21st Century Conservatives, Ronald Reagan, and the Problem of Political Amnesia

Wednesday, February 3, 2010 \AM\.\Wed\.

This is not about the current political climate or the Obama Administration and its endeavors. I’m not arguing for or against the Obama Administration or its policies because that is not the point of interest. Let me repeat: the point is not who is promoting good or bad policies (Democrats or Republicans), the effects of those policies, or any thing of the sort.

On the contrary, the interest here is fundamentally a point of history. In George Orwell’s 1984, the “Ministry of Truth” rewrote history to match whatever “the Party” declared, no matter its objective truth. In a recent article, Peter Beinart notes that a number of conservatives refuse to be outdone by Orwell’s fictional group and this is manifest in the party’s historical revisionism of the presidency of Ronald Reagan.

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Concord Coalition: 14.4 Trillion Dollar Deficit

Friday, August 28, 2009 \AM\.\Fri\.

14.4 trillion

In this earlier post I reported that the Obama administration is predicting a 9 trillion dollar deficit over the next ten years.  Now, the non-partisan Concord Coalition is predicting here a 14. 4 trillion dollar deficit over the next 10 years.

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Remember that 7 trillion deficit? Make that 9 trillion.

Friday, August 21, 2009 \PM\.\Fri\.

Obama Ink

As Obama goes on vacation, the Administration saw fit late Friday afternoon to release the news that the projected deficit was going up over the next ten years from 7 trillion to 9 trillion.  No doubt the Congressional Budget Office will have even more dire numbers, as the administration has consistently put the best face on the increasingly dire deficit numbers.  As I have constantly warned on this blog, our economy is about to hit a debt wall that will lead to a horrendous economy for years to come.  Fiscal lunacy, simple fiscal lunacy.  Some of my prior posts on the process by which we are careening towards national bankruptcy are below. Read the rest of this entry »


“Federal Budget on an Unsustainable Path”

Friday, July 17, 2009 \AM\.\Fri\.

Federal Debt Projections

As regular readers of this blog know, I have been sounding the tocsin regarding government spending since the Bailout Swindle of 2008.  Here is one of my posts in which I list other posts I have written on the subject.

Yesterday the Director of the Congressional Budget Office had a chilling post on his blog which you may view here.  He states in part:

“Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy. The following chart shows our projection of federal debt relative to GDP under the two scenarios we modeled.” 

His chart is at the top of this post.

Keeping deficits and debt from reaching these levels would require increasing revenues significantly as a share of GDP, decreasing projected spending sharply, or some combination of the two.

He concludes on this somber note:

The current recession and policy responses have little effect on long-term projections of noninterest spending and revenues. But CBO estimates that in fiscal years 2009 and 2010, the federal government will record its largest budget deficits as a share of GDP since shortly after World War II. As a result of those deficits, federal debt held by the public will soar from 41 percent of GDP at the end of fiscal year 2008 to 60 percent at the end of fiscal year 2010. This higher debt results in permanently higher spending to pay interest on that debt. Federal interest payments already amount to more than 1 percent of GDP; unless current law changes, that share would rise to 2.5 percent by 2020.

This is fiscal madness.  We have the wealth and the ability to solve this problem by spending cuts, and minor tax increases if, and only if, combined with meaningful and deep spending cuts.  What we lack is the political will.  We are destroying the future prosperity of our kids because of current political cowardice, folly and inertia.


$668,621

Friday, June 5, 2009 \AM\.\Fri\.

Household Debt

Hattip to Daniel Indiviglio at the Atlantic.  USA Today is reporting that the share of the Federal debt for each American household is $546, 668 with private average debt of 121, 953.  Of course these numbers do not include the average household share of liabilities incurred by states and local levels of government.  Does anyone believe that we will ever climb out of this debt abyss except through the terrible remedies of hyper-inflation or debt repudiation?  As I have often stated on this blog the debt that we are amassing is fiscal lunacy and our economy will soon smash into a brick wall of government debt.


Debt Supernova Gets Worse

Thursday, May 28, 2009 \AM\.\Thu\.

Debt Supernova

I list below posts I have written on this blog about the US debt situation.  As pessimistic as I have been, apparently the debt situation for the nation is appreciably worse than even I thought.  Hattip to Ed Morrissey at Hot Air.  Tax revenues to the IRS are down 44% from where they were last year.  Previous debt projections, as Ed Morrissey points out, were based on the assumption that the loss to GDP this year would be -1.2%.  With GDP contracting at -6% during the first quarter on an annual basis, the economy will have to show a lot of growth for the remainder of the year for the target of a -1.2% GDP contraction to be reached.  I very much doubt if the GDP contraction will be much better than -2.5% and could easily be far worse.

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Chutzpah

Sunday, May 17, 2009 \AM\.\Sun\.

 s-DISASTER-large

Bringing to mind the story Abraham Lincoln used to tell about a young man who killed his father and mother and then begged that the court would have mercy on a poor orphan, President Obama now seeks to pose as a deficit hawk:

President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”

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