I am utterly amazed at the continued arrogance of the Obama administration, which has managed to make the Bush administration look to be prudent, which is a major accomplishment. Obama tells C-SPAN that "We are out of money," but then claims that this is because the government had not taken over healthcare. (I'd hate to see our medical system when government actually does completely control it, given that it pretty much is a government-run system now.)
His comments simply are stunning:
So we've got a short-term problem, which is we had to spend a lot of money to salvage our financial system, we had to deal with the auto companies, a huge recession which drains tax revenue at the same time it's putting more pressure on governments to provide unemployment insurance or make sure that food stamps are available for people who have been laid off.
So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don't reduce long-term health care inflation substantially, we can't get control of the deficit.
So, one option is just to do nothing. We say, well, it's too expensive for us to make some short-term investments in health care. We can't afford it. We've got this big deficit. Let's just keep the health care system that we've got now.
Along that trajectory, we will see health care cost as an overall share of our federal spending grow and grow and grow and grow until essentially it consumes everything...
Yes, this is an administration that when it found out we were in a deep recession has turned on the Federal Reserve spigots at full blast and is throwing money around. Now that the U.S. Dollar is tanking, suddenly they realize they are painted into a corner.
What to do? It is obvious; pour another round of drinks, have a toga party, and print more money. When prices of goods skyrocket upwards, Obama will blame business (and especially the oil companies), and the media and most of the country will slavishly believe him.