April 2011 Archives

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A Few Numbers Portending the End of the American Dream

By Michael Fumento

  • $38 billion: The amount to be cut from this year's federal budget, with much hooping and hollering by Congress and which Pres. Obama declared "painful."
  • $1.5 trillion: This year's projected deficit.
  • 2.5 percent: The fraction of the projected deficit that cut reduces.
  • $36 billion: Monthly interest on national debt this fiscal year (March 2010 through March 2011).
  • $139 billion: Monthly increase in national debt from March 2010 to March 2011.

Yes, we basically paid a month's interest.

We are a spendaholic people who feel entitled; which is why fully half of the budget goes to entitlements. We will not pay for that which we buy, and are greatly offended at the suggestion that we should. We will not change.

An effort to propagandize our way out of the Great Depression - the FIRST one -

Nero fiddled. We play Angry Birds, collect from Facebook "friends" we never heard of, and tweet about our latest bowel movements. Pathological narcissism has become the norm, and we have become a nation of electronic addicts like something out of Brave New World.

Says one of the few who really gets it, Cong. Michael Grimm Michael Grimm (R.-NY), "We're in a financial crisis. If we don't have massive cuts, we will lose the American dream for future generations."

It's lost already. Time to reread The Grapes of Wrath on your ebook, Apple, or Droid - or read it for the first time. It's going to be hell.

April 10, 2011 05:33 PM  ·  Permalink  ·  Economy


By Michael Fumento

Pres. Obama has made expanding U.S. exports a centerpiece of his economic plan. In his January State of the Union Address, he noted that "95% of the world's customers and fastest-growing markets are beyond our borders" and that export-related jobs "pay 15% more than average." At a time when jobs are in short supply, he later said, "building exports is an imperative."

So naturally, he's done everything possible to ease passage of the Colombia Free Trade Pact, which the Bush Administration negotiated and the then-Democrat controlled Congress battled up. Right? Wrong.

As I write-in Investor's Business Daily, the pact is lopsided towards the U.S. in that Colombia's exports to us are already tariff-free, while our products sent there carry duties of up to 25% - an estimated $3.2 billion total since the agreement was reached.

Those tariffs would disappear and, according to the U.S. International Trade Commission, expand opportunities for a broad array of U.S. sectors, increase our gross domestic product by about $2.5 billion, lower our massive trade deficit and create J-O-B-S.

That's also where export markets are opening up. Economic performance confidence levels are higher in Latin America than in any other part of the world. That's why other nations are busily entering trade agreements with Colombia, including the entire European Union.

Yet in December Obama refused to even send the Pact to Congress. I absolutely will not speculate as to why.

Not at all.


Not a hint.

Well, except that Big Labor doesn't like the Pact because it means competition for them. And Big Labor donates Big Money to political campaigns, with 90% going to the Dems.

But, of course, the Dems can't say that. So they say they're worried about protecting the rights - indeed the lives - of Colombian labor union members. Except that the percentage of such members reported killed last year was vastly below Colombia's overall homicide rate - not to mention a fraction of that of New Orleans.

But, under tremendous GOP pressure, it looks like Obama is finally sending the Pact to Congress - who, we should hope, has the wisdom to force the President to accept his own rhetoric.

April 9, 2011 01:37 PM  ·  Permalink  ·  Barack Obama ~ Economy ~ Government ~ Latin America