Obama yesterday finally unveiled what he, Geithner, Summers, Romer and Goolsbee have been promising for months would be "a substantial program of deficit reduction." Dr. Dolittle now serves as President.
But first, here's what Senator Bank's Obama said about the deficit in 2006:
“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
Obama later joined his Democratic colleagues in voting en bloc against raising the debt increase.
Now Obama is asking Congress to raise the debt ceiling, something lawmakers are almost certain to do despite misgivings about the federal debt. The ceiling already has been hiked three times in the past two years, and the House took action earlier this year to raise the ceiling to $13 trillion.
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Now, from Banks Obama's interview yesterday with ABC's Jake Tapper:
But there are going to be two things that we've got to focus on next year. And we are already beginning to work diligently on this. Now that we've rescued the economy and the economy is growing, businesses aren't yet hiring. And so what can we do to make sure that job growth is accelerated even as the economy begins to recover?
And the other thing that I think a lot of Independents, Democrats and Republicans, all are concerned about is what are we going to do about this long-term debt?
And we've got to show people that we are responsible stewards for their taxpayer dollars and that we're taking some serious steps to at least lay the foundation -- the pathway for bringing those deficits down over the next several years. We may not be able to do it all in one big gulp because the economy is still very weak right now. And, you know, any steps to take to shrink the deficit could potentially take too much money out of the economy at a time when it needs it. But at least people have to be convinced that we understand the problem.
And that we're working on it. And if we do those things, then I think the American people will -- will feel like we have been good and responsible stewards for an economy during some very difficult times.
Complete transcript is HERE
Watch Video (at ABC)
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There you have it. This is huge news. The Obama administration finally gets it. And they are obviously extremely serious about their rhetorical onslaughts. A victory for the side of truth, reason and balanced budgets. Banks Obama has promised to use responsible language while discussing the out-of-control debt and deficit numbers all next year. Wow, WOW! Even better, in his own words to Tapper, he has no plans to actually do anything about it, which is smart we think, lest the Treasury prop trading desks all over Wall Street get spooked by the possibility of diminished future supply. He correctly understands that convincing Americans that his administration understands the problem will be enough to placate the angry groundswell.
Excuuuuussse me? Has Banks lost his bubble-blowing mind? We've heard nothing but convincing rhetoric on the debt for a decade, so what we're lacking is more of the same? Does the White House read the current polling and focus-group data? Deficit anger among voters has grown from 'palpable' to 'seething' in the last 24 months, yet fancy elocution will calm our protestations?
Democrats will be slaughtered next Fall if they don't respond with a comprehensive plan of government belt-tightening, which they won't. And then sadly, we'll get 2 years of no-action on the deficit from Republicans. Sound familiar?
We have a more detailed article coming on this subject, but here are 3 quick steps to save a trillion dollars annually and at least get the deficit back to the $500 billion range:
- End the illegal, undeclared wars in Iraq and Afghanistan and close all non-essential bases overseas -- annual savings of $700 billion (source The Economist).
- Allow Medicare to negotiate prescription drug prices with pharmaceutical companies -- annual savings of $150 billion (source former Comptroller General David Walker).
- Implement means testing of entitlement programs -- if you're wealthy, you'll pay more for Medicare, and you'll get less in Social Security payments -- annual savings $150 billion (source The Peterson Foundation).
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