Video: Pawlenty calls Obamanomics a “Ponzi scheme”

posted at 3:15 pm on December 5, 2009 by Ed Morrissey

Specifically, this relates to the idea of bailing out state governments, but it works in the larger sense on all of Barack Obama’s plans to generate economic growth by swallowing capital. As Tim Pawlenty points out, borrowing money to paper over state budget gaps only kicks the can down the road. All of that borrowing creates a need to repay the money with interest sometime in the future, and the US simply doesn’t have that kind of resources. It’s very much like a Ponzi scheme — one that had been in motion for decades, of course, but one accelerating under Democratic leadership this year:

Minnesota GOP Gov. Tim Pawlenty said Friday that President Barack Obama’s deficit spending is equivalent to “running a Ponzi scheme.”

“They do not have more money. They are broke,” Pawlenty said during an interview on Fox. “Most of the entitlement programs are on the pathway of bankruptcy.”

“The federal government is running a Ponzi scheme,” he said. “It just makes the national debt that much worse.”

Pawlenty said he would be looking to “cut everywhere” with the excepting of military expenditures in order to bring in spending and stated his opposition to using unspent federal stimulus funds to help make up the budget deficits that 48 of the 50 states are facing.

Pawlenty is getting sued by Democrats in Minnesota for his attempts to balance the budget through the unallotment power given governors in this state. They want to hike taxes and spend even more money, while Pawlenty has kept budget growth at about the rate of inflation over his term. Barack Obama isn’t the only one doubling down on Ponzi schemes at the moment, but his repeated attempts to use block grants of federal money to states as “economic stimulus” has enabled states to avoid making the necessary and tough decisions on prioritizing and budgeting to keep from going into bankruptcy.

We’re not on the pathway to bankruptcy. We’re on the free-fall into bankruptcy.


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“gar gar gar pawlenty is a rino gar gar”

blatantblue on December 5, 2009 at 3:17 PM

It’s all true.

the_nile on December 5, 2009 at 3:18 PM

“What is truth?”
-Pontius Pilate

solidaction on December 5, 2009 at 3:21 PM

I’m from Minnesota, and I really do like Pawlenty. Every time there is an article about him there is an inevitable string of comments calling him a RINO, and it gets annoying.

On fiscal issues he is great. He has withstood immense pressure from the DFL to spend like a madman/Democrat, using vetoes and other legitimate tactics to fight them off. A lot of other Republicans would have not been able to avoid the temptation to “grow” in office, throwing any ‘no new taxes’ pledges by the wayside.

Jeff M (Formerly Jeff_McAwesome) on December 5, 2009 at 3:25 PM

What else to call it?

SouthernGent on December 5, 2009 at 3:28 PM

What else to call it?

SouthernGent on December 5, 2009 at 3:28 PM

Good question, no answer ( the best questions have no answer )

So a Republican called a stupid dishonest Democrat scheme a fraud–so what? It IS a fraud. Like calling a spade a spade, you know?

Dog bites man……..

Janos Hunyadi on December 5, 2009 at 3:31 PM

Take them all to prison. Then we can start fresh and fix this sh!t.

milwife88 on December 5, 2009 at 3:32 PM

OT:

GO GATORS

milwife88 on December 5, 2009 at 3:32 PM

Jeff M (Formerly Jeff_McAwesome) on December 5, 2009 at 3:25 PM

You can thank the moron Puritans of the party for attacking Pawlenty for being a rino

blatantblue on December 5, 2009 at 3:33 PM

All of that borrowing creates a need to repay the money with interest sometime in the future

ECON 101… no… High School Economics.

It’s particularly bad when the spending in no way encourages real growth that (at least theoretically) will result in economic activity that will generate revenue.

Then again, the specific targeting of government-initiated growth spending is somewhere in the unicorn world of reality.

mankai on December 5, 2009 at 3:34 PM

Pawlenty is right. Give him a position in President Palin’s administration.

jimmy2shoes on December 5, 2009 at 3:35 PM

PonziCare.

I like it!

alexwest on December 5, 2009 at 3:38 PM

Can Pawlenty expect to attract moderate republicans and independents with this type of rhetoric? He seems only interested in appealing to the fringe of the GOP. Shameful to compare Obama to a convicted felon. Oh this is Pawlenty and not Palin. Nevermind.

chief on December 5, 2009 at 3:41 PM

OT:

GO GATORS

milwife88 on December 5, 2009 at 3:32 PM

Don’t you mean GO TEBOW? It seems he’s the only player on the team. *rolls eyes*

SouthernGent on December 5, 2009 at 3:45 PM

This particular scam is a felony. Ask your kids in 20 to 30 years

CWforFreedom on December 5, 2009 at 3:45 PM

I hope then Gators get destroyed, I hope Texas gets whipped and undefeated Cincy plays for the title.

T-Paw is legit.

rickyricardo on December 5, 2009 at 3:48 PM

I like that, but I still won’t vote for you, Pawlenty.

HornetSting on December 5, 2009 at 3:50 PM

RIGHT NOW, PAWLENTY HAS MY VOTE FOR POTUS.

reliapundit on December 5, 2009 at 3:56 PM

This is a recent e-mail from Paw. Is he for real or is he a tool of the present power elite?
“Dear Friend,

I’ve been traveling the country these last few months, and I have to tell you… Americans are deeply concerned and ready to fight for their freedom.

After being sold a bill of goods in the form of a big government stimulus, a big government takeover of health care, and Washington’s knee-jerk big government answers to everything, we are beginning to undertake the all-important work necessary to build a future free of crushing debt and government meddling in our daily lives.

We started this Freedom First effort in October with a basic idea in mind: when matched against any alternative, our core values of individual freedom, opportunity and personal responsibility win every time. It’s still early, but it looks like this formula could make 2010 a very big year for Republicans and conservatives.

In the past month, we’ve seen a turning of the tide elect Republican Governors in both Virginia and New Jersey. Governors-elect Bob McDonnell and Chris Christie ran strong, solutions-oriented campaigns that addressed the real economic challenges facing their states. As Vice Chairman of the Republican Governors Association, I was proud to campaign in both states. They will be great Governors, and they serve as a model for how we can win in blue and purple states like we’ve done in Minnesota.

This is good news, but it doesn’t mean that Washington has gotten the message… yet.

Despite their daily-shrinking approval ratings and lack of public approval, Harry Reid and Nancy Pelosi continue to push through a trillion-dollar plus health care takeover that threatens to further bankrupt our country. My message to all who are listening is clear: Kill this bill. We’ll never fix health care with a massive expansion of government, penalizing people for not purchasing insurance, and government trying to elbow the private sector out of the market.”

I don’t believe any of them except Sarah, and then I rememember R.R. picked THE choice of the power elite—Bush 1.

Nyssan on December 5, 2009 at 4:04 PM

We’re not on the pathway to bankruptcy. We’re on the free-fall into bankruptcy.

Indeed.

* US government borrowing has tilted heavily to short-term, adjustable-rate issues.
* The very same people who missed the housing crisis have largely ignored or overlooked the current US predicament.
* The US government lacks any sort of fiscal restraint. And there’s never a good time to cut back.
* It has been operating like a subprime, cash-poor borrower, electing to borrow more and more.
* The short-term debt used to finance the Treasury Department must be “rolled over” when it comes due, imposing whatever the new interest rate happens to be at that time.
* This will trigger a debt spiral, which will cause the US government to go from being insolvent (its current predicament) to bankruptcy (its future condition).
* A bankrupt nation has few options, little hope, and a lot of regrets.
* To protect against the fallout, buy gold, silver, and productive assets that generate the things people need.

This is no way to run a nation.

Rae on December 5, 2009 at 4:06 PM

He’ll finish off the dollar at some point before the 2012 elections. Mark these words.

The Dean on December 5, 2009 at 4:16 PM

Sadly, Obamanomics is hardly the first wave. We’ve been running our whole nation – and thus much of the world – on a giant consumerist Ponzi scheme for decades.

Dark-Star on December 5, 2009 at 4:16 PM

The Republican who sits in the White house in 2013 will determine our fate for the next decade or so. Obama is a complete disaster. He is the perfect storm of communism, agnosticism, and globalism.

Mojave Mark on December 5, 2009 at 4:26 PM

T-Paw:

1. Supported Cap & Trade legislation.
2. Enthusiastically signed statewide smoking ban. Since, bars & restaraunts are dropping like flies.
3. Exploring milage tax in MN. This would involve GPS devices being installed on your car. If you dont believe me, feel free to Google it.
4. Enacted green jobs program, just this year.
5. Supports ethanol subsidies.
6. Believes in man-made global warming. See 1,2, & 3 above.

He is my Gov. No way in hell would I support him for the nomination.

takeamericabackin10 on December 5, 2009 at 4:36 PM

Hey, that was pretty good, better than a month or so back. Pawlenty/Pence? The other way around? Or Sarah? Hmmmm.

echosyst on December 5, 2009 at 4:38 PM

He is my Gov. No way in hell would I support him for the nomination.

takeamericabackin10 on December 5, 2009 at 4:36 PM

I wouldn’t support anyone that the voters of Minnesota elected. No offense

thomasaur on December 5, 2009 at 4:41 PM

I wouldn’t support anyone that the voters of Minnesota elected. No offense

thomasaur on December 5, 2009 at 4:41 PM

Ha, Ha..

It was either him or a socialist(Mike Hatch) in ’06.

takeamericabackin10 on December 5, 2009 at 4:43 PM

If Pawlenty were ANYWHERE on the ticket for 2012, I would NOT support it. This guy is the living example of the REAL problem in the Republican party. His policies are SO alien to everyone in Red States. He isnt someone I would support for dog catcher.

labwrs on December 5, 2009 at 4:58 PM

Democrats

want to hike taxes and spend even more money

Do they ever do anything but hike taxes and spend more?

No, seriously … when do they ever lower taxes and spend less. WHEN?

When they are forced to by Republicans. 2010. Be there.

shades_of_gasden on December 5, 2009 at 4:58 PM

It was either him or a socialist(Mike Hatch) in ‘06.

takeamericabackin10 on December 5, 2009 at 4:43 PM

He’s probably OK for Minn. just don’t want him in DC.

thomasaur on December 5, 2009 at 5:02 PM

I wouldn’t support anyone that the voters of Minnesota elected. No offense

thomasaur on December 5, 2009 at 4:41 PM

Well there is Bachmann.

jimmy2shoes on December 5, 2009 at 5:07 PM

takeamericabackin10 on December 5, 2009 at 4:36 PM

Wow. I never knew any of that. I know a variety of people who like this guy. Of course, I also knew people who thought The One and Juan McLame were about the same and look at what happened.

I’m going to look it up.

IlikedAUH2O on December 5, 2009 at 5:08 PM

Well there is Bachmann.

jimmy2shoes on December 5, 2009 at 5:07 PM

I suppose that there are exceptions to all of my broad statements. ;-O

thomasaur on December 5, 2009 at 5:10 PM

The cultist leader can only be President of Antartica.

Falz on December 5, 2009 at 5:18 PM

Palin/Perry 2013!!!

m0nkeyb0y on December 5, 2009 at 5:37 PM

That’s great T-Paw, but we’ve been saying this for many moons. It’s not like Pawlenty is the master of heavy-hitting conservative rhetoric.

pugwriter on December 5, 2009 at 6:04 PM

We’re not on the pathway to bankruptcy. We’re on the free-fall into bankruptcy.

More like a death-spiral…

Big John on December 5, 2009 at 8:35 PM

Well there is Bachmann.

jimmy2shoes on December 5, 2009 at 5:07 PM

I suppose that there are exceptions to all of my broad statements. ;-O

thomasaur on December 5, 2009 at 5:10 PM

Thanks for the ‘correction’. And Bachmann is definitely my other Michelle. Thanks for the great site MM.

bankroll on December 5, 2009 at 9:57 PM

Come on…plenty of Obamanopoly money to go around!!

DamnYankee on December 6, 2009 at 12:37 AM

Pawlenty supports a mileage tax for MN? good lord. is this true, Ed? anybody?

james23 on December 6, 2009 at 11:52 AM