The Discerning Texan

All that is necessary for evil to triumph, is for good men to do nothing.
-- Edmund Burke
Monday, May 25, 2009

Stating the Obvious: America is Broke... (But Why?)

Glenn Reynolds notes perhaps the biggest story of the weekend; not that our financial black hole is really news to the informed... but the fact that Obama openly admitted "we are out of money"--and this one month after his "emergency" bill effectively quadrupled our budget over the next 8 years, and to put the rest of us in the hole for at least $10 Trillion (that was Obama's conservative estimate) by then.

So how did that auto bailout go, Mr. President? How are Chrysler and GM doing after handing them all those billions of our tax dollars?

Glenn is not usually one for hyperbole, so when he sees it (emphasis mine), it is a good bet that one hell of a lot of independents are seeing things the same way:


In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: “We are out of money.”

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.

So we’re out of money because we don’t have national health care? Bogus. I think, instead, that it has something to do with the fact that Obama has been pouring money down a crony-statist rathole at absolutely astronomical and unprecedented rates. Yep, here’s that graphic again. Note that it doesn’t support Obama’s claim at all — but it does support mine.

“I’ve bankrupted the nation, so now your only hope is to pass my healthcare plan.” That goes beyond chutzpah to the edge of pathological dishonesty. Except, I guess, that it’s not pathological if you get away with it. And so far, he has.

UPDATE: Related: US bonds sale faces market resistance. “The US Treasury is facing an ordeal by fire this week as it tries to sell $100bn (£62bn) of bonds to a deeply skeptical market amid growing fears of a sovereign bond crisis in the Anglo-Saxon world. . . . The Obama administration needs to raise $2 trillion this year to cover the fiscal stimulus plan and the bank bail-outs. It has to fund $900bn by September.” And, in the Chrysler and GM cases, it’s already shown a deep disrespect for the rights of bondholders. That’s not likely to breed enthusiasm among investors.

DiscerningTexan, 5/25/2009 10:58:00 PM |