America’s Slide into Greece
Bob Bauman

President Obama, in a scandalous show of bad faith and dereliction of his sworn duty, proposed a phony FY 2013 budget plan this week that increases spending from $3.8 trillion in 2013 to $5.8 trillion in 2022.

True to his New Deal socialist antecedents, the Obama budget will add to the bloated size and scope of the federal government and the national debt. Each American’s share of this debt is now $49, 211.27.

Here is a right-on comment about the Obama budget by Washington Post columnist Charles Krauthammer:

“The president knows that we are headed over a cliff. He just wants to get past Election Day as he does on everything. But this is a budget worthy of Greece and for the president of the United States to offer it knowing how dire our situation is, is truly scandalous.”

For a stunning revelation of what the $3.8 trillion Obama budget would mean in the understandable numbers of an average family who followed his example, see the ABC News analysis by Jake Tapper.

If your budget followed Obama’s example it would mean a family budget as follows (with comparable Obama budget numbers at right):

Total family spending: $38,000 $3.8 trillion Obama spending

Total family income: $29,000 $2.9 trillion Obama deficit for 2013

Total new debt: $9,000 $9 trillion new Obama debt added

Existing credit card debt: $153,000 $15.3 U.S. national debt

Quite obviously, no family could live like this — and neither can the United States for very much longer. Yet the president, who apparently thinks Americans are all ignorant dolts, told us he was “cutting” spending in his phone budget!

Cato Institute economist Dan Mitchell (below) cut through the fog to get at the truth of what Obama claimed was a $2 trillion budget “cut” in spending over ten years.

“We have a budget of almost $4 trillion? So if we’re doing $2 trillion of cuts,” Mitchell said, “we’re cutting government in half. That sounds wonderful.”

But what the president was talking about is not even a cut. Obama just proposed that over the next 10 years, instead of increasing spending by $9.48 trillion, they’d increase it by “just” $7.3 trillion; calling that a “cut” is nonsense.

Mitchell gave an analogy: “What if I came to you and said, ‘I’ve been on a diet for the last month, and I’ve gained 10 pounds. Isn’t that great?’ You would say: ‘Wait, what are you talking about? That’s insane.’ And I said: ‘I was going to gain 15 pounds. I’ve only gained 10 pounds, therefore my diet is successful.’”

A central problem is that Americans in every demographic group are increasingly getting government handouts. That makes it that much tougher for weak kneed politicians to cut spending. Add to that the fact that half of all American pay no income taxes, so what do they care?

According to the Census Bureau’s data from the 3^rd quarter 2010, 49% of Americans live in a household receiving benefits from one or more federal and state programs. That’s 148 million people out of a total population of 304 million. More than one in three Americans lived in households that received Medicaid, food stamps, or other means-based government assistance.

Of course Obama and the Left want to go right on spending without making any real cuts or reforms. What they want is more taxes with the goal of redistributing income from those who pay taxes to those who don’t. This is another cheap repeat of the old Roosevelt New Deal political plan of “Tax, Spend, Elect.”

Just take a look at the stark, revealing numbers about U.S. government spending:

Now compare U.S. and Greek deficits prompted by big spending politicians and selfish political demands:

The plain truth is that the United States government is very close to bankruptcy – and the politicians of both parties who refuse to act to solve this national crisis are morally bankrupt.

The final reckoning day is soon at hand, the day when China, Singapore and all the other investors stop propping up the U.S. Then the game will end — with a resounding crash. You think those riots in the streets of Athens can’t happen here? Folks, you ain’t seen nuthin’ yet!

When that happens, (and at this rate in wont take a decade), U.S. Treasury bonds and Washington’s credit rating will be worth little more than those faked document piles of subprime mortgages issued by greedy bankers at UBS, Merrill Lynch, Credit Suisse, Citibank and the Bank of America.

When that day comes who will bail out profligate America? And most importantly, where will you be then?

Isn’t it about time you moved some of your cash and asset offshore to a country where it (and you) will be safe — rather than sorry?

The Sovereign Society can tell you how and can help you do it. Don’t wait until Obama and his gang jam the exits to freedom.

sovereign-investor.com