Creating crisis, but no solution
July 22, 2011 · Updated 12:23 PM
This Democratic administration is at it again.
When they needed the stimulus bill, the panic was that the TARP bill did not stop the financial crisis. Their political strategy was simple — don’t let a crisis pass; basically, use it for political gain. Their selling point was that unemployment rate would not exceed 8 percent.
The money doled out in the stimulus to increase jobs cost the taxpayer $278,000 per job. Obama finally confessed the shovel-ready jobs were not as ready as he emphatically stated.
With the debt crisis looming, this administration has come up with the old game plan of scaring the seniors and blaming Republicans for his dilemma. Obama proclaims he cannot guarantee Social Security checks or that the retired military will get paid.
His comments are absolutely untrue. What happened to the $1.2 trillion Social Security trust fund? The current projected August revenues are expected to be $220 billion, in which only $60 billion is required to pay the interest on the deficit.
A Goldman Sachs analysis by Jim Pethokioukis at Reuters illustrates that monthly revenues will pay for priority obligations such as interest on debt, Social Security, Medicare, and essential military obligations. The obligations listed equate to approximately $155 billion of the monthly revenue. Thus, the scare tactics need to be put to rest once and for all.
Then again, the Senate has not developed a 2012 fiscal budget nor has Obama put in writing his solution to the debt issue. He takes pot shots at the Republicans and mouths platitudes and gives grandiose speeches, but he has not presented any definitive solutions in writing nor has the Democratic-controlled Senate. Obama can have 26 fundraising events but does not have time to produce a written document outlining his recommendations to the debt ceiling crisis.
The Democratic strategy is simple: Criticize the Republican budget but don’t produce a Democratic budget or a written solution to the current debt crisis.