Ok, so, the President of the United States has just admitted that we – as a nation – are broke, busted, out of cash. What’s his solution?

Spend more.

In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: “We are out of money.”

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.

So we’ve got a short-term problem, which is we had to spend a lot of money to salvage our financial system, we had to deal with the auto companies, a huge recession which drains tax revenue at the same time it’s putting more pressure on governments to provide unemployment insurance or make sure that food stamps are available for people who have been laid off.

So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don’t reduce long-term health care inflation substantially, we can’t get control of the deficit.

If  Washington doesn’t stop throwing money out like it was just so much waste paper, we won’t get control of the deficit.  

How many jobs have been saved or created as a result of the “stimulus” plan? The administration proudly touted the salvation – for one year – of the jobs of a handful of police officers in Toledo right after the gargantuan pork-fest passed.

Heard them touting anything since?


Heard a darn thing about the much ballyhooed Geithner/Obama plan to coax private investors into buying toxic assets from the banks? Since it was announced?

Have you heard how “rule of law” Obama screwed heck out of secured investors? Wonder why you have not heard about the great toxic asset purchase plan lately?

Do you have any idea how much this super-deluxe, cost-controlled, government-run health care is going to cost?

Do you have any idea how much it has already cost? It has already destroyed the economy – and it isn’t even here yet.

It has destroyed the economy, busted us, because that was the single, obsessive driving force behind Obama’s agenda. To the point that the economy was neglected, band-aided and back burnered.

And broken as a result.

If you or I are out of money, we stop spending. Obama spends more.

How’s that hope and change?

Via Memeorandum

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6 Responses to Busted

  1. Mockingbird says:

    Free market capitalism is the best path to prosperity.(Larry Kudlow)

  2. David Obst says:

    I would like to hang the people who voted for the first, of many, stimuli by the you know what. That is the major act that allowed The One to get into controlling businesses. Also, I would like to waterboard the guy who disabled the search function for the PDF release of it hours before voting on it to see who gave the orders to do that. Or at least have the media report on it and other things.

  3. David Obst says:

    GM’s Problems: Too Much CSR? (corporate social responsibility)
    This is not Rocket Science

    I recently ran across an old post by Dale Oesterle on the form of corporate social responsibility waged by GM:

    There is a sizable group of academics that favor empowering boards of directors to favor constituencies other than shareholders (employees, suppliers, local citizens) in corporate decision making. GM overpaid labor, buying peace for managers, at the expense of shareholder profit (and share price) for years. Now GM’s survivability is at stake; employees themselves would be better off it the GM board had been more careful of shareholder profits. Railroads situation is similar to GM (they have special legislation that protects their unions). Compare GM’s (or the railroad’s) situation to that of Caterpillar’s. Caterpillar went through some tough strikes to hold the line on labor costs; Caterpillar is now doing very well and is an international success story. The theory of shareholder primacy, rejected by many academics, is that in 9 cases out of 10, sustained shareholder profits are a surrogate for long-term gains for other constituencies — when shareholders make money over-time, employees have good, stable jobs. If we hold boards accountable for profits, all constituencies, over-time, also benefit.

    Still timely today. And it makes you wonder about the merits of giving the UAW 55% of Chrysler.

  4. K T Cat says:

    His diagnosis of the problem is completely wrong, but probably deliberately so. Since he never says what he really means and his goals are income redistribution and saving the planet, it’s safe to assume that this is all nonsense and he knows it.

    The deficit has come from a cultural decision that we deserve to have that which we have not earned.

  5. I think he knew all along that we would run out of money. In fact, I think it planned it.

    The specter of a massive deficit is his way to institute massive and far reaching tax hikes.

  6. K T Cat says:

    One more thing. The stimulus wasn’t about jobs. Obama is not concerned with growth or jobs, only with saving the planet at wealth redistribution. He is a Peronist.

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