Did You Get Your GAO Christmas Report Card?

It is my humble opinion that Barack Hussein Obama knows that he will not be elected in 2012.  That gives him about 12 months to implement his agenda.  It is clear this agenda has one major goal:  TO TAKE THE UNITED STATE AS WE KNOW IT, TO ITS KNEES (he calls in REFORM).  The Obama destruction plan has several components:

1.  Economics (Continued deficit spending, increased regulations and industry takeovers, and higher taxes where possible)
2.  Executive Orders (Using Obama's agencies to implement policy in lieu of passing legislation)
3.  Presidential Side Letters (A way to get around any congressional legislation that doesn't further his agenda)
4.  Foreign Policy (Withdrawing as the leader of the free world, playing footsie with all enemy states of the US while dismantling the military with budget cuts and social experiments)
5.  Using the Obama Justice Department to harrass Red states while increasing voter fraud everywhere possible

As much as I hate to bog blog readers with numbers it seems democracies don't work so well without informed citizens.  To really understand what devious politicians do requires delving into the detail.  Politicians on both sides of the isle go to great lengths to hide ugly facts from the American voter.  Today's posting exposes the size of our country's true financial challenge.  The next posting will tell the truth about Social Security.

Time and again we read that our federal debt has surpassed the Gross Domestic Product.  Put simply this means our country could not pay its debts if it confiscated (taxed) all goods and services produced by the country in one full year and applied all of that revenue to the deficit.  Put another way if the government spent no more than it received in revenues (you know like a balanced budget), and it put a 10% surtax on all goods and services, it would take about 9 years to pay off our debt at the current growth rate of the country.  Scary, right?  But this isn't half the sad story.  In fact, it is only about 1/3 of the story.

Releasing information on the Friday before a big holiday is a time-tested way to bury bad news. So when the Government Accountability Office’s fiscal 2011 financial statements for the federal government were released on the Friday before Christmas, you knew there must be some big time bad news.  Not only has the government created a deficit of over $15 Trillion, it has made promises way beyond that number.  Pesky little promises like Medicare, Medicaid, Social Security, and pensions.

In 2011, the cost of these promises grew from $30.9 trillion to $33.8 trillion. To put that in context, consider that the total value of companies traded on U.S. stock markets is $13.1 trillion.  Or the value of the equity in all U.S. taxpayers’ homes, according to Freddie Mac, is $6.2 trillion. Said another way, there just ain't enough wealth in America to meet these promises.  NOT EVEN IF OBAMA CAN GET THE MILLIONAIRES PAY THEIR FAIR SHARE!!

If the government followed corporate accounting rules (imagine that) , it would add the promises to the cash deficit and the real deficit would be $4.2 Trillion last year.  A huge number when you realize that total federal income from taxes and fees is "only" $2.5 Trillion in 2011.  In other words our spending and promised spending exceeds our tax revenues by almost a factor of 3.

For we common folks  if your family made $50 thousand in 2011, and spent and made promises like the federal government, it would create debt of $84 thousand over and above your income.  That's trouble!!  AND OBAMA AND THE DEMS SAY THEY JUST HAVEN'T SPENT ENOUGH TO GET US OUT OF THIS ECONOMIC DOWNTURN.  LET'S JUST KEEP SPENDING UNTIL THE ECONOMY GETS BETTER, AND THEN WE CAN ADDRESS THE DEBT ISSUES (maybe after the election in 2012?).

The Libs say the greatest threat to our country isn't radical muslims developing nukes nor communists dictators with nukes nor financial bankruptcy driven by an entitlement state but RADICAL TEA PARTIERS.  Radical in that they want a smaller federal government that spends less and with less government control over private enterprises so they can commit more resources to building an American economy that can reduce their children's debt (the only way to get out of this mess is less spending, less regulations, and economic growth rates exceeding 4% a year).  Nothing threatens the ruling elite's power more than the Tea Party's radical concept that originated with the original radicals that founded this country.  Evil and stupid guys like Washington, Jefferson, Madison, and Adams (you know old rich white guys with slaves).  These leaders just didn't have the good of the people in their hearts like these nice and brilliant guys FDR, LBJ, Teddy Kennedy, Jimmy Carter, and Obama/Reid/Pelosi. 

It is time for Americans to pick sides, NOT COMPROMISE.  A compromise between brilliance (Jefferson) and stupidity (Obama) is just plain old fashioned dumb (Reid).

Think about it,

Jim