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Obama’s Exit Strategy — For America’s Freedom

October 27, 2009

After noting that Americans now have a per capita national debt liability of $343,970, Glenn Beck wondered aloud on his TV program what America’s “exit strategy” might be. “What’s going to cure this? Health care? Or is that going to make it worse?”

Beck seemed to suggest a Cloward Piven-like strategy of orchestrated crisis involving ramping up government spending to unsustainable levels is at play in the corridors of power in Washington, D.C.:

I believe our exit strategy for our leaders in Washington is to fundamentally transform the system into the redistribution of wealth. When this collapses and the reality sets in, they just take it and give it to somebody else.

The leadership in Congress wants to make government even bigger and more intrusive. Beck said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, is planning even more regulation of the economy.

Beck said Frank’s plans are “unbelievable.” Frank “single-handedly has done more damage to this country than I think, you know, probably 25 people put together could do.”

Art Laffer, who served as economic advisor to President Reagan, agreed.

It’s amazing. It’s amazing. He is just taking over and he is doing what markets should do. And I don’t know where he gets the chutzpah to do that, Glenn, but that’s what he’s doing. And it amazes me. We have the government taking over industry after industry after industry in the last nine months, 10 months. And as you said, it won’t be recognizable by Christmas. And you’re right. It is really amazing.

Beck said if we continue to spend like drunken sailors the U.S. government will lose its triple-A credit rating. “Six months ago, they said we would lose it within 10 years if we don’t change our ways. They just came out last week and said we would lose it in three to five years,” said Beck.

If the Obama administration with the approval of the Democratic Congress continues down this reckless fiscal path the end result will be the bankruptcy of the U.S., said Laffer.

We will have to default on these bonds. We will lose our position in the world. But there is a much better exit strategy — if the politics returned to something like Ronald Reagan.

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25 Comments
  1. October 27, 2009 6:55 pm

    [After noting that Americans now have a per capita national debt liability of $343,970, Glenn Beck wondered aloud on his TV program what America’s “exit strategy” might be.]

    Glenn Beck is a moron. Our per capita debt is currently about $35,000, which is huge, but it’s not $343,970.

    • hiram permalink
      October 28, 2009 7:19 am

      Actually, Ben, if you take into account all of the UN-FUNDED pension and benefit liabilities that the government has, the national debt isn’t $11 trillion, it’s more like $116 trillion.

      http://www.usdebtclock.org/index.html

      Beck, sir, is no moron. Committing to spend money in the future is not really different than spending it now.

      You, however, certainly are a troll. Which is just another word for moron.

    • william mercer permalink
      October 28, 2009 12:56 pm

      Glenn Beck’s a moron. And, I suppose you have a PHD in economics?

      What a joke of a post. And, pray tell, where did you come up with that totally bogus figure? Out of your whacko, left-wing imagination?

  2. bassackwards permalink
    October 27, 2009 7:40 pm

    Ben you wanna cite your source? And I suppose you’ll tell me Beck was wrong on Acorn. And on Van Jones. Should I go on?

    • October 27, 2009 8:24 pm

      Look it up you moron.

      • In the know permalink
        October 28, 2009 7:53 am

        Twice your statements (based only on semantics) have been rebutted with facts and evidentiary citation. Your response is “look it up, moron”, clearly an ad hominem. EPIC TROLL FAIL.

      • October 28, 2009 9:46 am

        Which comic book? As a moron I read so many.

      • bassackwards permalink
        October 28, 2009 5:22 pm

        Funny. I like Beck. And if he is wrong I wanted to see Ben’s source so I could get better informed. Apparently, it was Jones and Acorn and… that struck a nerve. If I was carrying Obama’s water it would strike a nerve with me, too. I forgive you Ben.

  3. Misty Fowler permalink
    October 27, 2009 8:43 pm

    Debt per citizen = $38,743
    Debt per tax payer = $109942
    Liability per citizen = $343,955
    Source is usdebtclock.org

  4. sean permalink
    October 27, 2009 11:57 pm

    While I like Glenn, he could use some education on how debt works at the federal level – where the monoply supplier of the currency is the issuer of the debt. There is no opertaional risk of a default.
    While I do not agree with the way we have been increasing the fedeal deficit (tax cuts – a spension of the payroll tax would be much more effective in supporting agregate demand), we would be facing much more serious problems if we attempted to bring the deficit down now.
    If you exclude the TARP (which is esentially an exchange of Treasuries for Mortgage SEcurities) debt to GDP is about what it was in the 80’s under Reagan.

    • In the know permalink
      October 28, 2009 7:49 am

      “…. debt works at the federal level – where the monoply supplier of the currency is the issuer of the debt. There is no opertaional risk of a default.”

      The US government cannot default on domestic debts because they can print money to pay them. What happens when the dollar is so over inflated that foreign debtors will no longer accept dollars? Your comment is either based upon a lack of knowledge or a deliberate attempt to mislead using semantics. Either way, it is incorrect.

    • Cas Balicki permalink
      October 28, 2009 9:20 am

      Printing money to satisfy the government’s obligations is absolutely the worst thing government can do as it leads to inflation. Without putting too fine a point on this statement, inflation is an absolute monetary evil because it erodes the nation’s capital base of which savings form an integral component. In short inflation is a not so hidden but very pernicious tax that destroys as opposed to hobbles the tax payer by destroying his savings and thereby destroying his financial independence to the extent the taxpayer has any such independence.

  5. sean permalink
    October 27, 2009 11:58 pm

    Also kee in mind that the public sector deficit is exactly equal to private secor savings so another way to look at it is the fedeeral govt as added to private sector savings in the amount of the deficit.

  6. Delfin J Beltran MD permalink
    October 28, 2009 1:36 am

    Why should the behavior of the current successful leader of the left of left political faction be in any sense amazing. The path from Edwin Witte’s authorsip of old age insurance to the present is multiply overlaid with roadblocks to Freedom now firmly packed by the steamroller of time. It only remains to cut the thread of medical care by the imposition of a univeral health system to see the ship of state slide into the muck of fascist serfdom.

  7. Brian permalink
    October 28, 2009 5:41 am

    Ben and Others – You’re all mostly correct. Each citizen’s liability for the current national debt up to $38,750 ($109,956 per TAXPAYER by the way). What Beck was referencing was the total citizen liability when you include ALL unfunded Medicare, Medicaid and Social Security liabilities. That total is $343,970. OUTRAGEOUS!
    (Source: http://www.usdebtclock.org/)

  8. Wayne permalink
    October 28, 2009 6:36 am

    Art Laffer made the point in the Beck interview that all the was needed to correct the misguided policies coming from the Obama administration would be to elect the Republicans again, saying that when Reagan was elected that he (Laffer) undid the economic mess inherited from the Carter administration. Somehow, I don’t think governments elected to clean up the mess of previous governments are successful longer term. They leave too many of the idiotic laws enacted in place and do easier superficial things like jiggling economic policy or lowering taxes. Then that government is replaced and the process continues. The draconian laws proposed today by the current administration will be repealed by the next administration — I doubt it.

    • william mercer permalink
      October 28, 2009 1:01 pm

      The thrust of your entire post makes little sense. Especially this part:

      -0-

      They leave too many of the idiotic laws enacted in place and do easier superficial things like jiggling economic policy or lowering taxes.

      -0-

      And lowering taxes? that’s what you refer to as an idiotic law? That’s superficial?

      If people like you want to pay more taxes, please send the government more of your money, not mine.

  9. j c original permalink
    October 28, 2009 11:19 am

    Ben, Glenn is usually correct, just ask Anita Dunn also Glenn is correct on per capita citizen debt liability which makes you wrong, your probably not a moron, but a move on org. student..

  10. kim permalink
    October 28, 2009 11:42 am

    HOw long will it take to make America see that deceit is all of the parties…working together. nothing changes when one or the other is there. the veto for this and that go one, BUT nothing changes.Why can’t everyone see they are all taking us down on purpose to hand us to the EU and UN. How much do we lose, homes, jobs and our American dream..they have taken it all and we let them. HOW ABOUT picking a man or women with morals, and all Constitutional, that will follow the laws of the land. close the borders and put our tanks on them, and throw all the bums into prison or over the border. Like three good Presidents before..they sent the illegals home too and we should to. all of us get old,,your day is coming. seniors worked all their life and paid in. were not told SS was unconstitutional and could opt out..and FDR put in the IRS which is also unconstutional. the feds not even part of America or the UN which we voted out are evil dangerous people that can make the stock market go up and down at will. WE need to stop talking and act..throw them out..we have sent millions of pink slip to them state and federal, so should you. IF we don’t vote them out and maybe impeach some and stop the illegals we are done..SS doesn’t get a raise, but boy the state and gov workers do, and they all still have their free charge cards. member when Condi was caught buying $8000 dollar pumps. if we don’t wake up, get up and take America back..we will see some as haves and some as have nots..we need to pick, search them out..a good man our women and drill like hell and realize the al gore lie is just that. and in the meantime we have cuby drilling on our shores..G-d is out and every abomination is here if we don’t fight..for your children and grandchildren you MUST..right now our troops are dying and not help a idea by a few punks that could not fight their way out of a wet paper bag and the dam show of helping VETS lately..what a joke. without the extra troops the people there are afraid to vote and gov knows it..I am sick of the lies and the 120 thousand vets homeless and now they took the world war 2 vets pensions and if you wait they will take your pensions, savings and keep closing banks..108 just this last month..are you paying attention?? you better..forget the used to be parties …pick the persons according to their records. Mccain is for ilegals, accorn and so is Newt Gingrich. Leiberman is for debate, that cuts the cord to win..figure them out. these troops are 18 yrs old on the front lines, let us put the gov there and bring our faithful troops home an tell them the truth. do it today

  11. sean permalink
    October 28, 2009 1:59 pm

    In the know you state “Your comment is either based upon a lack of knowledge or a deliberate attempt to mislead using semantics. Either way, it is incorrect.”

    Actually, the lack of knowledge resides on the side of those operating in a gold standard paradigm.
    The federal govt spends via debiting the Treasury’s account at the fed and crediting a fed members account – thats all there is to it. Forget the notion of “printing money”. Bonds aer sold to drain the reserves created whne the government spends. Spending can be inflationary if it results in an increase in agregate demand. WIthout demand reserves build up which is exactly what is happening now and what has been happening in Japan for 15 years.
    Foreigners buy our debt becaue we run a trade deficit and they have a fixed or managed currencies – they have to buy dollars to keep their excgange rate constant. If we didnt run a trade deficit or the deficit shrinks – like it is doing now – the saings created from government spending remains dimestic savings and that money finds it way into Treasury bonds.
    Recall when Bernanke was asked if he was using taxpayer money to bail out banks and he replied that it wasnt taxpayer money – he just changed numbers on a spreadsheet…..
    Anyway, thats the way it works – its not sematics or opinion. Its what I do for a living so I spend evey day understanding it. For further reading I suggest

    http://neweconomicperspectives.blogspot.com/2009/08/monetization-of-budget-deficits.html

    Remember, question boldly and dont be afraid of the truth!

    • In the know permalink
      October 28, 2009 3:46 pm

      I see. My apologies. My question is unanswered though. What happens when the dollar is so over inflated that foreign debtors will no longer accept dollars? I read the link. The term “printing money” may be semantics. Whether its printed or created electronically, it still increases inflation.

  12. sean permalink
    October 28, 2009 4:32 pm

    The point is that we do not rely on foreign creditors to “finance” our debt. Concerns about inflation are 100% valid and once agregate demand picks up I think we will face serious inflation if the stimulus – both fiscal adn monetary are not removed but we are facing an inflationary environment and the current 0 fed funds rate and all the current spending is keeping things from gettting very bad.
    Foreigners hold our debt now as a function of their export based/fixed exchange rate policy. The money to buy the bonds comes from he government spending, not from foreigners.
    I traded bonds in Japan for 10 years and despite the BOJ tarheting JPY 30 trillion in excess reserves – an unheard of amount – bank lending did not increase, deflation set in, the yen strengthened and the 10 year yield went to 0.5%. All the while they ran up the largest public secotor debt the worls has ever seen – are are still going without any inflation or a spike in yields or a weakending of the currency.

  13. sean permalink
    October 28, 2009 4:32 pm

    sorry meant”we are facing a deflationary environment” typing too fast. mkt opens soon ….

    • In the know permalink
      October 29, 2009 6:38 am

      I see. So we will see hyper inflation in the long term from our reckless spending today. The logic “it hasn’t hurt me yet” is folly. I remember an economist on Beck saying it would take 2 years for the bottom to drop out of the dollar, perhaps the same logic?

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