Forgetting the devastating 2008 financial collapse, caused by a subprime loan crisis via Fannie Mae and Freddie Mac, two government subsidized etitites, the White House Press Secretary recently endorsed the same short sited class-warfare tactic for purely political reason.
During a December 2012 press-conference, regarding the Bush tax-rate and the pending “fiscal cliff,” the Obama Administration’s Press Secretary, Jay Carney said:
We’re asking that they vote for a tax cut (Note: Carney then corrected himself because the Bush tax rate cut taxes for all), er, a tax cut extension for 98 percent of the American people, and to let the rest of that law stand as is, which means that those tax cuts for the wealthiest expire.
That’s how the law is written. That’s how it was designed, as you know because you and I both covered it back in 2001 and 2003, with a 10-year window and then an extension — precisely because the designers, the authors of those tax cuts knew that they were explosively expensive in the out-years, knew that they were budget busters.
And while they promised otherwise, that’s what America got. They got a series of economic policies that took record surpluses and turned them into record deficits, and now you have some of the same people who supported those policies saying we’ve got to do that again because it was so good for America. The President disagrees.
Either Carney was just a horrible reporter, or he is a great liar.
Carney is not being honest (toning it down a notch here, folks—he’s lying) when saying that “it was intended to be explosively expensive in the out-years.” What Carney and Barack Obama won’t tell you is that the reason that the Bush tax rate was set to expire was that it was passed under the same process as Obamacare.
Reconciliation was the process that got the Bush cuts through congress. Why you ask is it only a temporary cut? Well there are rules to reconciliation. Here is an explanation of those rules in the house.
In the House, Rule XXI, clause 7, prohibits the consideration of a budget resolution that contains reconciliation directives instructing committees to change existing law to increase direct spending in either of two time periods:
- the six-year period consisting of the current fiscal year, the budget year, and the four ensuing fiscal years; and
- the 11-year period consisting of the current year, the budget year, and the ensuing nine fiscal years. In the Senate, Section 202 of S.Con.Res. 21, the FY2008 budget resolution, prohibits the consideration of any reconciliation legislation that would increase the deficit in either of the same two time periods.
So, the reason the Bush tax cuts for every American were temporary is the vote was too close to make it permanent, It was passed with a simple majority. This is about as encouraging as this gets.
The fact remains that in a press conference, Jay Carney lied before the entire world, saying “the Bush Administration knew that the tax cuts were destructive.” Really? So how does Carney & the Obama Administration explain the recent Internal Revenue Service report, proving an increase in revenue under the Bush Tax Rate?
Is there another government program that Jay Carney may have confused as, “intenentional, and explosively expensive in its out yearas?” Bush warned Congress that Fannie May & Freddie Mac were out of control. And the Democrats not only ignored the fiscally devastating issue, but in fact, they promoted the economic demise in 2004.
Was there a crash? Certainly, but there was a massive problem that was still unknown to the American public.
Below, the Democrats by way of Barney Frank, publicly told the people there “wath no pwoblem wif Fannie and Fweddie.”
The result was a massive financial crisis that was almost exclusively driven by only two Government Subsidized Entities (GSE) — Fannie Mae and Freddie Mac, who now own over eighty percent of ALL home loans.
It means the real estate market is no longer privately owned, but has been absorbed and “redistributed.” Real estate has been taken over by an ever growing & continually failing federal government. They have yet to solve the issue too, and only talk about expanding it. How does one expand a “private-industry” that is already under 80% control of the Federal Government? What is it called when Government controls an industry, or an economy? It’s called socialism, or governmental Marxism.
Why else would the Feds bail-out the mortgage lenders, who have yet to repay their TARP loan? Because the lenders were operating under rules put in place by Bill Clinton, before Bush was President. Government created the problem and is responsible for the resulting economic crisis.
Indicdentally, and no small issue, is the fact that EVERYONE’S home value plummeted as result of the housing market crash caused by Government. Democrats tried for years to make “housing a right,” starting with the Community Reinvestmkent Act under Jimmy Carter. They couldn’t pass a law through Congress, so instead they spread home-owners wealth around in the market via “free houses.” The result lowered everyone’s home-value. Democrats used a social-issue to claim a false moral highground that resulted in nothing more than theft.
Who got to pay the all-time highest TARP loans to Fannie Mae & Freddie Mac? The taxpayer picked up the tab. Who was treated maliciously in the market, result of a government mandate? Private home-owners, who lost all of the “actual value” people accrued over a life-time of mrotgage payments. Now the vast majority of people are referred to as being “under water.” They are drowining in government mandates and government debt with no end in sight.
See the below video featuring Clinton’s Director of Housing & Urban Development, and now Governor of New York, Andrew Cuomo regarding his sub-prime Government mandate.
Congress is responsible for allowing the Democrat mandate to stand under Bush for almost 5 years. All the while, Bush was screaming at the top of his lungs that the sky was falling. Nobody wanted to look.
See the video below, as Bill Clinton comes clean on Fannie & Freddie, placing blame for the sub-prime economy on Democrats.
So what do we have in the final analysis regarding the “fiscal cliff?”
The Bush Tax Rate actually resulted in more federal revenue. It fattened the government purse to record-levels, and lowered unemployment to an eighty-year-average of 4.7%. That is, until the sub-prime market crash and deflation of property value, which has yet to rebound without more taxpayer money. Again, the sub-prime mandate occurred under Bill Clinton–not George Bush.
Put into terms that today’s audience will understand, Clinton was the knight in shining armor who set-up the bad scenario that Obama would ride in to fix. But it hasn’t been fixed. Only more cronies have been paid off, while private home-owners get only more promises of a better future.
See Nancy Pelosi, Chris Dodd and other prominent Democrats attest to their ignorance of free-market capitalism which is owned & set by We The People. Take note of the liberals assuring you that nothing is wrong. They promoted the socialism, and demanded a more dependent people. The result has destroyed opportunity in America (for now).
In the end, Democrats stole the “actual value of your home,” of which you depended on for your retirement. You home-loan value is now woth a lot less under a government controlled market. Democrats redistributed your value across America, to those who had nothing to do with you, nothing to do with your work and certainly, nothing to do with your success.
You were suckered America.