the media won't be regurgitating Obama talking points and presenting his dubious word at face value. In fact, maybe they will rediscover their duty to be skeptical, and to be arbiters of truth with a reponsibility and role to be incredulous and confrontational with proffered bull excrement, even if it's from the White House. Perhaps they needed just one person with some Cajones to stand up and call out B.S. as Bob Woodward did from the liberal bastion of  Journalism; The Washington Post and call Obama out as a liar.

So, with the House passing two prior plans of targeted cuts for the Senate and Administration's consideration, within the original framework of the Sequester deal, the ball is in Obama and the Democrat's courts. Boehner said it best in his news conference exerpts from the NBC News video click on sentence to link video.

"We have moved a bill in the House twice," Boehner said at a press conference Tuesday. "We should not have to move a third bill before the Senate gets off their ass and begins to do something."

Kathy McMorris-Rodgers (R) Washington, also made the case stating the obvious with her comments.

"He has traveled over 5000 miles the last two weeks, and we challenge him travel a mile and half and come to Capitol Hill," said Rep. Cathy McMorris Rogers of Washington on Tuesday. "Sit down with Harry Reid and urge the Senate Democrats to take action."

 The refrain of urging Senate action comes from Boehner just four days before the sequestration cuts are slated to kick in.

 The Sequester was the result of Obama's failure to lead nearly two years ago, just as our economy and everything attached to it is failed. Without literacy in Economic matters, and lacking in demonstrable skills and knowledge for Business, Administration, Management, or Leadership; these shortcomings cannot be overcome with his witty charm, toothy smiles, or a Czar for every problem and issue he cares about. Neither will his ability to hit the road in Air Force One and preach to his choir result in tangible results or resolutions to the myriad problems facing America and the World. There are problems that need solutions, and results; critical problems affecting the lives of Millions of Americans and Billions of souls throughout the world. Roll up your sleeves Mr. Obama, put Air Force One in the hangar,  go up the Hill, and kick Harry Reid and the Senate in the Ass,  as Boehner so eloquently put it, and consider the plans passed already by Speaker Boehner, McMorris, and Democrats in the House that are willing and ready to get something done.


Michael R. Bednarz



google015480951ea39027.html

Fiscal Cliff Battle, AFTAR (after action report)

Basic Math of our National Fiscal debacle and why it's ALL ABOUT THE SPENDING. It is now and always was a ratio of 90% spending and only 10% revenue. President Obama said "we can't cut our way to a balanced budget", we HAD to raise taxes on the rich to solve the problem. Here is why we have either a completely incompetent President or just a "misleader in chief" in office now for fiour more years. Now with the fiscal cliff deal done, here is how it pencils out.  Our national debt is $16.4 TRILLION. We spend about $3.8 BILLION per day to fund the US government and it's obligations/programs. We are borrowing about half of every dollar we spend. So.... just to STOP THE DEFICIT SPENDING (not adding to the debt, but NOT reducing it either) we need to INCREASE revenues and/or CUT spending by $1.9 BILLION per day. The fiscal cliff deal "increased" revenues by $164 MILLION per day (some economists predict less than half that amount but lets give Obama the benefit of the doubt on it and give him the full amount). OR about 4.5% of total daily spending, lets go ahead and round it up to 5% and apply it all to unfunded outlays. So now our daily deficit spending is "only" $1.736 Billion per day! The new tax increases reduce the total daily deficit spending amount by only 10%!  President Obama and Democrats didn't do anything the GOP wanted to do about spending in this deal. So now our dilemma is this Mr. Obama and Liberals;  YOU got your tax increases on the rich, now to stop the deficit spending and borrowing, we must find 90 cents in cuts for your 10 cents you got in raised revenue JUST to balance the budget. We have to have even MORE than 90% in cuts to start reduction of the massive debt that has been loaded onto the backs of every taxpayer and citizen of the U.S. threatening our economic growth and future. I don't know how to explain it any more simply, and I can't understand why the GOP leadership hasn't articulated it effectively or logically to the citizens of this nation, but basically if this is how things are going to be "fixed" going forward; we are truly in deep trouble as a Nation. It should come as no surprise to anyone why President Obama was demanding Congress give up and hand over to him the Constitutional authority Congress has over spending and debt-limit increases as part of the Fiscal Cliff deal? I don't think even the majority of Democrats in the House would vote for that.

3.8 Billion (Total daily spending amount for U.S. Govt.)
-1.9 Billion Daily obligations FUNDED and paid for by existing revenues (pre Fiscal Cliff Deal)
 1,900,000,000 (1.9Billion is daily deficit spending and is 50%of all daily Spending)

  -164,000,000 164 Million (Fiscal Cliff deal revenues compliments of the Bourgeois class as a daily amt)
 1,736,000,000 1.736 Billion Daily UNFUNDED deficit daily spending  BORROWING (Post Fiscal Cliff Deal)

There must be cuts going forward  in the next few months (lets start working on this in earnest now and not wait until the last minute) as part of the debt limit increase and then the sequestered cuts. Failure to do so and we will deservedly face another Credit rating downgrade and the increased interest of our debt will blow the above formula out of the water. The debt limit MUST not be raised without solid, concrete agreements for spending REDUCTIONS, not cuts in increases, or "goals" as the President tried with the fiscal cliff deal. Legislated reductions and cuts that can be put in place and into law, zero based budgeting cuts should be the standard or no more debt increases. PERIOD. Only a vibrant, expanding, and unshackled economy can increase and grow revenues necessary to undo the straight jacket of mega deficits and debt burdening on our economy that has stymied and sent us into this malaise and stagnation we find ourselves in.

One look at this chart below clearly shows the spending and revenue outlays for the past 20 years illustrating the trends and unsustainable path we are on. 

Click Chart to Enlarge/Enhance Image
 

 

 

This path does not lead to a future of prosperity or security for our Nation and it's citizens. We cannot cast off our responsibility and sacrifice the future of our children and grandchildren condemming them to mediocrity and hardship for the sake of our generations irresponsible spending and inability to make the hard decisions and choices to ensure their futures and our National destiny.

Michael R. Bednarz

google015480951ea39027.html

The Fiscal Cliff for Dummies

Simple Math on the Fiscal Cliff. Forgive my condescending title and tone, but I have to educate a failed Community Organizer/President into the finer points of this math, as he doesn't seem to get it. I am making it my mission to educate and inform him in the popular vernacular of the Dummies book series. Now, are you paying attention Mr. President? Here are some pretty graphs, links and other informative stuff to help you visualize and understand the problem. You see Mr. President, it's not that Americans are taxed too little, it's that we are spending too much. It's spending. It's spending. And oh yeah, it's also spending. We do too much of it as a Nation. You do too much of it as a President. You have been spending like a drunken sailor trying to stimulate the economy, expand government and it's necessity to our lives promising it as a panacea and cure for the economic ills we are suffering, but it just isn't working. Not surprising, spending your way to prosperity hasn't worked anywhere, ever. Mr. President do you see those really long red icicles that go way, way, down to the bottom? Yes sir, I'm sorry those would be your years.

 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





google015480951ea39027.html