OBAMA “OWNS” IMPENDING ECONOMIC DISASTER
by Alan Bates, MD, ©2012
(Dec. 3, 2012) — “Erskine Bowles, a former Democratic White House chief of staff who has returned to Washington this week to act as an informal envoy between Republicans and the White House, said he sees only a one in three chance of an agreement before the fiscal cliff hits in January — in part because of the Democratic recalcitrance over entitlement savings.” — The Washington Post
Let’s recall that Bowles was co-chair of the bipartisan Simpson-Bowles Commission appointed in 2010 by Obama who then ignored their recommendations for addressing Fedzilla’s out-of-control spending spree. Obama was more interested in getting his reelection campaign off to a ‘head-start’ instead of governing. So thanks to Obama, the issue rolled over to a small bipartisan group of Congressmen who agreed to a default ‘sequestration’ plan of budget cuts should the Administration and Congress not agree by the end of 2012. Obama and the obstructionist Democrats have had at least two years to address America’s looming ‘fiscal cliff’ but have continued to show no interest—because they do not care. Economic calamity is the setting which strengthens their Marxist ideological grip on America. Not surprisingly, Obama proposes spending increases instead of cuts! He also demands unilateral control of the debt ceiling which is unconstitutional on its face. All this despite the GOP offering at least 800 billion dollars in tax revenue increases through limitations on deductions for high income Americans.
Reality check 1: Fedzilla has already taken us over the cliff under Dictator Obama and the Democrat majority Congress (which was in control during the last two years of the Bush administration). Obama’s additional 6 trillion dollar spending spree over four years has little to show for itself but rewards to his cronies and his silly ‘green’ energy ideology, based on Al Gore’s fraudulent global warming myth concocted to help the UN redistribute wealth from the world’s producers to the wealthy elite politicos such as Gore himself.
Reality check 2: History clearly shows that the cure for economic contraction is increased capital investment and production in the private sector which increases employment which in turn increases tax revenue from the private sector to the Treasury—not imposing more regulations and higher taxes on small business owners as Obama wants to do. Even past Democrat presidents understood that—to wit, Presidents Kennedy and Reagan cut taxes to successfully stimulate the economy. Obama’s obsession to tax the top 2 percent of earners combined with Obamacare will lead to higher unemployment and deeper recession which hurts who? His so-called “middle class”! So his claim to prevent a tax increase only on the middle class is sheer hypocrisy as they become increasingly jobless.
Reality check 3: Discriminatory restoration of higher tax rates on just the top 2 percent of wage earners will only generate enough revenue to run the Federal government for about 8 days according to most estimates. Spending cuts must occur to run the government for the remaining 356 days of each year under a ONE YEAR balanced budget scenario. That does not even begin to address the current 16 trillion dollars of national debt and the other 90 trillion dollars of unfunded government liabilities going forward. Get it?!
Obama and his minions are hypocrites playing poker with America’s solvency, our economy, and in particular the suffering ‘middle class’. Their Marxist goal is not what is best for most Americans (Obama’s so-called ‘middle class’), but employing a strategy to secure more power by blaming the GOP no matter what happens. If the GOP opposes income tax increases on the top 2 percent of wage earners and the Democrats do not agree despite the GOP offering 800 billion dollars in tax revenue increases, America goes over the ‘cliff’ and the GOP gets the blame from the socialist media and the Administration. An alternative for the GOP is to concede on the income tax increase in return for very substantive spending cuts which Obama promised during his reelection campaign, and which were recommended by his own commission, all credit rating agencies and most economists. Thus, failure of the Administration to agree to cut spending which sends America over the fiscal cliff lays blame for the worsening economic debacle squarely at the feet of the Obama administration, while any worsening of the recession due to layoffs which result from tax increases on small business owners will also be owned by Obama. Possibly tax-cheat Geithner was right when he told Chris Wallace on FOX News Sunday ‘the ball is in the GOP’s court’. What he does not acknowledge is that the GOP House controls the purse strings of Fedzilla which is hugely more important than the issue of taxation. Finally, the debt ceiling is a constitutional item and not something which Congress will give to Dictator Obama.