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  • Morning Bell: A Sobering Wake Up Call

    Defending mounting job losses despite his administration’s $787 billion stimulus package, Vice President Joe Biden told ABC News George Stephanopoulos last month: “The truth is, we and everyone else misread the economy. The figures we worked off of in January were the consensus figures and most of the blue chip indexes out there.” This is just not true. Yesterday the White House released their Mid-Session Review admitting that President Barack Obama’s policies would force our nation to borrow more than $9 trillion over the next ten years.

    Commenting on the gap between the new $9 trillion number and the $7 trillion number the Office of Management and Budget used to sell President Obama’s budget to Congress, the Washington Post reports:

    The extra $1.9 trillion in red ink mainly reflects the Office of Management and Budget’s adoption of more realistic — that is, more pessimistic — estimates of economic growth and unemployment. White House officials protest that their original, rosier numbers made sense at the time; actually, plenty of forecasters, including those at the nonpartisan Congressional Budget Office, made more accurate calls. This situation was foreseeable and should have been acknowledged earlier.

    While it is good that the Obama administration is finally admitting that the fundamental assumptions driving their economic policy were wrong, the reality of our current budget deficit, and what President Obama’s policies threaten to do to our national debt over the next decade, are truly sobering. Heritage senior policy analyst Brian Riedl details the carnage:

    • Since World War II, the largest budget deficit recorded was 6.0 percent of GDP in 1983. The Bush Administration oversaw budget deficits averaging 2.0 percent of GDP. The projected 2009 budget deficit of 11.2 percent of GDP would nearly double the post-war record.
    • The 2009 budget deficit will be larger than all budget deficits from 2002 through 2007 combined. More than 43 cents of every dollar Washington spends in 2009 will have been borrowed.
    • While President Obama claims to have inherited the 2009 budget deficit, it is important to note that the estimated 2009 budget deficit has increased by $400 billion since his inauguration, and the whole point of the “stimulus” was to increase deficit spending to nearly $2 trillion based on the unproven notion that would it alleviate the recession.
    • The 22 percent spending increase projected for 2009 represents the largest government expansion since the 1952 height of the Korean War (adjusted for inflation). Federal spending is up 57 percent since 2001.
    • In 2009, Washington will spend $30,958 per household–the highest level in American history–and under President Obama’s budget, the figure will rise above $33,000 by 2019.
    • The White House brags that it will cut the deficit in half by 2013. The President does not mention that the deficit has nearly quadrupled this year. Merely cutting it in half from that bloated level would still leave budget deficits twice as high as under President Bush.
    • The public national debt–$5.8 trillion as of 2008–is projected to double by 2012 and nearly triple by 2019. Thus, America would accumulate more government debt under President Obama than under every President in American history from George Washington to George W. Bush combined.

    And now for the real kicker: none of these numbers include the costs of Obamacare which would create another $1.5 trillion health care entitlement on top of our existing unsustainable entitlement obligations. The OMB’s Mid-Session Review should serve as a wake up call to the American people. President Obama’s policies are leading us down a path of unsustainable spending and borrowing.

    There is another choice. Not all future spending is inevitable. In the 1980s and 1990s, Washington consistently spent $21,000 per household (adjusted for inflation). Simply returning to that level would balance the budget by 2012 without any tax hikes. Alternatively, returning to the $25,000 per household level (adjusted for inflation) that Washington spent before the current recession would likely balance the budget by 2019 without any tax hikes. So with very little sacrifice, and no new taxes, the government could get its budget under control and the American economy could get fully back on track in three years.  Isn’t that worth considering?

    Quick Hits:

    • Sen. Ted Kennedy (D-MA) lost his battle with cancer yesterday, and Republicans joined Democrats mourning his passing.
    • A wealthy New York investor and prominent Democratic Party fund-raiser with ties to President Obama and Hillary Rodham Clinton was indicted Tuesday on charges of bank fraud.
    • The woman arrested by Denver police on suspicion of smashing 11 windows at Colorado Democratic Party headquarters appears to be the same woman who handles the books for many other Democratic-leaning political committees and was paid $500 by the leftist Colorado Citizens Coalition for “communications” in November 2008.
    • According to the non-partisan Congressional Research Service: “Under H.R. 3200, a ‘Health Insurance Exchange’ would begin operation in 2013 and would offer private plans alongside a public option…H.R. 3200 does not contain any restrictions on noncitzens—whether legally or illegally present, or in the United States temporarily or permanently—participating in the Exchange.”
    • Discussing health care with a Wisconsin crowd, Sen. Russ Feingold (D-WI) said: “Nobody is going to bring a bill before Christmas, and maybe not even then, if this ever happens. … We’re headed in the direction of doing absolutely nothing, and I think that’s unfortunate.”
    Posted in Ongoing Priorities [slideshow_deploy]

    42 Responses to Morning Bell: A Sobering Wake Up Call

    1. NADIA CALDERON - TEX says:

      Truly it is a tragedy to loose a human life to a grave illness, however, we must not allow our emotions to dictate our decisions that would later have incalculable consequences. NO TO OBAMA'S HEALTH "REFORM". May Sen. Edward Kennedy rest in Peace!

    2. Ben C, Ann Arbor says:

      And lets not forget the "Cap and Trade" legislation that Senator Carl Levin is convinced we need to save our planet. His response to my letter reveals massive government manipulation of manufacturing to enhance federal tax revenue with "several cost-containing mechanisms that attempt to mitigate price increases to consumers and businesses throughout the united States." Will it never end?

    3. Mindy, Hoboken, NJ says:

      I appreciate that your article had data on the national debt and steps to paying it off. Could there be a website somewhere that updates our national debt and provides an explained forecast for what could happen and what the numbers mean? As a nation, we're as educated on debt as we may ever have been. Maybe explaining the debt and showing what the numbers mean and implicate for the future would be a great way for us to make better informed decisions.

    4. Ken Jarvis - Las Veg says:

      Illegals should be treated ONCE

      and TOLD = DON'T COME BACK – WE WON'T TREAT YOU AGAIN,

      AND YOU WILL BE DEPORTED.

    5. ibid, in the heartla says:

      the morning bell is called "Liberty" in Pennsylvania.

    6. HSR0601 says:

      Inaction cost, $9trillion over the next decade, can not be compared to the balance between estimate and outcome in a worst case of scenario. Time does not fix endless greed and energy depletion.

      When the public health is also one of commodity like a house, we come to a tragic and unthinkable conclusion : As to for-profit business, the more and longer ill patients get, the more profits they make, and it will debilitate the overall economy involving education for the future, not to mention continued bankruptcy of middle class.

      Of young adults ages 19 to 29, 13.2 million, or 29 percent, lacked coverage in 2007, and that implies the total of this promising reform will be cheaper than expected, I guess.

    7. Richard Cancemi, Arl says:

      Fumbling, bumbling, incompetent, arrogant, erroneously ideologic, "leaders" running our Country into the poorhouse as a way to destroy America! All for the glory of Marxist Socialism!

    8. Jake,LHC says:

      With Hassan controlling the finances of the DSCC and schummmmmmmmmer being the head dong in the Democrat party the last 4 years could we follow the money trail of schummmmmmmmmer the last 4 years or would we just get more schummmmmmmer lies?

      Just a simple question.

    9. JAY, DETROIT says:

      IS ANYONE REALLY SURPRISED BY THE MESS HE CREATED?

    10. Beverly J. Bauer - E says:

      President Obama is into barely the 8th month of his presidency. It is quite obvious to many of us that he clearly is not up to the task on so many levels. Meanwhile, this country is morphing into something more than a few of it's citizens don't even recognize any more. If Obamacare is implemented in any way, shape, form or manner it will be devastating. Do we have any recourse if it is voted in? We cannot take 4 and possibly 8 years of Mr. Obama. I think many members of congress need to go as well and I'm not totally convinced our votes won't be disenfranchised in the upcoming elections if we try to get these people out of office. The only other solution that comes to mind is secession. One country for those who choose to live under the laws of the constitution and one for those who do not. Drastic times call for drastic measures. Sadly, if you dare disagree with the Obama administration you are labeled a bigot and a racist. This country is very divided right now, more than I can ever recall in my lifetime and "divided we fall".

    11. bsween florida says:

      Oh miller what have they done to our country!

    12. Mayra Bato says:

      The Democrats most essential power source: an expanding DEPENDENCY CLASS! The middle class in the poor house, all of the illegals are part of the power base for future elections. Since when can the word ILLEGAL be interpreted as one sees fit?

      America has never been a democracy by plebiscite where a leader is anointed, then the populace steps out of the way, and the Anointed One puts his political program in place. The leaders (that is another joke!) are not infallible or a breed apart. That only works in Third World countries. Chavez and Castro are laughing themselves silly watching how quickly Obama wants to flush this country down the socialist-progressive-marxist toilet.

      Americans, let your voices be heard. Participate and fight for your freedom before it is too late!!!

      It is already public knowledge that this administration has radicals/communist/marxists in place who do not believe in Capitalism and individual freedom at every level for every citizen. Their goal is massive redistribution of wealth so we can all be equally poor EXCEPT THE RULING CLASS.

      Participate! Get involved or take the very real chance that your voice and the voice of generations to come will be silenced in the near future.

    13. Dr. Dennis Northcutt says:

      Now that Kennady is gone this will leave a open office that could be replaced with a more conservative leader than what he was. This should be an elected position and and not a selected office also. My mother would turn over in her grave to see the Govermnents socialist takeover as it has been shown as of late undeer the leadership Of BHO.

      Im proud to be an American Only and continue to have free speech no matter what ACLU or AARP argues the point. It is a fearful thing to fall into the hands of an angry GOD. Stand up America and defeat the illegal takeover and resist the illegals entering in America with the intent to remove the American way for their way of lies, deciet, fraud and not speekeing english the language ot the Nation period.

    14. Jack Ardmore, AL says:

      I would like to ask you a small favor… Please discontinue the use of the term Trillion as like most people, I cannot wrap my mind around that large a figure. Would you please replace it with 1,000 Billion? People understand a billion is 1,000 million and would be more able to relate to the actual size of the amount of money we are talking about.

      Thanks,

      Jack

      Ardmore, AL

    15. jim toledo says:

      Again a deluge of facts; so, with all of this information, isn't it amazing that people still believe in this health care reform and because of all the white lies, half truths and down right big lies told by Obama and his administration, how we can we ever believe anything they say? The budget numbers were wrong and, oh by the way, we were off by about 2 Trillion. We'll probably hit about 9.7% unemployment in 2010, it wasn't supposed to go above 8%, remember they passed the stimulus. I've got a headache and now they tell me I can't get an asprin until the White House ok's it.

    16. Michael - New York N says:

      The only thing transparent about this administration is the deception, lies, dishonesty, skulldrugery, falsehoods, they spread about honest American Patriots, yet it is they who use the office of the attorney general to rip apart agencies such as the CIA, and have our brave warriors read Miranda warnings to our emenies. Eric Holder you all may recall was the saame AG that pleaded to Bill Clinton and won the pardon for Marc Rich, the biggest scammer prior to Bernie. Nice going Obama, pardon crooks and imprison american heros. Giving comfort to the emeny is treason, is it not! Impeach these guys.

    17. Mary....Lodi, WI says:

      Clearly, Obama and his administration have one main goal which is to RUIN the United States of America. What do we do if this horrid healthcare bill passes?! Will there be a revolution? Attempting to vote these treasonists out of office will be impossible because of ACORN!

      Do we wait until China calls in their loans and possibly be taken over or maybe go to war? Where do we go from here?! Anyone have suggestions?

    18. Redding, California says:

      What happened to "Of the People, by the People and For the People, shall not perish from the earth"? I have seen many presidentss, both Democrat and Republican, Some good and some not so good. But, I have never seen the likes of Messiah who now lives in the White House. His fast track to Socialism is overwhelming and I pray each night that many, mnay people all over the country are standing up to this self-serving president. I am 77 years old and have lived a modest but, very good life. What concerns me most, is what kind of country (once the best in the world), will my grandchildren and great-grandchildren will be subject to as peons of the government. Thats what destroyed Russia. It started out as Socialists and ended up Communists, with the government monitoring when, what and how you can conduct your life. I pray God takes me before I experience that disaster.

    19. Pingback: » Financial News Update - 08/26/09 NoisyRoom.net: Where liberty dwells, there is my country…

    20. Ron Derry NH says:

      It is only a sobering wake up call if you were drunk with the cool aide believing one can spend yourself out of a hole and believe the fantasy of Marxist preaching.

      George Bush inherited as much of a problem when he entered office, got dealt 911 while still fighting Congress to get a cabinet to function and I never heard him whine or cry about inheriting that from some other administration.

      It is not sobering up to discover an immature, blame shifting, inexperienced tax and spend radical leftist is in the White house; it is darn near ignorant to have taken so long to recognize Obama for what he is.

      This is his economy and the result of Obama's actions at this point of th economic year; we are either going to fix the errors of that same legislator that victimized GW or we are going to be lied to by the same fascist frauds who now have a president willing to shift blame rather than curtail Congress from destroying our country.

      Obama has got to get off his fantasy trip of becoming the great Marxist destroyer of free enterprise and reel in the congressional stooges that got us here in th first place.

      If his ego-maniacal desire to overturn the entire system so he and his cronies can rule America as a religious enclave of socialist indoctrinated totalitarian goons, then we are sunk as a nation and this is just the beginning of the depravity, by blaming others for what this congress and president have done.

      As sure as any tin pot dictator before him has done by destroying the spirit of success of his people by strapping them to the yoke of government mandated programs designed around debt and servitude, insuring political coercion through all means of survival and attacking his predecessors to gain position over a situation.

      Obama will prove his lack of leadership over free people by choosing agenda over protecting the economic advancement of free enterprise in favor of servitude to the Federal government; that he has shown. The sobering up will be too late as the press is too in love with socialism to defy it and too mesmerized by Obama to appose his Communistic tendencies.

    21. Fred Oak Park Mi says:

      The reason unemployment will remain high , is employers are afraid to add employees , because we are terrified of what mandates Obama will place on us . He and most of the congress have never run a business , and think we will just ' go along ' with what ever they come up with … WRONG . Actually , it's a good time to get rid of the slackers………

    22. Harry, Illinois says:

      I been be watching these town hall meetings with all of these "Mobsters" and "Unpatriotic Americans" etc. that we have so conveniently been labeled, and the one question being asked during the course of these debates, is "will our representatives join the plan", which most have been reluctant to answer, or have side stepped the question all together by taking another question.

      One Congressman yesterday at one of the town hall meetings was asked if he would join the plan and he replied "yes". Of course he can repond with a yes answer since he knows that according one of the chief architect of this plan, Mr. Ted Kennedy, and I quote to the best of my recollection is "they are not permitted to be a part of the plan". Gee, I wonder why? If he was such a champion of the people, why can't they be included? Also; why didn't he jump at the opportunity when Mr. Nixon was president?

      The question that should be asked, is will they include in HR3200 or whatever plan that is finally decided upon, a line item that the plan IS TO INCLUDE the President and ALL government employees, representatives and their families.

      Lets not take our eye off the ball. The Democrates are going to pull out all the stops to enact this bill at any cost with little or no exposure to them.

    23. Whicket Williams Kin says:

      Follow the money get constitutional lawyers involved they are looting the country impeach first the prosecute. Attempt to recoup as much as possible, use it to pay down the debt. If we don't, bead will be 100 dollars a loaf by the time he is voted out.

    24. jay pister says:

      While we are in this greatest of all of our struggles for the security and survival of our nation, it is refreshing to see a web-site newspaper that has the Reagan style approach to providing answers to the questions of what is ailing the nation.

      Your writings and the focus of the subject matter are in excellent taste…

      This band of crooks, thugs, and criminal co-horts… partners in crime and their relatives and political inside back scratchers that are threatening to take over our most precious liberties and turn the nation into a socialist haven can be defeated….and insights like yours are playing an invaluable role …in waking up the nation to the threat ….

      thank you,

      jay Pister

    25. Pingback: It is the economy, stupid « GOODNESS WORLD LIFE BLOG

    26. Jerry S. Dickinson, says:

      I am no economist, but it seems to me that China needs us more than we need them. If China is to sustain it's growth it must maintain exports. The current situation makes it appear that China is willing to take money out of one pocket and put it in the other.A condition similsr to what we were sold on the Bank and Auto industry, To Big To Fail.

      As far as non-citizens and Healthcare, You cannot deny care to another person. You can apply a large dose of logic. Address the condition, stabilize, and transport to their country of origin. Should same return for care or free trip home, Diagnose, stabilize, incarcerate in group holding facilities, mass transport. Hopefully by then we will have a Leader for this country and the border will be sealed. Pray for a leader, get rid of the cheater. Obamabiden if left to their own devices will crash this train, just a question of when.

    27. John E. Walters, Hou says:

      Today's Morning Bell seems to suggest that the bill HR3200 allows for illegal aliens. Does that mean that Section 246 has been removed?

    28. Don Broome, Cumming, says:

      Mary of Lodi, WI is on to something. Key word – ACORN!. Better yet, check out the Tides Foundation, and maybe get a better handle on the real authors of the Stimulus program and the health care fiasco. Most revealing? Obama's concession to the possibility of a "one term presidency". Why not? At the present pace, all his planned damage to our Republic will have been put intom play. My suggestion – if we are as unhappy as we say, we must work like h… to sweep outm of office all who do not, by their actions, represent you and me. If we don't, then, by God, we deserve what awaits us.

    29. Don Broome, Cumming, says:

      Mary of Lodi, WI is on to something. Key word – ACORN!. Better yet, check out the Tides Foundation, and maybe get a better handle on the real authors of the Stimulus program and the health care fiasco. Most revealing? Obama's concession to the possibility of a "one term presidency". Why not? At the present pace, all his planned damage to our Republic will have been put into play. My suggestion – if we are as unhappy as we say, we must work vigorously to sweep out of office all who do not, by their actions, represent you and me. If we don't, then we deserve what awaits us.

    30. Lynn B. DeSpain says:

      It may not be a solution, but a beginning would be to send all Illegals home! Currently Las Vegas spends $250 million a year on just 80 dialysis illegals. Just the amount Obama wanted to save having the Veterans pay for their own health insurance. Secondly we need to tap our own oil, natural gas and coal and refine it right here on U.S. soil, and I don't care if it is in a National reserve or not. Three, we need send no more aid to any country anywhere in the world at this time, until we heal from our own wounds. It is the height of stupidity to donate blood while hemorrhaging! Four, nationwide workfare instead of welfare, with the same rules as the Private sector. School or work, proof of attendance, or no money. Drug testing, or no money.

      Five. The Federal Government has taken it upon themselves to enter and regulate 'Private Free Enterprise', that which this Nation is founded upon, so therefore, we, the States, shall call forth a Continental Congress. The first duty is to regulate the salaries and benefits of Representatives and Senators, and Presidents. We should start by cutting all salaries in half, and having those same people under the same medical benefits as those of the people they represent. They should also retire under our current Social Security System, and averaged with the additional retirement as those who they represent.

      Hozro

    31. ella,n.c. says:

      The democrats, are trying to slience conservative talk radio.If we let this happen they are really in control then. It is bad enough already.I have had enough of it.Dick Cheney, Rush L, Sean H, Glen B,laura Ingram, and many more are speaking out.Lets keep on going to town hall meetings tea parties, and talking to everyone we can to stop this.Write your congressman,senators.Donot give up.They donot have enough common sense to defeat us.

    32. Christopher Popham S says:

      The socialistic mode in which we currently find

      ourselves is without doubt the epitome of what I call revenge politics. The Dems. have been waiting

      to incorporate and legislate this once great nation

      into a diabolical form of socialism since they

      gained control of the House in 2006.

      On so many fronts, if we as citizens do not stand up

      and proclaim "enough is enough", then we deny ourselves, our progeny and America the dignity,

      security and prosperity to which we are all entitled. Indeed, May God Bless America.

    33. Pingback: Sen. Edward Kennedy’s death, like Michael Jackson’s, leaves the media in a tizzy over his life’s work «

    34. James Frazee, Arkans says:

      America needs to wake up to the Liberal Left's agenda and remove every member of Congress that supports this runaway irresponsible spending. Join a Tea Party, get active, be involved, after all it's our KIDS future we talking about.

      No one is entitled to a FREE ride. I'm tired of working and paying ever increasing TAXES so deadbeats can sit at home an watch TV and beat their kids.

      Stand up and be counted America.

    35. Larry Laibson, Roswe says:

      There is a viable alternative, H.R 3400, to Obama's Government run health Care Plan in the House, H.R. 3200. The former, introduced July 30 by Representative Tom Price and numerous others needs to get coverage from the Press and Media to identify the alternative options that retain personal choice while including Tort Reform and increasing availability.

      I implore The Heritage Foundation to analyze and report or H.R. 3400 so that more Americans realize that there are viable options to Health Care Reform other than the travesty being discussed by the Obama Administration.

      Thank you for your consideration.

    36. Martin Grand junctio says:

      A not so simple, but possible solution to healthcare for illegals. Total up the cost and send the bill to the Mexican government. If they don't pay, simply deduct for any money we owe in trade payments.

    37. Harry, Illinois says:

      Boy, the hypocricy never stops when it comes to the Democrates. They will champion Ted Kennedy's last wishes as an excuse to pass National Disaster Care. The country is in so much red ink and yet they only think of their agenda no matter what the cost. Talk about being un-patriotic. They are not doing any favors to those currently without health insurance by passing a monumental task such as this which we cannot presently afford. Lets get out fiscal house in order first. Remember, the Chinese are watching. Lets hope they don't call in the IOU's.

    38. mackp says:

      Mr. Obamas change that the far left wanted so bad is here. This is the change he has bought to the people.

      C for Corruption

      H for Hypocrisy

      A for Antagnism or Attacks on the Americans

      N for Non-Partisanhip

      G for Government Control

      E for Extremism or Economic Distruction

      Thats the only change he has bought to Us.

      Semper Fi USMC

    39. Pingback: Borrow and Spend: « Outpost 54 – "The TRUTH Shall Set You Free"

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    41. Speed,Indiana says:

      What is being done to trace the need and purpose of the funds for the "Private and equally equiped

      army" that Obama thinks he needs? I fail to see the call to arms that he does unless it is to control the citizens. Why hasn't the media done

      more to investigate this? This issue is the most important issue before us.

    42. dikesonesh says:

      responsible energy middle 2008 relates

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