Serious alarms from Democrats and Republicans saying the fiscal policies of the White House will bankrupt the country.
By Allan Erickson
The President repeated himself in his press conference last night: our economic salvation lies in government spending massive sums it does not have (more debt on your back) to deal with healthcare, education and energy. Translation: business, economic freedom, trade, productivity and manufacturing are not as important as nationalizing healthcare, guaranteeing a college education, and promoting green energy (however premature) while taxing everyone who puts carbon dioxide into the atmosphere (an obvious economic depressant).
(Do you know what happens every time you exhale? Hold on to your wallet.)
Charles Krauthammer has rightly called the President’s claims “sleight of hand,” deceptive, manipulative, pure fantasy. Read his entirely useful analysis here.
Krauthammer also quotes the President’s chief of staff, who says ominously: “You never want a serious crisis to go to waste. This crisis provides the opportunity for us to do things that you could not do before.” Thus sayeth Rahm Emanuel. Yes, many things not possible before can now be forced upon the American people thanks to crises, some real, some engineered.
Man-made global warming for instance. The so-called crisis in healthcare for instance. The requirement a college education should be a human right. The ‘right’ of the federal government to confiscate private property, centralize all power and control in Washington, setting itself up to be the central manager of economics, morality, and political organization.
After all, in crisis, you cannot afford to let the commoners make up their own minds.
And so, you have alarm on both sides of the aisle concerning the President’s agenda, his wildly out of control spending, his tax plans, and his insistence he stay the course no matter the dangers and warnings signs. (Did we mention his deep cuts in defense in a time of war?)
Little wonder even the Left is getting very, very nervous.
Sen. Gregg says Obama budget will bankrupt US
WASHINGTON (AP) — The top Republican on the Senate Budget Committee says the Obama administration is on the right course to save the nation’s financial system. But Sen. Judd Gregg of New Hampshire also says President Barack Obama’s massive budget proposal will bankrupt the country. Gregg says he has no regrets in withdrawing his nomination to become commerce secretary. He pulled out after deciding he could not fully back the administration’s economic policies. The senator said Obama’s spending plan in the midst of a prolonged recession would leave the next generation with a country too expensive to live in.
Lawmakers don’t hear knocking of Obama’s budget canvassers
BY DAVID LIGHTMAN AND WILLIAM DOUGLAS
WASHINGTON — President Barack Obama’s army of canvassers fanned out across the nation over the weekend to drum up support for his $3.55 trillion budget, but they had no noticeable impact on members of Congress, who on Monday said they were largely unaware of the effort.
[Seems the President is reverting to the campaign trail again. Never before has a sitting President rallied his base to go door-to-door to promote his agenda.]
Obama pushes US budget despite alarm
While the Obama administration, particularly the President, continues to defend the plans, even senior Democratic party members are worried. The most vocal so far has been Evan Bayh, a senator and former governor from Indiana who was on Mr Obama’s short list for the vice-presidential slot. He wrote recently: “Our nation’s current fiscal imbalance is unprecedented, unsustainable, and if unaddressed, a major threat to our currency and our economic vitality.”
With the US’s national debt now exceeding $US10 trillion, Mr Bayh said: “This is almost double what it was just eight years ago, and the debt is growing at a rate of about $US1million a minute.”
He noted pointedly of Mr Obama’s fiscal responsibility summit held at the White House late last month, that while the President deserves credit for holding the bipartisan event, “what ultimately matters are not meetings or words, but actions”.
Brawl over Obama budget brews in U.S. Congress
Senate Budget Committee Chairman Kent Conrad, a Democrat, outlined the budget he will try to pass in the Senate, telling reporters he will push for adjustments that reduce the cost of Obama’s proposals by $600 billion over five years.
Obama to Seek Congressional Support for Budget, Economic Plans
While the loudest complaints about President Obama’s budget come from Republicans, he has also heard concerns about deficit spending from Democrats, including Senate Budget Committee Chairman, Kent Conrad.
Debate on Obama Budget Begins
March 24, 2009
Congressional Budget Committees will begin “marking up” President Obama’s budget proposal tomorrow, readying it for consideration by both houses of Congress next week. The budget is so big — $3.66 trillion dollars — and contains so much substantive legislation on Obama’s “cap and trade” global warming tax, healthcare expansion and education that even some Democrats are bridling at it.
President Obama’s first choice as his Secretary of Commerce, Sen. Judd Gregg (R-N.H.), issued a warning at a press conference yesterday that if America continues on the financial course of out-of-control spending set by the Obama administration, we will end up with a “banana republic-type of fiscal system.” (Gregg withdrew his nomination over differences with Obama on economic policy.)
Gregg, who is also the ranking Republican member on the Senate Committee on the Budget, and Senate Republican leader Mitch McConnell (R-Ky) held a press conference Monday to discuss the proposal.
“It doubles the national debt in five years, and it triples in ten years,” Gregg said. “What does that mean, these sorts of numbers? $17 trillion worth of debt in 10 years, $11 trillion at the end of five years? This translates into a debt to GDP ratio which we have not seen in this country since the end of World War II when trying to pay off the war debt. Basically you take national debt up to about 80% of Gross National Product, that’s the public debt. Historically it’s been about 40%.
“When you get up to an 80% ratio where your public debt is 80% of your Gross National Product, and you maintain that ratio in the years to come, you’re basically running your country into the ground. You’re turning over to the status of a banana republic-type fiscal system. If you try to put it into a different context, if you take all of the presidents from George Washington through George Bush, and add up all of the debt they put on the books for the American people, President Obama’s proposal equals and actually exceeds that amount of debt in his first term. Staggering numbers.”
McConnell very pointedly discussed the level of discomfort Democrats in Congress have over the president’s budget. “My impression is that the administration is getting quite nervous about having adequate Democratic support to pass this budget,” McConnell told reporters. “The best evidence of that is that the president and the vice president are coming up here this week, the vice president I believe tomorrow [Tuesday] and the president, I think, Wednesday, to talk to Democrats and usually when that occurs — there have been reports of defections.
Rep. Ron Paul on the Obama budget
We should be cutting spending. The recession was brought by too much spending and too much printing press money. I don’t know how the President can talk about cutting the deficit with this budget. It’s a fairy tale. [Obama and the politicians are totally wrong about taxes, spending, bailouts, stimulus, mortgage bailouts, money supply.]