Tag Archives: Deficit

News

Should we believe what Obama says in his State of the Union speech?

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Barack Obama Budget Deficits
Barack Obama Budget Deficits

What should we expect from the State of the Union speech tonight? We should expect Obama to argue against spending cuts, and for more spending.

Excerpt:

President Obama will use his State of the Union speech Tuesday to turn public opinion against automatic spending cuts and argue that some of the money to replace the cuts should instead come from higher taxes.

He will use the prime-time TV address to argue the economy would be damaged if $85 billion in automatic spending cuts were to go ahead on schedule on March 1, and will seek to set up Republicans to take the blame if they do.

The State of the Union address is also expected to highlight Obama’s second-term shift on the deficit.

From 2010 to 2012, the president consistently argued for new spending to spur on the economy, but also called for accompanying spending cuts and tax hikes to rein in the deficit.

But in his radio address on Saturday, Obama emphasized that the White House and Congress already have “cut our deficit by more than $2.5 trillion” through spending cuts and higher tax rates imposed on households with annual incomes above $450,000.

Look at the graph above. Does that look like we have cut our deficit? It used to be $160 billion in 2006/2007 under George W. Bush. Obama ran trillion dollar deficits for FOUR years. How is that cutting the deficit? What is Obama talking about? Bush added $4 trillion to the debt in 8 years, Obama’s added nearly $6 trillion to the debt in 4 years.

More:

A Congressional Budget Office report issued last week found the budget deficit will drop below $1 trillion this year to $845 billion, before falling further by 2015 to $430 billion.

In a more ominous sign, the same CBO report found an aging population and soaring healthcare costs would lead to an explosion in entitlement spending in later years, with budget deficits approaching $1 trillion again by 2023.

Obama thinks that not reforming entitlements is fiscally responsible. Should we believe that he knows what he is doing when it comes to the economy?

The Heritage Foundation says we shouldn’t believe Obama, because he lied the last time he gave a State of the Union speech.

Excerpt: (links removed)

Take a look at some of the promises Obama made back in 2009 during his first State of the Union.

“I pledged to cut the deficit in half by the end of my first term in office.”

During his first State of the Union, newly inaugurated President Obama vowed to cut the deficit in half by the end of his first term. Instead, Obama has averaged deficits nearly three timesthat of his predecessor.

For those who were concerned with President George W. Bush’s $4 trillion national debt, this pledge may have seemed like the “hope and change” the American people voted for in 2008. However, the reality of America’s additional debt over the past four years under the Obama Administration is staggering—almost $6 trillion in four years, on track to triple the amount Bush accumulated over his eight years as President. Now that Obama is heading into his second term, we’ve seen quite a change from the Barack Obama who thought $4 trillion in debt was“irresponsible” and “unpatriotic.”

“Over the next two years, this [stimulus] plan will save or create 3.5 million jobs.”

The President promised great things from the stimulus plan, but as Heritage’s J.D. Foster has said, we have to look at his record. He may have promised 3.5 million new jobs, but he’s 7.7 million jobs in the hole instead.

“…we must have quality, affordable health care for every American. It’s a commitment that’s paid for in part by efficiencies in our system that are long overdue.”

President Obama’s promise that Obamacare would provide health insurance for every American has been proven false. According to the Congressional Budget Office, 30 million Americans are projected to remain uninsured even after Obamacare is fully implemented.

The idea that Obamacare would improve the “efficiencies” of the health care system is laughable. Obama’s plan for “efficiencies” in the system was just slashing Medicare provider reimbursement rates to the tune of $716 billion to help pay for Obamacare. The mammoth law is going to take 127 million hours of paperwork per year for Americans to comply with it. And Members of Congress are already walking back their support for the law—they are grumbling about several parts of it and even repealed one part in the fiscal cliff deal.

What the Republicans should do is just walk out of there. Why sit there and listen to high-minded rhetoric that never amounts to anything? Well, except to make Obama feel good about himself.

Videos

Dr. Ben Carson holds Obama accountable for Obamacare and other bad policies

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First, the video:

The Wall Street Journal had a response to this video entitled “Ben Carson for President“.

And this is what they said:

Whether this weekend finds you blowing two feet of snow off the driveway or counting the hours until “Downton Abbey,” make time to watch the video of Dr. Ben Carson speaking to the White House prayer breakfast this week.

Seated in view to his right are Senator Jeff Sessions and President Obama. One doesn’t look happy. You know something’s coming when Dr. Carson says, “It’s not my intention to offend anyone. But it’s hard not to. The PC police are out in force everywhere.”

Dr. Carson tossed over the PC police years ago. Raised by a single mother in inner-city Detroit, he was as he tells it “a horrible student with a horrible temper.” Today he’s director of pediatric neurosurgery at Johns Hopkins and probably the most renowned specialist in his field.

Late in his talk he dropped two very un-PC ideas. The first is an unusual case for a flat tax: “What we need to do is come up with something simple. And when I pick up my Bible, you know what I see? I see the fairest individual in the universe, God, and he’s given us a system. It’s called a tithe.

“We don’t necessarily have to do 10% but it’s the principle. He didn’t say if your crops fail, don’t give me any tithe or if you have a bumper crop, give me triple tithe. So there must be something inherently fair about proportionality. You make $10 billion, you put in a billion. You make $10 you put in one. Of course you’ve got to get rid of the loopholes. Some people say, ‘Well that’s not fair because it doesn’t hurt the guy who made $10 billion as much as the guy who made 10.’ Where does it say you’ve got to hurt the guy? He just put a billion dollars in the pot. We don’t need to hurt him. It’s that kind of thinking that has resulted in 602 banks in the Cayman Islands. That money needs to be back here building our infrastructure and creating jobs.”

Not surprisingly, a practicing physician has un-PC thoughts on health care:

“Here’s my solution: When a person is born, give him a birth certificate, an electronic medical record, and a health savings account to which money can be contributed—pretax—from the time you’re born ’til the time you die. If you die, you can pass it on to your family members, and there’s nobody talking about death panels. We can make contributions for people who are indigent. Instead of sending all this money to some bureaucracy, let’s put it in their HSAs. Now they have some control over their own health care. And very quickly they’re gong to learn how to be responsible.”

The Johns Hopkins neurosurgeon may not be politically correct, but he’s closer to correct than we’ve heard in years.

Here’s a bit more about the speech from the Blaze.

Excerpt:

One of the more unique speeches delivered at this morning’s National Prayer Breakfast came from Dr. Benjamin S. Carson, a world-renowned pediatric neurosurgeon at Johns Hopkins Hospital. Taking the stage before President Barack Obama’s faith-filled address, Carson spoke for more than 25 minutes, tackling issues ranging from education to personal responsibility. His keynote, while predicated upon the theme of Jesus Christ as his ultimate role model, also took a starkly political tone, advocating against some of the very policies the president has implemented.

At the beginning of his speech, Carson shared an intense disdain for political correctness. Without getting too specific on the issue front, he said that Americans should stop being afraid to speak up and defend their beliefs; he also encouraged people to respect the individuals they disagree with. Carson held little back, condemning political correctness as “a horrible thing” that is “dangerous,” as it hampers freedom of thought and expression.

“We’ve reached a point where people are actually afraid to talk about what they want to say, because somebody might be offended,” Carson said, noting the example of people refraining from saying “Merry Christmas.” “We’ve got to get over this sensitivity and it keeps people from saying what they really believe.”

Carson encouraged discussion about societal issues, also pointing out education as an essential conundrum the country needs to confront. He highlighted his own path from poverty to success, sharing very personal details about his parents and early family life and subsequently described the importance of helping students seeking to advance academically through his Carson Scholars Fund.

The speech took an interesting turn when the doctor cautioned that moral decay and fiscal irresponsibility can have dire consequences — even for powerful countries like America. Here, he became even more pointed and impassioned.

“I think particularly about ancient Rome. Very powerful — nobody could even challenge them militarily…they destroyed themselves from within,” Carson continued. “Moral decay. Fiscal irresponsibility.”

While he said America’s issues are dire, he was positive that the nation can fix its ways, as there are bright and innovative people who simply need to come together to address the problems at hand.

“And one of our big problems right now…our deficit is a big problem,” he said, as Obama watched him intently. ”Think about it — and our national debt — $16 and a half trillion dollars.”

I blogged about the Darwinish Inquisition and Ben Carson before. He has faced persecutions from the Darwinists because he has scientific concerns about evolution. If you need something to watch on a Saturday night, this is the speech for you.

News

Socialist Argentina follows-up runaway inflation with price controls on groceries

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Take a look at this article from the leftist Washington Post, which reports on how the socialists in Argentina have imposed price controls in order to minimize the impact of runaway inflation caused by money printing.

Excerpt:

Argentina announced a two-month price freeze on supermarket products Monday in an effort to stop spiraling inflation.

The price freeze applies to every product in all of the nation’s largest supermarkets — a group including Walmart, Carrefour, Coto, Jumbo, Disco and other large chains. The companies’ trade group, representing 70 percent of the Argentine supermarket sector, reached the accord with Commerce Secretary Guillermo Moreno, the government’s news agency Telam reported.

[…]Economist Soledad Perez Duhalde of the abeceb.com consulting firm predicted on Monday that the price freeze will have only a very short term effect, and noted that similar moves in Argentina had failed to control inflation. Consumers shouldn’t be surprised if the supermarkets are slow to restock their shelves and offer fewer products for sale, she added.

A more effective way to contain inflation would be to “reduce government spending, which is financing an expansion of the money supply, and to have a credible price index.”

Isn’t ironic that the United States is pursuing the exact same policy of printing money and overspending as Argentina has? Excerpt we are a little further along.

So what happens next in Argentina? Zero Hedge explains:

What consumers will certainly do is scramble into local stores to take advantage of artificially-controlled prices knowing very well they have two short months to stock up on perishable goods at today’s prices, before the country’s inflation comes soaring back, only this time many of the local stores will not be around as their profit margins implode and as owners, especially of foreign-based chains, make the prudent decision to get out of Dodge while the getting’s good and before the next steps, including such measures as nationalization, in the escalation into a full out hyperinflationary collapse, are taken by Argentina’s female ruler.

[…]So to summarize: first capital controls, then a currency crisis, then expectations of sovereign default, then a rise in military tensions, and finally – price controls, after which all out chaos usually follows.

Study this sequence well: it is coming to every “developed” country near you in the months and years ahead.

Just to be clear, price controls are a clear signal to suppliers to stop supplying, since they cannot make any money if prices are held low by government decree. Price controls lead to shortages, necessarily.  And that’s what’s in store for Argentina once the private sector food suppliers (and other companies) pull out of there when they can’t make a profit. There are other places they need to be.

Imagine if America elected a charismatic, incompetent fool to run our country like socialist dictators do in Argentina or Venezuela. Imagine if the mainstream media, with their non-quantitative degrees and lack of real-world experience, covered for his every blunder. Where would we be then?