Thursday, July 28, 2011


LA Times--

""Question: The federal government has run through its ability to borrow money and soon will run out of cash to pay its bills. How did the government get into this problem?

Answer: As recently as the final years of the Clinton administration, the federal government was running a sizable budget surplus, and the national debt was declining relative to the size of the U.S. economy. Then several things happened: Under President George W. Bush, Congress enacted two big tax cuts, in 2001 and 2003, which cut federal revenues. Under Bush, the country also adopted an expensive new prescription drug plan for senior citizens and pursued wars in Iraq and Afghanistan, all of which raised the government’s expenses. The combination led to increasing deficits and, as the government borrowed money to cover those deficits, a rapid increase in the national debt. Then came the recession, which cut tax revenues further and pushed up expenses even more for things like unemployment insurance and President Obama’s economic stimulus plan. Now, the debt has hit the statutory limit of $14.3 trillion.""

Let's not forget the significant role played by BushCo's tax-hatchet man Bill Thomas, Kern Congressperson-for-Life, and Big oil shill for nearly three decades. The LAT gang also overlooks the fact that Obama has increased DoD spending, with help from the tea-party hobbits demopublicans (as with the recent defense "appropriations" bill, much of it going to pay for the F-35s. Then what's $700 bil. between friends).

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