Has Obama Already Bankrupted America?

October 29, 2012 14:20


Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” – Senator Barack Obama

 

 

By Michael Whipple, Editor usACTIONnews.com

National debt per citizen has grown from about $34,083 per person to $51,529 since Obama took office, an increase of $17,446 per person.  Jan. 20, 2009, according to the U.S. Treasury, the total debt of the federal government was $10,626,877,048,913.08. October 25, 2012 the debt had climbed to $16,197,082,554,040.04, an increase of  52%, $5,570,205,505,127, in less than four years. The debt is now increasing at over $4 BILLION dollars a DAY!

Obama had 90 days left in office as of October 25, 2012. At $4 billion a day, that’s an additional $360 billion which is another $1,145 per citizen. That will be a total INCREASE of each persons share of the national debt of about $18,591 for every man, woman and child who is a citizen of the U.S. just since Obama took office. That is over a 50% increase! How will that be paid back? How will you pay your share?

The Congressional Budget Office estimates that if Obama remains in office, the national debt by the time he leaves in 2017 will be about $18.4 trillion. Population will rise about 9 million over the same period. The debt per person will be about $57,000 at the end of an Obama second term, a 67% increase in just eight years.

 

 

In 2008 Obama had this to say about the debt:

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” – Senator Barack Obama when the debt was “only” about $10 trillion.

Obama promised to cut the deficit in half but what are the results? Record deficits exceeding a trillion dollars every year he has been in office. What have the Democrats offered? The Democrat controlled senate has not even passed a budget in three years. Is this any way to run a country?

 

BUDGET DEFICITS AS A PERCENTAGE OF GDP, BY ADMINISTRATION

 

 

 

 

 

Here is Obama in his own words talking about the debt and deficits:

 

 

 

“Rather than fight the same tired battles that have dominated Washington for decades, its time to try something new. Let’s invest in our people without leaving them a mountain of debt.” — President Barack Obama on his Office of Management and Budget website.

 

It would be LOL funny if it wasn’t so deadly serious. In the ancient wisdom of Proverbs 22:7 it says “The rich rule over the poor, and the borrower is servant to the lender.” Who will we be servant to? Who are we borrowing from?

Over $5 trillion of our debt is owed to foreign countries. Almost 25% of that foreign debt is owed to communist China.

 

 

Here is a scary look at a future indebted to communist china:

 

 

Under less than four years of Obama, foreign debt has almost doubled. Why should that matter? Secretary of State Hillary Clinton told the Council on Foreign Relations that our national debt is a national security risk echoing previous statements by Joint Chiefs Chairman Admiral Mullen, head of U.S. intelligence – Dennis Blair, and all of America’s intelligence agencies.

“The consequences arising from the continual accumulation of public debts in other countries ought to admonish us to be careful to prevent their growth in our own.” – John Adams

“The fact is, we’ll never build a lasting economic recovery by going deeper into debt at a faster rate than we ever have before. It took this nation 166 years until the middle of World War II to finally accumulate a debt of $95 billion.” – Ronald Reagan

“We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds… [we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow sufferers… And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for [another]… till the bulk of society is reduced to be mere automatons of misery… And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.” – (Thomas Jefferson in a letter to Samuel Kercheval, July 12, 1816

 

Obama’s real plan is to continue deficit spending which will then force an increase in taxation. His constant mantra has been tax the rich. Make everyone pay their “fair share.” Even though 47% of Americans pay no tax at all and according to the Congressional Budget Office (CBO), the average American in the top 1 percent earns 20 times what the average American earns, yet pays 40 times the taxes. This is Obama’s Marxist ideology.

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” – Vladimir Ilyich Lenin

Former Chairman of the Federal Reserve Alan Greenspan summed up the ideology of the tax and spend socialist Democrats:

“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money,by issuing government bonds, to finance welfare expenditures on a large scale.” – Alan Greenspan

 

Antony Davies at Mercatus Center points out that “the rich” just do not have enough money:

Want to balance the budget on the backs of the top 1 percent? According to CBO figures, the government would need to tax them at a rate of almost 100 percent. But doing so would make the top 1 percent poor — so, next year, the government would have to tax the top 2 percent.

With the top 2 percent taxed into poverty, the year after that, politicians would need to go after the top 3 percent. Keep going down that path and, eventually, they’ll come for you.

This is where the middle class comes in. Politicians know the real potential for tax revenue lies with the middle class. Middle-income Americans far outnumber the rich and, at least for now, are taxed at relatively low rates. But even if we tapped the middle class, we’d have to raise tax rates by a staggering amount.

o balance the budget, we’d have to triple tax rates on every household earning over $100,000. Alternatively, we could merely double tax rates, but we’d have to do it on every household earning over $75,000. Not only are there not enough rich households to tax, there are barely enough middle-income households.

Conclusion: The only way to avoid raising taxes on the middle class is either to cut Social Security and Medicare or to live with persistent deficits.

The Communist Manifesto dictates, among other things:

  • The abolition of private property (You didn’t build that)
  • A heavy progressive or graduated income tax (“fair share”).
  • Abolition of all rights of inheritance (death tax)
  • Centralization of credit in the hands of the state, by means of a national bank (Federal Reserve creates money out of thin air)
  • Centralization of the means of communications (Obama appointed a socialist sympathizer to the FCC)
  • Extension of factories and instruments of production owned by the state, (General Motors, Chrysler, banks, healthcare)
  • Free education for all children in public schools. (indoctrination centers that you are forced to pay for)

[Editor's note: Comments in parenthesis and emphasis mine.]

 

Never has the world seen such a massive scale of debt. Eurozone countries have been in the news because their debt is collapsing their economies. How does the U.S. compare with those collapsing economies?

 

 

And then there is interest on the debt. The Federal Reserve is keeping rates artificially low for now but what happens when investors begin to doubt the value of treasuries? It won’t be long before the interest on the debt consumes ALL government revenue leaving nothing for Medicare, Medicaid, Social Security or defense. Maybe that is why former Chairman of the Joint chiefs of Staff called the national debt our greatest threat to national security. Why won’t Obama and the Democrats listen?

 

 

Antony Davies at Mercatus Center describes the problem:

So what’s wrong with persistent deficits? The federal government, currently $16 trillion in debt, will collect $2.5 trillion in taxes this year. That’s like shouldering a $320,000 debt on a $50,000 income. The federal debt is so large that if the interest rate the government pays rose just 1 percentage point, the additional annual cost would be equivalent to the cost of the Iraq and Afghanistan wars combined. [emphasis added]

Michael T. Snyder explains the perpetual debt motivation of politicians:

Barack Obama has destroyed the future of America in order to improve his chances of winning the next election.  Under Obama, 5.3 trillion dollars has been ruthlessly stolen from our children and our grandchildren.  That money has been used to pump up the debt-fueled false prosperity that we have been experiencing.  When the U.S. government borrows money that it does not have from someone else (such as China) and spends that money into the economy it is going to make our economic numbers look better.

 

“Blessed are the young for they shall inherit the national debt.” – Herbert Hoover. The problem is most young people don’t have a clue what they are in for. In 2008 most young votes went to Obama. What did they get for it? Another four years older and much deeper in debt.

Obama’s “fundamental transformation of America” is to make the government a giant wealth transfer machine. He has nearly reached that goal while bankrupting the nation. One in seven Americans are now on food stamps. One hundred million Americans get some form of welfare.

Not counting social security, medicaid and many more. This is Obama’s Utopian dream for America coming to fruition. The Cloward-Piven strategy in full bloom. Create a dependent class of slaves who will perpetuate their own enslavement by continually electing those who promise more handouts until we are all equally poor and miserable.

 

Here is Obama saying that he actually believes in redistribution:

The Marxist redistribution of wealth sounds good until you run out of other people’s money to redistribute. Then it all collapses as we saw with the Soviet Union. C.S.Lewis said  “Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive.”

Senator Dirksen (R-IL) warned back in 1964 about Democrats being “prone to spend money .. when it’s rather doubtful whether or not it is good for the country and for the interests of the people. Because you pile up your national debt. You pile up the interest.  You pile up these staggering deficits that we have at the present time. [1964 deficit was $5.9 billion - $43.7 billion when adjusted for inflation] And that spends itself in terms of higher interest rates, higher prices in the stores where people shop. And so the evil effects always fall upon the people back home.”

From 1940 to 2012 there have only been 12 surplus years. All other years have run a deficit. Every surplus year Republicans either controlled both houses of congress or the presidency except one. In 1949 a Democrat congress and president had a $ .6 billion dollar surplus following a 1947 $4 billion surplus (inflation adj. $41.24 Billion) and a 1948 $11.8 billion surplus (inflation adj. $112.38 billion) under Republican congresses.

So when someone tries to tell you that there is little difference between Democrats and Republicans don’t believe them. Democrats are mostly socialists. Democrat politicians continue to expand the power and control of the federal government by taking from productive Americans and buying the votes of the poor and the stupid.

Obama’s deficit was greater than entire Clinton budget. The entire Clinton budget to operate the government in 1996 was $1.5 trillion.  Obama has increased the debt more than all presidents before him combined. Let’s hope it’s not too late get our fiscal house in order. But first we must get the White House in order.

 

By Michael Whipple, Editor usACTIONnews.com

 

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1 Comment

  • Fern Henley

    Pelosi said when families sit at their kitchen tables they want to balance the budget. That’s not the American way according to Alexader Hamilton and my dad who had a 3rd grade education. You get to the bank as fast as you can to take out another loan if you should ‘balance that budget’. Got to buy more capital goods, more land, increase production with better equipment. Go into debt as much as you can see that there is a built in payback but not a nickle for a coca cola . He got his money from the town’s bankers and did not think of burying the $$ to ‘break even’ like the parable in the Bible he read daily. He totally understood money as a means of producing goods to raise the standard of living for all. Using money to make money he would have understood as usury with much similarity to King Midas who wanted to produce gold. What’s Obama got to say? Whatever those who run NSA want him to say. Just like J.E. Hoover had puppets held by strings of his spy operations now NSA calls the tunes. I say, push HR 129 and SB 985 through now. Take back the power of the purse for our nation.

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