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Thursday, August 13, 2009

Who are the real Fiscal Conservatives?

Our leaders in Washington have not produced a balanced budget since 1960, when we paid down our national debt; a little over $500 million. Since then, we have had nothing but deficit spending. The Clinton administration and the Democrats like to say they handed the Bush administration billions in surplus. That is not true, they were talking about surplus Social Security, Medicare and other trust funds money coming into trust funds in future years. Every administration from Reagan on, has been using these surplus funds like general Tax Revenues and writing IOUs in the form of US Treasury Bonds, until over $5 trillion is now owed to these funds. You will note in the chart at the end that even Clinton increased the debt by $1.54 trillion in his 8 years, with his last year being $18 billion in deficit. Where was the Surplus? There was none.

Only Congress can authorize the spending of funds. However, Reagan, Bush 1, Clinton, Bush 2 and Obama never submitted a balanced budget over the past 29 years nor did any of them veto an unbalanced budget proposal in that time. Can you believe a Congress person, Democrat, Independent or Republican, in that time period, has said "No" to spending money? Ultimately it ends in the Oval Office. It is the President's responsibility and he does have the Veto Power.

The debt Obama inherited of $10.6 trillion,(estimate another $700 billion plus with the TARP factored in. Solid numbers won't be out till next fiscal year I suspect it will be much higher when we find out what the federal reserve has done, perhaps $12 trillion or higher. They've been very secretive about what they are doing.) Interest on the $10.6 trillion at 3%, if we're lucky, is $318 billion a year at 5%, it would be $530 billion. How would you like to figure out your budget with that wasted amount already factored in to start with?

In 1980, our national debt was $900 billion (rounded off). After 12 years of Reagan and Bush 1, it had increased to $4.2 trillion, an increase of 466%. This was the time Reagan brought down the top tax rate of 70% to 31% for the very rich. Bush 2 brought it down from 39.6% to 35%, again for the very rich. The national debt almost doubled as it increased $4.9 trillion. So much for the "Trickle Down Theory". Bush 2 is the only president in history who reduced tax revenue while engaged in two wars. We might also considered Reagan reduced tax revenue while engaged in war, if you considered the "Cold War", when we bankrupted the Soviets in spending money on defense.

The Bush Stimulus plan, $700 billion plus, was passed by Bush just before he left office to bail the Banks out. It was then implemented in Obama's term in office without any control by him. The plan itself was not written with explicit plans on how to distribute, how to account for or how to use this money with any real thought. Yet, it is a big part of the deficit for this year that Obama is being blamed for. About half of Obama's $787 billion stimulus plan has been sent out, and is waiting to be put into the pipeline. This money was allotted for stimulating Main Street. To be put in the pockets of working people who actually spend it instead of toward the profit margins of the banks. You'd think the Republicans would like a plan that put money in the pockets of the masses, but instead all they do is talk about what a waste it is and how it's not working. But they all want their piece of it. That's for sure. They hate it because If it's not going into the coffers of wildly rich bankers and their bonuses for screwing up the entire economy with their greed. They HATE THE THOUGHT of our money getting into the hands unwashed masses.

It would be laughable, if it weren't so serious, Republican's feigning about Obama's irresponsible spending is all in deficit. What a short memory they have, forgetting how George W. Bush spent money like a Drunken Sailor. His eight years in office, the national debt increased $4.9 trillion (not including the $700 billion plus TARP money). Those eight years equate to a little over 3% of our nation's 232 years of history, while the $4.9 trillion was 46 % of the total debt of $10.6 trillion when he left office. Bush's last fiscal year in office, FY 2008, the deficit was $1 trillion, 62 billion, 59 times higher than Clinton's $18 billion for FY 2000. This is what Obama inherited from Bush and the Republicans; horrendous national debt, large interest payments on the national debt (wasted money), Bush's last minute transfer of wealth from the masses to the bankers; of which Obama had no control regarding it's rules, along with two wars and a broken economy.

There may be a problem facing us the near future that could put us in deeper trouble. The recent meeting with China indicated the were concerned over our national debt and large deficit spending, and rightly so. If they stop lending money to us, followed by other lending nations, we are to put it in far east term, "in deep Kimchee". The only thing left then, to sustain trillion dollar deficits for future year's budgets would be to "print money' that had no backing. This would lead to run away inflation. This is the worse disaster that could happen to us. The American dollar would sink to an undeterminable low. In general terms, "A loaf of bread could well take a wheel barrow full of worthless money".

I would not like to be in Obama's shoes, would you? I don't know what would drive ANYONE to take that job. great benefits I guess.

From the US National Debt to the Penny, Daily History, on the Internet

Date: Total Debt Deficit

Clinton's 8 Years in Office

20 Jan 1993 $4 Trillion, 188 Billion
20 Jan 2001 $5 Trillion, 728 Billion $1 Trillion, $540 Billions

Clinton's Last FY in Office

1 Oct 1999 $5 Trillion, 652 Billion
1 Oct 2000 $5 Trillion, 670 Billion $18 Billion

Bush's 8 Years in Office

20 Jan 2001 $5 Trillion, 728 Billion
20 Jan 2009 $10 Trillion, 626 Billion $4 Trillion, 898 Billion

Bush's Last FY in Office

1 Oct 2007 $9 Trillion, 062 Billion
1 Oct 2008 $10 Trillion 124 Billion $1 Trillion, 62 Billion

Colonel Colin J. N., Chauret, USAF Retired
31 Years Active Service, 1942-1973
8506 Parthenon Place, Universal City, TX 78148
(210) 658-8720: Cjnchauret@aol.com

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