Home > Federal, National > Roundup: Debt Ceiling Edition-Obama’s 16 tons; Medicare; Ryan Plan; Gov Waste; Necessary Cuts; Stimulus; Tax Cheats; Food Stamp economy; Unemployment; Housing Double Dip; Dems Budget Dereliction; Lost Decade; Pro-Obama Media; Taxes; Fed Secret Loans; Oil Spikes; Military Cuts; Recession 2012; Meltdown Predictions; Economic Crisis; Obama’s Debacle; Failure of Government; Cost of Debt; Foreign Aid; Redistrbuting Wealth; “Soaking the Rich” mentality losing; Left’s playing games; Liberal Dream World.

Roundup: Debt Ceiling Edition-Obama’s 16 tons; Medicare; Ryan Plan; Gov Waste; Necessary Cuts; Stimulus; Tax Cheats; Food Stamp economy; Unemployment; Housing Double Dip; Dems Budget Dereliction; Lost Decade; Pro-Obama Media; Taxes; Fed Secret Loans; Oil Spikes; Military Cuts; Recession 2012; Meltdown Predictions; Economic Crisis; Obama’s Debacle; Failure of Government; Cost of Debt; Foreign Aid; Redistrbuting Wealth; “Soaking the Rich” mentality losing; Left’s playing games; Liberal Dream World.

June 5, 2011

First to get warmed up: Tennessee Ford is back – “16 Tons” Obama edition

House Overwhelmingly Rejects Bill to Raise Debt Ceiling

Patriot Post – Obama hit his head on the debt ceiling

On Wednesday, all 241 members of the House Republican conference made the trip down Pennsylvania Avenue to the White House for a meeting with Barack Obama about the now-breached $14.3 trillion debt ceiling. Republicans set up the meeting by defeating on Tuesday a “clean” bill — no spending cuts attached — that would have increased said debt ceiling by $2.4 trillion. The vote was more than “political theater,” as Minority Whip Steny Hoyer (D-MD) complained. It successfully set the tone for the debate: Spending cuts will be included in a deal on increasing the debt ceiling.

Tuesday’s vote wasn’t even close, ending up 318-97. Despite the fact that 114 Democrats signed a letter to the Democrat leadership requesting that they push a “clean” vote with no strings attached, just 80 voted according to their stated preference. Another 30 changed their minds and voted against the clean increase. Hoyer urged his fellow Democrats not to “subject themselves to a political 30-second ad attack.” He and Minority Leader Nancy Pelosi (D-CA) also voted no on the president’s proposal. All told, it was a remarkable bipartisan rebuke of the president, who had originally demanded that the House pass a clean bill.

Most Democrats are all too aware that federal spending in a general sense is politically unpopular. That’s where Republicans stand on firm ground. It’s specific federal programs that are the problem because too many of them are still popular. “Cuts for thee, but not for me,” seems to be the prevailing sentiment among the electorate.

White House Press Secretary Jay Carney blew off the vote, saying, “It’s fine, it’s fine,” but added, “We believe [debt ceiling and spending] should not be linked because there is no alternative that’s acceptable to raising the debt ceiling. But we’re committed to reducing the deficit.” By “committed” the White House means it’s willing to push for tax increases to pay for more spending, or at least leaving spending on autopilot. Democrats continue to claim it’s a revenue problem created by the Bush tax cuts. Casting that blame was their plan when setting a new spending floor with the so-called “stimulus” and other spending increases.

Granted, the U.S. shouldn’t default on its debt, but in reality that’s not going to happen … yet. Even without the debt increase, the U.S. will still pay its debt obligations. The most important thing is that Congress doesn’t continue to merely increase the credit card limit without any accompanying spending restraint. Continuing on the current path is unsustainable, as Moody’s Investors Service warned Thursday. But if Republicans follow House Budget Committee Chairman Paul Ryan’s (R-WI) lead, they should be able to win major concessions on keeping spending down.

“We have a budget crisis,” Ryan said from the House floor Wednesday. “We’ve got a $1.5 trillion deficit. We’ve got a debt that is getting out of our control. And what do you do when you have a problem like that? You pass a budget.” And when Ryan says “budget,” he means a live-within-your-means spending plan. Republicans will have to show more spine than they usually do to get that done.

FreedomWorks-Stand With Paul Ryan Against Obama: If we do not stand up now, the failure of President Obama and Democrats in Congress to protect our Medicare system will lead to certain bankruptcy, rationing, and benefit cuts. Stand up now!

Together, we can save and strengthen Medicare. Congressman Paul Ryan has a plan to put Medicare on a sustainable path for hard-working Americans while preserving the benefits of current seniors. Click here to stand with him now!

But rather than offer their own solutions, Democrats and the liberal media have launched a coordinated attack campaign claim ing Congressman Ryan’s plan would “kill Medicare.” Not true.

With 10,000 baby boomers joining the Medicare rolls every day and health care costs spiraling out of control, the only sure way to kill Medicare is to do nothing.

That, in fact, is the Democrat’s plan: Do nothing. Plus, they’ve created a new 15-member rationing board, known as IPAB, for the sole purpose of cutting seniors’ Medicare by hundreds of billions of dollars.

Doing nothing to save Medicare will lead directly to bankruptcy, rationing, and benefit cuts. Don’t let Obama and the Democrats do nothing—sign our petition to tell them you stand with Paul Ryan.

Time is running out to solve the debt problem

Do you think it’s conceivable that yet another round of dismal economic news might cause President Obama to finally dig deeply enough in his id to find some hidden humility and consider reversing course? Let’s be serious.

Eric Cantor predicts $1 trillion in cuts

Report Shows Government’s Limo Fleet Swelling

77,000 federal workers paid more than governors

– Tax dollars fund shrimp on treadmills, Jell-O wrestling in Antarctica

$2,000,000 for another new logo design?

Thanks to the brilliant minds running government under Obama’s watch, we’re all saved and don’t have to worry about the difficult task of figuring out how to read that pesky old food pyramid chart. Yep, the new MyPlate campaign dropped some $2,000,000 to create a new, more simpler logo and give it a world class marketing scheme to ensure we all understand.

That old pyramid just had to go. Welcome to the new logo. Welcome to the change we were promised.

Stimulus recipients found to be tax cheats – One construction company that won multiple awards of money under President Obama’s 2009 stimulus program was delinquent on its federal tax bill to the tune of $700,000, even as a company executive was blowing hundreds of thousands of dollars at casinos.

Yet another company failed to pay taxes, entered into a payment plan with the Internal Revenue Service, and then repeatedly defaulted on that agreement – and still won stimulus contracts worth more than $1 million, according to a Government Accountability Office report released Tuesday.

All told, government investigators found that during the period they examined, one out of every six stimulus contract or grant dollars went to a known tax cheat, according to Sen. Tom Coburn, an Oklahoma Republican who, along with several colleagues, requested the GAO review.

The review found that at least 3,700 stimulus recipients owed a total of more than $757 million in taxes, but were awarded $24 billion in stimulus money.

“Average Americans are likely wondering why we gave such a huge amount of federal money to tax cheats when our national debt is more than $14 trillion,” Mr. Coburn said. “That $24 billion went to such people looks like we are rewarding people for potentially criminal behavior.”   more…

Forbes, Pataki Predict Economic Meltdown (also; Pataki running a new PAC, and considering 2012)

Obama Food Stamp Bumper Sticker 5 Pack Already at record highs, Dependence on food stamps continues to climb

Record Number of Americans Rely on Food Stamps

The federal food stamps program cost taxpayers more than $68 billion in 2010, double the amount in 2007… ABC NEWS

Chart: Housing double-dip recession ‘CONFIRMED’

Wrong Direction: Unemployment Rate Up, Job Creation Down

Obamanomics: Unemployment Rises to 9.1%

Unemployment rises to 9.1%; hiring slows to 54K new jobs

WASHINGTON (AP) – Employers hired only 54,000 new workers in May, the fewest in eight months, and the unemployment rate rose to 9.1 percent. The Labor Department report offered startling evidence that the U.S. economy is slowing, hampered by high gas prices and natural disasters in Japan that have hurt U.S. manufacturers.

America’s Version of Japan’s Lost Decade

Peter Wehner 06.01.2011 – 5:52 AM

The American economy continues to flat line. We’ve seen that in the most recent housing data, which confirms a double-dip in home prices across much of the nation. The ownership rate, which peaked at almost 70 percent during the Bush presidency, is now at 66.4 percent, the lowest since the late 1990s. Some housing experts are predicting the level could drop to that of the 1980s or even earlier.

Not surprisingly, Americans are losing faith in the economy. The Conference Board’s Consumer Confidence Index fell to 60.8 from a revised 66 in April. It was the lowest reading since November. As a reference point, a reading of 90 indicates a healthy economy.

And as the Wall Street Journal points out, a growing number of forecasters are downgrading their second-quarter growth predictions. JPMorgan Chase & Co. economists revised down their estimate to a 2.5 percent from 3 percent while Bank of America Merrill Lynch economists cut theirs to 2 percent from 2.8 percent. Deutsche Bank cut its forecast to 3.2 percent from 3.7 percent. The Journal interviews economists about the specter of what it calls a “chronic growth problem.”

“We keep expecting the economy to perform along norms that are very difficult to achieve when you have this much private debt and public debt,” Carmen Reinhart, an economist at the Peterson Institute for International Economics, tells the Journal. She believes the U.S. could be in for a protracted period of subpar growth and high unemployment.

Barack Obama remains caught in a potentially lethal political tractor beam. And if a year from now the economy is in essentially the same condition as it now—and as it has been for more or less the entirely of the Obama presidency—the president will be the easiest incumbent to beat since 1980.

Obama is presiding over America’s version of Japan’s Lost Decade. That makes him not only beatable, but extraordinarily vulnerable.

You know it’s getting bad when –

Democrats Get Attacked from the Left on Budget Delay

Alana Goodman 06.01.2011 – 1:37 PM

Last weekend, the New York Times editorial board unloaded on Senate Democrats for being too politically cowardly to release a budget plan. And now other liberals are echoing this criticism. At the Washington Post today, Dana Milibank noted that “the Democrat-controlled Senate hasn’t passed a budget in 762 days, a new standard for dereliction of duty.”

He also slammed Democrats for playing politics with the deficit:

It is just the sort of thing that offends Americans about Washington: The triumph of tactical advantage over the national interest. Democrats were understandably embarrassed about voting themselves a vacation so soon after abandoning their budget responsibilities. So when Sen. Jeff Sessions (Ala.), the top Republican on the budget committee, demanded a roll-call vote on the recess, Reid used the pro forma loophole.

Milbank isn’t saying anything new here. Senate Republicans have been making these same arguments for weeks and months. The difference is that Democrats were able to dismiss these attacks when they were coming from the right. Now that they’re coming from the left, it’s not going to be as easy for Sen. Harry Reid to ignore them.

Ryan Is Right—Top Tax Rate to Be 45% (plus) under Obama

Peter Wehner 06.01.2011 – 9:56 AM

In his May 16 speech to the Economic Club of Chicago, Representative Paul Ryan said that President Obama wants to raise taxes, including raising the top rate to 44.8 percent (the current top rate is 35 percent). Glenn Kessler, the Washington Post’s fact checker, points out that most of the media’s coverage of the president’s 2012 budget has focused on the president’s desire to return the top tax rate to 39.6 percent, the same as it was before the Bush-era tax cuts. “The top rate is currently 35 percent,” Kessler wrote. “So when President Obama said in his speech on fiscal policy last month that the wealthy (those making above $390,050 a year) would ‘pay a little more,’ we thought he meant an extra 4.6 percent. But Ryan is suggesting the increase is much more than that. Who’s right?”

Kessler does a fine job sorting through the claims and the numbers. His bottom line? “Paul Ryan’s attention-getting figure adds up and appears credible,” he concludes.

A top rate of nearly 45 percent is quite high (not to mention we’re only talking federal here. Combined with state and local taxes, many Americans will have over 1/2 their income being confiscated by governement), and conservatives would be wise to hammer home just how high it really is.

Fed Gave Banks $80 Billion in Secret Loans…At Rates As Low As 0.01% Interest

  • Posted on May 26, 2011

In April, Bloomberg News revealed that foreign banks were the biggest recipients of the Fed’s discount loan program during the height of the financial crisis. And if foreign banks getting emergency cash wasn’t bad enough, Bloomberg has uncovered another absurdity from the recession-era financial markets: it’s now estimated that the Fed dolled out $80 billion in secretive loans to banks, and some locked in interest rates as low as 0.01 percent.

Robert A. Eisenbeis, former head of research at the Federal Reserve Bank of Atlanta and now chief monetary economist at Sarasota, Florida-based Cumberland Advisors Inc. told Bloomberg it’s obvious what happened.

“This was a pure subsidy,” he said. “The Fed hasn’t been forthcoming with disclosures overall. Why should this be any different?”

According to Bloomberg, details of the program “weren’t revealed to shareholders, members of Congress or the public.” And it also found that the Dodd-Frank financial overhaul overlooked the program entirely:

more…

AND YET MORE ECONOMY RELATED NEWS:

Mullen Says Pay, Benefit Cuts ‘On the Table’
The Pentagon’s top officer said that service members will likely see cuts in pay and benefits as the military plumbs its budget for nearly half a trillion dollars in savings over the next 12 years. Read More

The Next Huge Oil Spike
Oil prices have declined somewhat from their recent peak. But Motley Fool analyst Dan Dzombak thinks they could spike again, especially considering recent news out of the Middle East that could have long-term ramifications for oil supplies.  Click here to read more.

Bove: BofA Faces Losses ‘Historic in Proportion’
The news for Bank of America has been pretty bleak lately, with mortgage woes weighing hard on the bank and its share price dropping by about 15 percent this year. Star bank analyst Richard Bove of Rochdale Securities sees more pain ahead.

Taleb: Fed Won’t Exist in 25 Years, Bernanke a ’Failure’

Money Expert Taylor: Fed, Congress Can’t Stop Recession in ‘Miserable’ 2012

ALERT: Misery Index Breaching New Highs
Under Obama’s watch, the Economic Misery Index is reaching levels not seen since Carter. Are we approaching a second Great Depression? This Video Tells All.

Special: Economists Predict Financial Meltdown Directly Ahead.

Is Obama ushering in another Great Depression?
Unemployment went up to 9.1%, new government data revealed this morning. Yet the Obama administration still continues to repeat its claim that we are moving in the right direction. This disaster of a presidency must be and can be ended in 2012, and any Republican who can beat him should stop messing around and run. Given this week’s economic news, we may not have a country left to save in 2016. (Exclusive Laura365 Member Audio)

Our President is Winning His War Against America’s Private Sector: This awful economy is what Obama sought — and he wants more of it! (Rush 24/7 Members: Listen)

 

No Matter How the Media Spins It, Obama Owns This Economic Crisis — Abject panic and despair abound amid disastrous news. (Rush 24/7 Members: Listen

Human Events: I may be one of the few people in America convinced the Republicans will beat Barack Obama, but I really think that is the case.  It is not easy to say that just because the unemployment rate is over some number that the President will be beaten.But when the unemployment rate is so high and inflation is on the rise and the take home pay of Americans brings home less and less, yes, I think the President is beatable.

More so, the President has no real solutions to fix the economy.  Reporters keep asking Republicans what they will do to create jobs.  The answer should be obvious.  “Nothing!”  In fact, I think Americans are finally starting to embrace that answer.  The truth is, as we are seeing, there is nothing the President can do to create jobs except get government out of the way.

The Democrats’ solution is to spend more, tax more, and punish the successful.  Republicans must be willing to do less.  An Ohio State University economic study shows that Barack Obama’s stimulus plan saved or created many government jobs and killed many private sector jobs.  This is the Republican message — government can do nothing to create jobs and much to kill jobs.

Obama is beatable because at the end of the day it is still about the economy. — Erick Erickson

Obama’s Economic Debacle

Major news outlets are suddenly all agog because the vaunted Obama economic recovery not only never was much of a recovery at all, but also seems to be disappearing. “We are on the verge of a great Great Depression!” screams Drudge’s massive headline in red. The Wall Street Journal reports the bad news that the private-sector economy added only 38,000 jobs last month. The Washington Post announces that “U.S. economic recovery is faltering.” CNBC says Wall Street is “baffled.”

The only thing that should be baffling is why anybody at all is surprised. Read more now.
Obama’s Hopes for An Economic Recovery by Election Day Are Doomed

Talk to stalwart Barack Obama supporters (there are still some of them out there) and many of them will tell you that the key to the 44th President’s reelection is the state of the American economy.

The president, they reason, is still personally popular, able to trade on a likable personality and an innate charisma that recommends him to that subset of the American population whose loyalty can be won with such vaporous traits. Read more now.
Lawrence Kudlow, Economist, Economic Commentator and Host of CNBC’s ‘The Kudlow Report,’ On the Failure of Government Stimulus:

“The economy now looks like a Government Motors engine that’s stalling out. Or perhaps, with energy and food inflation, and housing deflation at the same time, the economy is acting like a pinball machine on permanent tilt.

“There’s a key message here: Big-government stimulus never works.”
 

The Hidden Cost of the U.S. National Debt

The cost of insuring the U.S. national debt continues to rise, says Craig Eyermann…THE INDEPENDENT INSTITUTE

Why are we sending foreign aid to countries we borrow from?

 
 
Poll: Only Democrats want to redistribute wealth “Soak the rich” losing popularity
6/3/2011 9:31:27 AM  Ed Morrissey
Perhaps this will feel a little counterintuitive after seeing today’s jobless numbers, but it actually makes a lot of sense.  Gallup’s latest poll on soak-the-rich tax policies show that Americans are less open to redistributionism than at

Obama in a Dream World
By Patrick J. Buchanan
Cities are cutting education, states are slashing pensions, the Pentagon is killing weapons systems. And Barack Obama is ladling out fresh foreign aid.

2011 Federal Budget in Pictures (Infographic)

This is a unique moment in American history—a tipping point that will determine whether we pull our nation back from the brink of financial collapse. Spending has risen to unprecedented levels—threatening limited government and economic freedom. The Heritage Foundation’s 2011 Federal Budget in Pictures paints a clear picture of how much the federal government is spending, how deep it is in debt, how massive entitlement programs are, and what we pay in taxes.  View the infographic . . .

Why Is the Left Playing Games with the Debt Limit?

National Center for Policy Analysis: On March 15, the federal government maxed out its $14.3 trillion debt limit, nearly exceeding U.S. GDP for the first time since the end of WWII. Last week, the House of Representatives overwhelmingly refused to grant the Obama administration’s request for an unprecedented $2.4 trillion increase in the debt limit, insisting on substantial budget cuts before any raise in the debt limit can be considered. The vote was a message to President Obama that a debt increase without spending cuts is impossible and irresponsible.

National debt is so huge as to be unimaginable, but here are some numbers to put it in perspective:

  • In the last 30 years, the debt ceiling has gone from $1 trillion to the current $14.27T
  • At the current level, the debt stands at over $129,000 per taxpayer
  • Our national debt increases at a staggering rate of $58,000 per second-unless you are a speed reader that’s about $580,000 since you started reading this email!!

What does this mean for you? The government is already dipping into the federal retirement fund to cover costs since May 13, and the money to cover more loans will come out of funds like Medicare and Social Security. It will also raise taxes, increase inflation, and slow economic growth…which means fewer jobs for you, your children, and your grandchildren.

For more information on for the costs of such irresponsible spending, click here.

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