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Budget: Obama Pretends to Surrender.

Written by Gary North on April 5, 2013

President Obama’s budget was due in February. It is now promised for next week.

Of course, key facts — all favorable to Obama — have been conveniently leaked. The media play along.

There will be changes in Medicare that will save $400 billion. Then comes the inevitable qualification: over the next 10 years. This is Washington’s beloved “over the next 10 years” deception. The media play along.

How far in the hole are Medicare and Social Security? Over $222 trillion. That is the present value of the unfunded liabilities. To solve this, President Obama will propose cuts of $40 billion a year.

There will also be savings in Social Security, which is the smaller part of the Medicare-Social Security deficit. How will this be achieved? By re-defining price inflation. This will lead to lower cost-of-living increases paid to recipients.

What else does he propose? Spending on boondoggles. The key word is “invest.” This is the Democrats’ word for boondoggles.

“The President’s budget to be presented on Wednesday will show how we can invest in the things we need to grow our economy, create jobs and strengthen the middle class while further reducing the deficit in a balanced way,” a senior administration official said.

Who was this “senior” administration official? Somebody so far down on the totem pole of seniority that he did not have the guts to let himself be identified.

The total savings will be $1.8 trillion (over 10 years).

What is the quid pro quo for all these concessions? Boehner is supposed to persuade Republicans to give up the sequester. Note: Obama first proposed the sequester. In November 2011 he threatened a veto of any Republican plan to eliminate the sequester.

There will also be universal day care, funded by the federal government.

But there will still be savings of $1.8 trillion (over 10 years). Trust him.

Will Boehner buckle? Not if he wants to remain Speaker.

Gridlock is here. Glorious gridlock. Long live gridlock.

Continue Reading on www.cnn.com

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15 thoughts on “Budget: Obama Pretends to Surrender.

  1. Patrick looney says:

    DO N O T question the wisdom and benevolence of glorious leader!

  2. ReaperHD says:

    This boy is just a total waste of skin, every morning when I get up I turn on the news to see if there is an opening for the position of president.

  3. I just wish Air force one would fall from the sky

  4. You're a pretty shitty economist, Gary. Social Security is 100% funded for the next 25 years, and if we make a tiny tweak and remove the Soc Sec earnings cap, it's 100% funded FOREVER. Social Security has absolutely nothing to do with the deficit.

    Also, your "$222 trillion unfunded liabilities" formula is extremely flawed. You provide no math to back up your claims, you just throw bullshit numbers out there and expect people to believe you because you think you're some big-name economist (which you're not – your biggest claim to fame is that you were Ron Paul's chief economist, but Ron Paul was and always will be a joke).

  5. His pretend is to hold senior citizen's and low income households that actually do have someone who works as Hostage by cutting or 'changing how a cola in determined. This means of course though the true cost of living may go up by as much as 15% which it has damn near every yr. since his crowning as King in 08 it will now be wow last one almost blew my sock's off and that was after 3 yrs. of none 2.7% which if also receiving medicaire means a loss of about 10% has just been wonderful. Get this basterd removed from office immediately. and Bonehead If you cave to the king again we are going to petition the house to have you removed permanently

  6. WhiteFalcon2 says:

    That word "invest" of course is code for increase taxes. That is all those idiots know. We really need to be rid of them.

  7. Bob Marshall says:

    That is where you are making your mistake since George Soros has ties to 30 major news organizations. most which are watched every day and night by most Americans.

  8. Helen Tritt says:

    I am in agreement with all of the comments placed above about his Immediate REMOVAL, I do not care how that is done, just as long as this evil one is out of occupying the WH. He is such an IDIOT along with being a lying FRAUD.

  9. Shane, You poor uninformed troll what would free email services do without you cheap, uninformed flamers??
    Dr. North is an Austrian economist that I've read for years. What he is referring to is the research paper by Dr. Kotlikoff who spends most of his life keeping the CBO honest. His report on SS/MED was published several months ago and I'm sure you can find it on the Web still. No one contradicted Dr. Kotlikoff when it went public and the minds that read it have considerable more brain power than you. (Oh, this concerns NPV, an accounting concept on Net Present Value).

  10. American people rather than Chinese people should fund Obama's stimulus, infrastructure, and other programs, when approved by Congress. Since there is a deficit already, and the majority declines tax increases, new spending must come out of payment of obligations. Therefore, give vouchers instead of cash for pensions and healthcare. The vouchers can be signed by the President himself, and guaranteed by the Good Faith and Comfort of the President of the United States. The vouchers will say, "As soon as my spending actually produces something you will be paid money".

    The President might as well ride around the country in his jet to promote this.

  11. Have you even thought that with his resume as an ACORN organizer and very little else, that no corporation in the private sector would have hired him for a postion higher than janitor or the lowest level entry position? If he had been hired, he would have been fired long ago when his lousy work ethic, his terrible business decisions and his arrogant attitude showed up? So why does America have to put up with someone who couldn't make in the private sector, hasn't made a good decision in years, loaded up high government positions with corrupt and stupid cronies and believes that he is second in command to God? Only because smart and hardworking people were outnumbered by the low intelligence people spewed out by our educational system and those who were too stupid to realize that he hadn't kept any of his 2008 campaign promises….or his 2012 promises.

  12. Seymour Kleerly says:

    North is a Propagandist, and a poor one.

  13. The Jim Hodge Allied story has a number of considerations that every business owner should consider. Jimhodgeallied.com

  14. Why not do something about the federal retirement program. Raise the minimum retirement age up to 62 or 65 from the 55. I am sure that would help to fund the Presidents new programs.

  15. Actually when he uses the word invest he is talking about spending even more