Plus: Don't miss the video of Sen. Judd Gregg (R-NH) Read the Riot Act to Obama Budget Director!
If you've heard it once, you've heard it a hundred times. Despite the fact that Obama signed the most massive spending bills EVER shortly after becoming President in 2009 he tries to blame the deficit on President Bush.
Dick Morris takes the lie apart piece by piece:
BEHIND OBAMA’S PHONY DEFICIT NUMBERSAnd now, Obama wants to take some of the repaid TARP money and use it for another of his slush funds to reward campaign contributors. He is trying to spend the money that was supposed to be used to pay down the debt at the same time he blames that debt on Bush. What a liar!
By Dick Morris
President Obama is being disingenuous when he says that the budget deficit he faced “when I walked in the door” of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.
Congressman Joe Wilson might have said “you lie,” but we’ll settle for “you distort.”
(As Mark Twain once said, there are three kinds of lies: “lies, damn lies, and statistics.”)
Here are the facts:
In 2008, Bush ran a deficit of $485 billion. By the time the fiscal year started on October 1, 2008, it had gone up by another $100 billion due to increased recession-related spending and depressed revenues. So it was about $600 billion at the start of the fiscal crisis. That was the real Bush deficit.
But when the fiscal crisis hit, Bush had to pass TARP in the final months of his presidency which cost $700 billion. Under the federal budget rules, a loan and a grant are treated the same. So the $700 billion pushed the deficit — officially — up to $1.3 trillion. But not really. The $700 billion was a short term loan. $500 billion of it has already been repaid.
So what was the real deficit Obama inherited? The $600 billion deficit Bush was running plus the $200 billion of TARP money that probably won’t be repaid (mainly AIG and Fannie Mae and Freddie Mac). That totals $800 billion. That was the real deficit Obama inherited.
Obama's Director of Management and Budget, Peter Orszag went to the Senate Budget Committee Tuesday and tried to push this latest scam. It didn't fly with New Hampshire Senator Judd Gregg (R). This video is a must see!
Gregg: "No, no no! You can't make that type of statement with any legitimacy. You cannot make that statement. This is the law [holds up a copy]. Let me tell you what the law says, let me read it to you again because you don't appear to understand the law. The law is very clear: "The monies recouped from the TARP shall be paid into the general fund of the Treasury for the reduction of the public debt."If not for Judd Gregg the Dems might have simply ignored the law and just taken these billions that we borrowed in a time of emergency and spent them.
At the hearing, Sen. Gregg turned the Obama "inherited deficit" lie on it's head when he said “What this administration inherited is not as important as what our children will inherit.” These really are the Obama deficits and no slick speeches by the President can change that!