In Obama's state of the union speech, one of the things he touched on was the deficit. He said the following:
"Over the last few years, both parties have worked together to reduce the deficit by more than $2.5 trillion, mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans. As a result, we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances."
Is this man nuts or does he just think everyone else is that stupid? How can he possibly say that the deficit has been reduced by more than $2.5 trillion over the last few years? The annual deficit is still over $1 trillion per year. This is impossible that it has been cut that much.
The only thing he could possibly be referring to, especially since he also talked about raising tax rates on the wealthiest 1 percent (it should be top income earners, not wealthiest), is that the future projected deficit has been reduced. Talk about playing word games. How can you say that you have reduced a deficit that is set to occur sometime in the future?
Obama has no idea what the actual growth rate will be. He has no idea what the actual spending will be. He has no idea how much money will be collected by the government. But the most amazing thing about this is that immediately after saying these words, he goes on to say that the parties need to work together to avoid these "sudden, harsh, arbitrary cuts" that will go into effect.
So Obama takes credit for cutting the deficit in the future, but then immediately says that we need to stop the future cuts that would actually translate into this deficit reduction. You got that? He didn't even wait until five minutes later in his speech to contradict himself. He does it immediately.
While politicians, including Obama, are often ignorant, I don't believe this is ignorance. This is a planned speech. It is meant to deceive.
I remember when George W. Bush, early in his presidency, talked about cutting the deficit in half and giving a time period that wouldn't occur until he was out of office. Of course, by the time Bush left office, the deficit had ballooned to unimaginable levels with his bailouts of car companies, banks, and other financial institutions.
These slick politicians, particularly in DC, like to talk about the deficit. Do not confuse the deficit and the debt. When they refer to the deficit, it is the annual amount that the government spends in excess of the money it takes in, primarily from taxes. Obama can talk about some goal of reducing the deficit by $4 trillion over the next several years, but the fact remains that there will still be massive deficits. The national debt will keep getting bigger and bigger. Politicians will call for reducing the deficit, but never for reducing the debt.
Obama is the epitome of big government. And he has to sugarcoat his message with lies and distortions. His contradictory statements on the deficit should prove that he has absolutely no interest in reducing spending. The politicians will keep running up the debt and making us poorer until the American people revolt or the Fed stops buying government debt.