CBO Issues Warning: Too Much Debt is Baaaaaad!

Notice how the folks in the media always go to pains to say the "bi-partisan Congressional Budget Office?"  Remember when they were "scoring" the healthcare "reform" act so that the pro-bill nimrods could tout that it was "budget neutral?" All of that, by the way, is hogwash - a) the estimates turned out to be completely wrong and in the best case that monstrosity will cost us well over $1.5 Trillion  AND b)  the bill(s) that Congress is passing are purposefully vague.  All they are doing is setting up bureaucracies  that will then write the rules...more cause for the continued unsettled state of our economy. AND c) the law of unintended consequences when you meddle with something that large and intertwined with all other segments of the economy. Case in point, Rumblerpal who works for a healthcare REIT informing me that they are encountering difficulties with medical office buildings because 1) Docs are quitting their practices - they don't want to deal with the case load and 2) Credit worthiness of the doc offices is declining due to lower Medicare and Medicaid reimbursement rates - look for some consolidation there.

Well the same reliable group, our good old CBO has issued a new warning:  too much government debt is bad.  Here's the chart:

See the nice, dare I say "hockey stick" on the purple line?  That's Obama and the Democrat Congress ruining our children's lives.  The green dashes?  How much more our children's and grandchildren's lives will be ruined if the current trend continues.  They note (in a paragraph that could have come straight from the Republican Party platform):

Further increases in federal debt relative to the nation’s output (gross domestic product, or GDP) almost certainly lie ahead if current policies remain in place. The aging of the population and rising costs for health care will push federal spending, measured as a percentage of GDP, well above the levels experienced in recent decades. Unless policymakers restrain the growth of spending, increase revenues significantly as a share of GDP, or adopt some combination of those two approaches, growing budget deficits will cause debt to rise to unsupportable levels.

I'm sorry, what have we been screaming about in these pages for the last few years?  What were we preaching as all the new taxes and entitlements were scheming their way through Congress?  Unsustainable?  Can you say "Argentina?"

Matthews Gets Smacked Down by Paul Ryan

Paul Ryan makes Chris Matthews look like a total moron...oh wait, that's not hard...but this it is fun to watch (especially if you like watching whack a mole):

Visit msnbc.com for breaking news, world news, and news about the economy

Tiger Vs. Obama

The T-shirt says it all:

Spotted at the airport in Houston.  Hat tip GS.

Required Rumbler Reading

This week's installment is focused on the economy.  Here we are in the "Summer of our Recovery," a stone's throw away from our "Winter of Discontent," and I thought it would be helpful to go over some of the big economic forces we are dealing with.

1. The Timeless Principles of American Prosperity:  Pete Ferrara's piece over at the American Spectator is a must read.  A simple recitation of what works to restore jobs and prosperity.  Would someone please slip a copy of this under the pillows of Msr.s Gheithner, Bernanke and Obama before we return to 1929?

2. A New War Between the States: Joel Kotkin looks at the emerging fault-lines between those states that rely on Federal largesse and those that seek greater autonomy.  This could become a very serious problem if state governments such as California and New York fail.  How will fiscally responsible states feel about their earnings going to bail out overspending and inept states?

3. How a Rich and Proud Nation Went Broke: We've written about Argentina on these pages before and in our sister blog, Red State Rumblings.  This is a chilling reminder to all of those who want to stick their heads in the sand and chant "it can't happen here."

4. Fannie and Freddie Remain Unfixed: Despite the hoopla on Capitol Hill and at 1600 PA AVE, the financial system remains in grave danger.  The two giant tapeworms that are sucking the life out of the economy, Fannie and Freddie, remain untouched.  In case you were unfamiliar with this, here's a quick read to get you up to speed.

5. Why the Greater Depression Still Lies Ahead: Keep the sharp objects away from yourself while you read this short analysis of why the worst may still be on the horizon.

Calling American Youth...

For all you youngsters who, in the flush of getting the chance to vote for the first time, fell for that "Hope and Change" chant.  To you who sat there mindlessly yelling "Yes we can!" because you believed that you really could get something for nothing...how's that hopey change thing working now:

True, this administration has managed to keep you on your parent's health care because according to them, you are still a child till you reach the age of 26 (!!), but when you really do want to go to work and discover that there are no jobs, will you listen to the wisdom of age at that point and vote this silliness out of office?

Picture of the Year Award

Hat tip NZ

Allen West - Real American

This guy is going places, what a breath of fresh air in the increasingly stirred up fumes of racism that this Administration is fanning to get votes.