Wednesday, July 13, 2011

The Debt Ceiling, The Federal Budget, and the President as LIAR!

Selected quotes from the Peoria Journal Star, July 12, 2011, page A1 from an article entitled “Debt talks yield little as Obama demands deal.”

“All sides are scrambling to reach a deal as part of a tradeoff in which Congress would agree to extend the nation’s debt limit by August 2 to prevent a catastrophic government default on its bills.”

LIE #1: There is absolutely NO need to default on the federal government debt. NONE!!!

“Turning up the pressure, Obama declared that he would reject any stopgap extension of the nation’s borrowing limit, imploring lawmakers once again to reach one of the most sizable debt-reduction deals in years.

LIE #2: It is NOT a debt-reduction deal. As proposed by the President, it is, at best, a reduction of the size of the growth of the ever increasing debt! He is proposing a $4 trillion reduction over 10 years. That’s only $400 billion dollars a year.

From my June 13th post:

“From the end of the fiscal year of 2006 to the end of fiscal year 2010 after the Democrats took control of Congress in January of 2007 and before the Republicans regained control of the House of Representatives beginning in January of 2011, the federal debt increased by 5,054,649,131,677 dollars in four years (That’s over five trillion dollars in 4 years! Or, 1,263,662,282,919 dollars [$1.2 trillion+] per year over 4 years!)”

In the four years since the Democrats retook Congress, the national debt increase by over 5 trillion dollars. Now, based upon the latest, largest spending in history he says he wants to cut spending by $4 trillion over 10 years. Does he understand math at all? Does he think we are idiots? Even if we have NO NEW spending, which is not likely, we will continue to go deeper and deeper into debt!!! Oh wait!!! We will have more new spending! It’s called Nationalized Healthcare—Obamacare!!!

From the Peoria Journal Star, July 12, 2011, page A9 from an article entitled “Debt talks yield little as Obama demands deal.”

“Obama renewed his case for a package that would put a historic dent in the country’s deficit by blending poisonous elements for both parties: tax hikes for the wealthy and big corporations opposed by Republicans and social service cuts that Democrats decry.

He implored both political parties to give ground and show the American people that Washington can actually work.

‘If not now, when?’ Obama said.

LIE #3: Increasing taxes will NOT improve the debt situation. Compromising with LIARS will NOT decrease the debt load!!! He and the Democratic party are the ones who have been postponing action and refusing to cut spending!!!

From the Peoria Journal Star, July 12, 2011, page C1 from an article entitled “Fed chief to face grilling after weak jobs report”:

“He’s (Federal Reserve Chairman Ben Bernanke—my addition.) expected to issue a strong warning to lawmakers to raise the nation’s debt limit before an August 2 deadline. On that day, the government won’t have enough money to pay all its bills and could default on its debt.”

LIE #4: Total and complete NONSENSE! The federal government IS NOT going to run out of money! It may hit its limit as far as borrowing money. However, it still has money coming in. It is like the example I have talked about before. A family earns $60,000 per year. The family spends $100,000 per year. The family is about to max out it’s last credit card. It can’t borrow any more. But, the family still has money coming in from a job. It’s not suddenly penniless. It just can’t spend ANY MORE BORROWED MONEY!!! What does the family do? Prioritizes it’s spending!!! Spending only the money it has on the MOST important priorities!

Tax money is coming into the treasury all the time!!! We have money. WE ARE SPENDING MORE MONEY THAN COLLECTED!!! The only sensible solution? STOP SENDING MORE MONEY THAN COLLECTED!!! That we have to default on our debt is the BIGGEST LIE of ALL!!! According to information provided by the federal government tucked away on page 97 of the 2010 Federal Tax Booklet in fiscal year 2009, we spent 5% of the federal budget on the net interest on the debt. We can easily continuing paying that 5% with the 60% of total income the government collects. We just won’t have the use of the 40% we borrow.

The question then become: “What are the President’s priorities?” Does he decide not to pay social security recipients and instead continues to give money to Planned MURDERHOOD so that Planned MUDERHOOD can continue to MURDER unborn babies. Does he decide not to pay members of the military so that he can continue his Unconstitutional lawsuit against Arizona over its legally passed illegal immigration law. Does he decide not pay Medicaid benefits so that he can continue to pay the employees of the federal government. Isn’t the federal government the largest single employer in the nation. It takes a lot of employees to shuffle all the paper the government uses. You get the picture. What are the President’s priorities. Who gets paid and who doesn’t? Who receives money and who does not?

From the Peoria Journal Star, July 12, 2011, page C3 from an article entitled “Fed chief to face grilling after weak jobs report”:

“Bernanke is also expected to once again urge Congress to postpone deep spending cuts as part of any deficit-reduction plan. He believes big cuts right away would jeopardize the economy, still fragile two years after economists say the Great Recession officially ended.”

LIE #5: Quite the opposite, the only realistic way to improve the economy over the long haul is deep, REAL spending cuts NOW. And if that is accomplished, the debt ceiling does NOT need to be raised. This is the administration which poured almost 800 billion dollars of “stimulus” money, using borrowed money, into the economy to save the economy promising unemployment would not go over 8 percent. How did that work out?

From: the Congressional Research Service (dated April 29, 2008)

“Total debt of the federal government can increase in two ways. First, debt increases when the government sells debt to the public to finance budget deficits and acquire the financial resources needed to meet its obligations. This increases debt held by the public. Second, debt increases when the federal government issues debt to certain government accounts, such as the Social Security, Medicare, and Transportation trust funds, in exchange for their reported surpluses. This increases debt held by government accounts. The sum of debt held by the public and debt held by government accounts is the total federal debt.

Surpluses generally reduce debt held by the public, while deficits raise it. The government’s surpluses during FY (FY = fiscal year which runs from October 1st of the current year through September 30th of the next year—my addition.) 1998-FY2001 reduced debt held by the public by $448 billion. The debt holdings of government accounts grew by $853 billion over the same period. The total net change raised total federal debt by $405 billion.

A statutory limit has restricted total federal debt since 1917 when Congress passed the Second Liberty Bond Act. Congress has raised the debt limit five times since 2001.”

“The adoption of the conference report on the FY2008 budget resolution in the spring of 2007 automatically (in the House) created and deemed passed legislation

(H.J.Res. [H.J. Res. = House Joint Resolution—my addition.] 43) raising the debt limit by $850 billion to $9,815 billion. The Senate Finance Committee approved the resolution on September 12, 2007, which was passed by the Senate September 27 and signed by the President September 29. The 2008 economic slowdown has led to sharply higher estimates of deficit spending, raising the prospect of another debt limit increase in the near to medium term. The House and Senate budget resolutions (H.Con.Res. [H. Con. Res. = House Concurrent Resolution—my addition.] 312 and S.Con.Res. [Senate Concurrent Resolution—my addition.] 70) recommend spending levels that would require an increased debt limit in FY2009. This report will be updated as events warrant.”

The purpose of a debt limit ceiling is to prevent the Congress from borrowing money and thus going further into debt above that limit. If the debt limit ceiling is to be raised every time the federal government approaches that ceiling, what purpose does the ceiling serve? The proposal is to raise the ceiling by 2 trillion dollars. If the ceiling is raised by two trillion dollars, that means that the federal government expects to go 2 TRILLION DOLLARS FURTHER INTO DEBT!!! How in the world is going 2 trillion dollars FURTHER INTO DEBT considered debt reduction!!!??? Does President Obama actually believe that the American people are total idiots?

That’s not all though. The federal government has still not approved a budget for the 2011-2012 fiscal year. The new fiscal year begins October 1st. That’s less than THREE months away!!! Three months away and no budget so we have NO IDEA how much the next budget will contribute to the growing deficit. The House of Representatives passed a budget that cut back on spending. The Democratic controlled Senate rejected it. The Democratic controlled Senate then also rejected the President’s budget which would have increased spending. Even though the President now claims that he is for cutting “some” spending. The Democratic Senate is NOT close to passing a budget for the coming year. Isn’t a budget for the coming year more important than raising the debt ceiling. It is IF the President and HIS party are serious about cutting spending. The problem is, the President has NO DESIRE to CUT SPENDING!!! NONE!!!!! HE IS A LIAR!!! AND HE THINKS WE ARE IDIOTS!!! AND SO DOES THE MASS MEDIA THAT PARROTS HIS LIES!!!

It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!