The Gospel Truth

An American Crucible | February 18, 2011

There has been no other time in recent American history that has deserved the appellation of American crucible.

A perfect storm of economic, political and international forces has descended on the nation when it has been at its most vulnerable since 1941.

House Republican Leaders Unveil New Health Care Ad

Can they stop the storm?

And unfortunately the man in the White House has the presidential stature of a James Buchanan or a Jimmy Carter.

By that I mean, weak, unfocused and without a clue as what to do as the leader of the once free world.

A Middle East that is a tinder box of militant Islam notwithstanding, the most compelling issues have been economic.

The president seems to have slept through the past presidential election, when his party suffered one of the most devastating defeats in American political history.

If his recent proposed budget is any indication, his economic expertise was fostered in some Eastern Marxist school of self-destruction.

After three years of historic deficits that added $4.5 trillion to the national debt  the hope was that this reform-minded president had seen the light and was prepared to seriously address the nation’s serious fiscal short-comings.

While the president has been practicing the talk in front of his legendary tele-prompter, his walk was caught on a treadmill of incompetency.

The White House budget–and don’t forget this budget is merely his suggestion because according to the Constitution, all revenue bills must begin in the House–is spilling over with an addition $1.645 trillion in new debt. for 2011, due mainly to Obama’s new surge in spending, which will absorb 25.3% of the GDP.

According to the Wall Street Journal this amounts to more spending in any year since 1945.

Federal debt held by the public–the kind we have to pay back–projects to be at 75.1% of GDP in 2012, which is the highest since 1951.

According to the WSJ in 2007 it stood at roughly half this amount.

I think the president’s ability to accumulate enormous debt proves that his government retail therapy is about to overdose on steroids.

Although the White House trumpets an alleged $2.18 trillion in deficit reduction over the next 10 years, the actual savings are so far out in the future that they appear as a dot on the horizon.

More than 95% of Obama’s alleged savings will occur months after his first term is over and about 65% after 2016.

The WSJ calls this Budget Flim-flam 101.

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Professor Flim-Flam

His budget ignores every recommendation of his own deficit commission.

Its Democratic co-chairman, Erskine Bowles said recently that this budgets goes nowhere near where they will have to go to resolve our fiscal nightmare.

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Worried about our fiscal nightmare

The Obama budget does not cut a red cent from the deficit in the remaining seven months of the current fiscal year.

As for the country’s largest expenditures Medicare, Medicaid and Social Security–the so-called third rails of politics, which account for about 60% of our total budget expenditures, the proposed savings are close to zero.

And if the past is any prologue for the future, I will bet on their never materializing.

Of course Mr. Obama is much smarter than his public performances indicate.

He is a seasoned politician who knows more about getting elected than governing.

His vain attempt at reform and his failed leadership masks the stark reality that all the hard decisions of actual fiscal reform will be left to the House leadership.

They are the ones who will have to clean up Obama’s mess and in the course of their real reform, they might make certain he will win a second term.

Many of the programs that will have to be cut are kin to large groups of vested interests, each with its own team of lobbyists.

As the movie said years ago, there will be blood and it is more than likely it will be Republican blood.

Republican blood in 2012?

The budget plan now emerging from House Republicans projects $80 billion in cuts immediately and $280 billion over three years, some 20x’s Obama’s plan.

And Obama’s budgets rests on the seriously faulty pillars of a projected 4% rate in annual economic growth, which is far more robust than anything his recovery has produced so far.

His economic projections have as much validity as random numbers tacked to a wall by darts.

His budget also includes more of his favorite things–new taxes.

This poor excuse for economic leadership and control includes almost $300 billion in new taxes on the usual suspects— energy companies, multinationals, and banks,

I wonder how this will affect his 4% annual growth projections.

The sad fact that makes this such a scary situation is that for the last 40-50 years, the nation has changed from one of hard work and responsibility to one of rights and entitlements–often at the expense of the next two or three generations.

As President Obama stealthily waits in ambush, the Republicans’ mettle will be severely tested these next 18 months.

The good news according to WSJ is that most American people want a president who will lead them.

Obama’s abject and cynical failure to heed the warnings of 2010 may help Republicans make their case in 2012.

If they don’t, no one else will!

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9 Comments »

  1. I agree with you 100%. Obama knows exactly what he is doing . He was elected to bring down our country and is being successful in that endeavor. Bankrupt us, cause a riot in the streets and replace our system with the muslim brotherhood down the road. He is like a bulldozer and just running wild . Nothing stops him. I am amazed at that . Hopefully God will intervene if we as a people will repent, reform and plead with Him for mercy. Pax

    Comment by Mary B — February 18, 2011 @ 3:33 pm

    • Dear Mary:

      How are things? My wife gets livid every time that man shows his ugly face on TV and I don’t mean “our man, Stan.” BB

      Comment by bbprof — February 18, 2011 @ 3:44 pm

  2. Not sure I buy this post, Pop. Let’s not forget that the previous president sent us into two wars without having a clue on how to pay for it, enacted a Medicare prescription drug problem with, once again, no plan on how to pay for it, and to boot, cut taxes.

    Thus it seems to me that those who agree with your argument suffer from a form of amnesia that suggests that the current president is to blame for the country’s economic woes, when in fact, it would be impossible for any current president to undo the great damage that the previous administration did to the country in over eight years.

    Comment by Matt — February 18, 2011 @ 4:33 pm

  3. Matt:
    Number #2 son makes a few valid points but they would be more valid had our spending drunk president tried to undo those wars and reversed the excess spending that Bush’s poorly advised use of liberal strategy to attract voters did with the Medicare extension. No Obama has seen Bush and raised him four trillion and his ObamaCare threatens the future of this country and I think he means to do just that. Bush didn’t know any better and he listened to the people that surrounded him—neocons who are just liberals in sheep clothing. Just because Bush lit a moderate fire, doesn’t excuse the man who is throwing galleons of gasoline on that fire.

    Matt can blame Bush for some of the deficit but the financial crisis has deeper roots that go back to Clinton and the wars are expensive in personnel and money but in the wake of 9/11, what was he to do—the nation wanted revenge and all the Democrats–most Democrats went along with it including Hillary Clinton. In retrospect the Iraq war was a bad war and the same will probabl;y be true of Afghanistan.

    Comment by bbprof — February 18, 2011 @ 4:49 pm

  4. BB your right on the “Target”….Whooops!!
    Chairman Obama and Democratic Socialist Party’s apparent plan is to “brake the bank” and the American People in order for the USA to conform with their compatriot communist and socialist governments around the world to establish One World Government headed by Obama or Clinton.
    As they bleed down our Military in a war against Anti Christians around the world, they are accomplishing their mission on all fronts.
    Destroy America and the Constitution and they will deliver us to the nations of Islam through national bankruptcy and mass unemployment.
    Iraq was the wrong war and Afghanistan is an effective bleeding ground with the cut back on defense spending for arms and munitions to sustain a “Gorilla War” against a non conventional religious fighters bent on converting the world to Islam.
    Your facts and figures fit the enemy’s war efforts here at home and is supported by 36 Islamic military training centers located here in the United States.
    God Bless America

    Comment by Jim — February 19, 2011 @ 12:18 am

  5. Hey, Dad. Though you make some solid points, and I agree in part with your assertion that the current administration has yet to do enough to change the current economic course, I still believe that it is too convenient to blame Obama for all of the country’s ills when in fact, the reasons are more complicated. I also completely disagree with the statement, “Matt can blame Bush for some of the deficit but the financial crisis has deeper roots that go back to Clinton,” when the country enjoyed a surplus during his administration.

    Comment by Matt — February 21, 2011 @ 5:56 pm

  6. Matt:
    Just what has this president done to stem the horrible future before us? He is convinced that big government is the solution when it has been BG that has gotten us here. While some Republicans have been culpable it has been largely the Democrats pushing the envelope of financial disaster. When Obama says “investment” he means mor egovernment spending, higher taxes and bigger deficits, As for Clintonb’s role, you really should start educating yourself more on the history of thge financial crisis.
    This whole thing emanating out of the cheap loans that banks and mortgage companies were “forced” to extend to the poor. Clinton was behind this. Here is something I extracted from the net:
    This wasn’t only Clinton, of course. Ceaselessly pushing homeownership has been a bipartisan preoccupation in America. For readers who want a fuller picture of this, I’d recommend Alyssa Katz’s forthcoming book, Our Lot: How Real Estate Came to Own Us. In fact, her book is so good on this point that I e-mailed to ask her thoughts. She wrote:

    Clinton’s mea culpa on derivatives deregulation is welcome, and I don’t think he’s wrong that the left has placed undue blame on Glass-Steagal repeal. The Gramm-Leach-Bliley Act was not a primary cause of our current economic miseries.

    But on [the Community Reinvestment Act], Clinton conveniently brings onstage and then demolishes the straw man conjured by the right: that CRA required banks to lend to non-credit worthy customers (it doesn’t) without copping to what his administration actually did do, which was to set ludicrously high quotas on Fannie Mae and Freddie Mac’s obligations to buy mortgages made to low-income people or securities based on such mortgages. From that point on, the explosive growth of subprime lending and the Wall Street mortgage-backed securities market became inevitable.

    It was these irrational loans to people who could never pay them back that when coupled with very low interest rates, encouraged banks and insurance companies in search of greater profits to purchase these toxic loans, which they then bundled with good loans. Many people without means bought extra properties with the hope of selling them at a profit—but when the RE value dipped below the price of their loans, they were forced to default leaving the finance companies with billions of bad loans. Many of these that were bundled with good loans made them like the rotten apple—tainted and ruined the good loans. This is what caused the financial meltdown. Obama’s solution was in spending four times what any other president has ever spent.

    For generations states have been living way beyond their means. This has been made worse by federal mandates for more entitlements—states can’t prin their own money—they have to balance their budgets or default. 46 states are now in dire straits. The government will have to print trillions of extra dollars, making the dollar like the pesos.

    Clinton lucked into the “surplus.” It was the ineternet boom that turned into a bubble and was a recession when Bush took office. I agree that Bush contributed to it by acting like a big government liberal. When Clinton raised taxes in 1993, income for government declined as it always does. Tax cuts are the only stimulus that works most of the time. I suggest you read the history of the CRA

    Comment by bbprof — March 1, 2011 @ 5:01 am


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About author

After graduating from Holy Cross, Bill Borst earned an MA in Asian History from St. John's University and a Ph.D in American History from St. Louis University. (1972) A former New Yorker, he taught for many years in the St. Louis area, while also hosting a weekly radio show on WGNU from 1984-2006. He currently is a regular substitute for conservative Phyllis Schlafly on KSIV radio. (1320) He is the author of two books on social history, "Liberalism: Fatal Consequences," and "The Scorpion and the Frog: A Natural Conspiracy." He just retired as the Features editor of the Mindszenty Foundation Monthly Report. In his 11 years from 2003-2013 he wrote nearly 130 essays on Catholic culture and world affairs. Many in St. Louis also know him as the "Baseball Professor," because of a course that he offered at Maryville College from 1973-74. It was arguably the first fully-accredited baseball history course in the Midwest.The author of several short books on the old St. Louis Browns, he started the St. Louis Browns Historical Society in 1984. In 2009 his first two plays were produced on the local stage. "The Last Memory of an Ol' Brownie Fan," ran six performances at the Sound Stage in Crestwood and "A Perfect Choice" ran for two performances at the Rigali Center Theater in Shrewsberry. His third play, "A Moment of Grace," ran six performances at DeSmet High School in January of 2011with First Run Theater in January of 2011. He is currently working on a 4th play, "A Family Way," which is a comedy about a happy dysfunctional family. He can reached at bbprof@sbcglobal.net

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