Why President Obama wants both to cut social programs and raise taxes

Hint: it’s not his ideas!
President Obama in his internet video address from yesterday says he has put on the table in the discussions with Congressional leaders to forge a deal to deliver a long term solution for dealing with the U.S. National Debt “things that are important to Democrats,” namely cuts to Social Security and Medicare. It’s really odd to say the least to see him doing this, as he is a Democrat, and not just any democrat. President Obama is the most celebrated Democrat elected to office since John F. Kennedy. He also asks “that the rich to pay their fair share,” a concession he wants from Republicans.
On Meet The Press yesterday, a guest confirmed that Obama’s position is that which is being pushed by overseas creditors as conditions to maintain our credit rating. Unbelievable as it sounds, US policy is now being dictated from overseas by our creditors, not by the American People, and our President has no choice but to fight for what these creditors want. We cannot defy them. We cannot afford to as our entire economy depends on giving the creditors what they want.
This means we are in the same position as Greece, who recently have had riots protesting job, pay and benefit cuts.
Our dependence on borrowing began when Americans were convinced that “tax and spend,” paying for programs with tax revenues, was wrong, that tax cuts can be made, America run off borrowed funds, as capital gets released into the economy in the form of lower tax burden. It didn’t work out in the end, as the borrowing has cost us our independence.
President Obama now must show our overseas creditors he can secure major policy changes in the United States. If he can, they will allow us to keep borrowing at the lowest rates.

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