Obama Keeps Spending

February/06/2010 16:07PM
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Want a laugh? Go to the following site: Outsource.pdf  It’s a combination of my issues with HP, earlier blog, and my disgust with our President.

With all the economic problems facing local, state, and the Federal government in 2009, one might think the spending at all levels would go down. Household spending went down dramatically. But, recent articles show the state and local spending was level for 2009. With revenues down, how did they do that? Two ways, they ran deficits and they used stimulus money to cover shortfalls. So, stimulus money did save and add jobs, they were just all government jobs. Federal spending went up 22% by most accounts. More government jobs added. It will go up again in the 2011 budget, if passed. 

Today, 25% of this country’s GDP passes through the government to be spent by the government. In 2011, taxes will go up, spending will go up, and the deficit will will up. The deafness in Washington is astounding. The people are demanding smaller government and less spending and Obama is responding with bigger government and more spending.  This man is spitting in the face of the majority of the population and saying,” I will do what I choose to do and you will like it.”  Worse yet, this budget will pass, showing the Congress is saying the same thing. 

Somehow, someway, Obama must borrow almost $2 trillion to finance his budget.  That’s over double what the Chinese owe us now. Which is more than we have loaned the government our purchases of government securities. One way to protest is to stop buying government securities. At this point, why buy them anyway? The leadership has clearly shown that they have no clue. The biggest lender, China, has fired a couple shots across the bow about fiscal judgment, only to be ignored. What will  China do next? Lend us more, or let us sink. 

Pundits and economists are divided about what direction this economy is headed. Bulls say the worst is behind us and cite the 4th quarter GDP gain of 3%. They always add, unemployment lags the economy. Bears say the market pessimism ratio has reached 45%.  This has been climbing. Investors see the Federal debt and deficit piling up and the new taxes on business and people making over $250K, and see storm clouds. Someone is right and someone is wrong. FDR went to war with business during the Great Depression and history says it extended the misery. 

Tick tock, the clock is ticking for the mid-term elections. The American people will have yet another opportunity to send a message to Obama about bigger government and more spending.  Unless the economy turns on a dime, I suspect he will hear this message.  

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