Obama declares we are not a deadbeat nation – really?
The Associated Press in today’s Rockford Register Star article, “Obama: Fight imperils elderly’s checks,” continues the media’s misrepresentation of the facts concerning default on Social Security, unless Congress raises the debt ceiling or the legal borrowing limit.
Declaring “we are not a deadbeat nation,” President Obama warned on Monday that Social Security checks and veterans’ benefits will be delayed if congressional Republicans fail to increase the government’s borrowing authority in a looming showdown over the nation’s debt and spending.
Remember, President Obama and his administration determines the priority of the bills that get paid, not the Congressional Republicans. If you don’t get your Social Security check or your veterans benefits, blame the Obama administration.
However, also interesting was the president’s comment, “we are not a deadbeat nation.” He also says that “congress needs to raise the debt ceiling to allow the government to pay bills already approved by Congress.” Obama omitted, “and signed by the president.”
However, a nation that borrows more than 40% of its annual budget to pay its bills, is not a deadbeat nation? The president, elected by a majority of the voters, wants an unlimited credit card without reducing spending or the $16.4T debt, is not a deadbeat nation?
A country that does not realize the consequences of competing with its own corporations for capital, reducing growth, and increasing unemployment, is not a deadbeat nation? Or almost 50% of Americans not paying income taxes, with a record number of welfare recipients, is not a deadbeat nation?
The U.S. is quickly becoming a nation of deadbeats, led by the entitlement attitude of the current administration and our current entitled generation. Think deadbeat!
Far from paying our bills, the current generation of Americans — or some of them — have set records for default which probably have no parallel in the history of the human race. During the last five years, U.S. individuals have walked away from a staggering $585 billion in mortgages, credit card debts and other personal loans. That works out at about $6,000 per household.
Today, we say, “I’m not going to pay that mortgage I signed because the house is worth less than I owe on it.” When the market improves, how many of our deadbeat generation will say, “I’m going to request the mortgage be increased to the higher assessed value?”
Even though personal credit debt appears to have declined by 7% in the last few years, it really is somewhat of a mirage.
Furthermore, as our chart shows, the majority of that reduction hasn’t come from people paying off their loans, but from banks writing them off.
The total debt reduction from the peak, says the Fed, is $954 billion. Loan write-offs, at $585 billion, account for 60% of that. In other words, for all the chest-thumping about how Americans are repairing their balance sheets and how we aren’t a nation of deadbeats, in the last five years Americans have walked away from $3 in debt for every $2 they’ve paid off.
Households weren’t alone. Corporations have defaulted on $35 billion to $40 billion in debt per year in recent years, according to Moody’s, despite the massive corporate bailouts by the federal government using taxpayer’s dollars.
Sounds like a big increase of deadbeats in our nation to me.