Tag Archives: Bankrupt

Commentary

Paul Ryan takes on Democrat Brad Sherman on the worsening economy

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Video is here – from Larry Kudlow’s show on CNBC. (8 minutes)

The Democrat blames Bush and calls for more government spending.

Here he is in Congress making his stand. (4 minutes)

The Veronique he mentions is Veronique de Rugy, whose work I blog about all the time.

Fred Barnes of the Weekly Standard is calling for Republicans to embrace Ryan’s Road Map for America.

Excerpt:

For Republicans, the Road Map authored by congressman Paul Ryan of Wisconsin is the most important proposal in domestic policy since Ronald Reagan embraced supply side economics in the 1980 presidential campaign. It’s not only the freshest, boldest, and most comprehensive Republican thinking, it’s also the most relevant. If Republicans adopt the Road Map as their basic ideological blueprint, it offers them the prospect of a landslide in the midterm election this year, followed by victory in the presidential election in 2012.

For sure, that’s a lot of weight for a policy statement drafted by a 40-year-old House member to bear. But the Road Map is perfectly timed to deal with the crises of the moment: economic stagnation, uncontrolled spending, the deficit and long-term debt, soaring tax rates, health care, the housing problem, Social Security, Medicare, Medicaid.

Yet Republican leaders are wary of endorsing it, and for understandable reasons.

He lays out three reasons why the Republicans should swallow their fears and embrace Ryan’s plan.

Here’s the third reason he lists:

The third reason is the Republican message (or the absence of one). In Pennsylvania, it was “send a message to Nancy Pelosi.” Voters declined. I like the Republican slogan that worked so well in 1946—“Had enough?” But a slogan is not a message. The Road Map is a message. The country is falling apart, we’re going broke, government is on a takeover binge, the economy is wobbling. The Road Map is the solution. That’s a pretty good message.

Those who tremble at the thought of pushing a big idea should remember the campaign of 1980. Reagan, who for years had warned of the evils of government spending and overreach, suddenly became the champion of an across the board, 30 percent cut in tax rates for individuals and business.

That was very risky. The elder George Bush called it “voodoo economics.” Democrats were certain the whopping tax cut would turn the country against Reagan. Quite the opposite occurred. Reagan would have defeated Jimmy Carter without it, but not by the 10 percentage points he actually won by. The tax cut showed Reagan was serious about reviving the economy and not at all a weakling like Carter.

It’s good to be a Republican when we have guys like Paul Ryan. Let’s put him in charge and implement his bold ideas.

News

Conservative MEP Daniel Hannan admits he was wrong to support Obama

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Conservative MEP Daniel Hannan

You all remember Daniel Hannan, who chastised the Labor Party for spending the UK into oblivion, right?

Here’s a refresher:

Here are more videos dealing with the aftermath of that rant.

But yeah, like the title of the post says, he supported Obama in 2008.

Well not any more. Check out the latest from the UK Telegraph.

Excerpt:

The credit crunch occurred during the dying days of the Bush administration, and it was the 43rd president who began the baleful policy of bail-outs and pork-barrel stimulus packages. But it was Obama who massively extended that policy against united Republican opposition. It was he who chose, in defiance of public opinion, to establish a state-run healthcare system. It was he who presumed to tell private sector employees what they could earn, he who adopted the asinine cap-and-trade rules, and he who re-federalised social security, thereby reversing the single most beneficial reform of the Clinton years.These errors are not random. They amount to a comprehensive strategy of Europeanisation: Euro-carbon taxes, Euro-disarmament, Euro-healthcare, Euro-welfare, Euro-spending levels, Euro-tax levels and, inevitably, Euro-unemployment levels. Any American reader who wants to know where Obamification will lead should spend a week with me in the European Parliament. I’m working in your future and, believe me, you won’t like it.

But it’s not just domestic policy that infuriates him, it’s foreign policy:

All these things are minor irritants compared to the way the Obama administration is backing Peronist Argentina’s claim to the Falkland Islands – or, as Obama’s people call them, “the Malvinas”. British troops were the only sizeable contingent to support the US in Iraq and Afghanistan. We have fought alongside America in most of the conflicts of the past hundred years. Yet, when the chips are down, Obama lines up with Hugo Chávez and Daniel Ortega against us.

Not that we should feel singled out. The Obama administration has scorned America’s other established friends. It has betrayed Poland and the Czech Republic, whose Atlanticist governments had agreed to accept the American missile defence system at immense political cost, only to find the project cancelled. It has alienated Israel and India. It has even managed to fall out with Canada over its “Buy American” rules and its decision to drill in disputed Arctic waters. Never has there been a worse time to be a US ally.

Indeed. Not only are we the economic laughingstock of the world, following quickly along in the footsteps of Greece, but we are despise by our former allies and our emboldened enemies, alike.

News

Does the United States have a debt crisis like Greece?

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Story from CNS News featuring lots of quotes from people I like.

Excerpt:

Brian Riedl, lead budget analyst at The Heritage Foundation, agrees that unless the federal government radically curtails spending, a debt crisis as severe as or worse than that now happening in Greece will erupt in the United States in as soon as seven to 10 years.

“We can say that we will be at about the Greek level of debt probably in the next seven to 10 years,” Riedl told CNSNews.com. “There is no reason that with the same economic policies at the same level of debt, that the United States won’t face the same economic and financial crisis as Greece.”

But for Reidl, who recently issued his own report on federal spending, seven to 10 years may be too optimistic.

“It’s very tough to predict when a financial crisis will hit, because much of it depends on bond market psychology,” Reidl said. “As soon as the bond market decides the U.S. may not be able to fully service its debts, they will respond with a flight from our currency. When the bond market makes that decision is really anybody’s guess. It could be two to three years from now, it could be 10 years from now.”

[…]When Greece started to admit its debt problems last November, the government estimated its deficit last year was 12.7 percent of its GDP – a figure that Eurostat, the European Commission’s official statistics agency, said was too low and which it revised to upward 13.6 percent.

Meanwhile, the U.S. deficit is on track to become 10.3 percent of GDP in 2010 under President Obama’s budget.

In his report, “Federal Spending by the Numbers,”  Reidl pointed out that the projected 2010 U.S. deficit would represent the biggest percentage of GDP the United States has seen since World War II.

That same report shows that average deficits over the next 10 years will be almost $1 trillion instead of returning to pre-recession levels of $100 billion to $400 billion. The projected deficits, Riedl pointed out, would double the current national debt.

However, spending — not shrinking revenue — is the principal cause, according to the report, which said “90 percent of the rising long-term budget deficits are driven by rising spending,” and just 10 percent of the rising deficits are caused by falling revenues.

“This is 100 percent a spending problem in the long term,” Reidl said.

The article also cites two budget experts Sen. Judd Gregg and Rep. Paul Ryan, who agree with Reidl that we will be where Greece is now in about 7 years. The IMF was there to bail out Greece with European and American money. But who will bail out the USA?

If you want to know what Obama is doing instead of minding the store, ECM sent me this article. And a few days ago there was this article. He’s having fun with famous people.