The Presidents’ new Budget is remarkable for two reasons: First, it is the first serious public statement from a political leader to state unequivocally that benefits cannot be afforded and must be cut, for which unpalatable truth the Prez deserves full marks. Second, his budget makes no honest attempt to resolve the spending crisis; it seems purely political theater.
How do we know that? It’s clear from the fact that the Secretary of the U.S. Treasury is trying to convince the Eurofolk to drop their spending-cutting ‘austerity’ programs and join the U.S. in borrowing and printing money instead; the absolute opposite of reducing spending. Secretary Jack Lew (new on the job) works for the President; he’s not running around Europe selling policies the Prez hasn’t signed off, right?
France, under its new Socialist President Hollande, is already headed from ‘austerity’ to ‘stimulus.’ The new leader there though, is writhing in a scandal at the moment; one of his ministers was found to have a Swiss bank account just as France clamps down on its wealthy with tax increases. Oops! So it’s not only U.S. pols that practice what they preach against… and the problem is of course, there’s no money, rather there are large debts. Sound familiar?
Greece’s ‘austerity’ that is a condition of its E.U. bailout, now has its unemployment at 27%. Obama is doubtless rubbing Hollande’s nose in that, asking him how he’s going to handle that in France if he doesn’t spend… Hollande has no answer and no money plus the new scandal; he might shoot himself but we know politicians have no shame.
So Obama is obviously serious about spending by hook or crook (interpret as you like) which means the benefit cuts (‘way small, anyway) in his budget are a game. Trying to get the rest of the world aboard his High Speed Rail to Weimar/Zimbabwe though, is clearly real; another domino fell into place when the Bank of Japan suddenly reversed two decades of ‘austerity’ in favor of ‘stimulus’ recently. Did you notice? Few seemed to, especially ‘news’ outlets, though it’s the financial equivalent of Muslims coming out for women’s lib.
The keyword here is ‘inflation.’ It appears that the Prez wants to inflate his way out of his debt load via infinite money printing in various forms. Classic maneuver for insolvent, dissolute governments. Always has a bad end… usually (though not always) sooner than expected. Budget rhymes with ‘fudge-it’… and though it tastes great at first, too much fudge may make you sick, right?