An Economy Built to Crash
Geithner admits Obama’s budget ‘unsustainable’ for second year in row
President Obama described his fiscal year 2013 budget – the most expensive in United States history – as “a blueprint for an economy that is built to last.”
But even his own Treasury Secretary does not agree with that assessment.
For the second year in row, Timothy Geithner admitted before the Senate Budget Committee that President Obama’s budget takes no action to meaningfully reform entitlement programs, putting us on an “unsustainable” fiscal course.
“Even if Congress were to enact this budget,” Geithner said, “we would still be left with–in the outer decades as millions of Americans retire–what are still unsustainable commitments in Medicare and Medicaid.
In fact, Geithner said the same thing about the president’s budget last year.
“With the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it, we would still be left with a very large interest burden and unsustainable obligations over time,” Geithner said in 2011. “That’s why we’re having the debate.”
The Congressional Budget Office projects that federal spending on Medicare and Medicaid will comprise an increasingly large, and inherently unsustainable, share of the economy in the coming decades.
Obama goes Henry VIII on the Church
The church model the young American state wished to separate from was that of the British monarch, who remains to this day Supreme Governor of the Church of England. This convenient arrangement dates from the 1534 Act of Supremacy. The title of the law gives you the general upshot, but, just in case you’re a bit slow on the uptake, the text proclaims “the King’s Majesty justly and rightfully is and ought to be the supreme head of the Church of England.” That’s to say, the sovereign is “the only supreme head on earth of the Church” and he shall enjoy “all honors, dignities, pre-eminences, jurisdictions, privileges, authorities, immunities, profits and commodities to the said dignity,” not to mention His Majesty “shall have full power and authority from time to time to visit, repress, redress, record, order, correct, restrain and amend all such errors, heresies, abuses, offenses, contempts and enormities, whatsoever they be.” Welcome to Obamacare.
The Man Who Would Be King
We have one last chance to save the republic as we have known it
Just as the Rome of Caligula and Nero still called itself a republic so too in the coming era of Progressive centralization and control will our beloved country still be America. The Constitution will remain on display in Washington. However, in the world turned upside down liberty will be circumscribed by political correctness and freedom will be defined by government regulations. Our schools and media will assure us that we are the most free and prosperous nation on earth while other countries that have gained their freedom pass us by. History as it is taught in America today tries to tell us that socialism works. It doesn’t. It leads to a stunted, shabby future where everyone sinks to the level of the lowest common denominator. What we need is a rebirth of republicanism with a small “r” and a big dream.
Keep the faith. Keep the peace. We shall overcome.
Federal funds flow to clean-energy firms with Obama administration ties
Washington Post analysis found that $3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers…
This is raw criminality, plain and simple. People need to go to jail.
Obama's Misguided Birth Control Mandate
I don’t get it. I can walk into CVS right now and buy a pack of condoms or plan B no questions asked. When did contraception become an issue in the first place?
The stated purpose of health care reform was to address the problem of uninsured patients who either face bankruptcy due to exorbitant bills, or rely on the free emergency care hospitals must provide. But the Affordable Health Care Act (ACA) does far more than require Americans to be insured for catastrophic illness and other major medical expenses. To be approved under the ACA, an insurance policy must include extensive coverage for routine care.
In a sense, medical insurance is meant to mitigate life’s unfair and arbitrary tragedies: Some people are plagued by chronic illness or struck by a devastating health crisis, and need costly care to prevent death or disability. Fertility, however, is a normal part of life and a healthy function of the human body. Contraception is arguably an essential personal need for many, especially women; to call it an essential medical need is a stretch, except where pregnancy would pose a grave health risk.
I think it’s really greedy to say that everyone else owes you contraception. Where the heck did this idea come from?
“Don’t go around saying the world owes you a living. The world owes you nothing. It was here first.” — Mark Twain
The Interpipes Are Leaking of the Day: Seinfeld writer Alec Berg and Curb Your Enthusiasm executive producer David Mandel are reportedly in talks with Paramount to turn YouTuber Andrew “Klaatu42” Grantham’s popular talking dog video into a full-length feature film.
The viral video in question was YouTube’s second most-viewed of 2011 (right behind “Friday”), and features one of Grantham’s signature talking animals — in this case a dog named Clark — being “verbally tortured by an off-camera voice discussing how much he enjoyed eating meat and giving bacon to the cat.”
No word yet on how, when, or why.
The Spot-On Quote Of The Day…
…is awarded to Quin Hillyer for this succinctly correct observation about the actions of Julius Obamacus Nero Caesar on Friday last:
…Barack Obama doesn’t care one bit about religious freedom. His “compromise” on Friday on forcing religious organizations to participate in insurance that provides free contraception and abortifacients was cynical in the extreme (as many other people have noted) ― and, worse, it was an example of authoritarianism speeding up from a creep to a trot, on its way to a gallop.
As I watched Obama try to sell his ‘compromise’, it occurred to me that this bastard thinks, by pulling a cute [and obvious] trick like this, he could convince The Church to cynically go along with the sleight-of-hand because, in his mind The Church is nothing more than another power player like himself and his minions, that is it merely another political group seeking to enhance it’s power and control over the rabble. I suspect that the man-child believes that every institution has a price and the key is to find out what that price is. I also suspect that Obama believes he can win in a power struggle with The Catholic Church because he sees it as a decaying political power. This ignorant fool has no understanding of the fact that The Church, while playing on the political plain, also plays on a very different one.
Is Obama expecting economic crisis to last until 2018?
“Last month,” writes Conn Carroll in the Washington Examiner,
… the CBO’s Budget and Economic Outlook showed federal spending would total $44.251 trillion through 2022. Obama’s budget released yesterday shows $46.959 trillion in spending through 2022. That is a $2.7 trillion spending increase. For 2012 alone, Obama’s budget increases spending by $195 billion.
No wonder then, as Carroll reports, that
Senate Budget Committee Ranking Member Jeff Sessions, R-Ala., challenged Office of Management and Budget Deputy Director Jeffrey Zients to resign this morning, unless he could substantiate his claim that President Obama’s budget does not increase spending.
“Do you propose to spend more money over the next ten years than what the Budget Control Act and current law would cause us to spend?” Sessions asked.
Via Instapundit. So, the president plans to increase spending over the levels he and Congress agreed upon last summer.
Having studied the president’s budget proposal, Liz Peek finds, however, that the Democrat intends to extend our profligate ways far into the future:
Through certain spending cuts, some gimmickry (counting not spending on two wars as deficit reduction) and $1.5 trillion in tax hikes, the budget gap is projected to shrink to $575 billion in 2018, comfortably beyond the range of the country’s political telescope.
Via Instapundit. Guess that means Obama thinks we’ll still be going through this economic crisis six years hence. ($575 billion is greater than $455.)
(Source: GayPatriot )
Sebelius Admits ObamaCare Exchanges Aren’t Happening, Then Disqualifies Herself from Office
Politico Pro has published a short but remarkable article [$] stemming from an interview with HHS secretary Kathleen Sebelius. It offers a couple of illuminating items, and one very glaring one.
First, Sebelius undermines the White House’s claim that “28 States and the District of Columbia are on their way toward establishing their own Affordable Insurance Exchange” when she says:
We don’t know if we’re going to be running an exchange for 15 states, or 30 states…
Second, the article reports the Obama administration has reversed itself on whether it has enough money to create federal Exchanges in states that decline to create them. The administration has repeatedly claimed that the $1 billion ObamaCare appropriates would cover the federal government’s costs of implementing the law.
In other words, as I blogged yesterday, the Obama administration does not have the money it needs to create federal Exchanges. Therefore, if states don’t create them, ObamaCare grinds to a halt. (Oh, and this billion dollars is the last billion the administration will request. Honest.)
Most important, however, is this:
Even if Congress does not grant the president’s request for more health reform funding, Sebelius said her department will find a solution. “We are going to get it done, yes,” she said.
An HHS staffer prevented the reporter from asking Sebelius what she had in mind.
This is a remarkable statement. Sebelius basically just copped to a double-subversion of the Constitution: Congress appropriates money for X, but not Y. Sebelius says, “I know better than Congress. I’m going to take money away from X to fund Y.” Sebelius has already shown contempt for the First Amendment, first by threatening insurance carriers with bankruptcy for engaging in non-fraudulent speech, and again by crafting a contraceptives mandate that violates religious freedom. Now, she has decided the whole separation of powers thing is for little people. What will Sebelius do the next time something gets in the way of her implementing ObamaCare?
I don’t see why a federal official should remain in office after showing so much contempt for the Constitution she swore to uphold.
(Cato @ Liberty)
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This Time Next US Presidential Campaign: $24.1 Trillion In Debt, 138.9% Debt/GDP
While Obama may or may not be on the way to winning his reelection, courtesy of a GOP field that is, to say the least, limited, and where the only worthy candidate is more ostracized by the right than even anyone on the left, the bottom line is that whoever wins the presidency, it will matter precisely didley squat. As the US debt clock shows, fast forwarding 4 years, or to February 2016, when the next presidential race will be in its final stretch, America will have $24.1 trillion in debt, about $9 trillion more than it does, now on $17.4 trillion in GDP, for a gross debt to GDP ratio of 138.9% (and Apple’s $1 trillion market cap will account for 150% of the Nasdaq… just as IBM is 125% of the DJIA). Needless to say, it will be long past game over at that point confirming that the current presidential race, with its exciting tangential detours into female fertility, moon bases, LBO IRR maximization courtesy of cost-cutting, is completely and utterly meaningless. Also, keep in mind, “at current rates” for an endspiel that has now entered the exponential phase in virtually every category, is to say the least, optimistic. Yes, interest rates may be negative in 2016, but that means that the liquidity trap endgame has not only begun, but is well on its way to ending, and mercifully putting an end to this whole Keynesian “sustainability” charade. Remember: Japan’s debt-deflation lasted for 30 years only thanks to new pockets of incremental global leverage and inflation: China and the PIIGS. This time, absent the levering of the entire continent of Africa, there is no one who can take the releverage baton and run. Which means the only “buyers” will be the central banks. At least back in the day, Weimar just one nation. This time, it will be the “Weimar World.”
Submitted by Tyler Durden