About the debt increase deal…

Remember that debt increase deal? Just remember come election time to remember the following…

As far as the budget deal we thought we have a few comments.

1 – We were never in danger of a default. The government brings in almost 200 billion a month in tax dollars which is more than enough to service the debt. Anyone who said that the August 2nd date would result in default is just lying straight up. Judging by how the elite media has been repeating this it furthers my personal observation that journalists are lazy and are, as a collective, the most uninformed people I have ever encountered.

2 – These polls that you here about in the news saying that the people want “republicans to compromise” are polls like the CBS News poll that had a sample which included only 25% Republicans, so the sample was rigged. Notice how the Democrats are not asked to compromise in the press? When the people were stone against Obama Care by a 60% margin where was the press pounding the polls than? Where was the compromise when the Democrats would not allow the GOP into the room and would only see the bill a few hours before a vote?

3 – “Reagan increased the debt limit”… Reagan did not have a House controlled by his own party. During that time we had the 24/7 nuclear triangle operating at the pinnacle of the Cold War and a government shut down at such a time would have undermined our efforts to posture and beat the Soviets.

4 – “We need to raise taxes on the rich”. First of all we have been “raising taxes on the rich” for decades now so why is it that John Kerry paid 12.34% on $5,072,000 worth of income? The dirty little secret is that the tax rate that the Democrats are talking about is the wage earner rate which is paid by high-end wage earners such as doctors and engineers, but it is also the rate paid by most small businesses that have employees. Most of the income that the “rich” bring is defined by the tax code as “unearned income”, so you could raise this tax rate to the moon and the multimillionaires and billionaires will laugh as it will not be they who pay it. For more details on why this is follow this LINK.

Using static models as the CBO likes to use the Democrats proposed tax increase would pay for all of 10 days of deficit spending. Of course since people do not operate in a static universe the result would be an impact on job creators and even less revenue growth to the government. Can anyone name a mainstream economic theorist who said to raise taxes during what appears to be a double dip recession?

4 – As far as spending cuts in the “deal”, we must remember base line budgeting. If we froze spending at current levels Washington would consider that to be a $9.5 trillion dollar “cut”, so all we are talking about here is a small reduction in the typical increases in spending. As far as spending cuts are concerned this is not a serious plan as spending under this deal will continue to skyrocket. Democrats and some leftist journalists are calling these “draconian cuts” and are simply engaging in the most dishonest demagoguery imaginable.

5 – But here is the rub, when we lose our AAA credit rating, which now appears unavoidable as both Moodys and S&P have said that neither the Boehner plan nor the Reid plan are serious about getting spending under control, it will cost us more than $100 billion a year in interest alone; when that is factored in there are no reductions even in the increases in spending. It gets worse. When you add the damage to the economy that loss of AAA will bring it makes all of this worse.

The loss of AAA will impact most unsecured credit, it will impact the value of the dollar (inflation), it will impact those who use short-term credit such as farmers who use seasonal loans and import/export businesses. It is going to damage the economy in such a way that most people will feel it. We did not lose AAA even during the great depression. The “deal” which passed is also easy to demagogue because the left will say that this deal IS the “Boehner Plan” (which is largely isn’t any more do to an almost total cave on spending cuts) and HIS plan caused us to lose AAA.

[Note: The first plans that were introduced by the Tea Party/GOP were much more serious and had a real chance of preventing the loss of AAA. While this is indeed a failure of government, is there any doubt that the Democratic Party is intent on blowing up our credit rating? The first proposals from the House had a chance of preserving AAA and the media/Democrats had a conniption fit calling called it extreme. Think about this folks, preserving AAA is now an extreme position according to much of the elite media and a political party. The Constitution does have limits and the GOP cannot run the government from the House. This is why elections matter.] 

6 – The deal also includes a vote on the Balanced Budget Amendment to send it to the states. If this amendment resolution passes the Democrat controlled Senate and gets to the states it will be a great tool to begin to get this spending problem under control. If it looks like it will pass the Senate I expect the Democrat leadership will pull some stunt prevent the vote or prevent its passage. Government has a structural institutional incentive to spend more and more, so the only way to curb that is to make a structural change. Aside from a vote on this Amendment, which I will stress has not happened yet, this was not a tough deal or a Herculean compromise by any stretch.

This is a must see exchange between Marco Rubio and John Kerry on the debt limit debate. Be sure to watch every second as this is invaluable.

Kerry will think twice before trying to posture Marco Rubio again. Notice also, even though Rubio did not join the TEA Party Caucus he defends their position, which is to offer a plan that fixes the problem. Rubio uses a most interesting analogy to show why this is so important.

UPDATE – The latest version of the deal includes $2.1 Trillion in cuts over 10 years with half planned now and the other half planned by a “budget cut committee later”. Keep in mind that cuts in “Washington Speak” are not cuts, but rather a decrease in the increase in spending. So instead of a planned increase in spending over 10 years of $9.5 Trillion they will plan to increase spending by $7.4 trillion.  The president gets his debt increase limit extended to well passed the campaign, deficit spending shoots up, no entitlement reform, no plan to balance the budget over the next eight years. There are some actual small cuts in discretionary spending, but entitlement spending that is on autopilot. Of course even this is a fraction of the increase in discretionary spending that has gone up since 2008.

UPDATE

LARGEST DEBT HIKE IN HISTORY…
$32.4 billion per page?
Borrowing to surge…

FLASHBACK: Democrats taped on phone acting in bad faith, plotting a government shutdown

Remember when we said that the Democrats are pushing for a government shut down, which is why they keep moving the goal posts in trying to boost deficit spending?  Well here is the proof. It is called acting in bad faith folks.

How could anyone who wants fiscal responsibility ever vote for any of these people again. You heard me. If you take exception to that comment please try to justify what we have just seen in the comments below.

UPDATE: Rand Paul: What Schumer is doing to the country is extreme

Michelle Bachmann responds as well:

Mike Pence: If the Democrats want a shutdown so bad, do it and see what happens…

Boehner/Bachmann: Democrats rooting for a shutdown

Its true too. Every time the Republicans make a compromise the Democrats move the goal post. First it was move spending back to 2008 levels; then it was cut by $100 billion; then it was $61 billion’ then it was, 10.5 or 33 billion dollars depending on what Democrat you were talking to.  How anyone, and I mean anyone who tells you that they are for fiscal responsibility and want to vote Democrat in 2012 is either duped or just lying to you.

AIM: American tax dollars for Al-Jazeera inspired terrorism

Amazing. Your money being used to fund enemy propaganda, but Democrats say we cannot cut funds for this nonsense.

AIM:

An analysis of the propaganda campaign to get Al-Jazeera carried by more cable and satellite systems reveals an interesting fact. The terrorist TV channel is already available through something called MHz Networks. And it turns out that the MHz Networks is supported by the American taxpayers at the federal and state levels.

MHz Networks is a division of Commonwealth Public Broadcasting and receives over $2 million a year from federal and state governments. In this case, because Commonwealth is based in Virginia, the culprit is the state of Virginia. However, Governor Robert F. McDonnell has proposed eliminating state funding of public broadcasting by cutting $2 million in fiscal 2012 and $2 million in fiscal 2013. Even if state legislators go along with this proposal, that still leaves the federal subsidies for Commonwealth and MHz Networks.

According to figures supplied by Joseph H. Koch, Commonwealth Public Broadcasting Vice President and Chief Financial Officer, $1.4 million of that $2 million came from the Corporation for Public Broadcasting (CPB), which is funded by Congress. The CPB distributes taxpayer money to public broadcasting stations and entities.

Since Al-Jazeera is totally owned, run, and paid for by the Emir of Qatar, officially known as “His Highness,” this means that American tax dollars are paying for foreign propaganda in the U.S.

Not only that, but American taxpayers are being fleeced on behalf of an Arab dictator with billions of oil dollars. The Emir, Sheikh Hamad bin Khalifa Al Thani, is number 8 on the Forbes list of the “richest royals,” with an estimated net worth of $2.4 billion. His channel has been labeled “the greatest Arab media organization” by the Muslim Brotherhood, which has spawned various terrorist organizations and is now poised to take power in Egypt and perhaps other countries.

MHz distributes Al-Jazeera, as well as the Moscow-funded Russia Today channel, under the rubric of “Programming for globally-minded people.”

Obama’s Favorite CEO: GE Paid No Taxes in 2010 Despite Making $14.2 Billion in Profits

Obama ally Google paid 2.4% federal tax earlier and threw gala events for Democrats while President Obama blasted the Chamber of Commerce as greedy for not wanting small businesses to pay a 39.9% tax.

Weekly Standard:

General Electric paid no American taxes in 2010, the New York Times reports:

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies.

G.E.’s CEO, Jeffrey Immelt, is considered Barack Obama’s favorite businessman and serves as the head of the president’s Council on Jobs and Competitiveness. Fred Barnes wrote about Immelt here.

Related:

Big Business Buying Influence With Democrats: Google Pays 2.4% Federal Taxes

Google Comes Under Fire for ‘Secret’ Relationship with NSA. Cozy with Administration.

Dana Perino: Interesting How Obama Says Things That Are So Quickly Proven False

Obama takes credit for global oil production going up, but this is in spite of him not because of him. domestic Oil production is down 13% since he was elected, he has instituted an illegal offshore drilling ban which he is in contempt of court for. Thousands have lost their jobs. But look at what Obama says below.

Obama knows he can tell the fattest whoppers imaginable and the elite media will cover for him. Luckily we have blogs, talk radio and a Fox News willing to tell both sides.

Via Gateway Pundit:

President Obama told the American public on Friday:

So any notion that my administration has shut down oil production might make for a good political sound bite, but it doesn’t match up with reality. We are encouraging offshore exploration and production.

It was a horrible lie.
The American Petroleum Institute responded to the president:

The Obama administration continues to delay or defer action on developing our domestic resources of oil and natural gas at every turn.

“The trend is alarming. The administration has postponed lease sales in offshore areas. It has cancelled lease sales in onshore federal lands. It has extended permitting timelines for current leases and added unnecessary regulatory burdens. It has chosen inaction on essential energy projects that would create jobs, drive economic growth, and boost federal revenues.

“The administration is well on its way toward creating higher gasoline prices for Americans.

“To get more oil and gas, we need more access. Placing more government lands and waters off-limits and forcing companies to focus on areas that may show little promise even if already under lease will not solve our energy challenges.

Dana Perino is right.
It is frightening that the Obama Administration is so willing to openly lie to the American public.

Gov. Chris Christie To Public Sector Union Worker: We Can’t Afford To Pay Ninety Percent Of Your Health Care Anymore

Rush Limbaugh comments as well. This is a must see.

“The top 1% of income payers pay 41% of all state income tax. We already have the highest taxes in America and the neighbor who lives next door to you who works in the private sector, is already paying much more for his health care than you are for yours and they are paying the taxes to pay for yours on top of it.”

Governor Christie didn’t even mention that public sector employees tend to make much more than those in the private sector as well. The simple truth is that government employees have been well shielded from the pain of this recession. They have been promised pay and benefits by Democrats who left office years ago that government just cant afford.

GOA Report: Dozens of Govt. Agencies in Duplicate. Massive Waste.

52 programs funding entreprenurial efforts.

35 agencies for infrastructure.

26 agencies to fund telecommunications.

18 food assistance programs

47 job training programs

82 programs to improve teachers

…well you get the picture.

The Hill:

GAO report expected to show hundreds of duplicate programs

By Vicki Needham – 02/28/11 09:00 PM ET

The Government Accountability Office (GAO) found hundreds of possibly duplicate programs throughout the federal government’s agencies, according to a report scheduled for release on Tuesday.

The GAO, an independent, nonpartisan agency that works for Congress and investigates how the federal government spends taxpayer dollars, identified  programs across the agencies including Defense and Energy departments, the Wall Street Journal reported Monday night.

Congress and the White House have targeted many duplicate programs for elimination, including several that are included in the House Republicans’ two-week continuing resolution, also in President Obama’s fiscal 2012 budget, that cuts $4 billion in spending through March 18.

The Journal reported these duplications from the GAO study:

1. Food safety: 15 agencies that implement several federal laws.

2. Defense: Duplication in the purchasing of tactical wheeled vehicles, procurement and medical costs.

3. Economic development: 80 programs spread across several agencies that share goals.

4. Surface transportation: More than 100 programs run by five divisions within the Transportation Department.

5. Energy: Cutting ethanol production programs could save $5.7 billion each year.

6. Government information technology: 24 federal agencies handle IT.

7. Health: The Defense and Veterans Affairs departments are still working separately to update electronic health records.

8. Homelessness: There are more than 20 federal programs dealing with the issue.

9. Teachers: 82 programs and several agencies deal with teacher quality.

10. Job training: 44 employment and training programs.

AFL-CIO Union Chief: The Best Way To Create Jobs is to Raise Taxes

This is from the same man who said that government should take over all private business, who speaks in front of communist revolutionary groups, and has a long history of violence. Trumka talks to the White House every day and visits twice a week – LINK.

Rich "Union Thug" Trumka

Yahoo News:

What’s the best way to get Americans back to work?

Raise taxes, according to AFL-CIO President Richard Trumka. Specifically, he wants to raise the federal gas tax as a means to fund infrastructure spending. “We need a dedicated source of revenue to create infrastructure in this country,” he tells Aaron Task in the accompanying clip.

“We need to create jobs. The best way to do that is through infrastructure development.” Simply maintaining the existing infrastructure in this country will cost $2.2 trillion over five years, according to the American Society of Civil Engineers. That doesn’t include Obama’s objective of high-speed rails and green energy projects.

Oh yes, we can tax ourselves into prosperity, and we can spend trillions on more stimulus packages most of the money goes to government unions to make this man even more wealthy. This line of “reasoning” from those who call small business owners greedy.

Obama Administration Hiding Meetings with Lobbyists

Flashback February 2011

Editor’s Note – It is tenacity and vigilance like this that has kept Michelle Malkin the queen of conservative internet news since the invention of the medium. The respect she enjoys is well deserved.

Michelle Malkin

Via the queen of the blogosphere Michelle Malkin:

In Culture of Corruption, I exposed Team Obama’s big lie about its commitment to public disclosure and openness in government.

Liberals balked. “How can you possibly make such a judgment so early on in the presidency?” they squawked.

After the book was published, the White House’s selective transparency and subversion of disclosure rules and regs continued apace.

Democrats played hide-and-seek on the Hill.

President Obama cut endless backroom deals and cut C-SPAN out.

The White House carved out a Coffee House loophole to keep lobbyist meetings off the books.

And, finally, the White House press corps started complaining about lack of access.

Now, this today from Politico:

Caught between their boss’s anti-lobbyist rhetoric and the reality of governing, President Barack Obama’s aides often steer meetings with lobbyists to a complex just off the White House grounds – and several of the lobbyists involved say they believe the choice of venue is no accident.

It allows the Obama administration to keep these lobbyist meetings shielded from public view — and out of Secret Service logs collected on visitors to the White House and later released to the public.

…Obama’s administration has touted its release of White House visitors logs as a breakthrough in transparency, as the first White House team ever to reveal the comings and goings around the West Wing and the Old Executive Office Building.

The Jackson Place townhouses are a different story.

There are no records of meetings at the row houses just off Lafayette Square that house the White House Conference Center and the Council on Environmental Quality, home to two of the busiest meeting spaces. The White House can’t say who attended meetings there, or how often. The Secret Service doesn’t log in visitors or require a background check the way it does at the main gates of the White House.

…It’s not only Jackson Place. Another favorite off-campus meeting spot is a nearby Caribou Coffee, which, according to the New York Times, has hosted hundreds of meetings among lobbyists and White House staffers since Obama took office.

And administration officials recently asked some lobbyists and others who met with them to sign confidentiality agreements barring them from disclosing what was discussed at meetings with administration officials, in that case a rental policy working group.

Obama lied, transparency died, Part 989.

See, I told you so.

 

So much for transparency.

Google Comes Under Fire for ‘Secret’ Relationship with NSA. Cozy with Administration.

Flashback February 2011

Related – Big Business Buying Influence With Democrats: Google Pays 2.4% Federal Taxes

We have talked about the cozy and monetary relationship that the Obama Administration has with Google before.

Yahoo News:

Consumer Watchdog, an advocacy group largely focused in recent years on Google’s privacy practices, has called on a congressional investigation into the Internet giant’s “cozy” relationship with U.S. President Barack Obama’s administration.

In a letter sent Monday, Consumer Watchdog asked Representative Darrell Issa, the new chairman of the House Oversight and Government Reform Committee, to investigate the relationship between Google and several government agencies.

The group asked Issa to investigate contracts at several U.S. agencies for Google technology and services, the “secretive” relationship between Google and the U.S. National Security Agency, and the company’s use of a U.S. National Aeronautics and Space Administration airfield in California.

Federal agencies have also taken “insufficient” action in response to revelations last year that Google Street View cars were collecting data from open Wi-Fi connections they passed, Consumer Watchdog said in the letter.

“We believe Google has inappropriately benefited from close ties to the administration,” the letter said. “Google is most consumers’ gateway to the Internet. Nonetheless, it should not get special treatment and access because of a special relationship with the administration.”

Consumer Watchdog may have an ally in Issa, a California Republican. In July he sent a letter to Google raising concerns that White House Deputy Chief Technology Officer Andrew McLaughlin, the former head of global public policy for Google, had inappropriate e-mail contact with company employees.

A Google spokeswoman questioned Consumer Watchdog’s objectivity. Some groups have questioned the group’s relationship with Google rival Microsoft, and Consumer Watchdog’s criticisms of online privacy efforts have also exclusively zeroed in on Google, with the group rarely mentioning Microsoft, Facebook and other Web-based companies in the past two years.

“This is just the latest in a long list of press stunts from an organization that admits to working closely with our competitors,” said the Google spokeswoman.

But Consumer Watchdog gets no funding from Microsoft or any other Google competitor, said John Simpson, consumer advocate with the group. “We don’t have any relationship with Microsoft at all,” he said. “We don’t take any of their money.”

Consumer Watchdog has decided to focus on Google’s privacy practices because the company’s services serve as a gateway to the Internet for many people, Simpson said. If the group can push Google, “without a doubt the dominant Internet company,” to change its privacy practices, other companies will follow suit, he said.

“Google’s held itself to be the company that says its motto is, ‘don’t be evil,’ and they also advocate openness for everyone else,” he said. “We’re trying to hold them to their own word.”

Consumer Watchdog, in January 2009, suggested that Google was preparing a lobbying campaign asking Congress to allow the sale of electronic health records. Google called the allegations “100 percent false and unfounded.”

In September, Consumer Watchdog bought space on a 540-square-foot video screen in New York’s Times Square with the video criticizing Google’s privacy practices.

In April, Consumer Watchdog officials called for the U.S. Department of Justice to break up Google. They appeared at a press conference with a representative of the Microsoft- and Amazon.com-funded Open Book Alliance.

Consumer Watchdog’s latest complaints about the relationship of Google and the Obama administration are outlined in a 32-page report.

The paper questions a decision by NASA allowing Google executives to use its Moffett Federal Airfield near Google headquarters. Although H211, a company controlled by Google top executives, pays NASA rent, they enjoy access to the airfield that other companies or groups don’t have, Simpson said.

The paper also questions Google contracts with the U.S. Department of Defense and other agencies, suggesting that, in some cases, Google contracts were fast-tracked. The paper also questions Google’s relationship with the U.S. National Security Agency and calls for the company to be more open about what consumer information it shares with the spy agency.

When asked if other companies, including broadband providers, should disclose what customer information they share with the NSA, Simpson said they should, too.

“I understand the NSA is a super-secret spook organization,” he said. “But given Google’s very special situation where it possesses so much personal data about people, I think that there ought to be a little more openness about what precisely goes on between the two.”

A word about the GOP primaries being moved up in some states…

It is damn foolish. We got Obama in part because some of the primaries were front loaded. The result is candidates that do not get properly vetted. It gives the one with the big money an early advantage and it gives the one the media hypes an advantage as well. Stop this madness now. The media already has too much influence picking our candidates.

Chuck Norton

Politicalarena.org Editor