Free Markets, Free People
Twenty years ago, the Berlin Wall, erected by the totalitarian DDR to keep it’s citizens in, fell. Not long after that, like dominoes, the totalitarian communist regimes of the East, to include the USSR, fell as well. Watch the video and remember what freedom really looks like:
And where is American leadership at the celebration of this world changing event largely brought on by the perseverance and commitment of the US?
Nowhere to be seen.
You’d think this was a moment at least worthy of the VP (isn’t that what VP’s are for?).
Oh, wait, he’s in Detroit – a city with 17% unemployment – at a political fundraiser. Much more important.
National Review Online does a little review of the run up to the announcement by President Obama at the G20 summit concerning Iran and wonders what is going on. For instance, NRO points to Joe Biden 8 days ago. This was in answer to why the US was pulling its missile defense shield from Poland and the Czech Republic:
“[Biden said] Iran — a key concern for the United States — was not a threat.
“I think we are fully capable and secure dealing with any present or future potential Iranian threat,” he told CNN’s Chris Lawrence in Baghdad, where he is on a brief trip.
“The whole purpose of this exercise we are undertaking is to diminish the prospect of the Iranians destabilizing that region in the world. I am less concerned — much less concerned — about the Iranian potential. They have no potential at this moment, they have no capacity to launch a missile at the United States of America,” he said.
So 8 days ago, Iran was a diminished threat that was much less of a concern than previously.
President Obama and the leaders of France and Britain blasted Iran’s construction of a previously unacknowledged uranium enrichment facility and demanded Friday that Tehran immediately fulfill its obligations under international law or risk the imposition of harsh new sanctions.
The new Iranian plant, the country’s second uranium enrichment facility, is believed by U.S. officials to be part of a broad effort by Iran’s leadership to pursue the ability to build nuclear weapons. Iran has repeatedly denied having any such goal, insisting that its nuclear program is aimed at generating electricity. U.S. officials said they believe the Qom plant is not yet operational but is intended to produce highly enriched uranium — suitable for nuclear weapons — and will be capable within months of producing enough material for at least one bomb per year.
Boy, the Obama administration must have just been profoundly misguided and dangerously misinformed about Iran’s capabilities and intentions. Right?
Right – because, as pointed out 8 days ago, the reason the missile defense shield was pulled, per the VP of the US, was because the US considered Iran a much diminished threat. So obviously this is “new” information which has profoundly changed the game and required the US to completely rethink its policy since it has emerged.
@markknoller US officials say Obama first told of Iran secret nuclear plant during the transition — as President-elect. 9/25 10:28 A.M.
WTF? Mark Knoller of CBS says this was something the administration has known for almost a year? So what was all this nonsense about a diminished Iranian threat as a reason to pull the promised missile shield that the administration had promised the Poles and Czechs a mere 6 months before?
Astonishingly incompetent, perilously naive, or deliberately dishonest? Which is it?
I’d suggest all three. And I think that will become alarmingly apparent as this crisis continues to unfold.
I’ll also toss this out there as well – it was saved for a forum in which the President would have the attention of the world focus on him (a much tighter focus than the UN) and staged to maximize that. All politics all the time. He wanted the non-binding non-proliferation resolution from the security council before he took on Iran. Meanwhile Joe Biden’s (and the DoD’s) credibility is left twisting in the wind.
So now the staging has been accomplished and the spotlight turned on the President. That’s the easy part. The usual talking the talk, something at which he’s quite good. Now comes the hard part – walking the walk – something he’s yet to demonstrate he’s capable of doing.
Oh – and where in the world is Hillary Clinton?
I‘m not sure how often everyone has to be told, but here’s the warning again, just as Democrats attempt to pile another trillion plus dollars in federal health care spending (and debt). From the CBO Director’s blog:
Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy.
I’m not sure how it can be said any more clearly and more succinctly.
The choices, as laid out in the paragraph above are fairly simple – cut federal spending dramatically or raise taxes (revenues) dramatically to meet the spending or your going to do “substantial harm to the economy”. Of course we also know that raising taxes dramatically would have the same effect. That leaves one option and, as is clear with the health care reform proposals, that’s nowhere near the table, is it?
Yet that’s the formula:
Keeping deficits and debt from reaching these levels would require increasing revenues significantly as a share of GDP, decreasing projected spending sharply, or some combination of the two.
CBO offers the following graph to illustrate the point of letting the status quo remain in place. Note that the second line coming off the actual/projected line – that’s the “extended baseline scenario” where absolutely nothing is changed and the budget, as projected, is executed. Disregard the first line for the moment.
What is important is to understand this:
The current recession and policy responses have little effect on long-term projections of noninterest spending and revenues. But CBO estimates that in fiscal years 2009 and 2010, the federal government will record its largest budget deficits as a share of GDP since shortly after World War II. As a result of those deficits, federal debt held by the public will soar from 41 percent of GDP at the end of fiscal year 2008 to 60 percent at the end of fiscal year 2010. This higher debt results in permanently higher spending to pay interest on that debt. Federal interest payments already amount to more than 1 percent of GDP; unless current law changes, that share would rise to 2.5 percent by 2020.
Now you’ve heard that, in various forms for years. But what does that mean to you personally – how does one put that in terms that mean anything to a taxpayer?
Well Jim Glass at scrivner.net has done that for us:
The national debt incurs interest that is paid with taxes. The interest rate on US debt is projected be about 6% annually in the long run, according to the Social Security Administration’s actuaries and other such governmental budget projectors. Six percent of one trillion dollars is $60 billion.
There are 80 million payers of income tax in the US. (If that seems low for a population of 300 million remember that 47% of all “tax units”, 70 million potential taxpayers, pay no income tax or receive refundable tax credits from the government.)
Now $60 billion divided by 80 million taxpayers equals $750 per taxpayer — so each trillion dollars of the national debt costs the average taxpayer $750 per year, every year that the debt is carried, forever.
So for every trillion in debt the federal government puts us, we owe $750 per tax payer in interest alone.
Jim extends his example to what the chart above depicts:
As of the end of last year the government’s outstanding explicit and implicit debt was $64 trillion. Add another year’s interest on that, plus this year’s $1.8 trillion deficit, and we will be well over $66 trillion at the end of this year. Which creates an explicit and implict annual interest liability to just carry the debt of more than $49,000 per taxpayer.
Yet we have Joe Biden claiming we have to spend money to avoid bankruptcy – and there are people out there who believe him. As Jim points out:
As of today most of that is implicit (for unfunded Medicare liabilities, etc.) but every year from now on (as more seniors retire and start collecting Medicare, etc) more of the debt will shift from being implicit to explicit, requiring cash tax collections to pay for it.
And the same entity which has put the country in this shape running a health care system, now wants the rest of it with the stated goal of cutting costs.
If you’re gullible enough, given the facts above, to fall for that, I have to question your critical thinking abilities. In fact, you might want to consider the chart above again and pay attention to the top line coming off the actual/projected line – that’s likely what our debt will look like if you hand over health care to the federal government.
It is very close to fish or cut bait time for the people of the US – we have got to realize, very quickly, that in fact, we are on the verge of bankruptcy and what that buffoon Biden says is just abject, unthinking nonsense.
Either cut government spending – drastically – or go under. Those are your choices.
If we didn’t have Joe Biden, we’d have to invent him. Here’s Joe talking about the Obama administration’s health care plan:
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that’s what I’m telling you.”
In light of the CBO’s latest testimony on the Democratic health care proposals, this does indeed become a bit of the “we had to destroy the village to save the village” type rationale, doesn’t it?
For once, Joe Biden was right – he prophesied that within 6 months of taking office Barack Obama would be tested on the world stage.
Well, we’re a bit early, but thus for his performance has been underwhelming as it pertains to Iran. Even Biden and Hillary Clinton want to see a stronger response.
Instead we got silence, then a mealy-mouthed response and recently a bit stronger but still using language that vaguely supports the Iranian regime.
Today the House and Senate passed resolutions concerning Iran.
The Senate version “”condemns the ongoing violence against demonstrators by the Government of Iran and pro-government militias, as well as the ongoing government suppression of independent electronic communication through interference with the Internet and cellphones.”
It seems the House version now sounds like the Senate version, because apparently the White House was not pleased with the original version of the House resolution (it was too strongly worded for their taste), and helped the House “tone down” the resolution. Robert Gibbs then said the resolutions were consistent with the administration.
“We made it clear that we didn’t want to make the U.S. a foil in a debate that has nothing to do with us,” a senior administration told me this morning. “This is a debate among Iranians.”
The dangerous naivete? The belief that a totalitarian regime that has made the US their “foil” for 30 years wouldn’t do it at the drop of a hat when there was trouble?
And guess what? They have.
So the US has silenced itself based on the false presumption that Iran would only blame them for meddling if we said something.
Naive. Dangerous. And a sure way to loose any moral leverage in any future negotiations should the regime survive tomorrow.
How does one pound on CEOs and their perks when the same person (who has just run up record deficits and signed a 410 billion pork bill) indulges himself in this sort of waste of the taxpayer’s money?
When you’re the president of the United States, only the best pizza will do – even if that means flying a chef 860 miles.
Chris Sommers, 33, jetted into Washington from St Louis, Missouri, on Thursday with a suitcase of dough, cheese and pans to to prepare food for the Obamas and their staff.
He had apparently been handpicked after the President had tasted his pizzas on the campaign trail last autumn.
I assume Fightin’ Joe Biden will be calling him out on this. And Al Gore will be lamenting the pizza with the huge carbon foot print.
This is what I mean when I smack this guy around for lack of leadership. This is a classic case study of how not to lead. He still doesn’t seem to realize that a real leader leads by example, not by decree.
I‘ve pretty much avoided mention of the bowing incident – it’s a distraction from the more serious things going on. But then the White House says we shouldn’t believe what we saw and throws out a couple of the most ridiculous reasons for what the President did that I’ve heard (an “unnamed” White House source claims it was either an adjustment for a short king or he lost a contact – take your pick). My question? Why is the White House bringing this back up? It makes no sense.
Then there’s Joe Biden’s claim of lecturing George Bush. When will this guy figure out that such claims can be checked? There’s not a moment of a president’s tenure that isn’t recorded by someone. Yet Biden seems to think, for he can make stuff up to retroactively bolster his arguments and make himself seem both wise and prescient.
He’s neither. He’s a blowhard who’s rise to the position he’s in was based mostly on his perceived ability to cover a glaring weakness in foreign policy experience from which Barack Obama suffered. But he was not a guy who anyone in the previous administration sought out for advice or council on much of anything.
However both of these incidents are troubling. The first indicates an innate defensiveness within the White House. This is something that should have simply been ignored. It would bang around on the right side of the political sphere for a while and then fade. But to claim something which you can clearly see for yourself is not what you see is foolish. It erodes credibility. “Don’t believe your lying eyes, believe what we say”.
As for Biden, as Karl Rove said, he’s a serial exaggerator – which is a nice way of saying he’s telling a whopper. Biden has a tendency to make up anecdotes which make him sound good and the other guy look bad. It’s sort of like when you have a “I wish I’d have said that” moment. You didn’t say it, but had you said it, it would have been perfect for the moment. Biden tries to make those moments real and claim them for himself. Again, it’s a credibility problem. You can’t believe a thing the man says.
For such a media savvy bunch you’d think the White House would know to leave a story such as the bowing incident alone. And you’d think, by now, that Joe Biden would have realized that what he could skate by on as a Senator won’t be overlooked now that he’s the VP – that and the fact that he should know his claim of lecturing a president is fairly easily checked.
President Obama and VP Biden are going to be watching you:
Obama and Biden both gave stern warnings yesterday about misuse of stimulus funds. “If we see money being misspent, we’re going to put a stop to it,” Obama told a gathering of state officials at the White House. How? Obama says “we will call it out and we will publicize it.” Biden, meanwhile, scolded: “If we don’t get this right, folks, this is the end of the opportunity to convince Congress that anything should go to the states.”
Of course, these were words spoken to representatives of states getting “stimulus” money.
Lost in the shuffle is the fact that there is no one to shout “BS” to the whole scheme and declare it all “misspent” money. A $787 billion dollar social spending scheme isn’t money “misspent?” Hah!
But other than that, I think Earl Devaney provides us with the ground truth about this upcoming spending debacle:
The chief watchdog for spending from the $787 billion stimulus package says it’s guaranteed there will be waste and fraud.
Earl Devaney, tapped by President Obama to track the giant spending plan, also said it will be at least a year before the government gets recovery.gov, the Web site the administration has touted as a key part of its transparency, up and running properly.
“I’m afraid that there may be a naive impression that given the amount of transparency and accountability called for by this act, no or little fraud will occur.
A “naive impression?”
Heh … nah, you don’t say?
The word “naive” seems to describe a lot of what is going on right now with the Obama administration.
Perhaps you’ve heard about Joe Biden’s latest gaffe regarding his task of overseeing the Recovery Act:
How can the public know that the money is allocated correctly? That’s the question CBS’s Maggie Rodriguez asked.
“We’re going to put every bit of this transparently up on a website. You’re gonna know. You’ll be able to go on a website. Every single bit of this will be on a website,” he explained.
“You know, I’m embarrassed. Do you know the website number?” he asked looking offstage. “I should have it in front of me and I don’t. I’m actually embarrassed.”
He was able to get the website “number” from someone off camera.
“Recovery.gov. It’s Recovery.gov. It’s up and running,” he said with newfound confidence.
If that doesn’t inspire confidence, then maybe you should just go visit the “number” VP Joe suggested. Before you do, however, keep in mind that, from far to wide and low to high, the Obama administration has been touting not just the need for transparency,
Orzag said the two goals are to spend stimulus money “quickly” and “wisely,” adding, “We have to go beyond normal procedures to a higher level of transparency.”
But also on the determination and ability of the administration to deliver it:
“I [Pres. Obama] am also proud to announce the appointment of Earl Devaney as Chair of the Recovery Act Transparency and Accountability Board. For nearly a decade as Inspector General at the Interior Department, Earl has doggedly pursued waste, fraud and mismanagement, and Joe and I can’t think of a more tenacious and efficient guardian of the hard-earned tax dollars the American people have entrusted us to wisely invest.”
Apparently, the whole point of Recovery.gov is to show where your tax dollars are going, and what they are being spent on. So let’s have a gander.
On the front page, my eyes were immediately drawn to the large graph dominating the left side of the page:
Wow! According to that chart, the largest expenditure by far ($288 Billion) is going to tax relief. Heck it’s twice as much as the next category of State and Local Fiscal Relief which is only get a paltry $144 Billion. That’s fantastic news. I feel so bad now for thinking that the bill was nothing more than a huge wealth transfer and goodies giveaway. Tax relief is always a good idea when it comes to pulling ourselves out of a recession.
But wait? What’s that asterisk? I click on the chart and am taken to a lovely bubble graph that displays the same information. But with more bubbles, which are always nice. And bubble are transparent too, right?
Yep. There it is again, that $288 Billion in tax relief, dwarfing all the puny spending bubbles. Of course, being an intelligent person, I know that you have to add all of the spending bubbles together to see how they compare to the tax relief, but it’s strangely comforting to see that giant, transparent bubble named Tax Relief making all the other bubbles seem, somehow, insignificant.
Unfortunately, that asterisk is still there as well. I follow it down to the bottom of the page where, in tiny print, I see these words:
* Tax Relief – includes $15 B for Infrastructure and Science, $61 B for Protecting the Vulnerable, $25 B for Education and Training and $22 B for Energy, so total funds are $126 B for Infrastructure and Science, $142 B for Protecting the Vulnerable, $78 B for Education and Training, and $65 B for Energy.
I think my bubble has burst. But that’s how government works now I guess: making bubbles bigger than they ought to be.