Unless you live in a hole or just pay no attention whatsoever to what is going on, you know by now that President Barack Obama kicked-off his reelection campaign this weekend with stops in Columbus, Ohio, and Richmond, Virginia.
Back in mid-August, it was reported that the Obama Administration was considering denying Taiwan’s request for new F-16C/D fighter jets out of political pressure from Communist China. At the time I pointed out that denying Taiwan’s request could be direct evidence of our national security coming under direct threat as a result of our dependence on China’s willingness to gobble-up U.S. debt.
Well, we don’t have to speak hypothetically anymore, as Bill Gertz of The Washington Times reports, “The president decided against selling Taiwan 66 advanced F-16 C/D model aircraft, despite several requests from Taipei and Congress.”
So why did Obama decide against selling these advanced fighter jets to Taiwan? Money, money, money… borrowed money that is.
Our mounting debt and inability to constrain ever-growing spending poses a national security threat to our Republic because we borrow about 40 cents on every dollar we spend, much of it coming from foreign creditors. Oh don’t take my word for it, take it from those in charge of the defense of America:
U.S. Director Of National Intelligence James Clapper: “The debt does pose a potential threat to our national security . . . The financial relationship we have with China is illustrative of that.” (Phil Stewart, “U.S. Intelligence Faces Belt Tightening,” Reuters, 2/10/11)
Earlier I posted this piece on whether states now face a credit downgrade, after Standard & Poor’s downgraded our nation’s credit rating, based on a report that total aggregated state debt across the U.S. “exceeds $1.7 trillion.” The answer seemed fairly obvious, so the next question is what drives state debt? The answer, at least in part, is out-of-control public employee pensions and benefits.
Public employee pension and benefit guarantees play a large role in budget deficits and overall debt:
On Friday, August 5, 2011, Standard & Poor’s (S&P) downgraded U.S. debt from a AAA rating to a AA+. S&P followed up on Monday, August 8, 2011, by downgrading “other entities linked to long-term U.S. debt,” like Fannie Mae and Freddie Mac. So what’s next?
Back in July, another credit ratings agency, Moody’s Investor Service, warned a handful of states could soon face a credit downgrade, including Maryland, New Mexico, South Carolina, Tennessee and Virginia.
China, our country’s largest foreign creditor, blasted our government over its borrow and spend practices yesterday.
“‘The only way the Americans have come up with to improve economic growth has been to take on new loans to repay the old ones,’ a blistering commentary published on the official Xinhua news agency said.” (“China Says Debt Financing Unlikely ‘To Save’ US, EU,” AFP, 8/5/11)
“‘To eat May’s grain in April, however, will never be a permanent solution to a problem,’ the report said.” (“China Says Debt Financing Unlikely ‘To Save’ US, EU,” AFP, 8/5/11)
This is sad commentary on the state of our affairs when a Communist country can lecture us on our economy… and be right.
On the floor of the U.S. Senate, Senate Majority Leader Harry Reid (D-NV) actually had the audacity to say that Democrats were responsible for balancing the budget in the 1990’s and using the surplus to pay down the debt.
The fact of the matter is, Republicans controlled the U.S. House and the U.S. Senate after the Republican Revolution in 1994 and they are the ones who balanced the books.
And as for Democrats working to balance the budget in the future? You need only look at their record from the 1990's and their recent vote this year to know where they stand. Democrats opposed then, as they do now, a Balanced Budget Amendment.
Democrats in the House and Senate overwhelmingly opposed a balanced-budget Constitutional Amendment in the 1990’s. In the Senate alone, more than 30 Democrats voted at least four times against a Constitutional Amendment mandating that the government have a balanced budget every year.
Back in February I wrote this piece about a then-looming government shutdown coming courtesy of do-nothing Senate Democrats. I’ll recap the main thrust so you don’t have to go link-surfing: at the same time Democrats were thinking of everything they could to pin blame on Republicans if the government were to shut down, Democrats were completely incapable of any leadership. An example:
“Under Republican leadership, the House has cast over 140 votes so far this year. The last came on February 19th at 4:30 in the morning. The Senate, run by Democrats? 25 votes, the last being February 17th at 8:30 in the evening.”
Today, states all across America are battling budget deficits. Budgets are being slashed and tax increases are in the offing. All the while, state debt continues to mount. According to a study by State Budget Solutions, a non-partisan pro-reform organization that touts “real solutions for real budget problems,” total state debt “exceeds $1.7 trillion”:
“Aggregate state debt now exceeds $1.7 trillion, with much more potentially hidden off the official books.” (Bryan Leonard and Phil Marrone, “States Hide Trillions In Debt,” State Budget Solutions, 7/22/10)
Fiscal Insanity Reigns Supreme: Biggest Monthly Deficit Ever And Democrats Are At Their Limit With $6 Billion In Cuts?
Stephen Dinan over at The Washington Times reported today that the “federal government posted its largest monthly deficit in history in February at $223 billion, according to preliminary numbers the Congressional Budget Office released Monday morning.”
“That figure tops last February’s record of $220.9 billion, and marks the 29th straight month the government has run in the red — a modern record.” (Stephen Dinan, “Government Posts Biggest Monthly Deficit Ever,” The Washington Times, 3/7/11)