The Truth? So You Want The Truth?

Make A Right Turn Here

Facts seem to evade people at times or maybe it is that some people want to evade the facts. What I find disconcerting at times is when a commenter comes on a Hub and immediately either goes on the attack because facts seem to offend their delicate sensibilities or they are in extreme denial that they were duped into something that goes against the imaginary facts that spin around in their heads. That’s a form of cognitive dissonance that should be examined by the person that is afflicted by this disorder.

I rely on facts to write and do research in pursuit of the facts and truth. Lets get down to business here and discuss the latest report issued by the Congressional Budget Office (CBO) concerning the state of the economy and the the future of the national debt under Obama’s economic policies. The recklessness of this administration with the tax payer’s money that we have witnessed since his inauguration should be apparent to anyone. The report doesn't paint a pretty picture.

A Known Failed Policy/Theory

According to the forecast the national debt will increase to $21.665 trillion in the next ten (10) years if the course of the ship of state isn't altered to do what is necessary to curtail this type of economic disaster. It is an uncomfortable truth but remains the truth. We are having extreme difficulties sustaining what has been added in just three short years. Think about the implications and ramifications of this to your heirs and stop thinking about just yourself for a while.

As reality sets in, let us look at some of the details that were contained in this report issued the day before yesterday. Under current administration policies who is impacted and by how much? The debt held by the public will increase by 50% between 2011 and 2022. And the debt held within the government itself will increase by 40%. That is debt contained within the “trust funds” held by the government in various forms of entitlement programs. That does not including unfunded liabilities. The link is the current National Debt Clock.

Think outside the box for a minute. The debt at the end of 2011 was $14.8 trillion. That debt, under Obama’s policies, will climb every year between now and 2022. If Obama is reelected and continues his economic destruction we are facing a debt increase of 47% between now and 2022. Who is going to pay for that? Explain it to me if you have the answer. I guess you can shrug your shoulders and say, “That’s not my problem” but it is and the problem of our future generations.

So how did the CBO make their projections? They used a baseline where assumptions are made. First they assume that all current laws go into effect. They factor in the large tax increases that will occur when the Bush tax cuts expire in 2013. That baseline takes into account the current government spending projected out ten years. That just isn’t sustainable no matter what you, I or Obama think. Spending has to be cut and cut drastically in order to insure this nation’s economic survival. I'm not talking about the accounting gimmicks we've seen so far but actual spending cuts.

Another part of the CBO report sheds even more light onto the subject. It pertains to the growth of our economy for the next two years. The federal government doesn’t grow the economy as some would have us believe. It sucks the life out of it. The Gross Domestic Product of the nation came in at an anemic 1.7% last year. That’s pitiful. The CBO projects that growth to be 2.2% this year and 1% the year after.

Obama, in his last budget proposal which never went anywhere, projected economic growth of 5% as of right now. As you can see, that is not happening nor will it if the government spending continues on its present course. Obama projected that same 5% growth well into the future as he smoke and mirrored his numbers. It isn’t happening. Will he reverse course? Ideologues never do. It isn’t coincidental that the full implementation of Obamacare coincides with the 1% projection. So is a 1% growth rate considered a recession? Is a 1.7% rate a recession? How about a 2.2% growth figure? When the growth rate hit 3.5% during the Bush administration it was called a recession. So what are we in now? According to Obama the recession is over. Oh really?

Have A Warm Fuzzy Yet About This?

Taxes are next. The CBO projects that during the next two years taxes, scheduled taxes and income taxes, will rise by 30%. You ready to handle that load on top of the load you already have? They have factored that into the projection to arrive at the 2.2 and 1% growth rate.

The government needs to stop trying to stimulate the private sector. It doesn’t work that way and will never work that way. You don’t stimulate an economy by raising taxes first of all. Look at it this way. Just where do you think the government gets the money to try to stimulate the economy besides printing it? Easy answer - by taking it out of the private sector which leaves the private sector at a loss to have the money available to stimulate itself. That is completely circular thinking. If you are going to take the money out of the private sector to stimulate the private sector just where did that money come from in the first place? All you’re achieving is more government interference in the marketplace..

What The Plan?

Do we really want, much less need, more of this economic nonsense we’re being subjected to? Here’s what will happen with four more years of Obamanomics. At the end of a second term he will leave office with the national debt sitting at approximately $18.4 trillion. I believe that is an optomistic estimate myself. That amounts to an increase of $7.8 trillion dollars under his stewardship. The national debt stood at $10.6 trillion the day he was inaugurated. Do the math.

Some will find this truth to be very inconvenient. Some will say, “The Frog lies. He lies.” But it’s all laid out right there in front of you. The truth will always be the truth. Obama does not deserve a second term in office, just like Jimmie Carter didn’t deserve one either.

I report, you decide. Happy Groundhog Day. Stop burying your head in the sand.

As Always,

The Frog Prince

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Comments 17 comments

breakfastpop profile image

breakfastpop 4 years ago

You reported, accurately, I decided. We are in deep trouble and the facts speak for themselves. I don't care if you are a Republican, Democrat or Indian Chief, the facts are there. Read them and weep. Up and awesome.


Stu 4 years ago

Hi Frog,

As usual you're dead on the money (or, in this case, lack of it). In my opinion, if we don't implement severe fiscal austerity to pay off the investor owned debt, and legislate away the off balance sheet liabilities, we are going to have to monetize the debt. We'll have a huge dollar drop against foreign currencies, mass business failure, skyrocketing unemployment, and a giant spike in interest rates. We'll effectively have an "inflationary Great Depression," a repeat of the pre-WWII Wiemar crisis in Germany. We'll be locked out of world trade and credit markets for decades, because the US dollar will be almost worthless, and US denominated debt will collpase in market price. I'm no economist by any means, but I can see the handwriting on the wall. We don't have alot of time left. If we don't take draconian action now, we are going to collapse financially.

Stu


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

Stu - They've been monetizing the debt for a while now. We're not supposed to know that. Most people don't even know what that is. The Federal Reserve is as guilty of doing that as Holder is of lying to Congress. It's supposed to be a secret. The reason we're not seeing the rates of inflation yet that accompany monetization is because The Fed is holding down interest rates artificially and products such as food and gasoline have been omitted from the equation. It's all smoke and mirrors at this point.

The Frog


lmmartin profile image

lmmartin 4 years ago from Alberta and Florida

One cannot argue with facts, only with opinion. I have also been writing on these facts and the only conclusion I can come to is that soon, rather than later, the whole house of cards will come tumbling down and hopefully, out of the ashes a new understanding will grow. The fall will be horrific, no doubt about that. The monster has grown beyond repair and neither spending nor lack of spending will tame it at this point, only delay it. All the signs point to a major economic failure in the very near future. What will come next; that is the question. Interesting hub.


IntimatEvolution profile image

IntimatEvolution 4 years ago from Columbia, MO USA

It reads as if you truly believe the Presidential office makes all of the governmental policies, and he alone is the only one making decisions and putting policies in place. Now whether or not that was your intention, whatever the case maybe I know you realize that is simply not the real truth. So I ask you Frog, cause I am confused- which happens alot by the way... Were you purposely trying to show how cognitive dissonance works, and that the real truth gets buried underneath the rumble or what??? As a fellow frustrated

patriot, yes Obama has failed to live up to the task. He comprised his positions too many times and what we got was nothing but a load of left over Bush crap and Obama crap... Okay, now what??? Complain some more about one person in power and remain in denial about the responsiblity of the persons making the same types of policies such as is made in the House, Senate, Congressional committees, Supreme Court honors, etc..., or what???

I am confused even more now on what you think is the real truth. It's certainly not this overpass you have listed. However, the one undeniable truth about this article its is extremely well put together, striking in its convictions, entertaining and delightfully well written!!! Even though I am thoroughly perplexed, I sent a tweet out anyways. Were need more readable hubs out there, instead of some of the crap that gets published here. Great article. Xxxoooo


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

IntimatEvolution - The President of the United States is the CEO of this overgrown bureaucracy that has been created. In fact, during his short tenure, that bureaucracy has grown by 17%. So as the POTUS, the buck stops on his desk. His usual defense is to blame Bush. That isn't good enough. Have you seen the video where he told 60 Minutes that he would fix the economy within the first three years of his term? He went on further to say that if he didn't he'd be looking at a one term proposition. We're at that point and his policies have made it worse. Complicit in that is the US Senate which has done nothing to pass a budget in over 1,000 days. That Senate is under the control of the Democrats. Who is the head Democratic Party? Obama is.

What is being reported here are FACTS that the Congressional Budget Office issued in two different reports the past couple of days. If you go back up and read carefully what is presented here, it speaks to Obama and his policies, not Bush's. The policies he has put in place have failed. That should be obvious to anyone who looks at the fiscal shape this country is in. He has been intent on spending money that we, the tax payers, don't have. There is no such thing as "government money." There has been an astronomical amount of national debt that Obama has piled onto the previous debt. He has accumulated more debt than all the Presidents from George Washing through Bill Clinton. Explain that one and justify it.

I suggest you go up and read Stu's comment. He has it right about how to deal with a lot of this. The problem is that what needs to be done will be very painful. The people we have kept in Congress decades on end have caused this mess. So what to do?

First, we put a lot of their butts in the unemployment line where they should have been long ago. Then we elect a person of CEO caliber to run this nation. Obama was totally inexperienced and unqualified for this task. It wasn't the time to be OJTing anyone to be sitting in that chair. Then he surrounded himself with Keynesian economist to try to do something that has proven many times to be a failed economic theory. Those people have all bailed out on him but not before the damage was done.

His stimulus plan is a prime example of failure. It would have been just peachy if the nation had about $1 trillion extra dollars to throw down the crapper. However, we didn't, don't and won't since his policies gravitate around spending money that isn't there. That means it comes from where? It's borrowed money that is piled onto the national debt like it means nothing.

I run my own business and if I ran it like the federal government does I would have been in bankruptcy court in short order. That's where we're headed and it doesn't matter who has done what in the past other than the one who is occupying The People's House at the present time. He told everyone he could fix it. He has not done so therefore it's time we install a new tenant in our house.

The Frog


TheManWithNoPants profile image

TheManWithNoPants 4 years ago from Tucson, Az.

Extremely well put together jim. Keynessian Economics gone wild = an economic snowball barreling down the mountain.

Jim


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

Jim - Thanks for the thumbs up. Keynesian economics was tried last under none other than Jimmie Carter. It is a discredited economic theory and many people give you a blank stare when you start talking about it.

Let me add something to what I said to IntimatEvolution. The way politics works, in its present form, is that the POTUS is the policy maker and the Legislative Branch writes the laws. Every president since the formation of this great nation has put policies in place. Those aren't necessarily laws but now a days come in the form of "executive directives" handed down to the federal money munching bureaucracy. What better way to circumvent the separation of powers.

I am an Independent, not a Dem or a Repub. I don't particularly like any of those career pick pockets that we've allowed to sit up there and represent themselves and their special interests. But the fact remains that the POTUS is the policy maker in this nation. When his/her policies fail then I place the blame right where it belongs - the person who presently occupies those seat cushions in the Oval Office.

The Frog


openeyes 4 years ago

Good hub

Although I believe focus should be on matters of much more concern like laws being passed behind closed doors.Fixing the national debt will not help us when the new NDAA goes into effect.

Peace


Ghost32 4 years ago

Heck, Jim, your excellent job as usual, but that Froggy Foto ("Yeah, that should work.") pretty much wraps up the entire message in one shot!

Voted Up and Lots.


marcoujor profile image

marcoujor 4 years ago from Jeffersonville PA

Frog,

I am so 'behind' with my reading, I might as well enjoy a Krispy Kreme!

As usual, you tell it like it is like no one else... especially enjoyed your review of cognitive dissonance.

Voted UP and UI...Hugs, mar.


poetvix profile image

poetvix 4 years ago from Gone from Texas but still in the south. Surrounded by God's country.

We can not stand another four years of this spend happy lunacy. The stimulation has become strangulation! Everyone is so concerned about the lack of a future for our children, and I agree, but, it won't take that long. This will implode within our lifetimes. If we don't stop this, America will fall to ruin.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

Fred - I'm a seeing is believing type with the career crooks I watch dance with their happy feet in Washington DC. I'm not sure why many people can't see through this crap but then again maybe they do.

Maria - I reckon you got that calendar I sent you. LMAO

poetvix - No one has yet told me who they expect to repay this excessive spending we've seen the last three plus years. I'm patient though so I know the answer will come, at our expense no doubt since it is our money they are flushing down hole after hole.

The Frog


CHRIS57 profile image

CHRIS57 4 years ago from Northern Germany

Is public debt really that important? What about the balance between debt and assets? What about the accumulation of public, corporate and household debts/assets, because that is what really reflects the state of an economy.

Take a closer look at this national debt clock http://www.usdebtclock.org/ There is one figure in that model that is about assets and seems to be very significant. It shows that the amount of total assets is deteriorating 4 times faster than the increase of public debt.

So the question is not which administration is piling up how much public debt. The real question is: Is it possible to regulate/deregulate/influence economy in a way to increase investment into assets, not consumption. Assets (new equipment, manufacturing machines, automats,...) push productivity and competite edge. Consumption is only for today, not tomorrow. Current deficits are used consumptive means and thus are bad. I wouldn´t mind deficits though, that lead to investment into new, productive assets. That would be an investment into the future.

Mr.O and his Mr. G. and Mr. B. are not doing their job, because they are focused on managing the debt side of the balance sheet. Too little attention is payed to the asset side of the economy.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

Chris - Since our debt now is greater than our GDP I don't know.

The Frog


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

Who is going to pay for this? At this point there is only one way out of the debt problem. Inflation.

The only other time we have had a debt to GDP ratio this high was during/after WWII. What happened immediately after the war? In 1946 the inflation rate was 8.43%. In 1947, 14.65% and in 1948, 7.74%. That is how it's done.

I don't think it will be uncontrollable hyperinflation though. I think it will be carefully controlled via the FED and interest rates. It won't take much for them to trigger it. I would expect a similar 2-4 year high inflation rate to get us out of the mess. After that period, the debt will shrink on it's own, while everything we earn will be worth less.


Jeroen 4 years ago

Exponentially increasing debt is unavoidable in a debt-based monetary system where interest rates are allowed to be set above a realistic risk-premium. Then all money inevitably gets sucked in by a few successful corporations and investors, even though they are just doing the best they can, like. So although all that debt represents a lot of money out there to be use for commerce, it can't be used because it's hoarded by those who have accumulated it. Try to make laws that redistribute the money and you will find that it's pretty hard to make laws that go against the interests of those who hold all that money that's not available for small businesses anymore.

Luckily, we don't need to depend on our nation's money, as money is simply an agreement to do something for your community. Communities can easily set up their own interest-free currencies, do good business together, make real wealth (not money) and slow by slow repay the debt of the national currency which has had its monopoly for too long.

Without doing that, Obama, or any other president, has really no choice but to keep increasing debt.

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