The President's policies are a failure.
Expanding bailout bank reserve requirements temporarily and partially reduces the risk of import inflation. Dumping oil reserves also temporarily lowers the impact of monetary policy to weaken the dollar to improve export competitiveness as does the currency flight from the Euro crisis. These are temporary fixes/market adjustments and opportunitites that mask the cost of persistent high unemployment and stagflation and thus allowing some cover to maintain this high level of spending, increased a whooping 1.4 trillion by Obama two years ago.
This administration is following the Japanese government in spending. We don't have the same infrastructure risks and can further reduce them by privatizing Flood and other taxpayer subsidized programs that encourage malinvestment and poor resource management. We don't have the savings rate of the Japanese who hold most Japanese bonds and still stagflation and deflation plagues them. Better that we allow the market to hit equilibrium by cutting off all subsidies and address the underlying spending problem thru deep constitutional cuts, devolution of financial and regulatory responsibility back to the States and the individual, privatization and move to a flat lower average tax rate.
This administration has tried to grow exports through the weakening of our currency and both parties state wildly optimistic revenue growth rates when speaking about cutting thus masking the urgency to cut deeply now. The only way to compete with China and other emerging markets is to actually become more competitive. Manipulation, subsidy, borrowing and malinvestment puts us farther and farther from doing this in easy transition and closer to the necessity of having to go cold turkey (ie No Debt Increase).
Even in Ryan's Medicare premium subsidy reform, he expands coverage to those with chronic conditions thus expanding coverage above a means tested level and thus moving away from personal responsibility. Both parties need to dig deeper to understand we need them to actually cut government. President Obama increased government spending by $1.4 trillion two years ago and the Democrats under Bush inflated spending too. This bubble has grown in earnest since 2000. Government spending increased as housing inflated. Now government doesn't want to let go of those things they promised on a fraud created by our politicians regulatory interference with the market. No legislature should be held, beyond our debts, to previous Congress' irresponsibility - especially when that spending is clearly imperiling our general welfare.
We should repeal the $1.4 trillion increase and any legislation that expanded government subsidy or regulation since 2,000. We need to move to means tested entitlements and phase them to private accounts and policies. Welfare programs should be paid on a local and State level and should be minimal, fully portable for education, housing, healthcare, food stamps etc thus putting an end to subsidies to Corporations and non-for-profits and Corporate tax.
This would of course disproportianately impact the real estate and employment market in the Washington Metro area as well as other highly subsidized urban centers but it would force State and local to readjust their expectations of government and reset their markets so the most people have the most opportunity in markets regulated and overseen at the lowest possible unit of government - the individual, the family, business, charity, local, State and enumerated Federal.
The Cut, Cap and Balance Pledge articulates a stop loss on spending but is miles away from balancing the budget and starting to pay down debt and I encourage folks to sign and engage in the debate at www.CutCapBalancePledge.com . Given that government spending is driving unemployment and we appear on the wrong side of the Laffer curve with estimated revenue to GDP at 14.4% and at 14.9 for 2010 and 2009, we should cap spending at 15% and use revenue growth to pay debt and contract the monetary base up to the 18% proposed. If President Obama refuses to be responsible than it is Congress' duty to be a necessary balance or check on his and the Senate Majority's dissolute spending.
Join your fellow patriots with the Pledge in hand, this Thursday July 14th at noon at your Representative's district offices - register here at http://www.cutcapbalancepledge.com/officeblitz/
There are plenty of constructive piece of legislation to cut government in earnest. Now is the time to do this. It would make sense that Congress could put forward a budget that President Obama must execute on. It is then up to President Obama to execute on his duty. The only flexibility in borrowing I'd extend regarding the debt limit would be temporary "over-draft increases" from rising interest rates as interest rates are allowed to normalize.
I have admitedly also signed the "No Debt Increase Pledge" at www.NoDebtIncrease.com as I believe the "Over-draft protection" is temporary and must be addressed thru cuts within a short time frame.
There is a tele-conference "Stick 'Em Up" thru Tea Party Patriots tonight - register at https://registration.broadnet.us/event_registration.php?pid=108&...
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