2016 Movie On Obama – Begins With Glaring Mistake

D’Souza Interviews David Walker about the US Impending Doom

I rarely step into the political world on this blog (other than to advocate on behalf of financial measures that would benefit my fellow Americans), but while I was driving today a commercial came on the radio that was so glaringly stupid and mistake ridden that I just had to post about it.

The radio spot was advertising Dinesh D’Souza’s newest documentary, 2016, which attempts to make President Obama out to be the overseer of America’s Armageddon. I’m not going to comment either way, that is just the plot.

Regardless of your politics I think both sides need to be accurate when making their points. I have not seen the movie, so perhaps what I’m about to blog about has been “caveated” enough to resemble something that is coherent, but given that the following quote was the big draw of the commercial…I doubt it. I’ve attended speeches by former Comptroller of the Currency David Walker in the past and was generally impressed, but he has made a huge mistake in his analysis of the US Debt Situation and D’Souza has no problem exploiting it. Here is the quote from Hotair – which appeared in the radio spot and presumably appears in the movie:

Former U.S. Comptroller David Walker has warned that the U.S. could slide into a debt scenario similar to what Greece is experiencing.

“The truth is if you count total U.S. government debt as compared to many of the European nations that are in the news, we’re already worse than they are, and we’re two years away from where Greece was when it had its crisis,” Walker said in a recent interview with CYInterview.com. …

He’s been warning of fiscal troubles since 2007, when he told CBS’s Steve Kroft in a “60 Minutes” segment, “I would argue that the most serious threat to the United States is not someone hiding in a cave in Afghanistan or Pakistan, but our own fiscal irresponsibility.”

Do you see the error? Walker is not the first to make it, Democrats and Republicans seem to fall all over themselves promulgating the same thing, it’s just that Walker repeats the error at every speaking engagement. Walker, the Former Comptroller of the Currency should know better, after all he’s been involved with our nation’s currency for many years.

Walker compares the United States to many European Nations and specifically Greece, this is his biggest error. What is so wrong with this statement? Everything. As I’ve pointed out in this blog many times, the United States is monetarily sovereign – meaning it can print its own currency. Greece and member Euro nations CANNOT print the Euro, this makes all the difference in the world as Greece CAN default (just like California can, as they USE the Dollar, they don’t ISSUE the Dollar) and the United States can’t default. The irony is that the only way the United States could actually default on its debt is by congress voting not to fund it and the only party that has made it clear that debt default is a political option are congressional members of what has become known as the Tea Party – the same Tea Party to whom the movie 2016 was first debuted. Quite literally the crux of D’Souza and Walker’s argument is that Obama MUST be voted out to avoid financial armageddon, yet those who D’Souza would vote in are the only one’s on record who actually COULD make a U.S. default occur – it is truly maddening.  Mind you, I’m not saying either party WOULD vote to allow this.

Folks, don’t confuse your household budget with that of the United States. Yes, the US has enormous problems and yes, there are many reasons that Obama should be one of those people held responsible (Timothy Geithner anyone?), but let’s at least have a conversation about who should be President using common sense. Let’s not lie and scare people with falsities using clever propaganda tools. The American people are smart enough to have a civil debate. And yes, just because we CAN print currency on demand, it doesn’t mean we should – but let’s at least debate THAT, not the falsity that the United States is the next Greece – it’s just not true.

For the record – I am neither a Democrat or Republican and believe that the phrase “Lesser of two evils” doesn’t begin to describe the choice America is faced with.

Scott Dauenhauer, CFP, MSFP, AIF

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12 thoughts on “2016 Movie On Obama – Begins With Glaring Mistake”

    1. Did you even read my post? How are we a “few steps away from Greece” – how is it that the US could be in a situation where they couldn’t fund their budget, other than an outright political default? Great Britain has their own currency as well.

      I’ve never stated we don’t have economic problems, there are significant ones – but the United States government is NOT revenue constrained, Greece IS.

      This is my point, the creators of the 2016 movie don’t understand our currency system and perpetuate myths and have truth’s to scare people…as if the actual facts aren’t scary enough.

      This is what happens when ideology drives you, not facts and reason.

      Re-read the post and try learning about our monetary system before posting next time.

  1. Printing our own money devalues our currency. It literallly does nothing to our economy except weaken our Dollar. How does this ability make us any better than european countries such as Spain, Italy or even Greece? After WWII Germany printed the Mark which deflated the currency and hyper inflates the economy. While this might look like a solution history proves that this has never been the answer and would not change our debt troubles.

    1. Thank you for conceding my point that the US is NOT revenue constrained. However, printing money does NOT automatically or always devalue a currency. The US has been printing money by running deficits for the past decade and inflation has averaged less than 2%. Money printing (or Deficit spending, as that is the only way net-new assets enter the system) may or may not add or lead to inflation, its not a zero or one scenario. In our current situation we are experiencing a balance sheet recession/depression and the private sector is a net saver – the government by definition must spend. Please describe to me how Japan has not hyperinflated despite decades of “money printing”?

      How does having one’s own currency give advantage of currency users (such as Spain, Italy or Greece)? I think the answer is obvious, look at what has happened – nobody is concerned the US can meet its payments, everyone is concerned that Greece can meet its obligations. Nobody is concerned that Japan can meet its obligations. It is the flexibility that means everything and allows for a nation to deal with crisis.

      Germany’s hyperinflation was not after World War II, it was after World War I in 1923 and is instructive – they had massive debts owed…in another currency (war reparations imposed on them by the end of the war treaty) and they didn’t have the production capacity. Read the actual history of hyperinflation (which is rare) and you will find that it is a combination of debts owed in a foreign currency and a devastation of production that leads to hyperinflation. Do your own homework, don’t just fall for the old Friedman line.

      If history proves that being a currency issuer has NEVER been the answer – I challenge you to show the proof.

      I suggest reading http://www.pragcap.com for an accurate description of our monetary system. By your own standards we should have hyperinflated by now.

  2. Wow. I thought MSNBC gave boggus information, but you have them beat. If you really believe that the US can print money and not default because of that, then with all do respect, you are clueless about the subject you are engaging in. Stick to reading fairy tales my good friend..

    1. You are right, the United States – whom is sovereign in their own currency and no longer tied to the gold standards (Nixon left it in 1971) can’t print money…what could I have been thinking to make such a bonehead statement.

      The only person who is clueless is you, it is not an opinion of mine that we are sovereign, it is the way of the land. Unlike in Greece or even California who are NOT sovereign and can’t print, the United States can. If you think otherwise you need to get yourself an education.

  3. You’re naive for thinking that since we can print our own money, we are not approaching revenue constraint. Political default is SO correct, and China is just waiting in the wings to assume the role of primary global economic power. (Nor does the US any longer have the ability to head off hyperinflation, production capacity resources have ALREADY gone overseas.)

    1. Susan,

      I hardly thinking China is waiting for anything. The US can default, but ONLY if the politicians allow for it – there are NO other restraints to paying interest or principal and the US is never revenue constrained. Hyperinflation is at least something we can debate, but so far your group of “hypers” have been entirely wrong.

  4. Thanks for admitting you haven’t seen the film. I did and I can tell you that Walker did qualify his statements by saying we will be fine, but simply points to, as you have, that fiscal responsibility is required at this point in history regardless of who is president. The film also points out that Bush and Obama have both contributed more significantly to the debt than all other presidents before them.

    1. This has not stopped Walker (Peterson’s surrogate) from spreading fear that is unfounded. As for Obama’s debt pile up – I find it interesting that you act as if he did this alone. He walked into a $1 Trillion deficit created by Bush – on day one. This non-sense that a Republican would have been more fiscally responsible is just rubbish – did you not pay attention during the Naughties?

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