Responsible Spending: Government Spends; We’re Responsible

The Woodward Report ^ | April 23, 2010 | Jack Curtis

[honestabe010]

President Obama and his tame Congress (excluding Republicans who sit there but don’t inhale) are spending responsibly; that means: they spend and we’re responsible. The Republicans grabbed their fix under Bush; they can only envy what their successors are pulling off. Few seem concerned that the President and Congress (including Republicans) have presented no plan for U.S. debts; spending stays in the red; debts grow. Why not, they can always print more money, right? Wrong: paper money is worthless; only the wealth it stands for has value. When you print money without increasing real wealth, it just takes more paper to buy the wealth; the value of the money is diluted, just like watering your wine to serve more guests.

In the fiscal 2009 Obama budget, predicted federal receipts (usually optimistic) were: $2,105 B. Planned federal spending, (usually underestimated) came to: 3,518 B.

Therefore, the planned spending exceeds the receipts; the deficit is: $ 1,413 B. or (1.413 trillion).

Recent news has reality showing about a $1.3 trillion rate so far if you believe the White House, so the federal deficit may be $1.3 trillion instead of $1.4 trillion. Note because it’s important: all that red ink is borrowed or just printed and as the debt grows, lenders aren’t so happy to lend more. Better cut spending or pay it back and start over, right?

Uh, oh: an “oops!” here. Social Security, Medicare, Medicaid and the rest of the entitlements plus interest on the debt and TARP bailouts use up 65% of the planned spending; the cost of government itself is about 12% more and 23% is for defense. That’s 100%. What will politicians cut to pay that debt? Cut Social Security? Medicare? Cut out Iraq/Afghanistan and reduce the military

[libertarian27]

Great headline - it should be used often