OMG! Obama’s Saddling Your Grandchildren With Horrible Debt!!!

23

July 16, 2010 by billie789

Don’t know if you can read this graph, but you get the Blue-Red distinction.  Now, tell me again, who’s saddling the country with impossible debt? Who has an historical pattern of doing it?

“Recall also that when Bill Clinton took office the Federal Debt was approximately $6 trillion, having quadrupled under Ronald Reagan and George H.W. Bush, it was now actually reversing.

Jump ahead to the end of George W. Bush’s presidency and the debt, aided with the Bush tax cuts, had risen to over $10 trillion. So much for the end of the National Debt. Here’s what happened in graphical form:”

Talk about “Inconvenient Truths.”

 

-courtesy Crooks And Liars

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23 thoughts on “OMG! Obama’s Saddling Your Grandchildren With Horrible Debt!!!

  1. Stu says:

    That chart ends in 2006. Here’s a more current one, although expressed in percentage of GDP rather than dollar increases in debt. The patterns on the graphs are similar though, when viewed from Nixon/Ford forward.

  2. torqdog says:

    Interesting chart Bill. One could surely deduct from it that cutting taxes does tend to drive up the debt. But what is missing is the devil that’s lurking in some of the undisclosed details. The POTUS is just one of three branches of Govt. We all know the SCOTUS is responsible for all things legal, the POTUS, all things executive and the Congress is responsible for legislating. They are also responsible for putting up bills involving spending. It would be interesting to see the colors change if you inserted “Congress” instead of the President. In fact, looking at that chart for the Clinton years, it appears things went down after the Repubs took over. I remember when they were going back and forth with the balancd budget proposal. In one press conference, a kicking and screaming Clinton would say it couldn’t be done in less than eleven years. then a few days later it was five and a week or so later it was seven.

    Now I will grant you that Bush II looks pretty bad. There are a number of things at play here like 9-11 and the resulting war as well as an out of control REPUB congress that had taken up the spending habits of the Dems and duly, were given the boot. I imagine that you could also include the tax cuts into the fray but how much they helped inflate those numbers, if at all, is impossible to ascertain and how much would the economy have grown without them? I am one who subscibes to the theory that reducing taxes stimulates the economy. It just makes logical sense that if business has more money to play with, the natural competitive human spirit will have said busineses spending that capital for expansion which means more jobs which means more taxpayers paying into the system. It worked for Reagan and the caveat that never gets mentioned is the fact that Congress went on a spending spree when the money started rolling in. Keynesian economics have never to my knowledge expanded the private sector for any length of time past when the tap was shut off. That philosophy is good for one thing only, expansion of government as evidenced by current trends in D.C.

    Also noteworthy is the fact that Bush’s last two years when Dems regained control of Congress are conveniently missing from the graph. The link Stu provided shows that the debt to GDP began to skyrocket at an alarming rate around the time the Dems took over. Yeah, I know, the buck stops at 1600 Pennsylvania ave. and it’s one of my many bones to pick with Bush and I’m not making excuses for him, it’s just an interesting observation. Also noteworthy is the unemployment numbers during Bush’s reign were down around 5%, give or take and only started their climb after 2007.

    The Dems seem to think that a good issue for them this election is to ask folks if they wanna go back to the old days of Repub control of congress. I’m not so sure that in this economic climate where they will have been at the helm for four years is a very good idea. I can already see Repubs having a field day with ads countering that point. We’ll see.

  3. torqdog says:

    Here’s a graph charting unemployment under the different house majorities. Not unlike the graph you presented from Crooks and Liars, this is a self serving graph posted on redstate .com

    http://www.redstate.com/neil_stevens/2010/07/08/a-chart-of-unemployment-since-1995/

    Again I want to stress that there are many hidden devils in this graph. Bottom line is that economics have become soooooo insanely complicated that neither you or I have the first foggy notion as to what’s really going on behind the scenes. It pretty much takes a PHD to fully understand the complexities and even then there seems to be allot of disagreement.

  4. Bill says:

    “…economics have become soooooo insanely complicated that neither you or I have the first foggy notion as to what’s really going on behind the scenes.”

    That’s why I used big, colorful, bar graphs. You don’t need a degree in Economics to see the trends.

    • torqdog says:

      Well if that is all you have to say then I guess I could say the same thing about the graph contained within the link provided. It’s big, colorful and there’s a definite trend. (insert smiley sarcasm face)

  5. rjblack says:

    If you are to curb the debt at the same time offering tax breaks, it becomes very simple math without all the pretty charts and graphs, government must reduce spending and cut the bureaucracy in an austerity programme across the board. Each department must cut 5% yearly over four years and no new spending may occur in any government department.

    • torqdog says:

      A question, won’t 5% just sort of nullify the increases the Obama administration has put in since his inauguration as well as the fact that the govt. was already bloated from the last few years of Bush’s out of control spending. Why is it when all facets of the economy are cutting budgets and staff as they adjust to the recession, the federal government grows at an astonishing 11%?

      Did you know that Wash D.C. just recently became one of the 10 richest cities in the US? I guess it really pays to be a beaureacrat or politician in today’s day and age……. I mean who’s gonna stop their gravy train?

  6. rjblack says:

    If deep cuts were included immediately to all federal services the truly disenfranchised would be the first to feel the burden, compassion must also be incorporated in austerity measures because at the end of the day we are each human beings regardless of our economic capabilities to care for ourselves.

    If it takes seven years, a figure I do not believe in, more like twelve to fourteen years to remove the national debt completly, all factors must be considered. Introducing instant pain to the majority of Americans would defeat the purpose. All elected officials must be held accountable for their spending requests and scrutinized as either pork or real needs.

    Remove the Federal Reserve as the United States central bank; it is a private corporation that lends America money to operate with no full audit capabilities or oversight in a meaningful way for congress and the compounded interest rates are killing the country.

    Why does America need to borrow USDA from a private bank? Return the money printing back to the United States proper and then we are on the start of the road to recovery.

    Cheers

    • torqdog says:

      The “disenfranchised”….. an interesting topic for discussion and therein, quite possibly, lies the problem. After more than 11 trillion dollars spent on the War on Poverty/Great society as well as bloated pensions etc.etc., our problems have only grown. I know it sounds conspiratorial but there’s a mindset set forth by a certain party that if you get enough of the populace enrolled in entitlement programs, you’ve got a voting block set for life. Make ’em all victims, put ’em on the public dole and then demonize anyone who would dare whisper that austerity word as “mean spirited”. With 47% of the populace in essence paying no federal income tax, we could already be past the tipping point. I can’t quite remember who said this but it fits…….” when the populace realizes they can vote themselves the treasury, the Republic will cease to exist”

      As much as some don’t want to admit it, at the rate we’re going, eventually the money is gonna run out regardless of whether they are capable of printing more or not. The title to this thread while dripping with sarcasm, is probably not far off track except that it has been going on for far longer than the 18 months since Obama’s inauguration. He just put it into hyperdrive. Greece anyone?

  7. rjblack says:

    It is a very complicated issue and is on the verge of potentially becoming catastrophic for the USA, according to two articles posted in the Chinese securities journal. Two well-respected economist responsible for the countries international holdings have both published separate papers calling on the Chinese government to divest the treasury of all American debt.

    At first glance to the uninformed, this may sound like nothing but China holds 860 billion in United States Debt and dumping USA bonds in the market would as mentioned become catastrophic to the country making the USDA virtually worthless overnight. Can anyone say anarchy?

    China has 2.5 trillion in cash reserves, buys gold at an accelerated rate, and is one of the main reasons gold has become so expensive, China purchases mines and bullion in staggering amounts to protect the Yuan with hard asset backing. In addition, what should be mentioned here as well is that China has prohibited private banks from interfering in their economy, a move that western countries have not avoided and look at the difference in the economies.

    You may be right, it may indeed already be to late.

  8. Bill says:

    If it’s too late, I’m not mowing the lawn this week-end or going to Janet’s brother’s birthday party. Screw ’em. I’m going to start drinking Jack Daniels again and run down the street naked at midnight with my hair on fire. Always wanted to do that. Say, is there any chance that we’ll experience the Second Coming or The Rapture or the Mayan End of the World in 2012 before the Chinese take over the BBQ propane tank concession at my Wal-Mart?

    Why would you believe Chinese securities journals any more than believing that the Chinese were going to stop honoring the US dollar and suggested that there be a new form of money created? Remember the right-wing, faux-outrage last fall over yet another money-related conspiracy?

    Japan owns almost as much of our Treasury notes as China. They both reduced their stake this past February. Of course there are critics in China and America of the financial arrangment between our countries. I suggest your Chinese securities journal story was an individual’s opinion.

    What you should be upset with, if you’re a Free Market Conservative, is the out-of-whack trade balance and flow of imports and exports. We buy cargo ships full of cheap, sometimes dangerous crap Made In China but try to sell the Chinese a quality screwdriver Made In The USA and see what happens.

  9. rjblack says:

    Well firstly, running down the street naked with your hair on fire while inebriated on JD is overrated!
    Missing a birthday unless you actually like the in-law’s is a must do event, how else would you be remembered if they didn’t talk about you in the negative, heck works for me and if anyone asks me if I have a picture of my mother in-law I just show them a milk carton.

    From the political spectrum, I am neither a lefty nor right wing as I have an intense dislike of all politicians and most of them are whores who sell out the American people daily.

    It is a crime that corporations were allowed to move manufacturing out of the United States to impoverished countries for the cheaper labor costs, without this capability in America the recovery would indeed be long and painful as it was this sector that contributed to the recovery in the thirties and it is devastatingly absent today.

    America has taken consumerism over production based on affordability at the expense of the working class, I know it is an old argument and I sound like a socialists but it is the result of allowing the manufacturing sector to move offshore. Having thirty million illegal immigrants in the country and the possibility of waiving them through as new citizens is a very dangerous double-edged sword; the country cannot afford to absorb a population of that magnitude and the sectors to employ unskilled workers in large numbers does not exist.

    There are a great deal of issues facing the country and no silver bullet available to address the issue and the burden on the State and Federal assistance programs will be catastrophic with the influx of such large numbers who would qualify for assistance.

    The story from the Chinese Securities journal reports, Yu Yongding, a former academic adviser to the Chinese central bank has appealed to state representatives to move away from U.S. debt and invest in assets denominated in other currencies, as well as other financial instruments and real goods.

    Although assets in other currencies and forms are not an ideal replacement for U.S. Treasury bonds, diversification should be a basic principle,” Yu wrote in the China Securities Journal.

    When demand for U.S. Treasury securities is strong, it is a rare opportunity for us to gradually pull back. That way, it will not have a big impact on prices and China will not suffer too much,” he said.

    Another influential financial expert, Zhang Monan, of the powerful think tank The State Information Center, also commented to the journal that China should replace increasing amounts of its foreign exchange reserves with hard assets such as gold.

    China cut its U.S. treasury holdings by $32.5 billion in May, yet it still holds $867.7 Billion making it the largest holder of U.S. government debt in the world.

    In the past China has repeatedly threatened to use the so-called “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. Such an event could trigger a dollar crash, which would now have disastrous consequences for an American economy mired in recession.

    If you follow international trade, as I am sure you do, each of you in here seem well informed and that is refreshing, you also understand that China moves slowly and with purpose. They are 2000 years old and patience is a cultural mainstay.

    China sends messages through their state controlled press as to the direction the country will take, it may take five years but the intentions are clear however subtle it may sound. Anyway, politics is an interesting topic with all the incestuous connections between business and governments and external pressures on the United States financial stability is just another issue dragging the country into bankruptcy.

    • torqdog says:

      “In the past China has repeatedly threatened to use the so-called “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. Such an event could trigger a dollar crash, which would now have disastrous consequences for an American economy mired in recession.”

      I’ve heard that before and find it about as likely as Bill voting for Palin for POTUS. The problem is, as you mentioned, we have become economically intertwined and an act like that, while likely to strike a major blow to the US, will also affect their economy in a very detrimental way, ie; greatly reduced exports to their greatest consumer, the good ole USA. This in turn would throw their economy into upheaval and probably take the rest of the world with it eventually.

      World Wars seem to feed on bad economic times globally.

      Bill, I want a photo when you decide to do your “flaming hair run” :-)

  10. torqdog says:

    Rj, you wrote;
    Why does America need to borrow USDA from a private bank? Return the money printing back to the United States proper and then we are on the start of the road to recovery.

    Cheers
    Please excuse my naivete but just what are you referring to with the use of the acronym USDA? I’ve always thought of that as the United States Dept. of Agriculture.

    Thanks

  11. rjblack says:

    Sorry I call it the United States dollar Account USDA it should be USD, duh anyone have a Doughnut!

  12. rjblack says:

    I also trade money so that is my reference to my account on green backs

  13. torqdog says:

    Thanks, now it makes perfect sense. :-)

  14. Bill says:

    Randy, ANYONE who is considering voting for Sarah McWordSalad for POTUS needs to check their version of reality. Sure, sure, it sounds all fun and shit until someone gets hurt.

    • torqdog says:

      That was a joke Bill…… you know, something lighthearted to laugh at. You didn’t see the humor in that?

  15. BIll says:

    The idea of that individual getting even close to the White House grounds sends a shiver up me mast, matey. I know you weren’t being serious. Maybe when you’re puttering around in your garage, alone, and thinking of the most outrageous, ill-advised things that your mind can conjure, you think of her as POTUS, but I don’t think you do it in polite company.

    I know my most perverted and outrageous thoughts come out when I’m working on my Jeep and talking to myself and swearing and wishing I had money to pay a mechanic instead of do-it-myself, I think about things like Rush Limbaugh spontaneously bursting into flames or winning a huge, multi-million dollar lottery or just having a normal relationship with my late Dad. You know, fantasy stuff.

    • torqdog says:

      I hear ya and can only add that from my perspective, Palin would be a mistake but Biden or Pelosi would make a disaster! That’s why Obama’s safe and sound right where he’s at and I think he actually planned it that way with Biden. Definitely a smart move. ;-)

      I don’t engage in politics much outside the realm of blogging and maybe an evening dose of political TV on occasion. I definitely don’t fantasize about it. It’s too depressing! It sounds like you have a good time with it.

  16. Jane says:

    end the war

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