The budget cut hysteria has started to wind down a little, but expect Obama and his team to blame every bad thing that happens between now and the end of his term on the GOP for “holding America hostage” with the sequester cuts. If nothing bad happens, he’ll manufacture something.
I heard Ron Paul the other day on CNBC say that the budget has steadily increased by 7% per year, but this year, it’s going to be increased by 6.9% with the sequester. The proposed increase in spending for the next ten years is $2.5 trillion. If the sequester goes through, there will be an increase of $2.4 trillion instead. That’s how you cut spending the Washington D.C. way.
Meanwhile, as Paul pointed out, the Fed keeps on creating and spending $85 billion a month on mortgage-backed securities in their failed attempt to get unemployment down. So there’s absolutely no danger of the government running out of money. At least from their perspective. This has all been agitprop from the Obama administration to convince everybody that we need to raise taxes.
But why do we need to raise taxes when the Fed is there to create money out of thin air? They print like there’s no tomorrow. And the government can borrow however much it wants from foreign countries. Thanks to that mentality, we have over $16 trillion in national debt.
CNS News just reported that during Obama’s time as president, he’s added over $6 trillion to the national debt:
“At the close of business on Jan. 20, 2009, the day Obama was first inaugurated, the debt of the federal government was $10,626,877,048,913.08. At the close of business on Thursday, Feb. 28, the debt of the federal government hit $16,687,289,180,215.37. That means that so far during Obama’s presidency, the total debt of the federal government has increased by $6,060,412,131,302.29.”
To give you an idea of how fast the debt has increased under Obama, it didn’t hit $6.06 trillion until George W. Bush’s first term in 2003. So, it’s increased more under Obama’s presidency than from George Washington to Bill Clinton combined. And this $6 trillion divided by the 115 million households in America comes up to over $52,000 for every household.
So it’s not that Obama’s afraid that we’ll run out of money if this sequester is implemented. He just wants to raise taxes. That’s the “shared sacrifice” that he’s willing to make in order to further his socialistic agenda.