Obama Holding the U.S. Hostage: Opinion
NEW YORK ( TheStreet) -- President Barack Obama is at it again. Unable to manage the government or the economy effectively, he threatens to victimize taxpayers and stick Republicans with the blame.
It appears likely sequestration will require $85 billion in cuts to defense and non-entitlement government spending.
Unwilling to acknowledge the government has a spending problem -- over the last five years, outlays are up $1 trillion and three times the amount required by inflation -- and that tax revenue are short because his policies have instigated the weakest recovery since the Great Depression, Obama is threatening draconian measures if Republicans don't agree to more taxes.
Obama has announced meat inspectors will be furloughed and food shortages will result. His cabinet secretaries have threatened three-hour waits at airports to clear security, reduced embassy protection and border patrols, cutting the Persian Gulf Naval presence from two aircraft carriers to one, and the list goes on ....Repeatedly, the Obama has exclaimed if congressional Republicans don't cooperate, spending cuts now could derail the hard-won recovery. It puzzles me how $85 billion in a $16 trillion economy could make such a difference, especially when tax increases of similar size, implemented on Jan. 1 at Obama's behest, had no similar effect in his mind. The U.S. Constitution charges the President of the United States with running the government effectively on the money Congress provides. While appropriation legislation limits the fungibility of funds, the administration has considerable discretion allocating the 10% cuts in non-entitlement spending. Military marching bands have more personnel than the State Department's Foreign Service has employees. I would rather jettison some tubas than Marine guards at embassies. The Agriculture Department has one of the largest staffs of economists in the world, and the Social Security Administration employs a similar crop of dull number-crunchers. I fear for my brethren, but safe food is more important than yet another dull research paper. To provide fuel and munitions to maintain the carrier presence in the Gulf, it would be better to trim ballooning military health-care costs, something Defense Secretary Leon Panetta has expressed sympathy about addressing.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV