The debt limit debacle that just passed through your life will be coming back to haunt you and yours. It will come as no surprise to thinking people that bad things have happened to good people through the fiasco that just passed our national legislative body, and then zipped past the POTUS’ poison pen, only to return with a back-stab for the put-upon folks of this nation.
1. Stimulus Recipients and Big Government:President Obama’s “Stimulus” was supposed to just be temporary. Alas, the debt agreement locks in big government and the extra spending President Obama initiated will continue ….
2. Deficit Spending: Deficit spending will continue on almost as recklessly as before.
If everything works as promised, the federal government’s debt will rise from $14.3 trillion to “only” $22.2 trillion rather than to $24.6 trillion. That is over $71,000 for everyone who is alive in the United States today, or $286,000 for every family of four ….
3. Score a Victory for Scare Tactics: President Obama constantly threatened a default, higher interest rates; horrible unemployment and GDP growth; and a tumbling stock market if the debt ceiling wasn’t increased by today, August 2.
He openly wondered whether money would be available to send out Social Security checks.
No reporters challenged such ridiculous predictions, as can be seen from the daily White House press conferences – not a single member of the press asked how there could possibly be a default when revenue would be over nine times greater than the interest payments.
…. And we know from last time this happened, when there was a shutdown for about a month in 1995 and early 1996, nothing horrible happened.
1. Our Bond Rating: Rating agencies said that at least $4 trillion had to be cut out of our deficits over the next decade. The deal, if it works, cuts just over half of that. Whether rating agencies follow through on their threats and cut our bond rating now or a little later, our debt is going to go up a lot, and our ratings will be cut if we stay on this new spending path.
2. The Tea Party: True, things have gotten better since the beginning of the year, which might possibly be seen as a very slight victory for the Tea Party movement.
After all, in February, President Obama’s budget proposed increasing the already large expected deficits by another $1.2 trillion over the next decade.
Yet, going from an increase in deficits to a small cut in the deficits is worth something, but it is a long way from what Tea Party activists were hoping for. After all, they did have all the cards.
Republicans may not be in the White House and control only half of Congress, but they wielded a veto threat — no debt ceiling deal unless they agreed to it.
Spending would have automatically been limited to revenue (sort of a self-made balanced budget amendment).
3. The Economy: According to Democrats, large government spending is the key to economic growth. So how is that Keynesian economics really working for you?
The chaos created by the massive growth in government under Obama has only prolonged and worsened the recession. Just look at the gloomy numbers: For the first half of this year, GDP has grown at just 0.4% (0.8% at an annual rate). Just as Big Government is the winner, the economy is the loser.
For Obama, this is a mixed bag. He gets the government spending he wants and he can reward his supporters. But the weaker economy will come back to haunt him next year.
The information found above is a portion of the Lott story. For more, follow the link below:
Be sure to check out the related links found below:
- Debt Limit Fallout: Judging the Unelected Winners and Losers (swampland.time.com)
- Back to Big Government-Spending as Usual – Michelle Malkin – Townhall Conservative (gds44.wordpress.com)
- President Obama signs U.S. debt bill after final Senate vote (nj.com)
- First Read: No victory lap for President Obama (firstread.msnbc.msn.com)
- The Debt ‘Deal’ Cuts Leave Much to Be Desired + More (papundits.wordpress.com)
- Losers All Around in Debt Limit Debate (pajamasmedia.com)
- Brent Budowsky: The Debt Ceiling Deal Disaster (huffingtonpost.com)
- Debt Deal Done: So What Does It Mean? (businessinsider.com)
- Moody’s Backs Down: US Remains AAA (247wallst.com)