We’re On the Brink of a Depression and Geithner and Biden Press for Tax Hikes


Our country’s being run by a bunch of professional politicians and academics who have little to no real world business experience. We’re seeing where that’s gotten us. Michael A. Walsh summed it up pretty well.

The government racked up $5.3 trillion in new fiscal obligations last year alone — bringing the current unfunded tab for future expenses on things like Medicare, Social Security and military medical and retirement programs to a whopping $61.6 trillion, or $534,000 per American household.

Then there’s today’s bills: We’re borrowing $125 billion a month that we have no hope of ever paying back on our current course.

The growth in GDP declined to a measly 1.8 percent in the first quarter of 2011 as consumers hung desperately onto their wallets. Job growth has completely collapsed. Fully 60 percent of the electorate thinks the country is on the wrong track. No wonder the daily economic briefing, once on a par with the intelligence briefing, has vanished from President Obama’s schedule.

Heckuva job, guys.

It’s so bad, even a restaurant President Obama mentioned by name in a speech a week ago has gone belly up. Nobody’s safe from Obama’s economic train wreck. Beware that light at the end of the tunnel, it could be heading your way. Where’s this recovery they constantly speak of? Where? How can they say we’re in a recovery when unemployment is over 9%, and that’s just the official rate. If they have their way, things are going to get worse, not better, as Peter Ferrara noted.

President Obama and the Democrats doggedly pursue these tax policies because they believe ideologically in socialist wealth redistribution. But openly raiding small businesses, job creators, investors, and American companies is crippling for the economy, particularly this weak economy. This ends up hurting working people and their families the most, as they lose the jobs, wages, and opportunity they need for a decent life.

Besides this tax tsunami, President Obama is implementing another trillion dollar plus cost burden on the economy through the EPA’s cap and trade tax policy. That is one central feature of President Obama’s war on production of traditional, low cost, energy, shutting down drilling, extraction and pipelines from the northern tip of Alaska, down through Canada, to the energy rich Western states, through Texas, to the Gulf of Mexico. Obama keeps issuing statements that he is opening drilling or permitting or exploration here and there, only to have it shut down by his bureaucracy soon thereafter. All of this will only raise energy prices higher and higher through to 2013, squelching the economy still further.

I told you earlier, but in case you missed it, be sure to read the whole thing. Ferrara believes, correctly, that the only way to head off another Great Depression is to vote Obama out of office next year, along with his allies in the Senate. Not that the “experts” won’t declare we’re in a depression when the Republican candidate beats Obama and takes office. But at least then we’ll have some chance of getting out of it, or getting out of our own “personal recessions,” depending on how you look at it.

So, with all of this awful economic news out there, what are the folks in the administration doing? Why, they are putting pressure on the Republicans to “increase revenues.” That’s code for hiking taxes. Seriously, I’m not kidding. They think we’re all ATM machines with an endless balance for them to withdraw and distribute.

Vice President Joe Biden and Treasury Secretary Tim Geithner pressed Republicans to accept revenue increases to help curb deficits in a meeting aimed at reaching an agreement to raise the U.S. debt limit before Aug. 2, two congressional aides said.

Republicans countered that any tax increase would hurt the economy and couldn’t pass the Republican-led House, said the aides, who spoke on condition of anonymity as lawmakers stepped up attempts to reach an agreement. The two aides weren’t authorized to discuss the talks publicly.

“We set up three meetings next week, so we’re making progress,” Biden told reporters on his way out of the Capitol in Washington today after he met with six Senate and House members from both parties.

Um, Timothy Geithner is in no place to be talking tax hikes when he failed to pay his own taxes. Just saying.

Seriously, can you imagine if Nancy Pelosi and the Democrats still controlled the House? The economy would have collapsed by now.

And let’s not forget, at the same time they’re pushing for tax increases, they’re talking about cutting the payroll tax and further gutting Social Security funding. A temporary cut, at that, which won’t do anything to spur hiring. Good grief, these people are nuts.

Update: The Other McCain linked – thanks!