August 2, 2011 2 Comments
The bogus debt ceiling deal has now come and gone. We’re adding nearly $3 trillion to the debt in exchange for almost zero in cuts. Most of the cuts don’t even begin until 2014, including the $1.2 trillion in military and medicare cuts. In other words, a future Congress can reverse the cuts with ease. This isn’t a Tea Party victory, it’s a Senate Democrat victory. Meanwhile on the ground consumer spending declined 0.2% in June while income increased only 0.1%. Couple that with two very weak quarters this year and one wonders if the double dip recession isn’t here.
The economy is going to get worse before it gets better. The debt ceiling deal is only going to make matters worse. By taking on more debt, we’re increasing the odds for inflation. Mind you inflation is already hitting us hard. Gas has doubled in the last two years and food prices are surging. Looking at the overall economy, manufacturing fell to its lowest in two years in July. The housing market continues to be a disaster.
The double dip is here and there is no where for Obama to hide. The economy is his. It is his policies that have created this mess. The Stimulus was a failure. Obamacare has added new taxes and created conditions for layoffs at many companies. Federal regulations are costing jobs. Now we have a debt ceiling increase, which will bring on a whole new wave of inflation. Default wasn’t averted with the debt ceiling deal. It was all but guaranteed.
The Tea Party didn’t win anything in this debt ceiling debate. Yes, they controlled the narrative and generally speaking the country supports the idea of cutting government. That may be good for the election next year but in terms of putting those ideas into the bill, it just didn’t happen. The cuts aren’t real but the debt is. The Senate Democrats won. They got zero cuts in exchange for a massive debt ceiling increase. What few cuts there are will be out of a military currently fighting three wars and Medicare payments to doctors. In other words, the cuts will destroy the military and create a healthcare crisis. This is a Tea Party victory?
The left is busy attacking the Tea Party, as though the Tea Party won the debate. The left knows better than this. Joe Biden knows the Tea Party isn’t full of terrorists who held the nation at gunpoint. Biden knows the Senate Democrats wiped the floor with John Boehner. True, Obama looks like a big loser in all of this because he didn’t get tax increases. But that doesn’t mean the Democrats didn’t win and it surely doesn’t mean the Tea Party won.
In the end, it is the people of this country that lost. We have a government that has every intention of spending $3 trillion that it doesn’t have. When Obama’s first term ends the nation will have nearly $17 trillion in debt. That’s an increase of nearly $6 trillion. Add on 2007-2008 when the Democrats controlled Congress and the national debt will have nearly doubled in just six years. The loser is the American people. Inflation will make the value of the money we earn decrease substantially. It is those of us on fixed incomes who will be hurt the most, the very people the Democrats claim to be fighting for.
The next election needs to be about the economy and Federal spending. This President has taken us down the path of unsustainable growth in Federal government and debt. It cannot continue without a default. We have an economy that is floundering. Manufacturing has dropped, consumer spending and confidence is down and incomes aren’t rising. Obama and the big spenders in Washington are killing the American people with debt. We must get these people, no matter their party, out of office.