Monday, August 8, 2011

Obama and Leadership, vote today

Why has Obama been such a disappointment? 

 Obama "is simply not up to the task" of being our president.  Perhaps his supporters who were so dazzled by his campaign speeches should have noticed "some disquieting aspects of his biography."  Among those disquieting aspects: "that he had accomplished very little before he ran for president, having never run a business or a state; that he had a singularly unremarkable career as a law professor, publishing nothing in 12 years at the University of Chicago other than an autobiography; and that, before joining the United States Senate, he had voted 'present' (instead of 'yea' or 'nay') 130 times, sometimes dodging difficult issues.

The Obama administration has made history by presiding over the first-ever downgrade in the U.S. credit rating. President Obama has outdone all his predecessors in wrecking America’s good name. His answer to this problem: Spend even more.

Raising the debt ceiling was sold as a way of guaranteeing the U.S. credit rating. It had the opposite effect, which makes sense to anyone who understands credit. Take a family with a median household income around $50,000. If they spend $85,000 a year and have debt at $300,000 and growing, it’d be foolish to let them borrow more because they don’t have the income to pay it back. Raising the debt ceiling ignored this reality. Then, the Obama administration immediately demonstrated its utter lack of creditworthiness by blowing 60 percent of the initial $400 billion increase in one day, the largest single-day accumulation of debt in U.S. history.

The White House blames the George W. Bush administration for every economic woe, but the numbers speak for themselves. In 2008, the federal budget deficit was around 3 percent of gross domestic product. In 2011, it’s around 11 percent. Total federal debt was $10.7 trillion at the end of 2008 and is currently $14.6 trillion. Debt as a percentage of GDP was a painful 69 percent at the end of the Bush years, but Mr. Obama is pushing it over 100 percent, another disgraceful historic milestone.
The United States is no longer considered among the safest financial risks in the world after Standard & Poors downgraded the U.S. credit rating, but the head of the team that made the change says entitlement reform would go a long way to restoring the country's status.

S&P says that spending on entitlements will persistently drag U.S. debt further into the red.

"The key thing is, yes, entitlement reform is important because entitlements are the biggest component of spending, and the part of spending where the cost pressures are greatest," The S&P said.

S&P remarked that the agreement last week to reduce the nation's debt by at least $2.1 trillion over the next 10 years "fell well short" of comprehensive reforms that some had advocated. It added that it foresees the select congressional committee to be organized to find additional savings will likely avoid raising taxes or doing any significant entitlement reform.

This down grade is the Obama administration fault, no one else’s!

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