President Obama established a bipartisan debt-reduction com mission — and then ignored its findings, which called for unpopular cuts in entitlements and spending. His first two budgets led to the largest deficits in US history. The ensuing $3 trillion in red ink prompted the Tea Party movement and led to the Democrats’ largest midterm House defeat since 1938.
No matter. Obama has proposed a budget with an even larger, $1.6 trillion deficit. That record federal borrowing prompted columnist Charles Krauthammer to describe it as Louis XV indulgence, an allusion to the wild royal spending that brought about the French Revolution. Even Newsweek’s Evan Thomas, who once gushed that Obama stood “above the world” as some “sort of God,” called the president’s new budget a “profile in cowardice.
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After Obama leaves office, a perfect storm of rising international interest rates, an anemic dollar and panic on the part of foreign lenders may force an end to this unhinged American rush to borrow and blow what it has not earned.
Gas prices in many parts of the country are nearing $4 a gallon; it could get even worse as unrest spreads in the oil-exporting Mideast. Yet the Obama administration seems to see no crisis. It has curtailed leases for offshore-oil exploration for seven years and exempted thousands of acres in the West from drilling. It won’t reconsider opening up small areas of Alaska with large oil reserves.
Instead, the administration in 2009 pushed through cap-and-trade legislation in the House on the dubious proposition that, in times of unusually cold US winters, the planet is warming up. Accordingly, the administration would like to tax further the already high price of fossil fuels rather than go all out to look for more. Yet importing more oil from abroad and growing more subsidized biofuels at home will lead to a disastrous trifecta of borrowing even more money, ensuring greater global pollution and causing higher world food prices.
Read More: By VICTOR DAVIS HANSON, NY Post