Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

09 April 2010

Obama's Change: Growing Government into Bankruptcy

When Obama promised CHANGE he intended to:
  • Rid Americans of their individual rights, while laughing at the Constitution as just quaint
  • Rid Americans of their health care choices and responsibilities
  • Rid private employers of employees
  • Make bankrupt Fanny Mae and Freddy Mac agencies of the federal government
  • Rid private lenders of all future student loan business
  • Rid hard working and productive Americans of much more of their earnings
  • Rid the owners of GM and Chrysler of their investments
  • Force banks and financial companies to take federal loans whether they need them or not
  • End any concept of federal government fiscal responsibility
  • Saddle the states with huge increases in already unpayable Medicaid bills
  • Enlarge all governments and load them up with even more union employees with high salaries and sky-high benefits
  • Bring Social Security to spending more in 2010 than its tax revenue
  • Drag innovation in medicine to a painful crawl
  • Induce doctors to retire early
  • Increase medical costs with new taxes
  • Increase taxes on investors so they will have less to invest in America's future
  • Increase the size of the IRS
  • Saddle employers with more tax and health insurance collection and paperwork duties
  • Increased fuel costs due to drilling restrictions and increased ethanol use requirements
  • Increased fuel costs due to declaring CO2 a pollutant
  • Load tons of federal debt upon our children and grandchildren
  • Print and spend money so recklessly that some are advocating a VAT lead weight on business
And these are just some of the changes which he has brought about with about 2.7 years left in office.  He is a very accomplished man in bringing about so many changes in such a short time.  He is a whirlwind of change and these changes are as useful as the change brought on to a small town when a tornado passes through it.  As I warned over and over during the presidential campaign, change is more often destructive than it is good, unless that change is planned and carried through by rational, knowledgeable, and wise people.  When a society is working as well as the American society did, change is best undertaken with much deliberation and consensus.  Change by madmen who scoff at the Constitution and do not read the 1,000 to 2,700 page legislative bills they vote for, will never be good.  Indeed, the tornado-like mass destruction is extremely evident.

Douglas Elmendorf, head of the Congressional Budget Office (CBO), yesterday said:
U.S. fiscal policy is unsustainable, and unsustainable to an extent that it can't be solved through minor changes.  It's a matter of arithmetic.
Numbers from the Treasury Department on the fiscal year 2010 federal budget deficit are staggering (from an e-mail from Grassfire Nation):
  • A record $220.9 billion deficit in February alone
  • For every dollar in taxes and other revenues the federal government took in, the government SPENT $3.05.
  • Five-month deficit total: $651.6 billion, more than 10 percent higher than last year's record.
  • The five-month total is larger than any YEAR in American history prior to 2009.
  • The FY2010 budget deficit is now projected to be $1.56 trillion AFTER stealing from the Social Security Trust fund.
  • The CBO projects that interest payments on the debt will total $916 BILLION annually by the end of the decade.
If the U.S. is paying out $916 billion in interest on the debt each year by 2020, who will be crazy enough to loan the federal government any money?  When Douglas Elmendorf says the U.S. fiscal policy is unsustainable, that is a nice way of saying the U.S. government will be bankrupt.  Do you suppose the Chinese government will put the U.S. government into a conservatorship, as the U.S. government recently did to Fanny Mae and Freddy Mac?  The federal government put them under a new agency in Washington, D.C. I suspect the Chinese government agency the American federal government will be put under will be in Peking.  Since Obama likes communism and Marxism so much, do you suppose this was his planned end point for the transformation of America and its People?  Clearly they would not accept communism given the choice outright, but as the means to be rescued from bankruptcy, Obama figures we will have to accept communist rule.  Since he thinks there is no such thing as American Exceptionalism, why not make us all peasants under the rule of the Chinese Communist Party?

2 comments:

Kenny Merriken said...

End Abortion nationally or face national bankruptcy. Take a guess at to what percent of our $14.3 trillion national debt ceiling was accumulated from 1791 until January 22, 1973.
I will answer. kbmerriken@gmail.com Kenny Merriken

Charles R. Anderson, Ph.D. said...

I suppose you mean that allowing a woman to choose to have an abortion is morally bankrupt. I disagree, but that is not the subject of this post and the issue is too complex to be dealt with in a mere comment.

The year 1973 was the minimum of the National Debt since WWII. The debt at the end of 1973 was $466.29 billion, or 35.7% of the GDP then. The debt now is about $12.833 trillion, so one could say that the pre-(end of 1973) debt is the ratio of the two. This would be 3.6%. Alternatively, if we had incurred no further debt since 1973, the interest paid to date would have paid off the 1973 debt, so we could say that the 1973 debt is no part of the present debt.