Boiling Tea

Through the actions of many elected officials on both sides of the isle over a long period of time, extended recklessly by the Democratic leadership of the Congress and a President bent on social justice through the redistribution of wealth, our country finds itself on the verge of financial ruin. In a stunning episode of arrogance, our President is playing politics, needlessly scaring our senior community and simply lying to the American people.

From the front page of the Monday edition of Investor's Business Daily:

"SHOW ME A PLAN in terms of what you're doing in terms of debt and deficit reduction," said President Obama at a White House news conference Friday. "If they show me a serious plan I'm ready to move even if it requires me to make some tough decisions.

In this small statement, we can learn just about everything we need to know at this critical time.

Backtracking for a moment, we recall President Obama and the Democrats had control of both Houses and the Presidency for 18 months, running up mind boggling debt. The Senate has not presented a budget during this period, and President Obama proposed a budget which increased the debt and was so extreme it got no support, from the Democrats!

The debt ceiling debate, which everyone pointed to as the first test of the Republican House after the mid terms last fall, appears to only have sneaked up on President Obama while he was playing golf and failing to create jobs.

Republican Congressman Paul Ryan recently released his Roadmap for Recovery, which detailed a plan to reign in the out of control spending, only to be insulted by a condescending President Obama in a press conference. In addition, Democrat Erskine Bowles joined former Republican Senator Alan Simpson on a bipartisan commission, who came up with recommendations Obama ignored. South Carolina Senator Jim DeMint has put forth "Cut, Cap and Balance" plan, which passed the House tonight 234-190. So, here are three plans, but I gather they are not considered serious by Obama, since they do not match the redistributive tax increasing wealth punishing route he prefers.

That the President is set to make some tough decisions demonstrates the level of arrogance in the White House. The President, along with Nancy Pelosi, has spent more than all other Presidents combined. See the following chart:

Having spent us into the stratosphere, the President is now willing to backtrack a few hundred million, which is almost meaningless. This over a decade time frame, long after we throw him and his arrogant incompetence out of office.

Many are concerned about a stock market collapse if we do not raise the debt ceiling. The same concerns were prevalent during the TARP debate. When an agreement went south, the market sold off hard. But TARP was the wrong decision. The market will not like Cut, Cap and Balance at first either, but after it, and our creditors, recognize we are taking the necessary steps to correct he problem, the market will rise after knowing the right long term decision was made.

Cut, Cap and Balance is the way to go. Reagan would be behind it in spades. How do I know?

Quoting The Gipper, "It is time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles, there will be no compromise."