Global No-Confidence Vote: Price Of Admission

As disturbing as it is, here I am linking to an Obama story actually broken open by...Drudge. But there you are.

In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: "We are out of money."

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we've made on health care so far. This is a consequence of the crisis that we've seen and in fact our failure to make some good decisions on health care over the last several decades.

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...

So, basically, Obama finally is admitting we're fucked in a three-day weekend news dump.

I've been saying we're insolvent for months now. But to hear the President openly admit such a thing is shocking to say the least. Obama goes on to say that major health care reform in order to reduce health care costs is essential, but it doesn't matter.

What cost will Obama pay for the price of this admission? He has finally decided to be honest about the numbers, thinking that maybe we have enough time to change fate.

But frankly, we're too far gone. We're trillions in debt, with tens of trillions of unfunded liabilities in the hole, with hundreds of trillions in derivative instruments floating around, waiting to explode.

We're not getting out of this one unscathed. Obama, Timmy, and Helicopter Ben are printing money as fast as they can, creating credit at the rate of trillions a month, trying to pump dollars into a deflating economy with massive holes in it, like pumping blood into a man with a hole in his heart.

Obama is doing the only thing he thinks he can do, to create a huge credit bubble in order to prolong the inevitable, the likes of which will destroy our economy when it pops.

It's a Greek tragedy if you think about it. But you were warned. I warn you again: our standard of living is about to plummet. It will in no way be pretty. The results will almost certainly be massive social unrest and upheaval for years.

But it is coming.

Be prepared.