Monday

Best cure for a hangover; stay drunk?

Our government has banked our future on an old adage; "The best way to avoid a hangover is to stay drunk". They have extended this philosophy to government spending; "The best way to avoid a deficit is to tax and spend." Sooner or later the hangover is coming, and its gonna be a doosie.

Is anyone really surprised? Given this administrations propensity for reneging on campaign promises no one should be shocked at the following headline:

White House: No guarantee taxes won't go up

Budget deficit needs to be tamed and health reform paid for, officials say

WASHINGTON - President Barack Obama's treasury secretary on Sunday said he cannot rule out higher taxes to help tame an exploding budget deficit and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.

What they did not mention was that this administration is the primary cause of the exploding deficit. Create a problem and then solve it seems to be the mantra of the Obama administration. Of course the only tenable solution is to increase taxes. No serious consideration seems to have been given to slowing the growth of government or forgoing additional deficit busting programs such as health care and cap and trade.

As the White House sought to balance campaign rhetoric with governing, officials appeared willing to extend unemployment benefits. With former Federal Reserve Chairman Alan Greenspan saying he is "pretty sure we've already seen the bottom" of the recession, Obama aides sought to defend the economic stimulus and calm a jittery public.

Raising taxes is hardly the best solution for calming a “jittery public”. In this sluggish economy taxes hikes are sure to be the one thing that will instill even more fear into an already “gun shy” populace.

Treasury Secretary Timothy Geithner and National Economic Council Director Larry Summers both sidestepped questions on Obama's intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to lower the federal deficit; Summers said Obama's proposed health care overhaul needs funding from somewhere.

So much for the promises of no new taxes. Maybe Obama and his sycophants should study some recent history. The elder Bush learned the hard way with his “read my lips” pronouncement and it is likely Obama will be replaying that historical blunder.

"There is a lot that can happen over time," Summer said, adding that the administration believes "it is never a good idea to absolutely rule things out, no matter what."

'We have to bring those deficits down'

Here is a sure fire method of reducing deficits; stop spending!

During his presidential campaign, Obama repeatedly vowed "you will not see any of your taxes increase one single dime." But the simple reality remains that his ambitious overhaul of how Americans receive health care — promised without increasing the federal deficit — must be paid for.

"If we want an economy that's going to grow in the future, people have to understand we have to bring those deficits down. And it's going to be difficult, hard for us to do. And the path to that is through health care reform," Geithner said. "We're not at the point yet where we're going to make a judgment about what it's going to take."

That’s a rather prophetic statement “"If we want an economy that's going to grow in the future, people have to understand we have to bring those deficits down. And it's going to be difficult, hard for us to do.” That is absolutely true when they don’t even consider spending cuts as part of the solution. It seems that they should have considered the deficit before they spent like drunken sailors on shore leave. This is tantamount to getting knee walking drunk, lamenting the hangover, and then deciding to get drunk again to cure it.

Selling that proposal, however, has proved tricky

"Most private forecasters — and let's use their judgment — suggest you're going to see unemployment start to come down maybe beginning in the second half of next year,"
Geithner said, adding those same economists predict positive growth during the second half of this year.

That is unless of course they continue spending and taxing. They are more likely to stall any recovery with the crushing weight of deficit spending and tax hikes.

"I think it's pretty clear, if you pump trillions of dollars into the economy, you will see some recovery," the Arizona Republican said while giving Obama credit for the improvement. "But the long-term consequences, I think, are going to be, unfortunately, devastating unless we do something about it."

Duh!

Geithner and Greenspan appeared on ABC's "This Week." Summers appeared on NBC's "Meet the Press" and CBS's "Face the Nation." DeMint was interviewed on "Fox News Sunday." McCain spoke with CNN's "State of the Union."

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