Throughout his reelection campaign, Obama spoke of having a balanced approach -- spending cuts and tax increases -- to solve the nation's debt problem. Now that the election is over and Obama won: "Forget about it!"
Instead, Obama's approach is taxing the rich by twice the amount that he ran on before the election. Then, too, he now wants a new stimulus program; extended unemployment benefits; a renewal of the Make Work Pay payroll tax cut; another shot at mortgage relief; and, billions more to insure doctors get paid under Medicare. Not one spending cut.
But, the big signal that the "balanced approach" is being thrown under the bus came when his representative, Treasury Secretary Tim Geithner, told the GOP leaders that he wants an abandonment of the federal debt ceiling. In other words, he wants a blank check to spend without Congress' approval. Does that sound like someone who is even interested in cutting any spending?
The U.S. has already seen its credit-rating-downgraded when the debt ceiling limit was raised the last time around. What do you think will happen when the debt ceiling is completely eliminated? You can just kiss the value of the U.S. dollar goodbye!
--- CNBC.com: Tim Geithner’s Bad Idea on the Debt Ceiling: http://www.cnbc.com/id/50027858