The Sugar Daddy Has Run Out of Sugar; Now We Need New Leaders

Barack Obama’s big government policies continue to fail. He should put a link to the national debt clock on his BlackBerry. The gears on that clock have nearly exploded during his administration. Yesterday’s terrible job numbers should not be a surprise because it all goes back to our debt. Our dangerously unsustainable debt is wiping out our jobs, crippling our economic growth, and jeopardizing our position in the global economy as the leader of the free world.

As a governor, I had to deal with facts, even unpleasant ones. I dealt with the world as it is, not as I wished it to be. The “elite” political class in this country with their heads in the sand had better face some unpleasant facts about the world as it is. They’ve run out of money and no amount of accounting gimmicks or happy talk will change this reality. Those of us who live in the real world could see this day coming.

Back in January 2009, as governor of Alaska, I announced: “We also have to be mindful about the effect of the stimulus package on the national debt and the future economic health of the country. We won’t achieve long-term stability if we continue borrowing massive sums from foreign countries and remain dependent on foreign sources of oil and gas.” Then I urged President Obama to veto the stimulus bill because it was loaded with absolutely useless pork and unfunded mandates. Everyone knows my early and vocal opposition to that mother of all unfunded mandates known as Obamacare starting back in August 2009, and many recall my objections to the Federal Reserves’ inflationary games with our currency known as QE2 from November 2010. It’s a matter of public record that I did not go to Harvard Law School, but I can add.

The same “experts” who got us into this mess are now telling us that the only way out of our debt crisis is to “increase revenue,” but not by creating more jobs and therefore a larger tax base; no, they want to “increase revenue” by raising taxes on job creators who are taxed enough already! As Margaret Thatcher said, “The trouble with socialism is that eventually you run out of other people’s money.” That’s where we are now. Hard working taxpayers have been big government’s Sugar Daddy for far too long, and now we’re out of sugar. We don’t want big government, we can’t afford it, and we are unwilling to pay for it.

This debt ceiling debate is the perfect time to do what must be done. We must cut. Yes, I’m for a balanced budget amendment and for enforceable spending caps. But first and foremost we must cut spending, not “strike a deal” that allows politicians to raise more debt! See, Washington is addicted to OPM – Other People’s Money. And like any junkie, they will lie, steal, and cheat to fund their addiction. We must cut them off and cut government down to size.

To paraphrase Hemingway, people go broke slowly and then all at once. We’ve been slowly going broke for years, but now it’s happening all at once as the world’s capital markets are demanding action from us, yet Obama assumes we’ll just go borrow another cup of sugar from some increasingly impatient neighbor. We cannot knock on anyone’s door anymore. And we don’t have any time to wait for Washington to start behaving responsibly. We’ll be Greece before these D.C. politicians’ false promises are over. We must force government to live within its means, just as every business and household does.

We can’t close our $1.5 trillion deficit overnight, but we must get as close as we can as soon as we can. Little nibbles here and there over 10 years (spun to sound like they’re huge budget cuts) aren’t anywhere near enough. I know from experience that cutting government spending isn’t easy. As governor, I made the largest veto cuts in my state’s history, and I didn’t make many friends doing it. But we will never recover, we will never get free of devastating debt, unless we make tough choices now. We don’t hear talk like this from leaders in D.C. or from those running for office because they say what they think we want to hear rather than what must be said.

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‘Cut it or Shut it!’: Tea Party Says No to Budget Compromise at DC Rally Today

Jenny Beth Martin looked out on the rain-dampened crowd along Constitution Avenue and pointed over her shoulder at the Capitol.

“They heard us, but they’re not listening!” Martin, a tea party leader, told members of the movement that helped put Republicans in charge of the House last November.

The crowd booed.

Four months after the historic election, the populist force that helped drive Republicans to power is finding that its clout on Capitol Hill isn’t automatic.

What brings you out today, one tea party member was asked. “Saving our country, obviously.”

Sensitive talks over how many billions of dollars to cut from this year‘s federal budget have strayed far below the Republicans’ campaign promise to slash $100 billion. Rather than standing firm and allowing parts of the government to shut down until enough lawmakers came around, House Speaker John Boehner was doing exactly what the tea partiers thought they had elected Republicans to avoid: negotiating with President Barack Obama and Senate Democrats over spending cuts.

“Cut it or shut it!” chanted the crowd outside the Capitol on Thursday.

“I’m not talking about $5 billion or $6 billion or $10 billion. I’m talking about $100 billion,” said one tea party activist (seen in the picture above), speaking of the budget cuts. According to the AP, $10 billion has been cut so far.

Among those not balking were some of the 87 freshmen Republicans, who more than anyone in the House owe their seats to the tea party juggernaut.

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Tea Party Movement Growing Weary of GOP Budget Plan

As U.S. lawmakers seek a compromise on how much federal spending to cut in order to avoid a government shutdown, Tea Party activists who helped propel Republicans back into power are growing impatient with the debate.

When Republicans captured the House in November, vowing to slash $100 billion in federal spending from the budget year ending in September, 76 percent of Tea Party activists supported their deficit-reduction plan, according to a new Pew Research poll released last week.

But after House Republicans approved a plan last month to cut federal spending by $61 billion, that Tea Party support fell to 52 percent.

Now Tea Party Nation founder Judson Phillips, arguably the most vocal critic of GOP leaders, is pushing for a primary opponent against House Speaker John Boehner in 2012 for breaking his campaign pledge to cut $100 billion and for what he sees as hints that he’s willing to cut less than $61 billion in a compromise with Senate Democrats.

“Charlie Sheen is now making more sense than John Boehner,” Phillips wrote in his blog earlier this month.

In an interview with FoxNews.com Thursday, Phillips said he stands by his comments and goal of seeking a primary challenger to Boehner.

“Charlie Sheen still makes more sense than John Boehner because at least Charlie Sheen is winning,” he said.

“This is the one message the Tea Party needs to be out there pushing,” he said. “If you don’t live up to your promise, we’re going to throw you out.”

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Revolution is Here

How delicious is irony, how fickle fate?

Just a little more than two years ago, liberals were ecstatic about Barack Obama’s election and Democrats’ control of Congress. Liberal pundits were all atwitter about the brand new Democratic Era that voters had ushered in. America would finally become what America should have been years ago: a European-style social democracy.

Boy, did Democrats misread their mandate! With very little hindsight needed, it’s apparent to all but ideologically-blinkered liberals that the Democrats’ gross overreach isn’t what voters wanted or expected. Voters wanted a redo of the Clinton years. Instead, in the person of Barack Obama, voters got an amalgam of FDR and LBJ with a dash of Neville Chamberlin thrown in.

But here’s the real kicker. Two years of Obama-Reid-Pelosi overreach and excesses may have been the table-setter for the real revolution now unfolding. Voters and taxpayers first needed to see the irresponsibility and recklessness of unalloyed liberalism to appreciate that conservative government is far superior. Thank you, Barack Obama, Nancy Pelosi, and Harry Reid.

Of course, the real revolution began last year with the 2010 midterm elections. Yes, the GOP made the largest gains in U.S. House seats since 1948. But the underappreciated story is that the GOP racked up huge gains in state legislative contests, and further down ballot, Republicans swept plenty of local offices. State legislatures control congressional redistricting. Republicans now dominate enough key statehouses to lock-in GOP congressional electoral advantages for a decade.

Had voters limited their ballots to throwing out the rascals in Congress, a fair argument could be made that 2010 was just a protest vote — an attempt by voters to shake up the Democrats. But when voters drill down to change party control of legislatures, city halls, and county commissions, you can bet that they’re thoroughly repudiating the party in power. The 2010 repudiation of Democrats was a clear expression of what voters did and didn’t want from government.

Move now to the present time. Republicans are on the march in Congress. Late last week, House Republicans passed a budget bill containing $61 billion in cuts. It’s not the $100 billion that conservatives aimed for, but it’s substantial and can be considered a down payment. The House Republican proposal now goes to the Senate. The budget process wrangling is just in its first phase. Moving forward, the GOP will have multiple opportunities to push more cuts.

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America is Flat Broke

The daunting tower of national, state and local debt in the United States will reach a level this year unmatched just after World War II and already exceeds the size of the entire economy, according to government estimates.

But any similarity between 1946 and now ends there. The U.S. debt levels tumbled in the years after World War II, but today they are still climbing and even deep cuts in spending won’t completely change that for several years.

As President Obama and Republicans squabble over whose programs to cut and which taxes to raise, slow growth and a rising tide of interest payments – largely beyond their control – are making the job of fixing the budget much harder than in the past. Statehouses and governors face similar challenges.

After World War II, the federal debt – including debt purchased by the Social Security Trust Fund – hit nearly 122 percent of gross domestic product. State and municipal debt back then was minimal. By the time Dwight Eisenhower was elected president six years later, the federal government’s debt had dipped to about three-fourths of GDP.

The key factor in the rapid drop in government debt, said Harvard University economist Kenneth Rogoff, was fast economic growth. Spurred by a young labor force, world-leading manufacturers, high personal savings rates, a pent-up demand for consumer goods after years of war and the Depression, and a bout of inflation, the economy grew 57 percent in six years. Thanks to sharp postwar cuts in defense outlays, federal government spending also tumbled for a couple of years.

But today the U.S. economy is in a polar opposite condition. The labor force is aging, U.S. manufacturing often lags behind Asian and European rivals, households are in hock up to their eyeballs, and consumer appetite for goods is tepid. In addition, inflation is tame and government spending locked into entitlement programs and debt service that will be hard or impossible to alter.

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Debt now equals total U.S. economy

President Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy, and will jump to nearly than $21 trillion in five years’ time.

Amid the other staggering numbers in the budget Mr. Obama sent to Congress on Monday, the debt stands out — both because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.

Mr. Obama‘s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.

In one often-cited study, two economists have argued that when gross debt passes 90 percent it hinders overall economic growth.

The president’s budget said debt as a percentage of GDP will top out at 106 percent in 2013, but only if the economy booms.

“I still don’t see a sense of urgency from the president about the massive federal debt,” said Sen. Lamar Alexander, Tennessee Republican. “His budget calls for too much government borrowing – even though the debt is already at a level that makes it harder to create private-sector jobs.”

Speaking on MSNBC on Monday, Jacob “Jack” Lew, the White House budget director, said their long-term plan to lower deficits will stabilize the debt.

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U.S. posts 19th straight monthly budget deficit/More Debt by the Day

(Reuters) – The United States posted an $82.69 billion deficit in April, nearly four times the $20.91 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on Wednesday.

It was more than twice the $40-billion deficit that Wall Street economists surveyed by Reuters had forecast and was striking since April marks the filing deadline for individual income taxes that are the main source of government revenue.

Department officials said that in prior years, there was a surplus during April in 43 out of the past 56 years.

The government has now posted 19 consecutive monthly budget deficits, the longest string of shortfalls on record.

For the first seven months of fiscal 2010, which ends September 30, the cumulative budget deficit totals $799.68 billion, down slightly from $802.3 billion in the comparable period of fiscal 2009.

Outlays during April rose to $327.96 billion from $218.75 billion in March and were up from $287.11 billion in April 2009. It was a record level of outlays for an April.

Department officials noted there were five Fridays in April this year, which helped account for higher outlays since most tax refunds are issued on that day.

But for the first seven months of the fiscal year, outlays fell to $1.99 trillion from $2.06 trillion in the comparable period of fiscal 2009, partly because of repayments by banks of bailout funds they received during the financial crisis.

Receipts in April — mostly from income taxes — were $245.27 billion, up from $153.36 billion in March but lower than the $266.21 billion taken in during April 2009.

Receipts from individuals, who faced an April 15 filing deadline for paying 2009 taxes, fell to $107.31 billion from $137.67 billion in April 2009.

The U.S. full-year deficit this year is projected at $1.5 trillion on top of a $1.4 trillion shortfall last year.

White House budget director Peter Orszag told Reuters Insider in an interview on Wednesday that the United States must tackle its deficits quickly to avoid the kind of debt crisis that hit Greece.

(Reporting by Glenn Somerville, Editing by Diane Craft)