If there is one message I would like to get across this year, this is it. Please read this message.
The U.S. Office of Management and Budget is predicting the deficit of our federal government to be $1.8 trillion dollars for the fiscal year 2009, and another $1.3 trillion dollars for 2010.
So, for this year, about half of this money is borrowed. Next year may be more than half, I don’t know.
If I ran my personal finances like this, I’d be bankrupt in two years, and probably in jail in three, for fraud. Imagine spending twice as much in one year as your total income. How many years would it take you to pay back that one year’s excessive spending?? Yet, the democrats propose to continue this spending indefinitely into the future.
The previous administrations (yes, including Bush, and going back to Clinton) allowed the financial crisis to develop. This presented Obama and the democrats with some tough choices.
Obama could have stopped all non-essential government spending, cut taxes as much as possible, allowed the bankrupt entities to fail, and possibly have a bad recession or a depression. Once this passed, we could dig ourselves out in relatively short order. This would have made Obama and the democrats look bad in the short term, but good in the long term, because the recovery would be swift. Sometimes you have to have the guts to cut your losses.
Instead, they chose to borrow incredible amounts of money, spend wastefully, and thereby energize the economy to some extent. The jury is still out on how well this will work, but at least we haven’t had a true depression – yet. This makes Obama look relatively good, for the moment, which he wants very badly. But in the long term, we will have to pay back that money. Obama is setting us up to fail – later.
Here’s the real problem with Obama’s methods. The money being borrowed by the Obama administration is such a large amount that eventually, it will take all of the U.S. tax revenue just to service the interest payments. We will pass that point in only a few years if Obama continues on this path.
If you think we have problems now, just wait.
This set of facts is realized by some people – the same people who go to tea parties. In a few years, we will all have to pay the piper.
Obama must know this. But he, and his fellow Democrats, don’t care; they know that towards the end of Obama’s term, more citizens will begin to understand some of this, and the Republicans will probably be back in power in the next election. So that’s all good with Obama because the aftermath will be somebody else’s problem.
You can bet that Obama will never miss any meals because of it.
The rest of us might.