JUST LETTING YOU KNOW
We’re about 90 days from the election and I must address the latest news. As you know Mitt Romney has chosen my favorite person in Washington when it comes to you and your money, to be his Vice President.
As you know, I never used to talk politics on this show. Never.
I hardly talked about the Fed.
I never talked about Wall Street. In fact, I defended Wall Street, saying they’re not crooks.
I would like to say, slowly but surely, we got more interference, more corruption and more criminal activity – but it actually came pretty quickly. And we had to start talking about what was going on in Washington DC.
Back in the year 2000, in Bill Clinton’s last budget, the U.S. spent $1.8 trillion. And mind you, debt was piling on to the tune of trillions over a good period of time.
During Bill Clinton’s tenure, he got together with Republicans and they basically balanced the budget, which means spend what you take in.
What a freak’in concept! Balance your budget. And throughout history, we have heard Democrats and Republicans both say, “We need to balance the budget.”
So we walked into the George Bush era. I remember the economy went into a little recession, (nothing bad) when he took over. And we started a secular Bear Market because we had a big, gigantic bubble at the end of 1999.
Then 9-11 hit. And the economy went south. The airlines and the travel industry got hit. I remember going to Las Vegas just two weeks later and there was hardly anyone there. And George Bush lowered taxes and gave out some checks. I remember everybody got $300 or something like that.
And all we heard after that was: “George Bush is doing to destroy the country. Tax cuts to the wealthy. It’s terrible.”
People like Paul Krugman wanted to hang him.
And the deficits at that time on an annual basis were $200 to $300 billion.
But something funny happened. We were running the deficits, but income into the Treasury spiked higher in the mid-2000s. So what happened? They kept spending. The Republicans kept spending. And the war, which they left off budget, had to be put back on.
George Bush went his 8 years and after inheriting big debt (not deficits) on a yearly basis, he ran it up over $4 trillion over eight years. These are not exact numbers, but they’re close.
Which takes us to Barack Obama. During Barack Obama’s campaign he said he would not treat taxpayer dollars like Monopoly Money. He said he would go line by line through the budget and weed out the waste. It’s all on YouTube.
And then he announces a stimulus of $800 billion. We were told that a ton of it’s going into infrastructure. We need to fix our highways and bridges.
We were told that. We were told that they they’d be careful with every dime. Efficient and effective.
And then something happened. George Bush’s last spending year was about $2.7 trillion…somewhere in there. Of course we had a TARP which was $800 billion. A “onetime” TARP.
Obama comes in and raises spending from about $2.7 trillion to $3.7 trillion straight up, without any increase in money taken by the government. That meant that every dime of increased spending, was deficit spending. People would have to loan that money to us and we’d have to pay it back.
In other words…a tax. Because who pays it back? You and I and the business world. It’s a tax on corporations and individuals. It’s a tax. A deficit is a tax.
In only 3 1/2 years, Barrack Obama has brought on more debt than George Bush in his whole eight years.
But we are told that it is not his fault. That the debt ballooned on George Bush’s watch even though anybody can go to the web and see, it’s all in plain sight.
And then we get a healthcare bill that was sold to us on the premise that it will only cost us over a 10-year period, $800 billion. But we’ll get it back in savings.
But now that number’s $1.7 trillion!
Now they use the word “cost.”
No. It’s a tax. A cost to government is a tax to you and me. So as of this second, this country is running on a yearly basis anywhere basis anywhere from a $1 trillion to $1.3 trillion (not including the new health care bill) that comes out of you and me.
A tax. To where we’re now $16 trillion in debt.
So I find a gentleman by the name of Paul Ryan that I had no idea about a couple years ago.
And I listened to him and I watched him. And he said we have to cut the spending and the deficits.
And frankly, he was just repeating what so many other politicians have been yelling about for 15 years. They can talk until they’re blue in face because in the past 10 seconds our debt just went up $400,000. For the next 10 years, if there’s nothing done we will run $1 to $2 trillion deficits as far as the eye can see. And that’s tax increases on you and me and that comes out of the economy.
That’s all I care about.
So you have one man with the grapefruits to actually come out and say we’ve got to cut spending and get deficits under control. That’s all he’s saying!
He’s saying, “Barack Obama, you took spending from $2.7 trillion to $3.7 trillion overnight. What’s changed from four years ago that we can’t go back to $2.7 trillion? Let’s cut it half!”
Are they replying: “I’m glad you care about fiscal health and well-being of this country… let’s sit down and look at this?”
No! They call him a racist, an extremist, a radical who doesn’t care about the elderly. You want to talk food off the table of children. You hope the elderly die so that we don’t have to pay for their healthcare. You hate Hispanics.
Ladies and gentlemen, let me tell you want is extreme. It’s spending $1.3 trillion a year that you’re not taking in! And then lying about! And then blaming it on others!
You’ve had two years of unfettered power and another year a half to do something about it…and now you don’t even pretend to care about it.
There’s no talk about fixing deficits from this administration. The only talk from this administration is how do we raise taxes to pay for this sham of spending that was supposed to go to our roads and bridges and never did.
Where is that trillion dollars a year going? Where is the list?
I’d like to know. But no. It’s bad to try and fix the deficits.
GOD FOBID WE CAN’T DO THAT!
Ladies and gentlemen, they’re taunting the markets. They’re taunting you. They’re screwing you. The have raided the Treasury for the next six years and they have no plans for changing it. And I don’t know what works and what doesn’t. What I do know is that if you take in $2.5 trillion, you can’t spend $3.8 trillion.
Yet that’s what they’re doing. But they ain’t talking about it.
But those that do and who want to cut that down to size are called extremists and radicals. There’s only one group that’s extremist and radical. It’s the group that’s spending $1.3 trillion that they don’t have.
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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.