Having Added Record $5.9T to Debt, Obama Claims He’s Cut Deficit $2.5T

Having Added Record $5.9T to Debt, Obama Claims He’s Cut Deficit $2.5T | CNS News

President Barack Obama and Vice-president Joe Biden

President Obama claimed Tuesday that since he has been president both political parties have worked together to reduce the federal deficit by $2.5 trillion, despite the fact that the national debt has increased $5.9 trillion during Obama's presidency, which is more than it increased from Presidents George Washington through Bill Clinton combined.  Federal spending and incredible deficits have increased sharply during Obama's tenure as president.  In fiscal year 2008, the year prior to him taking office, the federal government spent $2.9716 trillion.  In fiscal year 2012, the federal government spent $3.538 trillion. 

Anybody that believes that the president has cut the deficit $2.5 trillion during his four years in office is fooling themselves.  I don't believe Obama's claims that he reduced the deficit.  He's a professional liar just like all the other politicians in Washington, whether Democrat or Republican.  The truth is the federal government can't spend enough.  I believe it's part of the one world agenda to spend the United States into an oblivion. 

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Reducing the Federal Debt

(USA Today) I was reading an article on April 13, 2010 from USA Today about the soaring national debt. The article was inferring that erasing the United State's red ink won't be an easy or popular thing. Major cuts will have to take place in order to bring the national debt under control. President Obama created an eighteen-member, "bipartisan" commission to try to create ways to bring the national deficit under control. The chair and co-chair of the new committee are Erskine Bowles (White House Chief of Staff under Bill Clinton) and former Senator Alan Simpson (R-WYO). The current national debt as of to date is around $13 trillion dollars. Ten years ago the national debt was 3.4 trillion. The deficit has increased to another ten trillion under Presidents George W. Bush and Barack Obama. The deficit increased to another trillion already in President Obama's first year. There have been projections that if deficit spending continues in the same pattern as the beginning of the Obama administration, then the debt could reach nearly 20 trillion by the time he leaves office. Many Americans are growing increasingly anxious over the mounting debt. As a result, the Tea Party formed last year which is anti-tax and anti-big government. The Tea Party has become politically involved trying to promote candidates that will restore this country to the roots that our Founding Fathers had established.

Right now the United States is in the midst of a recession. The private sector has shrunk since the mortgage meltdown involving subprime loans for housing. The federal government has added jobs on its payroll but the private sector hasn't grown much. Our government is still spending money in spite of the contraction of the private sector. Last year Congress approved a stimulus bill to place our country's back on track. How much stimulus money was appropriated to help small businesses? If anybody needed stimulus money to help spur the economy, it was the private sector. The only way to grow the economy is through the private sector. When the private sector adds jobs to the economy, then there will be more tax receipts going to the government. That's what's needed. When the private sector is at a standstill, then there's no new revenue going to the federal government. One of the options that's on the table is to increase taxes which isn't good for a nation that's in a recession. What's needed is to reduce the tax rate on businesses so they will have more money to invest in creating jobs. If more jobs are created, then new tax revenue will result from that. However, the federal government is very unsupportive of business. The government is always out to soak the rich and drain everything they can from the American people.

Moody's Investors Service issued a warning in March that the nation's triple-A credit rating would come under pressure unless economic growth exceeded projections and tougher actions were taken to tackle the deficit. A reduced credit rating would cause creditors to demand higher interest rates, raising the cost of borrowing money. Under Obama's tax and spending proposals, annual deficits would push the public debt to 90% of the economy by 2020, a level unseen since the years after World War II. Unless the economy grows, then our triple-A credit rating will be in trouble. Our creditors aren't going to place any faith in us if we can't grow jobs in the private sector and we don't seriously tackle the deficit. We must. We don't have any choice. None of our Congressmen and Senators are serious about tackling the deficit. None! It's all a dog-and-pony show.

There are a number of ways to reduce the deficit. The problem is our elected elite have no desire to do so. Here are some items that can be eliminated from the national debt. First of all, all the pork barreling projects that our Congressmen and Senators push for in Congress should be eliminated. All earmarks need to be eliminated. We can't afford all these special programs given the shape of our economy. Secondly, there are many organizations that we fund that we should now de-fund. We shouldn't be supporting the National Endowment of the Arts, the ACLU, or any of these other organizations that ask for money. There's some presidential cabinets that I believe should be eliminated. I'm all for education, but how has the Department of Education benefitted America? Jimmy Carter created that cabinet as a payback to the Teacher's Unions. We need to emphasize education but the Department of Education is just a drain. We also should eliminate the Department of Commerce and even the Department of Homeland Security. I was supportive of the creation of the Department of Homeland Security back in 2002, but after seeing how politically inept it is, we should eliminate it. How are they making America safer? The Department of Homeland Security hasn't been much help in regards to the latest oil spill. Janet Napolitano doesn't want to define Islamic terrorism for what it is. It also won't aid in cracking down illegal aliens or securing America's borders. So what purpose is it to continue funding this cabinet when it won't fight terrorism or make our homeland safer?

We also need to eliminate a lot of the bureacracy in Washington, D.C. as well. The more bureacracy we eliminate, the simpler and less expensive it will be to operate the federal government. We also need to stop allowing the Federal Reserve to print our money. The U.S. needs to print it's own money. It would save interest if America would print it's own money. Abraham Lincoln printed interest-free money which was called Greenbacks and it saved America a lot of money fighting the Civil War. Our federal government also needs to say no to these lobbyists in Washington, D.C. that ask for favors. That would save money. There are a number of projects we can eliminate to save money. It's just our elected elite don't have the political will to do so.

There also needs to be changes to our entitlement programs such as Medicaid, Medicare, Social Security, etc. Healthcare costs are going to skyrocket as a result of the recently passed healthcare bill in March. There needs to be reform of the nation's healthcare system. There are ways we can reform healthcare without overhauling our nation's healthcare system. The first thing to do would be to eliminate fraud and waste in Medicare and Medicaid. Another idea is to set a cap on the dollar amount patients can sue doctors for medical malpractice. Tort reform would also help. Those things would make a huge difference in reducing the costs of healthcare. Concerning social security, our whole social security system was designed wrongly. The problem is, the money that's collected for social security is placed in a general fund where our politicians use it for spending purposes. There's not a lockbox for social security. Social Security is not even social security. Dave Ramsey calls it "social insecurity." There's no money accrued in a social security lockbox for our retirees. Instead, there's nothing but IOU's in which the government promises to pay back the money that's supposed to go into the social security fund. That's not going to happen. Those workers that are presently working are paying the benefits of today's retirees. That's not a deal. The number of workers in the U.S. is shrinking more all the time. How many workers will we have paying for the Social Security of the Baby Boomers in a few more years? It's scary. Instead of a government-backed social security system for retirees, there should be individual private accounts where those that work can donate a portion of income to that retirement account and it can accrue a percentage of interest for "x" number of years until retirement. Private IRA's is what American citizens need to rely upon instead of a government-backed social security which isn't social security. Anytime there's a government fund created where government officials can place their hands in it, they will do so and it will go bankrupt. We can't trust government to manage our social security.

Never before has our country been in a crucial position economically as today. We have no choice but to reduce spending dramatically. It can be done. There's a number of things that can automatically be eliminated. Our politicians don't desire to do so because they have it made in Washington. They can leave Washington rich. They have all sorts of benefits being a Senator or Congressmen. They'll vote to spend to perpetuate their power. It must stop. That's why we need to vote out the incumbents this November in droves. We have no choice. China, Japan, and some other countries have been purchasing our bad debt. The other thing we're doing is allowing the Federal Reserve to continue printing money which is making the U.S. dollar worthless. We can't afford this kind of spending trend. We're head over heels in debt to China. If China decides to default on funding our toxic debt, the U.S. will collapse in a short period of time. We must rein in the national debt before it's too late.

The Mushrooming National Deficit

The national debt of the United States is huge--$11.4 trillion and counting. I know some critics are totally opposed to the idea of conspiracy theories but I believe the federal government is on a mad dash to undermine our nation and destroy our currency. If not, then we have the most incompetent, the most stupid politicians that's ever existed in our country the past 233 years. I don't believe that's the case. They know what they're doing. They're throwing money away left and right. The common people aren't benefitting from that money. President Barack Obama's budget is supposed to be $3.6 trillion or something to that effect this year. President Obama wants to overhaul our nation's health care system and create nationalized health care, we're still bailing out troubled industries, and he desires to place a tax on the energy we use in the cap and trade bill. Where's all this money going to come from?

I can remember hearing the media scream about the runaway deficit during the presidency of Ronald Reagan. I believe the debt reached around $3 trillion at the end of his presidency. In 1982 he established the Grace Commission to examine all the waste and inefficiency in regards to how tax dollars were spent. The Congress didn't act upon the report. There was a lot of wasteful spending on the part of Congress during his presidency. He trimmed back a lot of domestic spending. There was some waste in the defense department in which they bought toilet seats for $600 and hammers for $400. There was a lot of wasteful pork barrel spending as well from Congress.

The national debt starting mushrooming the most recently under Obama's predecessor, George W. Bush. During most of his presidency both the House and Senate were controlled by Republicans. However, there were great increases in both domestic and defense spending. Bush was a huge spender in both of those areas. Entitlement spending grew as well. He even voted for a Medicare bill which allowed for prescription drug coverage. There were only a few times he vetoed any bills while president. He spent more than any president previous to him. President Obama is now George W. Bush on steroids and his spending is already surpassing Bush's spending.

A few years ago then Vice-President Dick Cheney cited a quote from Reagan and stated that deficits dont' matter much. However, you must take that into context. During Reagan's time, we had more manufacturing jobs as well as jobs that were better paying in general. Due to the signing of Free Trade Agreements such as NAFTA by Bill Clinton in 1994 and CAFTA by George W. Bush in 2005, we've lost quite a bit of our manufacturing base. We don't have the level of high-paying jobs that we once had. As a result, we don't have the tax base to collect the needed revenues to fund these programs. How can we fund Obama's socialist agenda when many Americans are out of work and we don't have as many high paying jobs like we once had? It's foolish.

With the growth of the deficit, the Federal Reserve is supplying cheap dollars to help pay for our goods and services. The result of that will be inflation. When we have more dollars chasing fewer goods, that leads to inflationary increases. The only reason America is not totally bankrupt yet is due to the willingness of the Federal Reserve to print cheap dollars as well as China still purchases our treasury bills to fund our debt. If China ever reneges on paying for our bad debt, it could cause our economy to go on a downward spiral.

What are some of the solutions? First of all, we need to abolish the Federal Reserve. The Constitution calls for Congress to coin our money. The Federal Reserve is an autonomous institution that's never been audited. Congressman Ron Paul (R-TX) is pushing through a bill to audit the Federal Reserve. I guarantee you Congress will sit on that bill. We also need to vote out all our elected officials that spend our tax dollars unwisely. We need to severely trim our budget to eliminate unnecessary spending. We need to eliminate all these massive layers of bureaucracy that are inefficient. We need to eliminate all these "czar" posts that our presidents in the last 30 years have created. We would probably save billions of dollars if we remove most of our government bureaucrats in our government that's not contributing to the vitality of this nation. We need to renegotiate some of our free trade deals which would help America regain some of its manufacturing base. We need to lower taxes on those families that pay taxes. We need to lower the tax rates for small businesses. If we the people don't demand accountability when it comes to government spending, our way of life that we've know for years will be gone.