Wasting Time With Alex

Get ready for the “Cali-Style” federal IOUs

There has been a ton of meaningless drivel going around by the usual lefty propaganda outlets about how conservatives, and in particular Rush Limbaugh whom mentioned it back when, want Obama to fail. The meme is that conservatives are going to do things to make that so. Nothing could be further from the truth. In fact, unlike democrats/leftists, who do actually undermine things they do not like - see Iraq war 2003 to present for undisputable proof – as a matter of recourse, conservatives, notice I did not say republicans BTW, in general do not need to do anything to make the current Obamanomics policy fail. For proof, just look at California where Obamanomics has been the de facto policy for the last 2 decades.

July 6 (Bloomberg)—Last week, we discovered that the state of California will gladly pay you Tuesday for a hamburger today. With California mired in a budget crisis, largely the result of a political impasse that makes spending cuts and tax increases impossible, Controller John Chiang said the state planned to issue $3.3 billion in IOU’s in July alone. Instead of cash, those who do business with California will get slips of paper. The California morass has Democrats in Washington trembling. The reason is simple. If Obama’s health-care plan passes, then we may well end up paying for it with federal slips of paper worth less than California’s. Obama has bet everything on passing health care this year. The publicity surrounding the California debt fiasco almost assures his resounding defeat.

It takes years and years to make a mess as terrible as the California debacle, but the recipe is simple. All that you need is two political parties that are always willing to offer easy government solutions for every need of the voters, but never willing to make the tough decisions necessary to finance the government largess that results. Voters will occasionally change their allegiance from one party to the other, but the bacchanal will continue regardless of the names on the office doors. California has engaged in an orgy of spending, but, compared with our federal government, its legislators should feel chaste. The California deficit this year is now north of $26 billion. The U.S. federal deficit will be, according to the latest numbers, almost 70 times larger.

Bleak Picture

Bleak is an understatement. Remember that Obama and democrats ran and won big on picking at how horribly fiscally irresponsible the republicans had been during the Bush years. Well, Obamanomics is about to outdo those years and deficit spend in one year what it took Bush and the republicans 8 years to do. Have a look at how much money the Obamanomics plan is going to put us in the red by.

By the time Obama is done we will have tripled if not outright quadrupled our current deficit! And it is a guaranteed thing we will see nothing of the growth promised, unless you think a bigger government is equal to an economic boost, for all this spending.

The Obama administration has no shame, and is willing to abandon reason altogether to achieve its short-term political goals. Ronald Reagan ran up big deficits in part because he believed that his tax cuts would produce economic growth, and ultimately pay for themselves. He may well have been excessively optimistic about the merits of tax cuts, but at least he had a story.

Obama has no story. Nobody believes that his unprecedented expansion of the welfare state will lead to enough economic growth. Nobody believes that it will pay for itself. Everyone understands that higher spending today begets higher spending tomorrow. That means that his economic strategy simply doesn’t add up.

Character Deficit

And I should remind everyone that the above projections does not yet contain the massive, and drastically underestimated, costs of the Obama “Cap and Tax” and “Healthcare” plans. The first one is a massive new tax burden that serves but to enrich some politicians and their elected entourage of sell-out companies at the people’s expense. The second is a plan that I should add will do nothing but eventually make government the sole provider of healthcare, drastically reduce its quality and availability – to cut costs – and guarantee a level of intrusion and suppression of our personal freedoms that would be on par with the very tyrannical forms of government so many Americans died fighting off.

Can’t wait for the IOUs to be given to all these old Baby Boomer idiots that voted for this guy. Be it as their primary form of income as the economy continues to tank, as they find themselves looking for energy to meet their needs, or their critical healthcare needs as Obamacare becomes the law of the land. Hope and Change, indeed!