Sunday, July 24, 2011

It Is All About The 2012 Election Stupid

Socialist President Obama is insisting on a "long term solution" to raising the National Debt Ceiling, which Obama defines at 2013 just passed the 2012 election.   This timeframe has nothing to do with actually paying off the current $14.3 trillion National Debt, or with with dealing with $50 trillion in unfunded liabilities for Social Security, Medicare and federal pensions that are all bankrupt.   Nor is Obama concerned about dealing with Medicaid that is bankrupting the states, or ObamaCare that will bankrupt the nation.

All Obama wants is to raise the Debt Ceiling by at least $2.5 trillion so he can keep on borrowing trillions of dollars to pay off his PEEP's to buy votes; those who pay no income taxes at all, those on the dole, illegal aliens, public employee and other union members and favored industries that contribute big bucks to Socialist campaigns.   The last thing Obama wants now is to have to deal with this issue again next year just before the election, or to cut deficit spending because his re-election depends on all these pay-off's to support his PEEP's feeding at the trough.   So, it is all about the 2012 election stupid, not the National Debt Ceiling. 

The Republicans, to their credit, are attempting to put in place an actual real long term solution to actually pay off the National Debt, not just kick the can down the road as has been happening for years.  Finally, there are some honest adults in Washington.  The rating agencies have already said that if they don't see a credible plan, which they define as spending cuts of around $4 trillion over ten years, even if the National Debt Ceiling is raised, that they will downgrade the US Credit Rating.  This is only common sense.   The US National Debt is fast approaching 100% of GDP.  This is simply unsustainable.   The Capital Markets will demand higher interest rates, the result of a downgrade, because with every trillion dollars added to the National Debt, the chance of default rises.  As the Socialists continue borrowing 40 cents for every dollar the federal government spends, the Markets will react negatively whether we like it or not. 

Eventually, cards talk and numbers don't lie even if Socialists do lie.  This is no different than American banks charging higher interest rates to people whose FICO scores are below 700.  If rated properly, the US FICO score would be about 400.   It is pretty tough for anyone in the United States to get a mortgage today with a FICO score much below 650 and even then the banks require higher interest rates and higher down payments than normal.  The reality is the United States is already a bad credit risk by any standard.  

Of course, none of this matters to President Obama and his Socialist pals in Congress.  In business, when you don't have money and can't borrow anymore,  the only option is downsizing which could mean selling assets, lay-off's and in general cutting all expenses to conform to revenues.   Socialists just don't think in these terms probably because most of them, including President Obama, have never worked in business.   No, their remedy for unsustainable deficit spending is not cutting expenses; but instead taxing the "rich" who they define as any married couple making $250,000 or more and any single wage earner making $200,000 or more.   These are often professional couples and singles and or small business owners who file as Chapter S corporations.  

These are the very job creators needed to bring unemployment down.  None of that matters to Socialists because their goal is and always has been for the last 100 years to redistribute income to take from the Makers in society and give to the Takers; their PEEP's.   The only way Socialistsr can win elections is by making more people dependent on government.  Obama has achieved that objective during his three years in office by destroying the economy so that now 25 million Americans are unemployed, when all are counted, and 43 million Americans are on Food Stamps; an all time record number.

So as we watch the theater surrounding the National Debt Ceiling debate, let's not forget that for Obama, it is all about the election, stupid.   Obama is a Socialist who believes in tax and spend big government even if it bankrupts our country.   We can't let that happen, which is the reason we must make Obama a one term President in 2012.   We can do it.  We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   While the National Debt Ceiling may be about the election in 2012 for Obama, it is really about taking back our country for most Americans.  Let's keep our eye on the ball and send Obama into early retirement. 

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