Obama – Reagan and National Bankruptcy

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If you were to set out to deliberately bankrupt the nation, what would you do?

The same thing you would do to commit personal financial suicide:

  1. Go as deep into debt as possible.
  2. Minimize your income.
  3. Maximize your financial obligations.

It took two centuries to run up the national debt. Obama doubled it in only his first year in office and tried to double it again over the next ten years with health care.

Remember Jimmy Carter?  OPEC reduced oil output to the point that the price of oil was four times 1976 levels causing “stagflation” with energy prices skyrocketing past everything else.  The economy was on the ropes. We had double-digit inflation, double-digit interest rates and double-digit unemployment. Federal tax receipts were also down.  We are dependant on income taxes.  When income drops so do tax receipts. Cap and trade will drive energy prices through the roof , reduce energy supplies and drive down government revenues.  Cap and trade will make the Jimmy Carter recession look like a cake walk.  It will be Jimmy Carter Squared!

Between TARP, Obama Care and Cap and Trade, we have the perfect economic storm brewing.  National bankruptcy will be the inevitable result.  What does national bankruptcy look like?

We have an example:

Reagan had a stroke of brilliance. The Soviets relied upon hard currency to maintain their straining military budget. And there was only one source of Soviet hard currency; Oil. Reagan tripled the foreign aid to Israel, Egypt and Saudi Arabia to about 3 billion each, but under the following conditions: 1-They stop fighting. 2-They buy American military hardware. 3-Saudi Arabia increase oil production to meet American demand.

The Saudi’s opened up the oil spigots. Overnight, the price of oil dropped below $20 per barrel. In one fell swoop, Reagan brought peace to the middle east, boosted the American economy with lower energy prices, and eliminated the only source of money to fund the Soviet army. It actually became more expensive for the Russians to pump oil than it was worth. The USSR was on its knees, ripe for defeat. Shortly after, Reagan announced the Strategic Defense Initiative. The USSR tossed in its hand. Within 24 months, the USSR was no longer in existence.

To this day, our economy benefits from lower oil prices and less military spending.  All because Reagan won the Cold War.

The USSR disappeared as a result of national bankruptcy.  I doubt that the USA would disappear; however, we would be so weakened that we could not defend our nation.  There are many bullies on the world stage that would love to pick us off after we played ‘World Policeman’ for so many decades.

If Obama loves America he shows it like a wife beater shows his affection for his wife.

What does a reasonable stimulus plan look like?

  1. Rather than financing radical Islam and their aim of killing Americans we would drill for oil in ANWR, on the outer continental shelf and anywhere else that makes sense. Creates two million jobs.
  2. Start building nuclear power plants.  Obama recently stated that Iran has a right to a domestic nuclear industry.  If they can have one, why can’t we.  The French have been operation a safe nuclear power industry for decades.  If they can do it we certainly can. Creates two million more jobs.
  3. We have between fifteen and twenty million illegal aliens in the US.  They hold between five and ten million jobs.  If we convice them to go home we can free up all those jobs.  Here is how to get them to go home:
    1. Offer a $10,000 reward to anyone who turns in a person who employs illegal aliens.  They would be eligible for the reward only if the employer failed to exercise due dilligence to avoid hiring illegal aliens.   Illegal aliens would be eligible to receive this reward and every illegal alien knows who they work for.
    2. All illegal aliens who worked for that employer would find themselves unemployed and the person who turned him in would move to the front of the line to get a green card (assuming he or she was not here legally).

The law would go into effect six months after it was passed. It is my contention that no fine would ever be paid.

Between the three afore mentioned proposals we would create anywhere from nine to fourteen million jobs.  We do not have that many unemployeed Americans.

Please note that this plan did not require a dime of taxpayer money.

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11 Responses to “Obama – Reagan and National Bankruptcy”

  1. Ben Hoffman Says:

    [To this day, our economy benefits from lower oil prices and less military spending. All because Reagan won the Cold War.]

    Are you out of your mind? We had record oil prices a few years ago! Reagan tripled the federal debt. Bush doubled it. Together, those two are responsible for about 80% of our debt. The last enormous deficit was Bush’s final fiscal year. The stimulus was only a small part of it.

  2. Jonathan Gardner Says:

    He was comparing oil prices due to Reagan’s military victory over Russia versus the oil prices that would have been had we still been at war with Russia.

    He’s also comparing military spending between the two scenarios.

    Yes, oil prices have been higher in the past few years. Discuss why. Note that it has something to do with war.

    • Ben Hoffman Says:

      [Yes, oil prices have been higher in the past few years. Discuss why. Note that it has something to do with war.]

      That’s part of it, but prices were driven up by speculators, thanks to the Commodity Futures Modernization Act of 2000 that allowed commodities to be traded on the open market.

      • Jonathan Gardner Says:

        Speculators are merely reflecting in today’s prices what is going to happen tomorrow. There were clear signs at the time that in the near future oil would be less abundant and more expensive. By speculating, that signal was sent, clearly, to the marketplace, well ahead of the shortage.

        Allowing market forces to do their part to help people make rational decisions based on what reality is is a good idea. Artificially manipulating the marketplace so that necessary signals never reach the consumer is bad.

  3. Jonathan Gardner Says:

    Paul,

    On illegal immigration, frankly, I don’t believe we need to seal our borders at all. See, if we simply eliminated all forms of socialism from our country, we could get along fine with the entire world’s population living in our borders.

    One additional change would have to be made. If you commit a crime, we punish you according to your crimes. If you are here for any reason other than legitimate ones, we punish you according to your crimes.

    We should also revamp our tax code so that we only tax people who are actually here. That way, our population can balloon and we’ll always have enough money to lock up the criminals, no matter how many there are.

    As long as we have a socialist system that doesn’t punish people in proportion to their crimes, we are going to have to invent a way to keep bad guys out, and frankly, it will never work.

  4. Paul Stone Says:

    Jonathan,

    You make a good point on immigration except for one thing: Liberals want our borders open because they want the illegal immigration vote. If liberals were to play on a level playing field I doubt that they could every win a national election.

    1. Unions and churches are both non-profit tax exempt organizations; however, only unions that only support Democrats are permitted to engage in politics. Unions are an organ of the Democrat party. With compulsory union membership and compulsory union dues (effectively a tax) the Democrat party is effectively supported by tax (union dues) dollars. They also have forced ‘volunteers’ for Democrat campaigns.
    2. Conservatives have systematically been driven out of university colleges. Only liberal professors exist in journalism, law, economics and education (with minor exceptions). This leads to a very liberal media, judges and school teachers as well as socialist economic policy.
    3. The fairness doctrine effectively prohibited any conservative thought from the radio airwaves for a generation.

    Give the Republicans a level playing field and conservatism would do to liberalism what conservative talk radio has done to Air American.

    • Jonathan Gardner Says:

      The only reason liberals succeed in college campuses is because they are run by the governments of the states and the federal government, and not by the market. Get the government out, and the sunshine will drive all the liberals away. Notice that colleges like BYU and Hillsdale have no such problem with liberals because they are still entirely private colleges.

      On illegal immigrants voting, you are correct. We need strict controls on who is allowed to vote. If you cannot prove your citizenship, you cannot register. If you cannot prove your residency, you cannot vote. Anyone caught playing with this system should be dealt with quickly and severely. After all, if the people no longer trust the vote, then we will be at civil war.

  5. Paul Stone Says:

    Ben,

    The record oil prices were the result of speculation and supply and demand.
    The oil priced dropped from $4.40 a gallon all the way down to $1.49 a gallon after Bush authorized drilling off shore and in the Rocky Mountains (oil shale).
    Obama reversed that and prices jumped up almost immediately and continue to creep up.

    Republicans will go into debt for defense and other situations that threaten our freedom. Democrats will go into debt to buy votes with social programs.

    • Ben Hoffman Says:

      [The oil priced dropped from $4.40 a gallon all the way down to $1.49 a gallon after Bush authorized drilling off shore and in the Rocky Mountains (oil shale).]

      Why would that be? It takes about 10 years to go from exploration to actually getting some oil out of a well, and Obama reversed that ruling anyway.

      • Jonathan Gardner Says:

        Ben, it’s because speculators see what is going to happen in 10 years and they begin selling their stores. This drives down prices right now because of what is coming in the future.

        Speculators drive prices up when there will be a shortage, and drive prices down when there will be a surplus, as soon as such can be determined. They send signals to the common consumer through prices about what is going to happen in the future.

  6. William Witman Says:

    LOL! This is the second Regan/Obama comparison I’ve heard today! My father and I were eating dinner earlier when he sarcastically compared the two. Clearly you’ve provided some really interesting info here, thanks.

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