Thursday, April 14, 2011

What He Did Not Say!

Dr. A. H. Krieg

What Obama did not say, and what he said, in a convoluted manner, is the issue of his speech on the budget and deficit. But, before we even begin, we must review the present situation and what has taken place over the past two years that was either missing of distorted by Obama.

The presidential proposals are in fact massive tax increases in the amount of over one trillion dollars per year for the coming decade. One of his primary proposals is to strip congress of the authority to tax and to institute his radical Debt Reduction Policy, establishing an automatic trigger, to increase taxes to meet White House progressive spending programs. Even without that, all taxes will be higher in 2011 than they were in 2010. 2011 budget is larger than the 2010 budget and the 2012 budget is to be even greater. The 2011 budget is $3.82 trillion, which ads a total of $1.65 trillion to the national debt that is anticipated to be increased to $1.85 trillion in 2012. Democrats proposed a cut of $33 billion, which is 0.08% of the budget while Republicans suggested $61 billion, which is 1.59% of the budget. Projected 2011 revenues are $ 2.174 trillion, which is 56.9% of anticipated revenues. The budget shortfall for 2011 is a staggering $ 1.646 Trillion. The national debt on the day of the speech was $ 14.5 trillion. The total off book debt of the United Stats is about $202 trillions. When we consider such obscure items in this budget as the $200 million that was used to advertise the benefits of Obamacare and $ 4 million used to construct an Internet site to propagandize Americans on Obamacare, $30 million for Pakistan to establish a Sesame Street program in Urdu, $3 billion in foreign aid to Israel, the 16th highest per capita income state in the world, and the Andy Griffin ads for Obamacare; all propaganda, and see, that none in Sodom on the Potomac can locate budget cuts, we can only be amazed. If you think all this is economic Voodoo, then consider the reached budget deal of April, which the congress past that is a $33 billion cut, all postponed into future budgets the actual cut is $353 million out of a 2011 $3.82 trillion budget or less than one tenth of one percent. “Smoke and Mirrors”!

Inflation is now our primary problem. This is verified by the increase of prices across the board since Obama’s election; Gasoline +69.6%, Food +52.4%, Crude oil +135.9%, Corn +78.1%, Sugar +164.7%, and Gold +60.5%. This is the greatest and quickest jump in commodities prices in American History and it is called inflation. Government claims of 1.7% inflation are ridiculous, 2010 saw 11% and so far in 2011 we have 14% inflation. (Shadow Stats)

Unemployment statistics indicate that non-farm unemployment is up 23.7%, black unemployment is up 25.4%, total unemployment is up 24.7%, long-term unemployment (over 27 weeks) is up by 146.2%. In March we added another 433,000 to the unemployment rolls. We have as of the day of this speech 16.7 million American unemployed, 44.3 million on food stamps, and 23 million illegal immigrants taking away our jobs, and the dollar has in the last two years lost 27% of its purchasing power. (U.S. Dep. of Labor)

To all this, the president states that “we are on the road to recovery”; we are more likely on “The road To Serfdom” in my mind. The usual class warfare as practiced by the progressives (socialists and communists) was at hand with repeated tax the rich pronouncements. Well Mr. President the top 1% wage earners pay 40% of America’s taxes; they are departing our nation like rats on a sinking ship. They have many options, leave, and stop working, not hiring anyone, moving their operations overseas, retiring, and moving their asset portfolios to the Caribbean, which now boasts over one trillion in managed assets. Aside that, the proposal is stupid, because if we taxed the top 50% of wage earners at 50% it would not even cover your budget deficit of 2011. This begs the question; does anyone in this administration have a calculator, can they even add? The only solution to this problem is cutting taxes and drastically cutting spending. Look up Warren Harding and Calvin Coolidge see what they did, when they averted the 1920 depression.

This speech had little to do with the budget but a lot about political ideology. This is not the way to approach a problem, if you actually anticipate a possible solution. But then, Obama never managed anything before this. The speech was about getting votes and about Obama’s progressive’s constituency to whom it was addressed. It was about investment, the progressive’s key word for tax increases. It was about dignity and security as provided by the state not the individual and thus it was about group rights. It was about the wealthy must pay more. (Class warfare) It was above all, about seared sacrifice, that’s when you pay more to government for the governments wealth re-distribution schemes. Or put another way robbing Peter to pay Paul.

He spoke of the cause of the huge deficit and tried to blame it on everyone but himself and the progressives, who are together with the Neo-Cons the cause. He informed that only 12% of the budget was digressionary spending over which he had control. Rubbish! I beg to differ. Let’s bring our troops home from, The EU, from Japan, From Iraq, from Afghanistan, and while were at it shut down about 100 of our 130 foreign military bases. Then we will have enough troops to man the Mexican border. Let’s shut down the Department of Education, after all their only accomplishment in 31 years of existence is the lowering of student competency from number 4 in the world to number 34. Let’s shut down the Department of Energy, their sole accomplishment has been the waste of billions every year and lines at gas stations. Let’s shut down the Department of Housing and Urban Development, because the government has no business being in housing, just look at the mess they made out of Freddie and Fannie.

Then there are the wars, well a lot of them, the war on poverty, that has in the decades of its existence cost America trillions of dollars, resulting in the exact same percentage of population of Americans living below the poverty level as the day the program began under LBJ. Another loosing war has been the war on drugs, its primary accomplishment is that we have the highest citizen incarceration in the world, our prisons contain a population in the millions more than the EU, Russia and China combined. Then there’s the war in Iraq that G. W. Bush said was over three years ago and the War in Afghanistan, where no one to date has been able to provide a lucid explanation for our involvement. Then the new war that Obama started in Libya that is already in just a couple of weeks costing us over $ 800 million.

You see what I’m getting at. There are more places to cut this budget than we can rationally count. I would in fact bet that I could cut the present 2011 budget by 2 trillion dollars and keep the entire government operating functionally. Oh, just one more thing, cut all foreign aid to 0, cut all legislators salaries by $100,000 each, reduce congressional aids pay to equivalent private sector pay, eliminate congressional and government employees pensions and put them on Social Security. Require all government employees to work to age 65 and stop the ridiculous retirement after 20 years of service. Don’t allow government employees to double dip. Force all government employees to seek private sector healthcare just like the rest of us. You see if you want to, it’s not at all difficult. The problem is not finacial it’s political and based on ideology. So long as the progressives continued to be allowed to direct the course of the debate and focus on their socialist agenda nothing will get fixed. The fact that the Republicans at the last moment always give in to progressive policy does not help the American cause, or the struggling middle class one bit.

Some democrat last week said the president needs to take a baseball bat to the Republicans, contrary American’s need to vote all these idiots out of office.

Dr. Krieg’s new book coming out in July “Rendezvous with the New World Order” from all booksellers. Pre-order from you will be billed upon shipment $25.00


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