Monday, January 14, 2013

Decoding Obamamath and Other Deficit BS

Obama never lets me down.

I can't bear to listen to him talk anymore. I passed on his speech today. I don't mind liars particularly- except when their lies impact my country and my pocketbook and insult my intelligence. I kind of think that's why Obama doesn't insult his base- I don't think they're smart enough to realize that he is lying to them.

So here's my rule for the Won. Believe the exact opposite of anything he says, especially if it is important.

Juliana Goldman gets it. Here is her question today to President Doublespeak.

  Julianna Goldman?
 
     QUESTION: Thank you, Mr. President. I just want to come back to the debt ceiling, because in the summer of 2011, you said that you wouldn't negotiate on the debt ceiling, and you did. Last year, you said that you wouldn't extend any of the Bush tax cuts for the wealthy, and you did. So as you say now that you're not going to negotiate on the debt ceiling this year, why should House Republicans take that seriously and think that if we get to the one minute to midnight scenario that you're not going to back down?

Full speech transcript here. http://www.zerohedge.com/news/2013-01-14/we-are-not-deadbeat-nation-full-obama-transcript

So today, El Presidente took credit for 2.4 trillion in spending cuts and new revenue. This is how Obama misleads with his bullshit. Let me show you how he got there. It took some investigation this afternoon.

The truth is, Obama doesn't even think we have a spending problem. He said so, not me. http://reason.com/blog/2013/01/07/barack-obama-we-dont-have-a-spending-pro

In 2011, funding for the military and a few other discretionary programs was reduced by 140 billion a year. That was already law. Obama was not the architect of those spending reductions- he simply signed those bills. He happily takes credit for them like they were his idea. The new Tea Party house members managed to get those cuts as part of the debt ceiling talks. But since President Doublespeak had to sign them into law- now he takes credit for them. Those cuts reduced our yearly 1.5 trillion deficit to about 1.36 trillion per year.

So there was some pissing in the ocean.

Obama claimed today that his new tax package on the rich will raise 600 billion dollars- again please  remember this is spread out over ten years. Sixty billion a year will only reduce our yearly deficit to 1.3 trillion.

Then there is the interest on the debt. Interest is a moving target. Obama claims 400 billion in saved interest over 10 years. Or 40 billion a year. That leaves us with a 1.26 trillion dollar annual deficit.

More pissing in the ocean. And I haven't got to the best part.

No future Congress is bound to adhere to any of this. Remember the people who make the laws can ignore and rescind prior laws and simply make new law whenever it's convenient.

Think super committee BS. How long did it take them to set aside that law- those "automatic cuts" scheduled to take effect on the first of Jan? Now you are getting this...

I also think Obama's "revenue" is best case. In other words, I don't think the 400k plus wage earners in this country are going to just sit idly about and let the government fleece them. Most of them are small companies. That 600 billion will probably look a helluva lot more like 500 billion after it gets off shored, re-invested, or depreciated. People are strange that way. They don't like getting ripped off. Same with the interest expense. I think 10 year treasury bond interest at 1.6 to 2.0% gets refinanced into shorter maturities. How long can the FED manipulate these low rates? Look at Japan. They've done it for 25 years. So I am thinking short of a collapse, we save 300 billion in interest rather than 400 billion.

Obama spins everything rosy to make himself look grandiose. He stated in the speech today that he wants 4 trillion in cuts- therefore he is only looking for another 1.6 trillion or 160 billion a year spread over ten years on top of his "other achievements."

The truth is, we still have a 1.25 trillion dollar deficit even after all of this. If Congress manages to cut another 1.6 trillion over ten years- or 160 billion a year- guess what?

We will still be running 1.1 trillion dollar a year deficits until we get somebody that actually comprehends the basic math taught in most universities. In the meantime, the interest meter runs and nobody is paying down any principal.

Obama never lets me down.






2 comments:

Marcus said...

Obama is such an accomplished bullshit artist that half the lies he tells ain't even true. He's that good.

conservativesonfire said...

China is already buy oil from Russia in yuans, which Russia uses to but consummer goods from China. China is doing similar agreements for oil and other resources every day in India, Afric, and South America. The dollar is being replaced. I heard a commentor the other day claim that as soon as China has gold reserves of 4,000 to 5,000 tonnes, they plan to back the yuan with gold. Should that happen, it is GAME OVER!