When the federal government spends more money than it takes in during a fiscal year, there is a deficit. The deficit turns into the debt when the Treasury Department issues interest-bearing Treasury securities so the government can continue to spend. If the federal government were ever to default on these securities, or not make an interest payment, America’s credit rating would suffer. In this scenario, the economic consequences would be dire for the United States.
In Citizens United Productions’ film Generation Zero, Fox Business analyst Tobin Smith warns, “We wouldn’t be paying down the debt. We would just simply be like the consumer at home who only pays a minimum on their credit card. That’s what we’re talking about, and that begins what I’m calling the financial death spiral.” The start of the financial “death spiral” can be seen in President Obama’s 2012 budget.
According to the president’s budget, interest payments for the national debt will quadruple from $186.9 billion in 2009 to $768.2 billion in 2020. That equals $2,500 for every man, woman, and child to pay off just the interest on our national debt every year. The American taxpayer will be like the Greek King Sisyphus, rolling the (debt) boulder up a mountain only to watch it come tumbling down over and over again. Remember, the $768.2 billion Americans will be paying in 2020 does not bring down our national debt; it just pays off the interest the debt has accrued!
As the Washington Post points out, the interest payments for our national debt will eclipse the spending of all discretionary programs except for defense by 2014. By 2018, interest payments on our national debt will be more expensive than one of the nation’s largest entitlement programs — Medicare. Politically difficult decisions have to be made, but President Obama’s leadership on this important issue is nowhere to be found.
President Obama talked about doing “big things” and making “big changes” during his 2010 State of the Union address, and said, “Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths and pointing fingers. We can do what’s necessary to keep our poll numbers high, and get through the next election instead of doing what’s best for the next generation.”
Mr. President, if you believe what you said back in 2010, now is the time to make the tough decisions needed to dig America out of our fiscal black hole. For a leader who was elected on the mantle of change, I find it interesting how content President Obama is with the failing status quo. Unfortunately, it looks like Mr. Obama is more concerned about not angering the big government constituencies that will fund his $1 billion reelection campaign.
America faces a tough and bumpy road ahead. If the Obama administration continues to ignore the problems of irresponsible spending and the soaring interest payments on our $14 trillion national debt, then that road will most certainly lead to a dead end and future generations will be thrown under the bus. To conquer our debt, and the secret entitlement program that pays its interest, we must come together as a country and force our leaders to make the tough decisions. If not, America will become a second-rate power. (DC)
But don’t worry, Washington is taking this seriously. 😦
Especially, the Tax and Spend Liberals.
Baby Joseph Update
A Canada court had ruled that under socialized medicine their baby must die in the hospital. Now he’s in the U.S., getting the care his parents, not the bureaucrats, want.
Joseph Maraachli, who’d been set to have his ventilator removed against his parents’ wishes at an Ontario hospital last month, got a tracheotomy Monday morning and is doing well, his family says. The procedure was denied him under a system of medicine that may be coming to a hospital near you courtesy of ObamaCare.
Ontario Superior Court Justice Helen Radycalled it “a sad and difficult case,” according to the London (Ontario) Free Press, and set the time for Joseph’s government-decreed passing “to afford the family adequate time to say their goodbyes.”
The parents won in the end and got to do what THEY wanted to do and not what the state wanted.
But when Obamacare kicks you in the ass where do you go when the State says “No”??
And there’s the Obama fund raising trip to Brazil:
While the President refuses to lift the offshore drilling here in the United States, continues to demonize the oil and gas industries, as energy prices continue to rise and as unemployment still hovers around 9 percent, Obama told a group of Brazilian businessmen at a CEO Summit during his trip to South America over the weekend they should begin drilling in their offshore oil reserves so the United States can be a paying customer in the future, adding that the United States would help them do it.
“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers. At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy.”
Yep, as part of the White House U.S.-Brazil Strategic Energy Dialogue, Brazilian President Dilma Rousseff and President Obama have developed the Strategic Energy Dialogue, a plan that helps Brazil develop the country’s offshore oil reserves.
The two Presidents also discussed intensified sharing of best practices with respect to the safe and environmentally benign exploitation of offshore oil and gas resources. Brazilian officials will meet with representatives of the U.S. Department of the Interior within two weeks to advance the dialogue on safe offshore oil and gas development. The United States and Brazil will hold workshops on deepwater production technologies and environmental management, the first planned for early October in Rio de Janeiro.
Not only is President Obama going against those in his base who believe offshore drilling is bad for the environment and that the burning of oil contributes to global warming, Obama is blatantly supporting the economic growth of another country while purposely hindering the economic growth of the American economy.
Doc Hastings, Natura Resources Committee Chairman, is not impressed:
“Rather than creating American energy and American jobs, President Obama is in Brazil advocating for deepening the United States’ reliance on foreign energy.”
“The President has clearly learned nothing from recent world events. He appears to believe the answer is to shift our foreign energy dependence from one part of the world to another. The real answer is to produce more American energy. The ‘potential for a new, stable source of energy’ can be found with our own resources here at home. Resources that the Obama Administration is purposely choosing to keep under lock-and-key.”
Let’s not forget Obama has blocked access to U.S. oil and natural gas production by issuing a moratorium on offshore drilling in the Gulf of Mexico and has revoked onshore leases since taking office. Don’t be fooled when the Administration says they have been working to open up energy resources in the United States as the Administration has only issued three permits allowing for deep water exploration, not drilling.
So much for keeping jobs from going oversees and so much for lessening our dependence on foreign oil.
2009: The U.S. is going to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil’s Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil’s planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan. (WSJ)
And guess who has a big interest in a Brazilian Oil Company (Petrobras)….<<drum roll please>>…GEORGE SOROS!!
The Socialist Billionaire who is the money sugar daddy of the Democrats. (That and Public Sector Unions).
He’s good “rich” people.
He also has interest in NPR, Media Matters & The Huffington Post. 🙂
Gee, now that’s not a cynical campaign ploy now is it…. 😦
But don’t worry, we are from the Government and we are here to protect you! 🙂