At Last, Obama’s Ready to Borrow More Money from China

The headline on July 15 was knee-slapping funny:

Obama says he’s “ready to move” on debt ceiling.

Really?  The man who dug a deeper debt hole in two years than anyone else did in 8—or 15—is willing to borrow more?

12716Say it ain’t so.

For those who believe Obama’s some sort of deficit hawk, let’s take a quick stroll down memory.

  1. Obama wanted to increase the debt limit by $2.5 trillion in April, and he want no conditions on that increase.  In April 2011, Barack Obama opposed any measures to reduce federal spending.
  2. Obama refused to produce a plan. Period. He has no plan for reducing debt. He has no plan for eliminating deficits. He has no plan for creating jobs or helping small business.  He has no plan for anything but golf and party.

3.  Obama says 80 percent of Americans demand a tax increase, though he is incapable of citing any source for that number. In other words, he made it up.

Of course Obama’s ready to move on borrowing more money.  Borrowing is his only plan. His credit card is maxed out, and he wants the limit raised.

Only, this time, there are men and women in Congress who more beholden to the Millennial generation than to Boomers. Like a good banker, this Congress wants the borrower to produce a debt reduction plan before lending another penny.

I’m glad Obama’s finally ready to move on something besides a tee box.  But I won’t be completely satisfied until he moves out of 1600 Pennsylvania Avenue.

Simply Staggering

DRUDGE REPORT 2011® The federal budget deficit in the month of February 2011 exceeds the deficit for all of 2007 by 40 percent.

Simply staggering.

Yet Senate Democrats refuse to cut more than a paltry $6 billion. They refuse because they seem bent on collapsing the American system – the economy, the government, and the people themselves.

But at least the Obama administration stands by with its arms folded as gasoline prices skyrocket at the their fastest pace in history.

(h/t Drudge Report)

2/3 Think Worst Is Yet to Come for USA

The Wall Street Journal headline is grim:

Grim Voter Mood Turns Grimmer

Underpinning the gloom: Nearly two-thirds of Americans believe the economy has yet to hit bottom, a sharply higher percentage than the 53% who felt that way in January.

Wow.  I think the barrage of terrible economic news this week has people realizing that you can’t borrow your way out of a debt problem.

So far this fiscal year, the US has paid more in interest on its rapidly rising debt than it’s taken in from all corporate taxes.  That’s just the service on the debt, people.  And interest rates are at all time lows.  From the WSJ.com:

Years of deficit spending by Washington have led to a mounting national debt. Interest payments so far in fiscal 2010 amount to $185.25 billion; by contrast, corporate taxes collected by the government during the same 10 months were $139.71 billion. Interest payments in July alone were $19.9 billion.

The Fed and Treasury officials admit they’re out of options for dealing with economic crisis.  As a nation, we are living paycheck to paycheck.  Yet we’re STILL maxing out every credit card we can get.

Soon, we won’t be able to get more credit cards. Then we’re totally screwed.

Barack Obama inherited a bad situation and made it orders of magnitude worse.  In July, he and the Democrat Congress spent twice as much as they took in.  You can’t make it up in volume, Nancy.

To be honest, I would hate to be a member of the next Congress.  They will face a crisis that few living Americans have ever seen. And it looks like Republicans have a better chance of controlling the House, at least, with each passing headline:

Republicans, meantime, are gaining ground on a number of issues that have traditionally been advantages for Democrats. More Americans now think the GOP would do a better job on the economy—an advantage the party last held briefly in 2004 but has not enjoyed consistently since the mid-1990s. On one of the Democrats' core issues, Social Security, just 30% now think the party would do a better job than the GOP, compared to 26% who favor the Republicans. That margin was 28 points in 2006.

No matter how you spin it, business is being stifled by two things: debt and taxes. Obama campaigned on raising both. At least he kept that promise.

Now, will the American voter keep alive the promise of America?  We have 83 days to make it happen.

The Evil of Debt

The debtor is a slave to his lender.   Americans hold hundreds of billions of dollars in credit card debt alone.  To this add automobiles, student loans, mortgages, medical, and myriad personal loans and you arrive at the staggering figure of $2.55 trillion with a 't'.  

This massive debt--encouraged and backed by the US Government--makes us miserable.  Seriously.  Are you happy?  

If the debtor is slave to his lender, then the US Government is slave to China and Japan.  Want to know why we ignored Tienenmen?  Because our master told us to. 

The US Government is on the hook for another $10 trillion, and that number is increasing at a rate of $1 trillion per month.  Unless someone stops the madness, we'll be, as a nation, $22 trillion in debt by this time next year--more if the ecnomy worsens.

Good Government Doesn't Run on Debt

I am not a balanced budget purist.  I understand that wars and other emergencies sometimes require deficit spending. But the current wars don't cost $22 trillion.  Not even $1 trillion, unless you use New York Times math.  So what's the excuse?

Americans Are Spoiled Brats

We want what we want, and we want it now.  We've borrowed our way into slavery.  When we hit our credit limits, swindler politicians offer to extend even more credit.  So we become slaves to Congress, to the Department of Health and Human Services, to the EPA, and to every other government department and agency.  

It's humiliating, disgusting, and embarrassing.  

What's the Answer?

Stop borrowing.  That means you, me, the government, your husband or wife, kids, everyone.  Let the big banks fail; they are our pushers, our needle providers, our crack houses.  But they only offered the easy credit with painless terms.  They only offered a free t-shirt in exchange for our servitude.  They only held out the pen.  We took it into our eager little hands and signed over our lives.  

Knock it OFF!  

Every time you vote for a politician who "brings home the bacon," you're selling yourself to yet another master.  Last fall, the masters got together and decided to yank on the chains that bind you to them.  It hurt, didn't it.  It hurts still.  And it will hurt worse over the coming years. 

The government has absolutely no plan to pay off its loans.  Have you noticed?  It has no intention of paying off.  Know why?  Because there's no difference between goverment debt and personal debt.  You will pay the $22 trillion AND the $2.55 trillion because YOU SIGNED FOR THE LOAN!

Three Simple Steps

1.  Don't borrow another dime.  Not for a car, not for college, not for a house, not for a television, gasoline, groceries, clothes, vacations.  Stop borrowing.  If you need help, read Dave Ramsey's books The Total Money Makeover: A Proven Plan for Financial Fitness or Financial Peace Revisited

2.  Have at least $1,000 in savings for true emergencies

3.  Pay off all of your debts as fast as you can, one at a time, beginning with the smallest balance and ending with the largest balance.

3.b.  Elect politicians who will put up 100 percent of their personal assets (house, cars, savings) if they ever vote for a deficit budget outside of war.