America, You Asked For It!

Political News and Commentary from the Right

I’ve Got Your Deficit Commission Right Here!

by Joseph C. Phillips at Townhall.com

Even as a bloodbath looms in the November distance, the Obama administration continues to push healthcare because they know that Americans love their entitlements like winos love wine. They are betting the farm that once that fiery warmth begins running through the National body we will not only love national health care, but will fight to defend it. We will also be too glassy eyed to notice that we have suddenly signed away our liberty, becoming slaves to those that serve us. But I digress.

Like wine, entitlements cost money. Sadly the more addicted we become the less money we have to spend on more important and often essential things. The wino lacks food, housing and clothing; the entitlement addict lacks employment, savings and luxury.

Consider that today our national debt stands at roughly $12 trillion or roughly 70% of our gross domestic product or GDP. But wait. We have promised today’s workers Social Security and Medicare benefits totaling another $41 trillion. Toss in another trillion for miscellaneous expenses, and suddenly our debt skyrockets to $54 trillion. In layman’s terms it means in order to pay our future obligations we would need $54 trillion dollars invested today. How much of that money does this nation have sitting around? Zip! Zero! Zilch!

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February 22, 2010 Posted by | Economy | , , , , , , | Leave a comment

Tea Party Power to Solve the Debt Problem

by Larry Kudlow at Townhall.com

The New York Times ran a front-page story this week called “Party Gridlock in Washington Feeds New Fear of a Debt Crisis.” As usual, they got it wrong. Instead, the headline should have read, “After Scott Brown’s Astonishing Senate Win in Massachusetts, New Political Gridlock in Washington Could Spell the End of the Liberal Crack-Up We Have Witnessed over the Past Year.”

In fact, gridlock in Washington is good, since it will stop the assault of big government until the end of the year when Congress could be overturned by independents, tea partiers, Republicans, and probably some Democrats as well. Just take a look at the high spirits at the CPAC convention, where tea partiers are reinvigorating conservatives and Republicans.

So let’s take this momentum forward by using it to drain any remaining power from the extravagant spending-and-borrowing assault in Democratic Washington. And let’s especially use this tea-party power to stop Democratic plans for another round of broad-based tax increases.

Take, for example, Obama’s new deficit commission. It’s a bad idea. This commission is a fig leaf to cover up President Obama’s out-of-control budget. It’s a Trojan horse for tax hikes, especially a VAT that would engulf the middle class with up to a 15 percent tax rate on the sale of goods and services. Obama is getting ready to move his lips on the pledge not to raise middle-class taxes. Congressional Republicans must not let him do this.

Here’s the real problem: The Obama budget would take federal spending as a fraction of the economy to 25 percent, roughly a $1 trillion additional spending increase in the out-years. Publicly held federal debt would climb about $18.5 trillion by 2020, more than double what Mr. Obama inherited, rising to almost 80 percent of the economy.

Rather than tax hikes, I say stop the spending. Outside of defense and entitlements, why not roll back the discretionary budget to 2008?

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February 20, 2010 Posted by | Economy | , , , , , , , | 1 Comment

“Chains” We Can Believe In

Here’s a little parody about Obama’s broken promises and failed policies we came up with set to the music from Poison’s “Something to believe in.”

Lyrics

Well I see him on the TV
Preachin’ bout the promised land
He tells me to believe what he has to say
And steals the money from my hand.

Some folks still believe him
But I can’t understand why

One long year of failed policies
And longer lines of the unemployed
Who thought they’d voted to bring jobs back
But learned he was only making noise

His stimulus bill spent all our cash
Cap & Trade made unemployment spike
Harry Reid held votes on Obamacare
Way on up into the night.

People back home, they cried out
“Stop this isn’t what we want”

He gave us chains we can believe in
Chains that bind our souls
Chains we can believe in
Chains that bind forevermore.

He promised us transparency
We’d see everything and more
But he got in the White House
And did everything behind closed doors.

He promised he’d cooperate
He’d change the way things are done
But he got off the train in DC
And continued as a partisan

He said he’d have no lobbyists
And then he brought them in

He gave us chains we can believe in
Chains that bind our souls
Chains we can believe in
Chains that bind forevermore.

Sometimes I wish we didn’t know now
The things we didn’t know then

I drive by empty homes on my street
Homes that were foreclosed on
He promised he would save them
But now the neighbors are gone.

But the CEOs on Wall Street
Got their bonuses again this year
And the poor guy who built their houses
He can’t afford to even dry his tears

And it just makes me wonder
How he chooses who loses and wins

He gave us chains we can believe in
Chains that bind our souls
Chains we can believe in
Chains that bind forevermore.

He’s taken away the high road
And now we’re only left the low

Sometimes I wish I didn’t know now
The things I didn’t then

He gave us chains we can believe in.

February 11, 2010 Posted by | Economy | , , , , , , , , , , , | Leave a comment

More “Chains you can believe in”

Last week we told you about the drastic increase in individual tax receipts included in President Obama’s proposed budget. This week we dug a little deeper and found more interesting numbers the President isn’t mentioning in his rhetoric.

The following charts relate data from the White House Office of Management and Budget’s Summary Tables for Obama’s proposed budget.

Last month, Democrats in the US Senate voted to raise the national debt limit to $14.3 TRILLION–a 15% increase over the current $12.4 TRILLION. But the following two charts show President Obama plans on many more such increases over the next 10 years. In fact, his budget anticipates the national debt will grow to almost $25 TRILLION by the year 2020. Even worse, his plans include taking on more debt than the total output of the economy by 2013! The debt to GDP ratio stood at 83% last year, but the economic genius residing in the White House intends to take it to 105% by the end of the next decade!

It’s also obvious from the preceding charts that President Obama’s talk of cutting the deficit is nothing more than hollow rhetoric. President Bush’s last deficit was around $450 billion. Obama is projecting the smallest deficit over the next 10 years to be more than $700 billion. And his budget predicts a return to TRILLION DOLLAR DEFICITS by 2020!

What’s worse, his projections depend on drastic increases in taxes and extremely optimistic growth in GDP. So the actual numbers are very likely to be worse than he’s predicting.

Another great graphic that points out just how dishonest the President’s rhetoric is comes via The Heritage Foundation. They’ve put together the following chart that shows the difference in OMB’s projections and the Congressional Budget Office’s baseline. The most interesting thing about this comparison is the fact the CBO’s baseline projections are based on current policies and laws, while the President’s projections take into effect his proposed changes in those policies and laws.

In other words, if Obama would leave things as they are, we could expect the CBO’s numbers to be right. But the chart below shows his proposed changes will actually INCREASE the deficit in every one of the next 10 years!

For the President to attempt to sell his budget as one that cuts the deficit is nothing less than outright deceit! The yoke of debt each and every one of us is burdened with becomes heavier with every word Obama reads off his teleprompter.

The National Debt Clock estimates every man, woman and child in the US currently shoulders a share of the National Debt equal to $40,128.80. Assuming the Debt Clock’s estimate of the current US population is accurate, and an annual population growth rate of 3% over the next 10 years, each citizen’s share of the National Debt will grow to $64,182.19 under Obamanomics by 2020.

Obama promised “Hope & Change” on the campaign trail. But his changes are destroying hope and binding us with chains of debt!

February 9, 2010 Posted by | Economy | , , , , , , , , | 2 Comments

CBO: Reid’s bill WILL increase deficit by $170 billion

Once again, Democrats are telling bold-faced lies when they claim their legislation will reduce the deficit and extend the life of Medicare! This time they’re using Bernie Madoff/Enron style accounting tricks to camouflage their lies.

In response to a request by Senator Jeff Sessions, the CBO today released a statement correcting the misrepresentations being propagated by Senate Democrats. Reid, President Obama, and other Democrats are claiming the CBO score indicates the Senate bill will reduce the deficit by $130 billion over the next 10 years and add 9 years to the lifespan of Medicare.

But the CBO says not so fast. It appears Democrats took great care in phrasing their request to the non-partisan agency, playing a sort of shell game to fool the American people with a slight of hand. Evidently, hen Harry Reid requested the CBO score, he only asked for the impact on the Medicare trust fund balance. That doesn’t sound so bad until you understand what the CBO calls “Trustfund Accounting.”

The Medicare Trust Fund doesn’t actually hold hard assets. It’s more like a drawer full of IOUs issued by the federal government, if it’s operating in the black. The Trust Fund takes money in and pays money out. If it takes in more than it pays out, the government takes the surplus and issues the Trust Fund an IOU.

Now it’s not like the government puts that money in a savings account. Our never frugal government spends that money it collected to pay for Medicare on something else! No plan on how to pay off the IOU when it comes due either. Just pass the debt on down to future generations.

The Trust Fund Accounting system used by the CBO doesn’t account for what happens to the cash once it’s removed from the Trust Fund, or the government’s ability to repay the borrowed money. This accounting method treats Uncle Sam’s IOU the same as you and I treat our bank account. Just like the folks at the Medicare office could walk up to a teller and say “I’d like to withdraw all our money.”

The problem is, there is no money. It’s just a piece of paper that’s waiting for some future Congress to raise taxes on our children to repay the money.

In the current legislation, the CBO saw Reid’s bill would result in approximately $300 billion more being taken into the Medicare Trust Fund than it would pay out in the next. So Obama, Reid, and Pelosi will write out a professional looking IOU, hand it to the Medicare Trust Fund accountant and leave with $300 billion of taxpayers’ money. That money will be used to create new federal programs, fund abortions, pay bureaucrats, and other creative ways government finds to squander money.

“To describe the full amount of HI trust fund savings as both improving the government’s ability to pay future Medicare benefits and financing new spending outside of Medicare would essentially double-count a large share of those savings and thus overstate the improvement in the government’s fiscal position.”

But to make it look nice, Reid and his Democrat cohorts rigged it to look like $130 billion won’t be spent. So, in effect the deficit should be reduced by $130 billion. Sounds good right?

The problem is, they’re also trying to claim the entire $300 billion (of which they’ve blown $170 billion) is used to extend the viability of Medicare. Put simply, they want to spend the $170 billion now and say the $170 billion IOU they issued is going to keep Medicare going. Now, no one can be 100% sure, but it seems like doctors will probably start quitting when they begin getting government IOUs instead of greenbacks for compensation!

Obama, Reid, and other Democrats are counting that $170 billion twice. They’ve taken $300 billion from us they say we’ll get back in Medicare benefits. They’ve spent all but $130 billion of it, but continue to claim they’ve set aside the entire $300 billion for our benefit!

Here’s the real kicker. The only way we get that $170 billion in benefits we were promised is to raise taxes on our children!

This is nothing short of stealing from future generations! Harry Reid and his Democrat Senate comrades are nothing more than two-bit con artists who would sell our children’s future to satisfy our President who suffers with an “unprecedented” level of egotism and narcissism.

Tomorrow at 7:00 AM Eastern they vote to saddle our children and grandchildren with higher taxes, higher deficits, and a lower standard of living. Tomorrow morning, they will slap themselves on the back and congratulate themselves for conning us out of more of our money.

They’ll be home until the middle of January. Make a point of letting your Senators know you haven’t been fooled. Make sure they understand you know what they’re up to, and that you’ll do everything in your power to send them home when they’re next up for reelection.

December 24, 2009 Posted by | Health Care | , , , , , , , , , | 5 Comments

How’s the stimulus working for you so far?

by Neal Boortz at Townhall.com

Well now. Our economy is really lunging forward, isn’t it? What a ride! Are you holding on?

We’re billions of dollars further in debt (trillions?) and the economy is still stagnant. TARP, the stimulus bill, massive debts our children and grandchildren will have to pay .. and what has this all brought us? Banks aren’t lending, businesses aren’t hiring – let along expanding – and consumers aren’t buying. Oh, to be sure, the malls are crowded. Turn up the thermostats and see how long that lasts. Those aren’t shoppers, they’re just your neighbors trying to stay cool while watching the latest absurd teen fashion and freak shows.

Do what the initials SNAFU mean? That word was created to define government action, or inaction as the case may be. In 1942 Time magazine carried this revelation: “Last week U.S. citizens knew that gasoline rationing and rubber requisitioning were snafu.” Well .. if there was ever a SNAFU, our economy would fit the description. To fully understand this, you have to know what the acronym stands for. Go ahead … Google it.

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July 6, 2009 Posted by | Economy | , , , , , , , , | Leave a comment