Obama presidency to end with $20 trillion national debt

Obama presidency to end with $20 trillion national debt


When President Obama signs into law the new two-year budget deal Monday, his action will bring into sharper focus a part of his legacy that he doesn’t like to talk about: He is the $20 trillion man.

Mr. Obama’s spending agreement with Congress will suspend the nation’s debt limit and allow the Treasury to borrow another $1.5 trillion or so by the end of his presidency in 2017. Added to the current total national debt of more than $18.15 trillion, the red ink will likely be crowding the $20 trillion mark right around the time Mr. Obama leaves the White House.

When Mr. Obama took over in January 2009, the total national debt stood at $10.6 trillion. That means the debt will have very nearly doubled during his eight years in office, and there is much more debt ahead with the abandonment of “sequestration” spending caps enacted in 2011.

“Congress and the president have just agreed to undo one of the only successful fiscal restraint mechanisms in a generation,” said Pete Sepp, president of the National Taxpayers Union. “The progress on reducing spending and the deficit has just become much more problematic.”

Some budget analysts scoff at the claim made by the administration and by House Speaker John A. Boehner, Ohio Republican, that the budget agreement’s $112 billion in spending increases is fully funded by cuts elsewhere. Mr. Boehner left Congress last week.

“The Boehner-Obama spending agreement would allow for unlimited borrowing by the Treasury until March 2017,” said Paul Winfree, director of economic policy studies at The Heritage Foundation. “This deal piles on billions of dollars to the national debt by increasing spending over the next three years and then not paying for it for a decade — with half of the offsets not occurring until 2025.”

The bipartisan Committee for a Responsible Federal Budget estimated that only about half of the increased spending in the budget deal is paid for. Rather than a spending increase of $80 billion over two years, the nonprofit group said, the actual spending hike is $154 billion when interest costs and budget gimmicks are factored into the equation.

“Of this $154 billion, about $78 billion is paid for honestly” through Medicare reforms, reductions in farm subsidies, asset sales and other measures, the group said. “The remaining $56 billion of the legislation — mostly the war spending increase and interest costs — is not paid for at all.”

Of course, Congress bears equal responsibility for the high level of debt. A prime reason that Mr. Boehner left office was conservatives’ displeasure with his accommodation of the president’s budget requests, aside from three years of “sequestration” spending caps that helped limit annual deficits.

“We will be raising the debt ceiling in an unlimited fashion,” said Sen. Rand Paul, a Kentucky Republican who tried to filibuster the budget deal before the Senate approved it in the wee hours of Friday. “We will be giving President Obama a free pass to borrow as much money as he can borrow in the last year of his office. No limit, no dollar limit.

Paul Ryan Starts Off on Wrong Foot With Budget Deal

Paul Ryan Starts Off on Wrong Foot With Budget Deal


The new budget deal arranged by John Boehner and Democrats— approving $50 billion of additional spending in 2016 and $30 billion in 2017—will be split between domestic discretionary programs and defense. Cuts will supposedly take effect in 2025, by which time this deal is likely to be buried under a dozen budget debates and a trillion dollars of bad memories for fiscal conservatives.

We’re told the reason for GOP capitulation is that Boehner, acting selflessly, is about to “clean out the barn” for a Paul Ryan speakership. Implicit in this argument is the idea that this kind of budget agreement would normally be a no-brainer but the crazies must be appeased. Passing it now and avoiding the heat will allow Ryan to move forward with his own agenda.

If only it were that simple.

For one thing, the GOP will have to live with the precedent set by the terrible deal in future negotiations. Barack Obama, as The New York Times points out, is now going to be able to “break free of the spending shackles” of the imaginary reign of austerity that was brought on by the Budget Control Act of 2011. So are all Democrats.

For another thing, conservatives will almost surely see this as a betrayal. The administration came up with the idea of sequestration, and it turned out to be the only tangible victory Republicans could claim on spending.

You may remember the 2010 Pledge to America, in which congressional Republicans promised to roll back government spending to pre-stimulus/bailout levels, cutting at least $100 billion in the first year after taking power. They failed to achieve that improbable goal. And almost every year since, government spending has gone up, though the GOP keeps adding seats by promising to achieve the opposite.

Expecting the GOP to return Washington to 2008 spending levels—now, with a Democratic president in power, or probably ever—is unrealistic. Expecting Republicans at the very least not to piddle away the only leverage they have to keep the status quo is surely reasonable.

Massive Debt, Budget Deal Introduced In Dead of Night, Vote Violates Another Boehner Pledge

Massive Debt, Budget Deal Introduced In Dead of Night, Vote Violates Another Boehner Pledge


The text is 144 pages long and increases the debt ceiling beyond when President Barack Obama leaves office, all the way until March 2017. It also, according to Politico, increases spending by $50 billion this year and $30 billion more the following year.

As AP reports, House Speaker Rep. John Boehner (R-OH) is pushing for a Wednesday vote, this would be yet another instance in which he has broken his promise to give members and the public three full days—72 hours—to read legislation before voting on it.

“We will ensure that bills are debated and discussed in the public square by publishing the text online for at least three days before coming up for a vote in the House of Representatives,” Boehner’s “Pledge to America” reads. “No more hiding legislative language from the minority party, opponents, and the public. Legislation should be understood by all interested parties before it is voted on.”

In a speech to the Conservative Political Action Conference (CPAC) in February 2010, Boehner also promised that three full days meant “at least 72 hours.”

By scheduling a vote on Wednesday—any time before 11:36 p.m. on Thursday, actually—Boehner would be violating that pledge.

Boehner is also putting the chances of his likely successor, House Ways and Means Committee chairman Rep. Paul Ryan (R-WI), at risk. Ryan has indicated he thinks the “process stinks” on this, but is planning to review the deal in its entirety before making a decision one way or the other.

Ryan’s office has refused to answer a series of basic questions from Breitbart News on whether he believes all Republicans in the House should support or oppose the deal, what took him so long to comment on the deal at all (he still hasn’t weighed in on the substance just the process), whether he would support Rep. Kevin McCarthy (R-CA) remaining on as Majority Leader if he becomes Speaker after McCarthy contradicted him on the process of the deal, and whether Ryan would allow staffers who were involved in this process who currently work for Boehner to remain working for the Speaker’s office if and when this takes over. Ryan spokesman Brendan Buck, over the course of several emails on Tuesday, openly refused to answer each of those questions.