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O’Blather & the Debt Ceiling

04 Feb

Obama

When I first read the speech below, I thought it was a joke. How could a serious politician say this and yet once in power 5 years later have the exact opposite view? But this is politics.  We have come to expect politicians to say anything they feel in in their short-term interests and/or based on party dogma – opposing anything the opposition does as a matter of course, no matter how appropriate it might be.

Take Francois Hollande: BEFORE the presidential election in 2012 he castigated Sarkozy for imüosing “austerity”, yet the day after his election he continued with exactly the same policy, only MORE so, with over 70 new or increased taxes.

As it happens, I think Obama was right in 2006 and utterly, moronically wrong ever since his election to the Presidency, but the sheer contrast between then and now makes it – for me – imperative that we do not forget this 2006 speech, which I copy below. I can’t see any way out of the shambles this current generation of politicians has got us into until we get better leadership. Look at what we have!

Obama, Cameron, Hollande, Putin – and several others, not all as bad no doubt, but that is enough to be going on with. How can one tke any of them seriously, or indeed have any hope for long-term solutions?

March 16, 2006 CONGRESSIONAL RECORD—SENATE S2237-2238:

“Mr. President, I rise today to talk about America’s debt problem. The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Over the past 5 years, our federal debt has increased by $3.5 trillion to
$8.6 trillion. That is ‘‘trillion’’ with a ‘‘T.’’ That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.

Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.

And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.

Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities. Instead, interest payments are a significant tax on all Americans—a debt tax that Washington doesn’t want to talk about. If Washington were serious about honest tax relief in this country, we would see an effort to reduce our national debt by returning to responsible fiscal policies.

But we are not doing that. Despite repeated efforts by Senators CONRAD and FEINGOLD, the Senate continues to reject a return to the commonsense Pay-go rules that used to apply. Previously, Pay-go rules applied both to increases in mandatory spending and
to tax cuts. The Senate had to abide by the commonsense budgeting principle of balancing expenses and revenues. Unfortunately, the principle was abandoned, and now the demands of budget discipline apply only to spending.

As a result, tax breaks have not been paid for by reductions in Federal spending, and thus the only way to pay for them has been to increase our deficit to historically high levels and borrow more and more money. Now we have to pay for those tax breaks plus
the cost of borrowing for them. Instead of reducing the deficit, as some people claimed, the fiscal policies of this administration and its allies in Congress will add more than $600 million in debt for each of the next 5 years.

That is why I will once again cosponsor the Pay-go amendment and continue to hope that my colleagues will return to a smart rule that has worked in the past and can work again.

Our debt also matters internationally. My friend, the ranking member of the Senate Budget Committee, likes to remind us that it took 42 Presidents 224 years to run up only $1 trillion of foreign-held debt. This administration did more than that in just 5 years. Now, there is nothing wrong with borrowing from foreign countries. But we must remember that the more we depend on foreign nations to lend us money, the more our economic security is tied to the whims of foreign leaders whose interests might not be aligned with ours.

Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘‘the buck stops here.’’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

I therefore intend to oppose the effort to increase America’s debt limit.”

In April 2011, Obama said this about his 2006 speech:

“I think that it’s important to understand the vantage point of a senator versus the vantage point of a president. When you’re a senator, traditionally what’s happened is, this is always a lousy vote. Nobody likes to be tagged as having increased the debt limit — for the United States by a trillion dollars. As president, you start realizing, you know what, we, we can’t play around with this stuff. This is the full faith and credit of the United States. And so that was just an example of a new senator making what is a political vote as opposed to doing what was important for the country. And I’m the first one to acknowledge it.”

Yes, Mr President, but the people elect politicians to speak the TRUTH, irrespective of whatever “vantage point” they have. Otherwise we think you’ll say anything that seems to you expedient for your own personal advantage at the time.

Read more at http://www.snopes.com/politics/obama/debtlimit.asp

SOME SOBERING FACTS:

HAVE A GOOD DAY …...

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Posted by on February 4, 2014 in Business & the Economy, Politics, USA

 

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