Newest Fox News piece: The S&P Downgrade Is a Wake Call for All Americans

My newest piece at Fox News starts this way:

When Standard & Poors downgraded Spain's bonds from AAA to AA+ in January 2009, its interest rates increased from 4.1 to 4.3 percent.
When the same ratings agency downgraded Ireland's from AAA to AA+ in March 2009, their interest rate rose by about 0.4 percentage points.
So what does that mean for Standard & Poors in terms of downgrading the U.S. bond rating?
With our $14.6 trillion in national debt, raising the U.S. government interest rates by the same amounts would eventually add about $29 to $58 billion a year in increased interest costs -- small change when we are already facing a $1.63 trillion deficit this year. And not all of that increase would be immediately felt since we only face the higher interest rate on newly issued bonds.
The problem with these downgrades is that they have a tendency to quickly spiral out of control. . . .

Newest Fox News piece: The Debt Deal's Three Biggest Winners and Losers

My newest piece starts this way:

With a debt ceiling agreement finally in place and the Senate on track to approve it today congratulations are being handed out all around. 

Armageddon and catastrophe has supposedly been averted. And politicians are rushing to put the best face on the deal. 

Unfortunately, the new agreement does not accomplish as much as many had hoped, or as much as it should have, in terms of curbing spending and continued deficits. This explains why stock markets continued to fall despite the supposedly "good" news. The reason is because, once again, politicians are continuing to push the problem to the future. 

Here's a look at the winners and losers in the aftermath of the "catastrophe" that's just been averted: 

The Winners:

1. Stimulus Recipients and Big Government: President Obama’s “Stimulus” was supposed to just be temporary. Alas, the debt agreement locks in big government and the extra spending President Obama initiated will continue. 

After government spending soared by 28 percent from 2008 to 2011, the debt deal only starts cutting a meager $22 billion next year. That is an incredibly trivial cut -- just 0.6% of expenditures planned for next year. The cuts agreed on are heavily back-loaded towards the end of the 10 year budgeting cycle, when President Obama and many members of Congress will be out of office. 

Short of a constitutional amendment mandating balanced budgets, . . .

Newest Fox News piece: Seven Myths About the Looming Debt-Ceiling 'Disaster'

My newest piece starts this way:

If Congress and the president don't raise the debt ceiling, the consequences will be disastrous, politicians and pundits tell us, -- the equivalent of an economic Armageddon. And President Obama warns that the consequences are so dire that he cannot possibly tolerate any delay in making an agreement. He announced yesterday that any debt deal must be completed by today, July 15th.
According to Treasury Secretary Timothy F. Geithner, failure to raise the debt ceiling limit will cause the United States to default and "cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover.”
On Thursday, he renewed these warnings. And President Obama alarmed retired Americans this week: "I cannot guarantee that those [Social Security] checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it."
But the list of terrible things to come, if the government is stopped from continued deficit spending, goes on. Failure to raise the ceiling, it is warned, will dramatically raise mortgage interest rates, cause housing sales to plunge, create panic on world financial markets, and destroy the value of the dollar.
Austan Goolsbee, Obama's head of his Counsel of Economic Advisers, went so far this week as to blame the continued slow economic recovery on those few politicians who are against raising the debt ceiling. "[I]t's important we remove this wet blanket of uncertainty that is permeating the private sector where they don't know that the government -- there are people actively advocating that the government declare it's not going to pay its bills," he told MSNBC. Yet, the slow recovery has been going on for over two years, well before Republicans obtained control of the House of Representatives.
A new CBS News/New York Times poll finds that Americans oppose increasing the debt ceiling, by a 69 to 24 percent margin.
Mr. Obama dismissed this finding recently and, as usual, he believes he knows better. According to him, Americans just don't understand the complexities of the arguments: "Let me distinguish between professional politicians and the public at large. The public is not paying close attention to the ins and outs of how a Treasury (bond) auction goes. They shouldn't. . . . They've got a lot of other things on their plate. We're paid to worry about it. . . . Now, I will say that some of the professional politicians know better. And for them to say that we shouldn't be raising the debt ceiling is irresponsible. They know better."
But the general public is right. There is an overload from all the doomsday predictions. Earlier this year, before the debt limit was hit on May 21, the Obama administration already used the same scare tactics.
Here's a look at seven myths that the Obama administration is pushing on the American people: . . .

New Fox News piece: Greece Needs to Pay Off Debts While It Still Has a Chance

My newest Fox News piece starts this way:

Tuesday night the Greek government survived a no confidence vote, with relative ease, thus allowing the Greek government to go forward negotiating a new bailout. The government faces a vote over "new austerity" measures, but there is no more reason to believe that Greece will keep its promises to sell assets and cut spending this time than it has over the past year.
Last year's mammoth €110 billion ($157 billion) European Union and International Monetary Fund bailout was supposed to cover Greece's financial problems for three years. But just one year later Greece is seeking another €100 billion.
The G-7 countries and major banks met well into Monday morning but failed to reach an agreement on any more than a temporary bridge loan.
Despite Greece's promises, government spending is up over last year's already bloated levels, the deficit is bigger than ever, and it has utterly failed to meet the promised sell-off of some government assets. Not a single public bureaucrat has been laid off so far. . . .

Newest Fox News piece: Who Has the Best Plans to Rescue America from the Budget Crisis?

My newest Fox News piece starts out this way:

Who has the best plans to fight the budget crisis? Well, it seem that the Democrats do not even have a plan, or perhaps they secretly have one but are embarrassed to release it. Either way, Democrats are stubbornly refusing to release any budget plan. Instead, they just complain about the two that have been presented so far. 

Thus when the Senate voted on budget plans this week, Senators considered two options but neither one received a single yes-vote from a Democrat. 

One proposal, the House Republican budget, the so-called "Ryan plan," was attacked by Democrats as "draconian” or “unconscionable." 

The other option was President Obama's plan from February. But as The Hill newspaper reported: “the Democratic caucus would not support the [president’s February] plan because it has been supplanted by the deficit-reduction plan Obama outlined at a speech at George Washington University in April.” 

So why not vote on the April plan? . . .

New Fox News piece: Team Obama's Debt Limit Scare Tactics Are Getting Old -- Fast

My newest Fox News piece starts this way:

Wasn't the world supposed to end on Monday? No, I'm not talking about May 21. But on Monday, the U.S. government officially hit its debt limit, but where are disasters that the Obama administration have been predicting for months? We were warned that hitting the debt limit would be "deeply irresponsible" or “insanity” or “abrupt contraction would likely push us into a double dip recession.” But Americans woke up today to find nothing really changed from last week.

The Obama administration’s scare tactics are getting old. Unfortunately, they keep on getting away with this and aren’t held accountable when their scare stories prove false.

Take the warning Treasury Secretary Timothy Geithner made on January 6th. He wrote Congress a letter asserting: "the debt limit will be reached as early as March 31, 2011, and most likely sometime between that date and May 16, 2011. . . . it is strongly in our national interest for Congress to act well before the debt limit is reached” (italics added). Failure to act before this deadline would lead to "default on legal obligations," "catastrophic damage to the economy, potentially much more harmful than the effects of the financial crisis of 2008 and 2009." Spending will be "discontinued [or] limited" on everything from Social Security and Medicare, U.S. military salaries, Medicaid payments to states, to "forced default on legal [interest] obligations."

The debt limit increase was so critical that President Obama has long opposed any attempts by Republicans to use the debt limit increase to cut the debt, claiming that it had to be a “clean” bill. White House Budget Director Jack Lew told lawmakers in March that it had to be “clean -- it’s irresponsible to do anything but extending the debt limit.” . . .

Fox News: Credit Rating Wake Up Call on Debt?

Newest Fox News piece: Don't Single Out Standard & Poor's for Being 'Political'

My newest Fox News piece starts this way:

If you think it's hard now to balance the budget, just wait until our credit rating gets trashed. Monday’s warning from the Standard & Poor’s rating agency -- that the U.S. government’s credit rating could be revised downward -- produced a firestorm in Washington. Republicans called it a "wake-up call," while the Obama administration's chief economist, Austan Goolsbee, lambasted Standard & Poor’s actions as purely "political."
Credit ratings aren’t just a matter of national pride. Less dependable, risky borrowers have to pay a higher interest rate to get people to buy their bonds. Right now the our government only has to pay 3.4% annual interest to borrow money for 10 years. But for countries who have had trouble paying their debts, interest rates are much higher. Portugal is forced to pay 9.1%, Ireland 9.8%, and Greece 14.6%.
But America's financial problems are catching up to what these other countries face all too quickly. . . .

My Newest Fox News piece: "Paul Ryan Is Right About the Budget -- Americans Cannot Afford Another Decade of Massive Government Spending"

Please leave comments and click the "recommended" link at the Fox News website. My newest Fox News piece starts this way:

The deficit is a spending problem. That's the simple truth. If federal government spending after President Clinton's last budget had simply grown fast enough to keep up with inflation and the growth in population, the 2012 budget would be running over a $70 billion surplus. Instead, federal expenditures more than doubled from $1.86 to $3.82 trillion in the ten years from 2001 to 2011, causing this year’s enormous $1.65 trillion deficit.

During President Obama's first three years in office the government's deficits are adding up to over $4.3 trillion. And there is no let up in sight. The Congressional Budget Office (CBO) estimates that the President Obama's budget plans will add another $10.4 trillion in deficits over the next decade from 2012 to 2021.

Americans can't afford to ignore this problem. The pricetag for that expected addition to the federal debt over the next decade comes to over $134,000 for a family of four. That doubles the debt the CBO expects that families will already face by the end of this year. . . .

The Truth About Obama and Budget Cuts

Here is my appearance yesterday on Fox News Live.

Newest Fox News piece: The Truth About Obama, Democrats and Budget Cuts

My newest piece starts out this way:

With major budget votes set for Tuesday, Senate Democrats spent the weekend dismissing House Republicans' plans to cut the budget as “ideological, extremist, reckless." President Obama advocated “a government that lives within its means,” but he also charged “there’s nothing responsible about the Republican budget cuts.

Following the same script, news headlines described the House Republicans cuts as "dramatic" and "outrageous."

The magnitude of this year’s deficit might be hard for many to appreciate. But the monthly budget deficit for February of $223 billion is larger than the $160.7 billion deficit for all of 2007, the last time we had a federal budget that was approved when Republicans controlled the House, Senate, and presidency.

Democrats say that they can only come up with one-thirteenth the deficit cuts that the Republicans have put forward – just $4.7 billion, though Obama claims that these cuts meet the Republicans “halfway.” Democrats assert that there is not even enough waste in the federal budget to cut it by two-tenths of one percentage point. . . .

Newest Fox News piece: GAO Report and Government Waste -- Can You Spell O-U-T-R-A-G-E?

My newest piece starts this way:

We are used to hearing about fraud and government programs that fail to accomplish their goals. It now appears that yet another category might be important: duplication. Hundreds of major government programs have been discovered to duplicate what other government programs are doing. If we are to believe a new Government Accountability Office report, consolidation of programs could easily save up to $200 billion over the next decade.

Call it "press release government." For politicians, the best way to be seen as being actively involved and to viewed as caring about a problem is to set up a new government program and then claim credit for it. It doesn't seem to matter if there are already 17 other programs that help people get nutritious food or 79 other programs to provide transportation for the disadvantaged, adding another program shows that the politician really cares. It is the equivalent of building on another living room to a house when there are already several of them.

Creating new additional government programs spread across different government agencies also means that additional congressional committees can try claiming oversight. Government housing programs are spread across every place from the Department of Agriculture, the Department of Health & Human Services, Department of Housing and Urban Development, Department of Interior, Department of Labor, Federal Housing Finance Board, Neighborhood Reinvestment Corp, and the Department of Veterans Affairs. Thus, when there is a housing problem, congressmen and Senators from a range of different committees can claim legitimate reasons to run before the television cameras and hold committee hearings. . . .

Newest Fox News piece: Obama Officials Play Chicken Little With the Debt Ceiling

My newest piece starts this way:

Two years into the Obama administration and the overused tactic of claiming crises to push legislation is becoming tiresome.

Remember, immediately after President Obama came into office, we were warned that if the massive Stimulus program wasn't passed immediately, unemployment would go up above 8.1 percent. And the health care takeover had to be passed by August 2009 or public and private health care costs would spiral out of control.

Of course, it is now obvious that neither the stimulus program nor Obamacare had any prospect of accomplishing their stated goals. And then there was the start treaty with Russia which absolutely had to be passed quickly last month or real damage would be done to US-Russian relations. Yet, in what was widely seen as a slap against President Obama, the Russians didn't see any urgency in passing the treaty, and indeed they still haven't passed it.

Now the Obama administration is warning of disaster if Congress doesn't quickly pass an increase in the debt limit. . . .