Wednesday, February 3, 2010

Obama Is Engineering An Economic Train Wreck

Obama Is Engineering An Economic Train WreckPolitical strategist Dick Morris was on Hannity on January 1 to discuss President Obama's multi-trillion dollar spending binge and the economic train wreck he is creating in the coming years.

Morris exposed Obama's phony deficit numbers and his typical blame-shifting excuses to President Bush for our current economic woes.

On Morris's web site, he notes that Obama has claimed that when he took office, he inherited a $1.3 trillion dollar deficit. This is a falsehood. In 2008, President Bush ran a deficit of $485 billion. By October 1, 2008, it was up another $100 billion. When TARP passed, it added another $700 billion, but this was a short term loan. $500 billion of this has already been repaid.

Obama inherited a $600 billion deficit, not a $1.3 trillion deficit as he claims.

According to Morris, Obama could easily deal with the deficit by cancelling the remaining $500 billion of stimulus spending; cancel the $300 billion of spending in stimulus 2.

He notes: "Obama seems not to understand that the deficit is the jobs problem. To add to the deficit in the hope of creating more jobs is an oxymoron.  Additional deficit spending just crowds out small businesses trying to borrow money to create jobs and consumers seeking credit to buy cars and homes."

Debt Ceiling Raised & More Spending Ahead

Obama and his cronies in the Congress increased the 2009 deficit to $1.4 trillion. But, he's not stopping there. The deficit has been raised to $1.6 trillion for 2010. On Monday, Obama presented Congress with a $3.8 trillion dollar budget for 2011-2013. Last week, the Senate raised the debt ceiling to $14.3 trillion!

The Heritage Foundation points out that Obama's new 2011 budget plan will raise taxes on all Americans by $2 trillion over the next decade – this includes health care reform and cap and tax. The U.S. will borrow 42 cents for each dollar spent in 2010. Obama will double the publicly held national deb to over $18 trillion.

Economist Arthur Laffer has said of Obama:

It [Obama's policies] will make the decline in U.S. output from 2010 to 2011 worse than the decline in output in 2008 and 2009 which will [be] catastrophic.

Obama is a fine, very impressive person. He really is. Unfortunately, everything that he is doing in economics is exactly wrong. He is a c****y president.

Whenever a country is in the throes of spending too much and raising taxes, it's a fiscal catastrophe in the making and this is what is happening now.

2011 will enter center stage, followed quickly by an economic catastrophe. All the factors that will make 2010 (and have already made the last half of 2009) look so good will reverse direction, and 2011 will be a train wreck.

TAKE ACTION: Contact your U.S. Senators and Representative and ask them to vote against any further "jobs," "stimulus," "cap and tax," "health care" or other legislation that will result in wild and unnecessary spending.

Every current legislative proposal being pushed by Obama is irresponsible and unneeded. He and his cronies in Congress will destroy our economy – under the excuse that they're trying to fix it. The government is the problem, not the solution, as President Ronald Reagan used to say.