Deadly, With No Known Antidote: Obama’s Blowfish Budget
By SusanUnPC on April 9, 2009 at 8:05 PM in American Consumers, Current Affairs, Economic Stimulus, Economy, Inflation, Tax Day, Tax stimulus package
In “President Obama’s Ambitious Agenda on Crash Course With Fiscal Realities,” Stu Varney, on Fox News’s America’s Newsroom, exposed a ruinous weakness in Obama’s reckless, contraindicated spending spree: Tax revenues are down 25% (!), and April 15th is NOT going to be a lucrative day for the U.S. government. With escalating unemployment, and more and more people forced to take low-paying part-time jobs, the nation’s income tax revenues are dropping like rocks. Without incoming $$$ — even with the bailout bonds that swampland-in-Florida salesman Obama will be hawking — there won’t be enough $$$ for Obama’s foolhardy, grossly imprudent budget. (By the way, despite the supposed reduction in the military budget — which makes his leftie admirers happy — Obama has pulled another fast one today, asking for an additional $83 billion for the wars.)
Obama’s rash disinterest in creating a positive cash flow, despite a few sneaky tax increases (see below), makes me want to assume the identity of the character Blake in Glengarry Glen Ross, shake my fist at Obama, and say to his smug visage, “You can’t close the leads you’re given, you can’t close shit, *you are* shit, hit the bricks pal, and beat it, ’cause you are going *out*. “
What will happen? Inflation. Or, as Larry Johnson and Larry Doyle have warned, hyperinflation.
Inflation will also affect entitlement programs like Social Security. The annual “cost of living” increases will bump up accordingly. This all comes out of the U.S. treasury or, er, those loans from the Chinese.
You’ll also be paying more taxes.
What about the taxes and the unbelievable $3.6 TRILLION budget? As Lynn Westmoreland wrote in “Fiscal sanity dies in Obama budget,” published in the Atlanta Journal-Constitution:
[...]
The Democrats’ budget spends too much, taxes too much and borrows too much.
President Obama promised his legions of young supporters on the campaign trail that he would restore fiscal sanity to Washington and kick all those money-grubbing special interests to the curb. Blue Dog Democrats swore they’d stand up to ultraliberal Speaker Nancy Pelosi and impose “paygo” —- which means that every dollar of new spending is balanced out with cuts elsewhere or new revenue.
Ha! Joke’s on us, I guess. They pulled a fast one.
Instead of balancing budgets and reforming entitlement spending and “making tough choices” (Remember that Obama phrase?), the Democrats’ plan is quite simple: Just spend, spend, spend. The Congressional Budget Office estimates that Obama’s plan will expand the debt by $9.3 trillion over the next 10 years. That’s more than all the debt accumulated by the nation from George Washington to George W. Bush.
There’s a whack to fiscal sanity.
The CBO further predicts that federal spending will average 23 percent of gross domestic product while federal revenue will equal about 19 percent of GDP. That’s government expansion of 3 percent of GDP.
Double whack!
The Democrats’ $3.6 trillion budget raises taxes on all Americans by $1.3 trillion. Hey, reader, that’s you. Whether you’re a parent struggling to pay the bills, a small-business person trying to avoid layoffs or worse, or an employee at a plant worried about keeping your job, the Democrats’ taxes are going to hit you. They promised a “middle-class tax cut” but now they’ve dropped that idea. It was merely a sleight of hand to distract attention away from the global warming taxes that will hike costs for every American who turns on a light switch.
Thing is, I rather doubt that these stealth taxes will sufficiently replace the staggering loss in income from federal income taxes. Which means the debt will continue to grow monumentally, all thanks to Obama’s devil-may-care, I-want-what-I-want-and-I-want-it-now mentality. The key to his whole personality is understanding that he wants to win. It’s all just a poker game and, if taxpayers lose, so what. He doesn’t care.
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http://www.marketwire.com/press-release/Weiss-Research-Inc-972696.html
Apr 08, 2009 16:59 ET
In his phone conference with the press yesterday, Dr. Weiss discussed the serious implications of his findings. To listen to the audio recording, go to http://blogs.moneyandmarkets.com/martin-weiss/jpmorgan-chase-goldman-sachs-citibank-wells-fargo.
This guy is looking out only for him self. Inflation will make it possible for millions to buy their houses and still have roof over their heads. Deflation will cause 10s of millions of people to end up on the street. This guy is just afraid that all the money he is hording will be worth a lot less.
“Inflation will make it possible for millions to buy their houses and still have roof over their heads.”
Can you expand on this theory John? Since most economists believe inflation is the worst thing that could happen right now, I’d like to know why you think a devalued dollar will help anyone.
Make the AIG executives and Wall Street pay the difference out of their bonuses and salaries.
They owe us.
Well, DUH! Did no one realize that you can’t just spend all that money and pay debts without something coming back in????? I have made several comments sbout this and how this stimulus BS is only BS if it doesn’t create jobs, jobs, jobs. Jobs produce income, which produce income taxes and it would be the only way to keep the economy recycling. I have been preaching this for months and months to everyone I know. Do the math. The stimulus only creats or saves 3.5 million jobs, but 5.X million jobs have been lost (as reported by FOX today) and there are more layoffs coming. I think it was Boeing is dropping from making 7 to now 5 jumbo jets per month. That won’t keep jobs there. We are screwed people. Screwed. I would not put it past copycat Oblunder to manufacture a war so that we again manufacture ammo, etc., to rebuild the economy and actually produce stuff again, kind of trying to repeat history, except these are more dangerous times to try that kind of crap, but we’re talking Oblunder here. He thinks he can do anything. We are in deep doodoo here folks. We have a President who is pretty insane. Plus, I just can’t believe it if people didn’t add up the fact that people not working means less taxes coming into the Government. Sometimes I wonder if I should be POTUS, at least these things occur to me. The Sadministration missed this little detail? What kind of morons do we have around the usurper anyway? Are they all stupid????? Every single one???? If that’s the case, we need to drive them out to the country and let them out to go potty and then drive away!
I think Boeing is getting ready to do a mass lay off of about 100,000 people. Along with other Aerospace companies. The commercial sides aren’t selling and the military sides are being cut. It’s going to get ugly. I heard on the radio the other night that CA’s unemployment rate isn’t 10% it’s closer to 24%. They’re not counting all the people that have used up their unemployment benefits and can no longer collect. The college students and young adults getting ready to enter the work force that won’t be able to find jobs. They’re only counting those now currently on unemployment. Those now collecting welfare benefits have increased significantly over the past year. The guy on the radio didn’t include those recieving benefits from the state in food stamps or aid. You include them, would that put us at 30 or 40%?
I agree, Diana. We’re being lied to. The 8.5 national unemployment % is a crock. Even Goolsbee has admitted the numbers are more like 15-18% [and that was last month].
They’re trying to tamp down the “bad news” where ever possible, while spending the country into fiscal disaster.
Programs before principle. Shared misery for the masses. In my area, the wakeup call was a conversation with my mailman last month, who was appalled at the number of unemployment checks he was delivering. He checked in with the main office and was told: no, they’re going out everywhere.
I had a conversation with a friend just last week. She said her neighbor across the street, a financial/accountant type, who had lost his job before Thanksgiving, was still unemployed but was having his shirts done and delivered by the local laundry. There are a lot of people going through the motions, hanging on for dear life, hoping that somehow the ground will not open up under their feet and swallow them whole.
But the black hole just keeps getting bigger. And it’s waiting for us all.
well if they would get rid of the illegals, unemployment would go down to 10%
Apparently the unemployment rate is driving them back home…Hmmm
Is that suppose to be funny, wodiej. Or just thoroughly offensive? This financial problem goes far beyond our immigration situation, which undoubtedly needs to be addressed and actually enforced [what a concept].
But immigrants [illegal or otherwise] didn’t bring us to this moment.
Greed and magical thinking did!
Love the Glengarry Glen Ross bit. One, because whenever I start talking about Obama I get the speech pattern of those characters, every other word becomes F you Obama. Two, because Obama wouldn’t have last ten seconds with those guys. Obama would make Jack Lemmon’s character look like Rambo.
The character I quote was played by Alec Baldwin in the movie. Baldwin is a gifted actor, but is kind of dumb politically. Ever read his posts at HuffPo? Oh boy.
It’s not that he’s not bright. It’s that his posts are kind of illogical and naive. But I forgive him all that because he is so damn funny in “30 Rock.”
That movie was great. Never have seen the stage production. I like Mamet’s writing. The episodes of “The Unit” that he writes are the most creative and interesting. He’s used Linda Hunt as a CIA-type psychoanalyst a few times, and the dialogue he gives her is priceless.
yup. I remember Baldwin with the brass balls in his hand. Someone needs to go all Baldwin on Obama’s ass. And yeah, I mean Baldwin’s GGGR character, not the real life Baldwin who slugs down koolaide and insults his daughter.
Actually though I didn’t get to see it, some local theater co put on GGGR with an all female cast–keeping the original dialogue. I hear it was hysterically funny.
okay, last mention of GGGR.. the Jack Lemmon character was the really spineless, pathetic guy who couldn’t make a sale and the manager was riding his ass into the ground. Really sad character.
GGGR is one of my favorite movies with a cast that was beyond reproach. David Mamet wrote that confrontational speech specifically for the movie for Alec Baldwin.
We’re adding a little something to this month’s sales contest. As you all know, first prize is a Cadillac Eldorado. Anybody want to see second prize?
Second prize is a set of steak knives.
Third prize is you’re fired.
What’s really hilarious, to me, is that in spite of the horrendous fundamentals surrounding the economy, the stock market, driven by naive investors and unscrupulous speculators both, is in the midst of a rally (250 points today), which is bound to fall hard when reality sets in. All this inspired someone named “Yosemite Sam” to post the following little poem in the comment section of “Market Watch” today:
Hickory Dickory Dock
The Fed inflates the Stock
The market’s propped.
The crash is stopped.
This Hickory Dock’s a Crock
Yosemite Sam is to be commended for his insightful analysis!
You wrote this from the last thread. Do you work at Wells Fargo or have some way of knowing that Wells Fargo lied about the quarterly earnings they had? Didnt think so. I do work there in Finance and why in the world would they say they had a good quarter if they didn’t?
Wells Fargo did not want any Tarp funds. But they did use it like it was intended and helped a hell of alot of people stay in their homes by refinancing. lower interest rates, extending terms etc.
Taxpayers are going to get millions in interest alone from those Tarp funds because WF had such good earnings. Why in the HELL would a company go around saying that if it weren’t true knowing they would have to pony up the cash??
Every bank, financial institution etc. are not SOB’s. And people should not throw accusations around when they don’t know what they’re talking about.
The market seemed to be playing off the Wells Fargo earnings report. Guess it is time for some sell orders.
mountainaires–your Martin Weiss link is one scary read, especially where he states that the bailout is prolonging the second depression. I’m not surprised; it turns out that this is the other shoe drop. I’ll have to read it in small time frames or I’ll get too angry at the thought of what’s to come.
Btw, Susan, I’ve been listening to Varney give his reports on Fox and elsewhere. He is so-o-o ticked with what’s going on as a Brit who came to the States to escape the very thing that’s happening in the United States right now.
I’ve heard him say again and again: what “are” you doing?? He’s a strange British version of Paul Revere: they’re coming [to get you]!
Simon Johnson Baseline warns…
What Next For Banks
http://baselinescenario.com/2009/04/09/what-next-for-banks/