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Obama: Our Out-of-Control Debt Is ‘Sustainable’ for the Next Decade

Misleading the nation on the way to the abyss.

by
Tom Blumer

Bio

March 14, 2013 - 10:41 pm
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In an interview with former Bill Clinton apparatchik George Stephanopoulos aired on ABC Wednesday morning, President Barack Obama shared his beliefs about where the nation stands financially.

The takeaway quotes from that sit-down concern Obama’s unserious take on the size and grave nature of the federal government’s annual deficits, which have exceeded $1 trillion during each of the past four fiscal years, and the national debt, which, at $16.71 trillion as of Tuesday, has increased by over $6 trillion since he took office less than 50 months ago:

And, y– you know– I think what’s important to recognize is that– we’ve already cut– $2.5– $2.7 trillion out of the deficit. If the sequester stays in, you’ve got over $3.5 trillion of deficit reduction already.

And, so, we don’t have an immediate crisis in terms of debt.

Even if the first paragraph made sense, which it doesn’t, the second paragraph doesn’t follow logically.

The $2.5 trillion to $3.5 trillion in “cuts” to which Obama referred are really reductions in projected spending growth spread out over the next ten years. Very little of these reductions will take place in the current fiscal year, and the vast majority of them have obviously not happened “already.” Any claims relating to reductions in future years are speculative at best, because they can either be undone by future congresses with the help of Obama himself or a future president, or undermined by slow economic growth.

In early February, the Congressional Budget Office, using fairly aggressive growth assumptions, projected that the government will run cumulative deficits during the next ten fiscals years through 2023 amounting to $7 trillion, and that the “debt held by the public” (i.e., what Uncle Sam owes its bondholders and creditors) will grow by $7.7 trillion. The fact that future annual deficits might not be quite as absurdly high as what we’ve seen during the past four intolerable years would only lead one to conclude that there’s “no immediate crisis” if the national debt were currently small. Unfortunately, it’s not.

If you didn’t know any better, you would think that Barack Obama doesn’t understand the difference between the deficit, the amount by which government outlays exceed government receipts, and the national debt, which is how much the nation owes to its creditors. Though it’s tempting to believe otherwise, of course Obama knows the difference. What he is really hoping is that the average American, or at least the average low-information voter, doesn’t, and that his “clever” phrasing will cause many to believe that both our deficits and national debt are coming down. In other words, he’s betting against the intelligence of a large percentage of the American people, while also calculating, probably correctly, that his lapdogs in the establishment press won’t call him out for doing so, and will in fact support his misdirection. In other words, he’s not governing in any real sense; he has instead embarked on a 20-month campaign to win a Democratic majority in the House in the 2014 elections.

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Top Rated Comments   
I'll say it again, obama is just being who he is.... completely unqualified to hold the position of power he has. My quarrel is and always will be with the fools that elected him in the first place and even more so with the complete fools that reelected him. If there is, in reality, any sort of recovery, it hasn't been because of obama, it has been in spite of him.
1 year ago
1 year ago Link To Comment
One of the videos on the site today showed a segment on the Kimmel show, where he had people out on Hollywood Blvd. asking what they thought of Obama pardoning the sequester and sending it to Portugal. The ones they showed answering acted like it was an intelligent question, and they were trying to look intelligent answering it, even though they didn't understand it. We truly are doomed...these people all voted for this moron, and he's going to run the country right off the cliff...
1 year ago
1 year ago Link To Comment
It's a total waste of time talking about Obama outside the context of community organizer and agitator. The cards are stacked against him now though ... and the activist juvenile POTUS is poised to get booted out prior to the end of his second term. Yet, he continues undaunted, unaccountable and mockingly derides everyone that he perceives to be in opposition to his almighty utopia. This fool better come to his senses or he will get held accountable for his folly, very soon ... the way he treats Israel will be the deal breaker.
1 year ago
1 year ago Link To Comment
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All Comments   (30)
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Obama will keep coming up with wild excuses for avoiding his responsibilities. He has no credibility, yet the "news" media refuses to hold him to any common standards.
1 year ago
1 year ago Link To Comment
The "sustainable for ten years" meme is from Nobel winning economist and honorary pit yorkie Paul W. Krugperson.
1 year ago
1 year ago Link To Comment
OK...if anyone has this on tape, we can NOW invoke the 25th Amendment. The man is friggin nuts!
1 year ago
1 year ago Link To Comment
What do you do about people who want to be decieved?
1 year ago
1 year ago Link To Comment
Lying to Obama is second nature to him. He learned how to lie at Muslim school as a child. It is taught to muslims because lying (taqiyya) is how you get around the truth that most of western civiliization upholds. So our Muslim-in-Chief has no regard for truth, or what is best for America
1 year ago
1 year ago Link To Comment
I've got to say, there is something to what you are saying. While living in Indonesia I had a friend quit the local school she was teaching at because she was disgusted with what the books taught. The stories championed the little boy who was sly and would out smart or decieve the others.
1 year ago
1 year ago Link To Comment
These numbers are going to be very low. Obama is doing all that he can to gut the US economy what with Obama and its taxes, regulations, and soaring costs, to new environmental regulations that will kill the energy and agricultural segments of the economy. As these attacks kill more jobs, put more people on the dole, and the economy fails, debt will necessarily skyrocket beyond these numbers.

When it does, the government will turn to hyperinflation because no one will lend it money. Actually that is already happening since most debt is now a shell game between the Federal Reserve and the Treasury and not from foreign or domestic lenders. Rather than stimulate the economy, hyperinflation will just pull the handle flushing it right down the tubes.
1 year ago
1 year ago Link To Comment
Whenever a radical leftist begins talking about formulating a strategy for a free market society, put your valuables in the vault.

Radical leftists are always looking for ways to advance the revolution. And hide what they are doing.

They refuse to submit a budget. What they do submit ought to begin "Once upon a time"...

The "Too Stupid For Words" media, carry water for the Revolution. And...as the radical left's waterboys...they help hide the intent. In fact, "Hide the Decline" is the new motto, not just for the global warming hoax, but for all of leftism's attempt to build a nation by the state, of the state and for the state.
1 year ago
1 year ago Link To Comment
"In other words, he’s betting against the intelligence of a large percentage of the American people, while also calculating, probably correctly, that his lapdogs in the establishment press won’t call him out for doing so, and will in fact support his misdirection."

Hey....... It worked for him in the last two Presidential elections, so why won't it continue to work. After all, race trumps EVERYTHING!!
1 year ago
1 year ago Link To Comment
"Relax" said the captain of the Titanic, "we aren't going to sink for ten more minutes.
1 year ago
1 year ago Link To Comment
"... or undermined by slow economic growth." Obama's policies virtually guarantee far slower growth than we would have with no policy at all.
DemBamaCare's contribution to employment problems will be large. Many businesses now have a strong incentive to keep their size below the DemBamaCare threshhold for FTEs; that's almost sure to expand part-time positions. The people who wind up in those part-time positions are compelled to buy DemBamaCare-quality insurance policies or pay the tax for going on their own. Does anyone think that's going to expand consumer spending?
So we've got someone who thinks we can shove the debt problem down the road and who keeps his foot on the brake of the economic engine that might retrieve the situationl. Good plan, that. And people vote for him and his enablers -- though somewhat fewer than the first time.
Regarding dependent voters: I could be called one. I'm a military retiree; I have a pension and insurance coverage that amount to around 40% of my household income. At least I got that by earning it: I served 20 years as the rules required. I still vote conservative-libertarian.
1 year ago
1 year ago Link To Comment
The sequester antics are simply another agitating effort on Obama's part; and I firmly believe that thye sole purpose is to buy time for, and the provide cover to the implementation of Obamacare. Obamacare is THE elephant in the room, and it can - all by its lonesome - destroy the U.S.A. Bringing down Obamacare is of supreme importance because with each pâssing day more and more people are beginning to feel that anyone that is against Obamacare is trying to take something away from them ... making reapeal of the monster even more difficult. NOW is the time to nuke Obamacare, and Obama knows it; hence the interference on every level and every issue from this administration - it all points to a consolidated effort to save Obamacare; which is a freedom-eating MONSTER!!!!!!!!
1 year ago
1 year ago Link To Comment
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