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PRESIDENT BARACK OBAMA: We can stand here today and say, ‘We prevented another depression.’ We broke the back of the recession. The economy that was shrinking by six percent a year ago is now growing by six percent. So, the worst of the storm has passed.
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Before we went on the air, I saw this on Drudge Report, “Obama’s science czar tells students: We can’t be #1 indefinitely...” Nothing to worry about here. Obama's multi trillion dollar health care plan has passed, the jobs should start pouring in any minute! The New York Times is also giddy about the economy — they ran this headline last week: 'Why So Glum? Numbers Point to a Recovery.'
Really? Has the Times even looked around their own newsroom? It's practically empty. They recently announced another 100 layoffs in the newsroom — which brings that total to what, New York Times? Probably explains why we're getting articles about how great the economy is. Jim from maintenence has taken over the business section at the Times. They also slashed salaries by five percent. Why so glum, New York Times? You've got former New York Times writers who are actually living now on the street. You should read the story about this guy — it’s amazing. He’s a panhandler now, and used to work for the Times.
Then the New York Times built a giant skyscraper. Two words for you New York Times: Government takeover. Every important economic indicator is showing tough times ahead — and it's becoming apparent that something more than just 'growth' will be needed to restore America and stop the bleeding.
Leading economists now say the slump is going to be around for at least two more years. Moody's says America is walking a tightrope and that 'preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.' Test social cohesion. That's incredible. They also added that 'the severity of the crisis will force governments to make painful choices that expose weaknesses in society.'
I guess Moody's doesn't subscribe to The New York Times. Former Congressional Budget Office head Doug Elmendorf said the nation's fiscal path is simply "unsustainable." Then you have Federal Reserve Chairman Ben Bernanke, who said this last week:
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BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above… unless we as a nation demonstrate a strong commitment to fiscal responsibility, in the longer run we will have neither financial stability nor healthy economic growth.
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That's huge — the Chairman of the Fed telling Americans that they are about to face DRASTIC changes.
So what is Congress doing about it? Nothing. Normally Congress doing nothing is a good thing, because they can't screw up the country. But in this case, we need them to undo the damage they've inflicted on America. Instead, they jam health care through and hope for the best on the economy. They are actually set to miss the April 15 deadline for completing next year's budget —they aren't even considering a draft. They are skipping it to avoid unpopular votes around election time. Look at how stupid they think you are. 'Hey, if we just don't do a tax hike right around election time — we can do it later and nobody will remember!'
America, it's time to make a choice. You have to choose — who is right? Is it Barack 'the worst is behind us' Obama? The New York Times? Or is it the leading economists — Moody's, former CBO directors, and Chairman of the Fed Ben Bernanke who now tell us we are in trouble? But I remind you these are the same people who told us during the housing mess that we were fine. Are those guys right, or is your gut right? You know this is unsustainable and something has to be done. Even our own politicians will admit that they are incapable of doing anything — here is Congressman Tom Perriello:
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REP. TOM PERRIELLO, D-VA.: The only way to keep them out of the cookie jar is to give them no choice. Which is why, whether its balanced budget acts or pay-as-you-go legislation or any of that—it's the only thing. If you don't tie our hands, we will keep stealing
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But this isn't just an American problem — this is a global problem. And what people won't tell you is that it's all about to come undone. We can get healthy; but we need common sense and a spine. All countries have been stealing from the cookie jar. All countries decided massive debt isn't a big deal. We've all pursued bigger government socialization programs. We've all been shipping our jobs to India and China.
I told you months ago to watch Europe. They are ahead of us — they've tried all the things we are embarking on. George Soros is warning that Europe could be on the verge of 'disintegrating' if they don't muster up the political will to survive. Except he's advocating for more bailouts. That’s like telling a cancer patient: 'Smoke some more.'
I also told you that a couple months ago that the far left and the far right — the fringes — are coming out of the woodwork and even gaining power. Greece is on the verge of collapse; billions in bailouts have only delayed the inevitable. The unrest there is growing, and the violence is too. Far left militant guerrilla groups have been launching bomb attacks and the unions have been rioting as well. The far right is gaining power after elections in Hungary. In South Africa, hundreds gave the Nazi salute and waved swastika flags at the funeral of a prominent white supremacist who was murdered.
The world is on the edge, and I believe because of the George Soros' of the world, we are being pushed farther off that edge. There are profound changes coming right around the corner, and the world is about to make the same mistakes that were made in the 1930s.
In the 1960s, we had mutually assured destruction. It was to stop us from bombing each other. We were all afraid of nuclear war. We were afraid the missiles from Russia were going to come over the pole and kill us, and we would have to send our missiles over there, and we’d vaporize each other. Caroll Quigley said in his book that in 1962 the tragedy was global war and the hope was that it would never happen again. What he announced in this book was that they tied all of our economies together, so now if one country was destroyed or would destroy another, they would all collapse. They’d all go down the toilet, and so they would have motivation to stop anybody. And he said in 1962, You’ll never see a world war again. You’ll never see one country go in and obliterate another. It won’t happen.
Gee, think of all the wars that have been fought by us since 1962. Is there any doubt in your mind that we could have finished in Pakistan, we could have finished in Iraq had we unleashed the full might and power of America? Ask yourself the question: 'Why didn't we?' Because we’re all tied together economically.
We are in the eye of the storm — we've just been battered around, and now it's calm — but there is more coming! And the weathermen are telling everyone it's OK to go outside.
The only way to have real hope is to have the truth. When you go to the doctor and he tells you that you have cancer, the doctor doesn't hate you. You have cancer. Don't confuse the truth with hate speech. If you don't believe that doctor, go find another one who engages in the truth. If they want to save you they will tell you the same thing. A correct diagnosis gives you a chance at survival. It's the same thing with the country — radical steps need to be taken.
Will people be willing to sacrifice? Give up entitlements? I don't know. But the good news is, we've done it once before. After America's first bout with progressivism in the early 20th century, we had chemotherapy and we rooted it out. How? Well, there's three ways to fix the mess we are currently in: We can cut spending, raise taxes or print money (which is inflation).
So far all we've tried is tax hikes and inflation. And we've done the complete opposite of cutting spending: We've spent even more. What needs to happen is this: Significant tax cuts, massive budget cuts across the board, and we have to stop devaluing the dollar.
Right now, some viewers are saying, 'Thank God this idiot isn't president — he'd destroy us.' The rest of you are cheering. I just want to warn those of you who are cheering: You may be cheering now, but there is a good chance you won't be when you see this plan we are laying out this week. One thing said about socialism is that everyone's against it until they get some sort of handout from it. Right now about 70 percent of America gets more money in benefits from the government than they pay in. That has to stop. This plan has no sacred cows. Everything is on the table — it's not just the turtle tunnels. Pills for grandma, bombs for defense, you name it.
All week we are going to design a budget unlike anything done in recent memory by government. We'll look at the budget like a business would. Did you know that the GAO is only now figuring out the the Post Office is not a viable business model? A private business would have noticed the billions lost every year a little bit sooner than our government has. And they would attack the problem by making drastic changes, or eliminating it altogether. We are going to look at every budget item, every department, every expense, and start hacking away until we are left with nothing but the bare essentials. This is what businesses and families do during tough times. They look at these three things. We'll be talking to Art Laffer to explain why you can't raise taxes. You'd have to cut the budget. That's what we are going to do this week.
When faced with the option of drastically cutting budgets or drastically raising taxes: Which do you think our current Congress and president will be more likely to do? Gee, I wonder. In the 1930s, as we all know, we were in deep trouble. FDR's idea was massive taxes. At first, he raised it to 63 percent. By the end of the 1930s it was up to 79 percent. He actually tried to get 100 percent of everything above $25,000, but had to settle at 94 percent in 1945.You've got to get the full story on our history at Insider Extreme at Glennbeck.com. Check out our mini documentaries on the progressives. It'll blow your mind.
A recent study by the nonpartisan Tax Policy Center found that to reduce the federal budget deficit to a sustainable three percent of gross domestic product, top rates would have to go from the current 33 percent and 35 percent to 72.4 percent and 76.8 percent..
We know the president isn't exactly a 'fiscal conservative,' so don't hold your breath on massive budget cuts. Instead, the president will say 'this was worse than we thought,' and Joe Biden will encourage the rich to do their patriotic duty and pay up.
As New Jersey found out, when you jack up the taxes, the real wealth leaves. They lost $70 billion in four years. The same will happen to America. We should be doing the exact opposite. We should make America a safe haven for that money. If we do something this dramatic, it will signal to the rest of the world that we want your business here. If we build it, they will come; and all of that money will jumpstart America, and we'll jumpstart the world.
If we don't do it. Someone else will. Anyone who dares to report on this will tell you that this would be risky, unheard of, can't be done — and at best it can't be done politically. Let me spell that out - It can be done, everything can be done in America, if we choose! It can't be done politically because we've been expecting Washington to lead us to sensible answers. It's time for us to lead them to what you would do in your life.
— Watch Glenn Beck weekdays at 5p & 2a ET on Fox News Channel