From Trevor Loudon:
“Raising the Debt Ceiling” For Dummies
By AJ at NoisyRoom
July 30, 2011
Lost in all the politics of raising the debt ceiling is a simple understanding of why it is so dangerous to do so.
The government-controlled media is trying to ensure that the public doesn’t have the facts, lacks a clear understanding of the problem and chooses sides based on emotion.
The fact is, at the end of 2008, the Congressional Budget Office (CBO) reported, “At the end of 2008, that debt equaled 40 percent of the nation’s annual economic output (a little above the 40-year average of 37 percent). Since then, the figure has shot upward: By the end of fiscal year 2011, the Congressional Budget Office (CBO) projects federal debt will reach roughly 70 percent of gross domestic product (GDP) — the highest percentage since shortly after World War II.”
The entire US Gross Domestic Product (GDP) for 2010 was $14.62 Trillion. The US debt ceiling currently stands at $14.294 Trillion, which was exceeded in May of 2011. Obama and Congress will be raising the debt ceiling well above our US GDP. Does this make America economically stronger or weaker?
To clarify what the rating agencies said, “Standard & Poor’s and Moody’s credit rating services issued warnings that United States could be downgraded because of the continued large deficits and increasing debt.”
To say that our government is simply spending more than it takes in is an understatement when it comes to the out-of-control spending we’ve experienced under President Obama; what he’s doing is dangerous. He has spent about $12.2 Trillion in just 3 years; that’s $5.15 Trillion more than the approximate $7.05 Trillion that was given to him by taxpayers.
Obama has made America the largest debtor-nation in the history of the world and fully intends to keep spending.
To put this into perspective, let’s look at it this way… It’s like a person spending $86,500 a year when they only bring home $50,000. How long will creditors keep loaning money to this person… especially if this person says they refuse to meaningfully cut their spending and instead expects to increase it every year?
Let’s look at it another way… It took roughly 220 years for our nation to accumulate $5.181 Trillion in debt which occurred in 1996. From 1996 to the end of 2008 (12 years), another $4.473 Trillion was added to our national debt, which is why we screamed for Bush to stop spending. Obama is adding $5.15 Trillion in just 3 years. What he’s doing is dangerous.
So, if you’re not screaming for Obama to stop spending, why not? Raising the debt ceiling without significant strings attached gives him the blank checks he needs to plunge us even further into debt. He refuses to cut spending and dishonestly threatens our creditors, seniors and others in hopes they’ll support him out of fear. He’s historic alright; no President in the history of our nation has ever threatened its citizens or its creditors in this way.
Obama isn’t spending our money to help improve the lives of America’s poor, seniors, veterans, homeless, minorities or others we care deeply about. Here’s just a taste of his real priorities… where he’s been spending our money and what our kids and grandkids will be expected to repay for decades to come:
- $63 billion – US Global Health Initiative.
- $665.7 million – International Family Planning & Reproductive Health Programs.
- $1 billion – to Mexico so that they can drill in the Gulf (while Obama caused 23,000 Americans to lose their jobs because of his ban on US drilling in the Gulf).
- $2 billion – to Brazil for OFFSHORE OIL DRILLING!!!!
- $147.3 million – US pays Brazil each year in cotton subsidies to keep its mouth shut.
- $30 billion – of the $100 billion per year for UN Climate Change Policy; the UN admitted global warming is about wealth redistribution, not climate change policy.
- $430 billion from TARP that Timothy Geitner stated will be recovered by January 2011 – of which the Fed spent $350 billion in taxpayer funds to save 35 foreign banks.
- $8 billion – US pays to IMF for Greece Bailout.
- $1.9 billion – International Agriculture Programs.
- $54.1 billion – USAID to other countries for FY 2011 – President Obama already sent $173.5 billion for international/foreign assistance ($90.6 billion in 2010 – a 60% increase compared to FY 2008; $82.9 billion in 2009 – a 47% increase compared to FY 2008).
- $5.96 million – U.S. Ambassadors Fund for Cultural Preservation 2010 Awards (i.e. mosque restoration overseas). NOTE: Section 205.1(d) of title 22 of the Code of Federal Regulations prohibits USAID funds from being used for the rehabilitation of structures to the extent that those structures are used for “inherently religious activities.”
- $80 billion to Apollo Alliance
(socialist/communist George Soros group) to expand community agitation; see this video too.
- $422 million – Funding for Public Broadcasting/NPR – a private company that doesn’t need taxpayer funds.
- $161 million – NEH anti-American group which targets our military.
- $44 billion – This represents a 28% pay increase for Fed employees (Fed pay increased 36.9% since 2000 while private worker’s pay increased only 8.8%.)
- $148 billion – loaned to Fannie Mae and Freddie Mac – these are government operated organizations that are taking control of 90%+ of U.S. home mortgages, and these are the organizations who contributed to the housing meltdown.
- $1.416 billion – Serve America Act FY 2011 to recruit our children at school and get them into “volunteerism” (i.e. recruit and train community agitators).
- $1 billion – Dead people to whom our Federal government sends our money.
- $1.4 billion – FDA to take over our food supply and hire 17,000 more taxpayer-funded government employees.
- $400 million – Michelle Obama’s Food Deserts to open government food stores that are closer to urban areas to save residents the 5 extra minutes of driving time that it takes to get to their existing, privately owned store.
- $1.741 billion – INCREASE for “critical efficiency and renewables programs” – this is just the amount of increase to their existing budget.
- $2.4 billion – “clean tech” for energy efficiency and renewable energy programs, a $2.287 billion increase from $113 million in the previous budget [ID:nN01180827].
- $6 billion – clean energy technologies.
- $535 million – Global warming money for a politically-connected private company, Solyndra, to lay off workers and build a new plant (see video here).
- $611.4 million – Bureau of Labor Statistics to gather data on ‘green jobs.’
- $123 million – DoE’s wind program, a $43 million increase over current spending.
- $300 million – the Advanced Research Projects Agency-Energy, or ARPA-E.
$880 Billion is being spent on these items alone in 2011. Are these discretionary expenditures worthy of collapsing America’s economy at a time when we need to reign in spending? If Obama continues to refuse to cut spending, that’s just what will happen.
Don’t be fooled by the propaganda coming from Obama and his regime – to include his MoveOn.org pals. They’re doing George Soros’ bidding. If you haven’t heard, Soros wants a ‘managed decline’ of our dollar and an economic collapse is exactly what he wants. Obama’s actions are clearly leading to what Soros wants.
It’s dangerous to raise the debt ceiling without significant cuts and caps on Obama’s spending and a legislative balanced-budget amendment to prevent future Presidents from doing what Obama’s doing to America.
Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other.
Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.
No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!
How do you tell a communist? Well, it’s someone who reads Marx and Lenin. And how do you tell an anti-Communist? It’s someone who understands Marx and Lenin.