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Danger Signals
Phil Brennan 9/2/2008
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Last week Barack Obama made what some of his media acolytes called a "soaring "speech accepting his party's nomination. If by soaring they meant the enormous costs of the lavish promises he made they were right. But that of course is not what they meant.

Taken into account the fact that if Obama implemented all his promises the annual cost of funding them would be some $287 billion dollars according to a study by the authoritative National Taxpayers' Union Foundation.

Among his proposals are the extension of health insurance to more people (part of a $65-billion-a-year health plan), developing cleaner energy sources ($15 billion a year), curbing home foreclosures ($10 billion in one-time spending) and adding $18 billion a year to education spending.

Figures of that magnitude tend to deaden one's senses - they're beyond the average persons' ability to grasp their reality. But the figures are real, and figures don't lie - they leave that to demagogic Democrat politicians.

Given that reality, it's important to our fiscal survival they we take a very careful look at America's ability to foot the bill Obama plans to hand us. When you do that you come up against some frightening danger signals.

What follows here some of the remarks by Dallas Federal Reserve
Bank President Richard W. Fisher in a speech on May 28, 2008.

He began by saying he's been on the lookout for danger signals and having found them he said he sees "a frightful storm brewing in the form of untethered government debt. I choose the words-'frightful storm' - deliberately to avoid hyperbole.

"Unless we take steps to deal with it, the long-term fiscal situation of the federal government will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets that we are now working so hard to correct."

Among the danger signals:

"The amount of money the Social Security system would need today to cover all unfunded liabilities from now on-what fiscal economists call the 'infinite horizon discounted value' of what has already been promised recipients but has no funding mechanism currently in place-is $13.6 trillion, an amount slightly less than the annual gross domestic product of the United States.

"The good news is this Social Security shortfall might be manageable. While the issues regarding Social Security reform are complex, it is at least possible to imagine how Congress might find, within a $14 trillion economy, ways to wrestle with a $13 trillion unfunded liability.

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Obama Makes History - COLOR
By Bob Englehart - The Hartford Courant * Posted 9/2/2008 12:00:00 AM
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Obama Makes History - COLOR
© Copyright 2008  Bob Englehart - All Rights Reserved.

Posted By: Patriot Tom  on Friday, September 05, 2008

So, what is the alternative to funding Social Security and Medicare?? Ignoring it like past presidents and congresses have done?  And how about using some or all of the money we are pouring down a rathole called Iraq to improve America?  For what Bush has spent (in fairness, much of it has gone to Halliburton and not to Iraqis), we could fix all of roads and bridges and provide universal health insurance.  The implication is that Obama will spend money.  That is what Bush has been doing for 8 years, with no positive results (except, again, for Halliburton and big oil!)  Maybe we should spend some money on Americans for a change!!??

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