President Obama Proposes Largest Budget Deficit In History
President Barack Obama just last week proposed the largest federal budget in history with the largest deficit in history, 4.5 times that of George W. Bush’s last budget deficit and then in announcing his gargantuan monstrosity, Mr Obama made this statement:
“…one of the pillars of this foundation is fiscal responsibility. We can no longer afford to spend as if deficits don’t matter and waste is not our problem. We can no longer afford to leave the hard choices for the next budget, the next administration — or the next generation.”
What!?! I don’t even know how to react to such inane words (Please go read them, you won’t believe it). Are we living in an alternate universe where the president of the United States can do one thing and then make a statement as if what he just did is completely different than what is actually taking place? Apparently we are. If you are maxed out on all your credit cards, have 2 car payments and owe everyone you know money, it’s probably not a smart thing to get a home equity loan so you can take that cruise to Alaska. You would want to show some financial restraint, unlike the federal government is capable of doing.
What the President should have said to match his actions is, “We can no longer afford to spend as if deficits don’t matter, but I’m going to do it anyway because I won the election and I’m the frickin’ President, so get use to it.”
It is clear from the President’s actions that deficits don’t matter to him when the projected deficit for his budget now stands at $1.8 trillion. But beyond that, what’s really going on here is the current administration simply trying to manipulate the public into believing the economy isn’t as bad as it really is and the President isn’t spending more money than we can possibly supply him through the current tax structure. If you think Mr Obama can spend this kind of money (while blaming the past administration) and still keep his campaign promise of a tax cut for 95% of Americans, you should take a basic course in economics. Simple math tells me you can’t get $1.8 trillion extra that you don’t have from only 5% of the US population, you need a little bit bigger base.
The most disturbing part if this whole thing is that The President is flat out lying to the American public when he tells us that we need to spend this kind of money to fund the government. We don’t. The President is doing more that funding the government, he’s growing it to unprecedented levels. At some point, if we continue to spend money like this, there will most surely come a day of reckoning and we will simply run out of money. And then what’s the US government going to do?
Maybe it’s time to buy gold coins and gold bullion before this train wreck goes off the cliff it’s heading for.
Is The Economy Good When Freddie Mac CFO Commits Suicide?
As if things aren’t bad enough in the economy today with huge mortgage defaults, homes foreclosing in record numbers and the Obama administration proposing another trillion dollar bailout seemingly on a monthly basis, then we have the Cheif Financial Officer, David Kellermann, of Freddie Mac, the organization that’s primarily responsible for the mess we’re in, committing suicide. Meanwhile we’re being told by the powers that be in the Treasury Department, Timothy Geithner, that everything is just fine and dandy. Somehow, I’m finding that very hard to believe.
What would cause a high level CFO in the prime of his career at only 41 years of age to end it all? Was it the 38,000 shares of Freddie Mac stock previously valued at more than $1 million that’s now worth around $30,000 or did the ongoing investigation by the SEC into why the company lost $50 billion in the 2008 financial meltdown contribute to Kellerman’s suicide? Or maybe Kelermann uncovered some damaging evidence of corrupt high level political dealings and feared going public with the info. No one really knows exactly and we may never know the full story.
Situations such as this will certainly contribute to the attitude about what’s really going on with our national economic troubles. Let’s hope we can get some real answers about what happened to Mr Kellermann and what caused him to end his life at such a young age. Unfortunately, truth isn’t a virtue in the US Government today, so all we can do for the time being is speculate.
Read more about Kellermann’s death at Bloomberg.com