Zero Says We Don’t Have A Spending Problem And He’s Tired Of Hearing That We Do!!

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Wow.  Maybe Zero is that stupid. 

The WSJ is reporting from an interview with House Speaker John Boehner that president Obama told him we don’t have a spending problem.

What stunned House Speaker John Boehner more than anything else during his prolonged closed-door budget negotiations with Barack Obama was this revelation: “At one point several weeks ago,” Mr. Boehner says, “the president said to me, ‘We don’t have a spending problem.’

The president’s insistence that Washington doesn’t have a spending problem, Mr. Boehner says, is predicated on the belief that massive federal deficits stem from what Mr. Obama called “a health-care problem.” Mr. Boehner says that after he recovered from his astonishment—”They blame all of the fiscal woes on our health-care system”—he replied: “Clearly we have a health-care problem, which is about to get worse with ObamaCare. But, Mr. President, we have a very serious spending problem.” He repeated this message so often, he says, that toward the end of the negotiations, the president became irritated and said: “I’m getting tired of hearing you say that.”

There’s about 15 ways from Sunday to demonstrate our spending addiction and our lack of fiscal responsibility.  I’ll just show a few.  Here it in plain dollar terms.

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Not bad, we’ve only increased spending by about 250% over the last 20 years.  Next, we see this is just about the same in terms of per person, again over a 200% increase. 

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To give you a sense of about how bad this is, let’s look at our spending as a percentage of our GDP.

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Okay, while I don’t agree with the Keynesian approach, I understand that in stimulus packages we would see a temporary jump and then it should go back down.  Still waiting for it to go back down……. 

The current rate of spending per GDP is unsustainable.  This will cause our debt, in a very short time, reach critical mass.  Our debt to GDP…..

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We are right at 105% of our GDP, this year it will grow to about 108% -109%.  If some other economies start to pick up, and they will eventually, and our ratings continue to go down, and they will, then interest on our debt will beyond our ability to pay and balancing our budget will be an impossibility.  Our current debt is $16.35 trillion.  Even at 3% interest, it would consume nearly 20% of our current budget, if we balanced the budget today.  On our current trajectory, at 5%, in just a few short years ~ 5, it will be over a $trillion /yr. 

Zero is tired of hearing this?  By the time this person leaves office, he will have created a crisis that makes a recession look like a walk in the park.  The noise about our spending and debt will only get louder.  Already reality has us staring down the wrong end of a gun barrel.  By 2016, Zero will have pulled the trigger. 

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10 Responses to Zero Says We Don’t Have A Spending Problem And He’s Tired Of Hearing That We Do!!

  1. gator69 says:

    Alcoholics don’t like hearing that they drink too much either. Denial is not just a river in Egypt. ;)

    • suyts says:

      No doubt. Although, I’d place it more in the heroin addiction category.

    • leftinbrooklyn says:

      And some alcoholics don’t care that they’re alcoholics. The whole idea is to build up a big bar tab, and run out on the bill, leaving the bar hanging. Or shorter: Stealing.

    • suyts says:

      Holy crap, Geithner on steroids!!

    • gator69 says:

      “Krugman, in a November 2004 interview, criticized the “enormous” Bush deficit. “We have a world-class budget deficit,” he said, “not just as in absolute terms, of course — it’s the biggest budget deficit in the history of the world — but it’s a budget deficit that, as a share of GDP, is right up there.”

      The numbers? The deficit in fiscal year 2004 — $413 billion, 3.5 percent of the gross domestic product….

      Fast-forward to 2010.

      The numbers: projected deficit for fiscal year 2010 — over $1.5 trillion, more than 10 percent of GDP.

      This sets a post-WWII record in both absolute numbers and as a percentage of GDP. And if the Obama administration’s optimistic projections of the economic growth fall short, things will get much worse. So what does Krugman say now?

      We must guard against “deficit hysteria.” In “Fiscal Scare Tactics,” his recent column, Krugman writes: “These days it’s hard to pick up a newspaper or turn on a news program without encountering stern warnings about the federal budget deficit. The deficit threatens economic recovery, we’re told; it puts American economic stability at risk; it will undermine our influence in the world. These claims generally aren’t stated as opinions, as views held by some analysts but disputed by others. Instead, they’re reported as if they were facts, plain and simple.”

      He continues, “And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction.” Krugman believes Bush lied us into the Iraq War. Just as people unreasonably feared Saddam Hussein, they now have an unwarranted fear of today’s deficit.”

      http://townhall.com/columnists/larryelder/2010/02/11/krugman_bushs_deficit_bad,_obamas_deficit_good/page/full/

      So which Krugman do they recommend for the job? ;)

  2. philjourdan says:

    Very revealing. You cannot fix stupid. Before I just thought it was Obama’s inability to compromise in the least. Now I see it is not that. It is his total detachment from reality.

    • suyts says:

      Yeh, he’s tired of hearing we have a spending problem…. I don’t know who’s whispering in his ear about these things and others, but Barry’s surrounded himself other complete morons as well.

  3. cdquarles says:

    Barry? We don’t have a spending problem? Yes, Barry, we do. I’ll show you how. What would the ‘deficit’ be if for FY 2013 we were spending at the 2008 baseline? Somewhere around $300/400 billion (which roughly what the ‘profligate’ Bush 43′s numbers were over his eight years) vs the $1 trillion + you’ve done since taking office FY 2009. No, what you’ve done, with the help of Pelosi and Reid, is make the baseline $1 trillion higher than it would be if your ‘stimulus’ spending had been taken out of of the baseline. After all, didn’t you tell us that it was a one time deal? What’s that, you didn’t tell us that. Oh OK. Not

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