Who does this guy think he’s fooling? Obama stood there with a straight face and talked about “paygo” and how congress is controlling spending. To his detractors he said he’s “calling their bluff.” Oh, and he said there will be some tough choices ahead – we all know what that means.
He’s been on a year and a half long spending binge! Liz Cheney explained how that’s a national security issue on Fox News Sunday today.
Obama also said that no country should have any “undue advantage” if there’s going to be a strong recovery. No wonder the rest of the world felt like they were being lectured to. As if he’s one to give advice.
Under these circumstances one could forgive the US for lecturing others on fiscal policy, were it not for the fact that (a) poor US financial regulation and inattentive monetary policy caused the crisis in the first place, and (b) its own fiscal policy is a shambles. President Barack Obama is telling other countries to maintain fiscal stimulus even as his own fades and the US Congress is denying his modest requests for extra spending. For this, Mr Obama himself is mostly to blame.
He and his allies in Congress bungled last year’s stimulus. A big package was needed, and was duly delivered. But its design was poor: too much spending on shovel-ready projects that weren’t; too little in tax cuts. It was seriously oversold, leaving voters sceptical that more stimulus would do any good. Worst of all, with public debt through the roof, the administration has failed to give the smallest sign of its exit strategy. Last week its budget director, Peter Orszag, disclosed his own. He said he was quitting; colleagues said (though he denied) that he was frustrated by White House indecision over medium-term fiscal control.
He’s a national embarrassment. Worse yet, he’s a national embarrassment that’s costing us and our kids dearly.
Pravda ABC News reported that Obama losing the argument for big spending at the G20 could “plunge the world into a second recession.” I’m not kidding. Read about it at NewsBusters.