Skip to comments.Huge Deficits May Alter U.S. Politics and Global Power
Posted on 02/02/2010 3:33:45 AM PST by lbryce
In a federal budget filled with mind-boggling statistics, two numbers stand out as particularly stunning, for the way they may change American politics and American power.
The first is the projected deficit in the coming year, nearly 11 percent of the countrys entire economic output. That is not unprecedented: During the Civil War, World War I and World War II, the United States ran soaring deficits, but usually with the expectation that they would come back down once peace was restored and war spending abated.
But the second number, buried deeper in the budgets projections, is the one that really commands attention: By President Obamas own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 years after Mr. Obama has left the political scene, even if he serves two terms they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.
For Mr. Obama and his successors, the effect of those projections is clear: Unless miraculous growth, or miraculous political compromises, creates some unforeseen change over the next decade, there is virtually no room for new domestic initiatives for Mr. Obama or his successors. Beyond that lies the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade. As debt grew more rapidly than income, that countrys influence around the world eroded.
Or, as Mr. Obamas chief economic adviser, Lawrence H. Summers, used to ask before he entered government a year ago, How long can the worlds biggest borrower remain the worlds biggest power?
(Excerpt) Read more at nytimes.com ...
After the left and the Carter adminstration got done wrecking America in the 70’s and saying America’s best days were over, along came the great Ronaldus Magnus saying that our best days were yet to come. I like you believe the same.
Exactly. It’s not an accident.
There is a reason, purpose, and agenda for all of this and that it has been all engineered to bring about one thing ?
It’s engineered to bring about America’s downfall economically, politically, America’s world influence, and militarily... <<<
I think there is no way to doubt that any more! We are at war and the enemy is in the gates!
America’s decline was not instituted from the top. All of my life, with only several instances of sanity, rank and file Americans went to the polls to vote in politicians promising the nanny state. Nobody held a gun to their heads or tricked them.
Truly! All that is written will come to pass!
The fear of God is a wise thing!
The commiecRATS can’t risk another election in 2010, maybe never again. Whatever they try in 2010, they must fail.
I think you are both right. On the one hand, the US has taken an economic hit which it might recover from, but on the other, your kind of positive attitude is what will stop that from happening!
Not if we fire the idiot with the credit card, and cancel the policies he’s put in place.
The Founders were adamant about not granting the franchise to morons, women, those under 21, and non tax payers.
The politicians failed to heed their warning, and all of those groups have now been enfranchised via Constitutional amendment and are the reason this Republic cannot possibly endure.
The enemies of Freedom are all around us, the 50 % of Americans that continue vote Democrat.
A populace that gave the maniac algore the popular vote in 2000, elected Bill Clinton twice, and now puts a communist crypto-muslim in the White House is a populace and nation that has only darkness and despair on the horizon.
This Republic will fall, as the non taxpayers will continue to support those politicians who will redistribute money in exchange for votes.
Lets hope that in the new one that rises from its ashes, only taxpayers and veterans are entrusted to have a say on who may govern.
My modest proposal:
1)Cut 2% across all departments of gov. If that means lay-offs, well, welcome to the real world.
2) Eliminate the Dept of Education completely. Nothing can be shown to be a bigger failure than this monstrosity. Get rid of it.
3) Require all fed. employees (including elected officials) to pay Social Security taxes and begin an evaluation of fed pensions to bring them back in line w/ private sector pensions.
Continuing to borrow money from the Chinese is absolutely unacceptable.
And, unfortunately, the Government’s “cure” for the Financial Meltdown was to avoid pain by huge bailouts, guarantees, more regulation, taking over industries, and (of course) bigger Government. And the icing on the cake is we elected an inexperienced Socialist. This assures that the deficits will never go way. We made the wrong choices, plain and simple.
Awe..you don’t say...I can’t believe my ears..that a great nation could actually be destroyed.. FINANCIALLY...or for that matter, MILITARILY...or even MORALLY...or maybe CULTURALLY go to pot. One never knows what one has, until he looses it generally. UP with the debt..go out and charge those credit cards...celebrate..OBAMA says DEBT is good! It’s what makes country GREAT..
True....but the libs/progressives/leftists are masters at manipulating human nature. Promise people “something for free” (ahem....I know, I know), they’ll jump at it EVERY time.
Simple. Devastatingly effective, too. Shame on them for this; shame on America for continuing to take the bait and elect/re-elect such scum.
Absolutely dead-on, FRiend. I have certainly come around to this way of thinking, as well. If you aren’t a taxpayer, you do NOT vote, period.
I’ll also add another essential ingredient: term limits. We must eliminate “career politician” from our political lexicon. It’s time to return to the concept of “citizen legislators”.
Not much of a choice really. We had a socialist with a competent VP candidate vs. a marxist with an incompetent boob senator as a VP candidate.
As a country, we chose the marxist.
America will once again become great... but it may take a real revolution to get there... at the ballot box or otherwise.
Great stuff, but I’d go further. Eliminate the Dept. of Education, as you suggested (it was nothing but a payback to the NEA by that idiot, Carter). Eliminate the EPA (need I even say why?). Eliminate HHS....it’s useless. Eliminate the IRS by enacting the Fair Tax (or an acceptable, consumption-based alternative). Eliminate the National Endowment for the Arts. De-fund PBS. Offer private alternatives to Social Security (Bush kinda sorta tried this, but didn’t have the stomach for the backlash; he was on the right track). Combine Medicaid and Medicare into a single, much more streamlined organization. Dramatically cut the FCC and the (useless) SEC. Enact term limits...and fast. Pursue a “Balanced Budget Amendment” to the Constitution that prohibits any but balanced budgets; no deficits EXCEPT to allow, if necessary, deficits specifically targeted toward military expenditures during times of war.
These will make for a decent start....but only a start.
I fear that the necessary change will come only after cataclysmic events in this country, as the Dems’ demagoguery will be used to ward off any meaningful cuts in government. With the huge number of freeloaders who are currently dependent on the teat of government handouts and a servile media bent on propping up an interloper, there will be no drastic changes without a major fight.
America’s decline most certainly was instituted from the top, and extended through the progressivist movement that infiltrated the schools many decades ago. When the left got control over the academy, which happened overtly and finally in the late 1960s, it dedicated itself 100% to diminishing and corrupting the whole idea of America.
But Americans nonetheless still overwhelmingly consider themselves conservative and do not like these statist policies. However, in practice, their resistance has been weakened and, more than anything else, they have been confused and made to feel that the socialist model is inevitable. Look at the candidates offered by the major political parties. What choice is there?
But then we have things like the Tea Parties and the grass roots conservative movements, so I don’t think you can say that America is dead yet among the ordinary people. But Obama wants to drive a stake through our heart and make sure that America is dead once and for all.
I dunno. McCain has very poor judgement, but I don’t think he’s a Socialist. Even so, he would have been much better than the Obama-child.
And as our economy sinks to the depths that make the people in Haiti seem prosperous, obama’s worshipers chant, “We praise you,obama, our messiah and savior.
The sheep go baa. Things are good, “American Idol” is back. And obama is thinking, What a bunch of fools. As he prepares their demise.
And that is exactly Obama’s agenda.
He wants to ruin this country.
Where is the GOP? Where is the tea party?
“Ill also add another essential ingredient: term limits.”
I fully agree - but how does this get passed with a Congress full of potential “career politicians”. Why on earth would they vote themselves out of their earthly heaven?
You are askng for honesty that they are not capable of mustering up.....because they know deep down inside term limits would fix many problems...but you see...they are just to comfortable in those deep leather seats.
Granted....and we automatically know that any and all Democrats would vote against such.
I think the only way for this to happen is for the GOP to loudly proclaim it as a key plank in their party platform. No running away from it; they have to commit. If they’re voted into the majority, Americans would then expect them to step up. We’re all sick of weasels; the citizens of this country finally seem fed up with lying, “say anything to get elected then do what I want” politicians.
Excuse me...that should have said “too comfortable”
Well, if we elect a Congress which will actually do its assigned tasks - one of which is to coin money, and regulate the value thereof - we can recover.
Hey have any of you see this video? It is shocking in ways, and I’m not sure how it will be viewed by the FReeper community - but it puts things in a perspective that still has my head bobbling.
I grew up hearing tidbits of this in the 60’s-70’s...and it was stuck in the recesses of my mind. Now, after this video - my entire viewing spectrum has changed and brought to surface many of the old indicators my Dad gave me many years ago.
So currently.....Obama is an enemy of the sovereign USA and I cannot stand anything about him, nor will you ever hear me call him “President”. He is an imposter to the most respected office in modern history. But this video may pursuade our thinking to consider Oboy is only a pawn among many pawns....including the Bushes and others. It does not thrill me to insult the Bushes - but this video proclaims there are a very select group of individuals who run it all...and I do mean all. They run oil, the war machine, the global finance schemes (the Fed), the stock meltdowns...etc.
You all have heard of PrisonPlanet.com and Infowars.com?
I am not associated with them in any way - it is just when I see so much focus on Zero as THE singular culprit - no - he is only a punk covering for the bad boy billionaire club who RUN THE WHOLE MESS. None of which excuses him - these ‘presidents’ all walk into the Office knowing full well they are a tool for fools with money.....fools like a turd named Soros. He is one of many in their secret world who view all of us as nothing more than slaves to their global controlled agendas.
I urge every one to view this video with eyes wide open. And my ignorance forces me to say that I hope I am not breaking FR protocol by adding a link here like this.
And no - I do not post alot here. I learn more by reading than ranting.
I believe Obama, Biden, Pelosi and Reid should all be ousted by shear physical force by the people of this country immediately. They are bent on bleeding us (and themselves eventually) to death and are too stupid to even know it. This will come back on them one day.
Bump for an absolutely correct statement, sir.
Don't want to hear about the tea party movement as a reversal of this trend either - not with all those handmade signs I saw at the town meetings demanding "Hands Off Medicare".
You are right. As I have been saying here since I signed up, America will never give up on the freebie state until J6P’s collective noses have been rubbed in its failure. Good and Hard.
I agree sir. We may have some rough times, but I think (and hope, and pray) that Americans will rise up this November and deal Obama a devastating political blow.
One of the differences is that, rightly or wrongly, people perceive themselves as having paid for Medicare and Social Security. The oldest recipients, obviously, did not pay anywhere near enough, and the youngest payees will never collect much of anything. But my point is that these were separate programs that people do not see as a pure government handout, regardless of the actual details.
“....To imply that the greatest, most powerful country in history has suffered an economic hit it might not ever recover from is in a word, unAmerican , to imply that the greatest, most powerful country in history has suffered an economic hit it might not ever recover from is to deny that what has made America so great, the very principles set forth by our founding fathers, the resilience of its people to carry on with relentless bravery in the face of adversity. I believe that despite the toll our burgeoning deficit may take, America’s best days are yet to come. God Bless America. “
there is no confidence in the dollar. The fed is monetizing debt. Once the credit contraction slows/ends, the endless dollar printing is going to begin to cause serious inflation, aside from the anticipatory currency moves we already see.
it may be unamerican, but it is very realistic, and is a story told over and over throughout history. Is there any old empire that reached the level of fiscal disaster the US is at and didn’t keep rolling downhill?
Your points are very well-taken and make for a very persuasive, effective argument, all of your points absolutely ironclad, in that there is no mistaking this deficit blowout as being one of America's greatest challenges.
You've taken to be downtrodden about how this is all going to end, in fatalistic manner, the futility of it all, the sky is falling, the sky is falling and there you are, your pitcher of Kool-Aid is all done except for the drinking.
Well, I'm sorry but that is just about the most unAmerican, (won't say cowardly) attitude there could possibly be. Imagine had any of our historical brethren taken such an approach there would not be American history for us to have made.
We've faced challenges where the very destiny of our nation stood on the precipice. In World War II, our navy was decimated, the European continent was a Nazi fortress, civilization as we had known it to be, freedom, democracy, the very fate of mankind stood in the balance. The problems, statistics every bit as factual, realistic as what you've taken to enumerate about our current crisis except maybe multiplied a few times over, war casualties, death does have a way of piling on the misery.
I don't think any time throughout the war effort was there any one who would have opted for surrender, at least not to put up a fight. There were times even after America had geared up its awesome war machine where things looked very bleak for the Allies, where pessimism was all that the War had come to meaN. But no one dared succumb to it.
That is the American way. Always was, will always be.
It does not sit well with me to even consider the NWO - makes me squirm in my seat. But it is exactly as you said it too - that too much falls into place. The puzzle pieces fit far too often if you know what to look for with eyes wide open.
I agree with all you said and appreciate the suggested reading.
And sadly, I can’t even talk about this with my wife! Should speak volumes to our relationship...but that is another story.
Have you seen the video I suggested? There is much to learn just out of that two hour video. It still blows me away. I am 48 and wish I had seen this 25 years ago. It changes everything.....thanks
This was the plan all along, as Charles Krauthammer underscored in a speech not too long ago.
Honestly, it will. We are in deep trouble. We don’t have a manufactoring base anymore, and are so in debt that not borrowing will lead to a massive collapse.
The USA is going the way of the British Empire.
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