Mark Steyn takes at look at America’s situation at the beginning of the New Year, and concludes that the welfare state is self-destructing, but the establishment elites would rather save the planet than balance the national books.

At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial. Tens of millions of Americans remain unaware that this nation is broke — broker than any nation has ever been. A few days before Christmas, we sailed across the psychological Rubicon and joined the club of nations whose government debt now exceeds their total GDP. It barely raised a murmur — and those who took the trouble to address the issue noted complacently that our 100 percent debt-to-GDP ratio is a mere two-thirds of Greece’s. That’s true, but at a certain point per capita comparisons are less relevant than the sheer hard dollar sums: Greece owes a few rinky-dink billions; America owes more money than anyone has ever owed anybody ever.

Public debt has increased by 67 percent over the last three years, and too many Americans refuse even to see it as a problem. For most of us, “$16.4 trillion” has no real meaning, any more than “$17.9 trillion” or “$28.3 trillion” or “$147.8 bazillion.” It doesn’t even have much meaning for the guys spending the dough: Look into the eyes of Barack Obama or Harry Reid or Barney Frank, and you realize that, even as they’re borrowing all this money, they have no serious intention of paying any of it back. That’s to say, there is no politically plausible scenario under which the 16.4 trillion is reduced to 13.7 trillion, and then 7.9 trillion, and eventually 173 dollars and 48 cents. At the deepest levels within our governing structures, we are committed to living beyond our means on a scale no civilization has ever done.

Our most enlightened citizens think it’s rather vulgar and boorish to obsess about debt. The urbane, educated, Western progressive would rather “save the planet,” a cause which offers the grandiose narcissism that, say, reforming Medicare lacks. So, for example, a pipeline delivering Canadian energy from Alberta to Texas is blocked by the president on no grounds whatsoever except that the very thought of it is an aesthetic affront to the moneyed Sierra Club types who infest his fundraisers. The offending energy, of course, does not simply get mothballed in the Canadian attic: The Dominion’s prime minister has already pointed out that they’ll sell it to the Chinese, whose Politburo lacks our exquisitely refined revulsion at economic dynamism, and indeed seems increasingly amused by it. Pace the ecopalyptics, the planet will be just fine: Would it kill you to try saving your country, or state, or municipality? ...

What indeed? In September, the tenth anniversary of a murderous strike at the heart of America’s most glittering city was commemorated at a building site: The Empire State Building was finished in 18 months during a depression, but in the 21st century the global superpower cannot put up two replacement skyscrapers within a decade. The 9/11 memorial museum was supposed to open on the eleventh anniversary, this coming September. On Thursday, Mayor Bloomberg announced that there is “no chance of it being open on time.” No big deal. What’s one more endlessly delayed, inefficient, over-bureaucratized construction project in a sclerotic republic?

Barely had the 9/11 observances ended than America’s gilded if somewhat long-in-the-tooth youth took to the streets of Lower Manhattan to launch “Occupy Wall Street.” The young certainly should be mad about something: After all, it’s their future that got looted to bribe the present. As things stand, they’ll end their days in an impoverished, violent, disease-ridden swamp of dysfunction that would be all but unrecognizable to Americans of the mid–20th century — and, if that’s not reason to take to the streets, what is? Alas, our somnolent youth are also laboring under the misapprehension that advanced Western societies still have somebody to stick it to. The total combined wealth of the Forbes 400 richest Americans is $1.5 trillion. So, if you confiscated the lot, it would barely cover one Obama debt-ceiling increase. Nevertheless, America’s student princes’ main demand was that someone else should pick up the six-figure tab for their leisurely half-decade varsity of Social Justice studies. Lest sticking it to the Man by demanding the Man write them a large check sound insufficiently idealistic, they also wanted a trillion dollars for “ecological restoration.” Hey, why not? What difference is another lousy trill gonna make?

Underneath the patchouli and pneumatic drumming, the starry-eyed young share the same cobwebbed parochial assumptions of permanence as their grandparents: We’re gayer, greener, and groovier, but other than that it’s still 1950 and we’ve got more money than anybody else on the planet, so why get hung up about a few trillion here and a few trillion there? In a mere half century, the richest nation on earth became the brokest nation in history, but the attitudes and assumptions of half the population and 90 percent of the ruling class remain unchanged.

Read the whole thing.

From Dan Mitchell.

James Lileks tells the liberals why their time on top is rapidly drawing to a conclusion.

Because that old world is over. . . .

A half-century experiment in draping steam­ship anchors around the necks of the productive class and expecting them to run a four-minute mile has ended in failure. The confiscation of rights and property, the moral impoverishment of generations caused by the state’s usurpation of parental obligations, the elevation of a credentialed elite that believes academia’s fashions are a worthy substitute for knowledge of history and human nature, and above all the faith in a weightless cipher whose oratorical panache now consists of looking from one teleprompter screen to the other with the enthusiasm of a man watching someone else’s kids play tennis–it’s over, whether you believe in it or not. It cannot be sustained without reducing everyone to penurious equality, crippling the power of the United States, and subsuming the economy to a no-growth future that rations energy.

To which some progressives respond: You say that like it’s a bad thing.

Hat tip to Bird Dog.

MSNBC records the passing of another landmark on the road to ruin for the current administration.

The U.S. has tumbled further down a global ranking of the world’s most competitive economies, landing at fifth place because of its huge deficits and declining public faith in government, a global economic group said Wednesday.

The announcement by the World Economic Forum was the latest bad news for the Obama administration, which has been struggling to boost the sinking U.S. economy and lower an unemployment rate of more than 9 percent.

Switzerland held onto the top spot for the third consecutive year in the annual ranking by the Geneva-based forum, which is best known for its exclusive meeting of luminaries in Davos, Switzerland, each January.

Singapore moved up to second place, bumping Sweden down to third. Finland moved up to fourth place, from seventh last year. The U.S. was in fourth place last year, after falling from No. 1 in 2008.

The rankings, which the forum has issued for more than three decades, are based on economic data and a survey of 15,000 business executives.

Hat tip to Mike Lawler.

One of my left-wing classmates this morning was blaming the federal credit downgrade on the Tea Party, describing Tea Party-ers as worse than 19th century Know Nothings and referring to them as “Talibanic zealots.” He attacked the patriotism of the Tea Party movement, and predicted that the American masses would wake up when the New Deal safety net began to unravel. All this, he said, made his stomach churn.

I replied:

It is grotesque in the extreme to find political Philistines, oblivious to the philosophic foundations and the Constitutional intent of the founders of their own country, a group of reactionary ideologues clinging to outdated, historically-refuted late-19th-century Utopian visions of heaven on earth and equality of economic results between the provident and the reckless, the educated and the uneducable, the law-abiding and the criminal, the industrious and the idle achieved by the rule of scientism through the medium of socialism and collectivist statism, referring to people with a far more sophisticated and accurate understanding of economics, political philosophy, and America history as primitive zealots.

With a very special kind of irony, we find today all the patriots who stabbed their own contemporaries fighting for freedom overseas in the back, the same people who waved North Vietnamese flags and chanted “Ho, Ho, Ho Chi Minh…,” the patriots who are always telling us how disgraceful American history was until they came along, now waving the flag and demanding that we support their fiscal excesses out of patriotism.

The safety net constructed since collectivism’s heyday in America is already unraveling. It was always a Ponzi scheme and it has arrived at the inevitable endpoint of all such schemes. Demographics is no longer working on its side. It was only in the imaginations of ideologues that all this was ever permanently sustainable. Reality has refuted the left’s theories again.

You can pray aloud and whistle in the dark and spout this kind of nonsense about the masses “awakening” to agree with your own insanity, but the reality is that the apolitical, pragmatic mass portion of the country has already had its rude awakening. They elected the second leftist president in our adult lifetimes, and his regime has succeeded in surpassing the debacle of his predecessor. What you are going to get is a landslide election that will consign Obama, the democrat party, and the welfare entitlement state to the rubbish-heap of history to repose discarded beside the rest of the entire collection of intellectual dead ends and political mistakes. Well might your stomach churn.

Cartoon via Theo.

Barack Obama has achieved his goal of presiding over a humbler, more modest America.

From Gateway Pundit via Glenn Reynolds.

Mark Steyn, in his customarily brilliant manner, reflects on the scope and significance of the federal debt.

The fecklessness of Washington is an existential threat not only to the solvency of the republic but to the entire global order. If Ireland goes under, it’s lights out on Galway Bay. When America goes under, it drags the rest of the developed world down with it. When I go around the country saying stuff like this, a lot of folks agree. Somewhere or other, they’ve a vague memory of having seen a newspaper story accompanied by a Congressional Budget Office graph with the line disappearing off the top of the page and running up the wall and into the rafters circa mid-century. So they usually say, “Well, fortunately I won’t live to see it.” And I always reply that, unless you’re a centenarian with priority boarding for the ObamaCare death panel, you will live to see it. Forget about mid-century. We’ve got until mid-decade to turn this thing around.

Otherwise, by 2020 just the interest payments on the debt will be larger than the U.S. military budget. That’s not paying down the debt, but merely staying current on the servicing — like when you get your MasterCard statement and you can’t afford to pay off any of what you borrowed but you can just about cover the monthly interest charge. Except in this case the interest charge for U.S. taxpayers will be greater than the military budgets of China, Britain, France, Russia, Japan, Germany, Saudi Arabia, India, Italy, South Korea, Brazil, Canada, Australia, Spain, Turkey, and Israel combined.

When interest payments consume about 20 percent of federal revenues, that means a fifth of your taxes are entirely wasted. Pious celebrities often simper that they’d be willing to pay more in taxes for better government services. But a fifth of what you pay won’t be going to government services at all, unless by “government services” you mean the People’s Liberation Army of China, which will be entirely funded by U.S. taxpayers by about 2015. When the Visigoths laid siege to Rome in 408, the imperial Senate hastily bought off the barbarian king Alaric with 5,000 pounds of gold and 30,000 pounds of silver. But they didn’t budget for Roman taxpayers picking up the tab for the entire Visigoth military as a permanent feature of life.

Read the whole thing.

I think myself that Mark is overlooking the obvious detail: that when, as he puts it, “you get your MasterCard statement and you can’t afford to pay off any of what you borrowed but you can just about cover the monthly interest charge,” before much longer you wind up stiffing all your credit cards and burning your credit rating for the next decade. The government equivalent of stiffing credit cards consists of inflating your currency, so you can pay your debts after all using funny money worth a small fraction of what it was at the time those debts were incurred.

The US Government has not overlooked this solution. Remember Quantitative Easing? It is already underway and in process. I’m not sure who it was that remarked “Inflation is the cruelest tax,” but he was clearly right. Inflation rewards the improvident and punishes the responsible. Inflation strips the middle class of its accumulated savings in order to relieve the government of its debt.

The United States lost its top-tier AAA credit rating from Standard & Poor’s on Friday in an unprecedented blow to the world’s largest economy in the wake of a political battle that took the country to the brink of default.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.

Democrats own the downgrade. They fought Republicans and Tea Party supporters every step of they way, and forced a deal which was insufficient. They played class warfare and race politics against arguments that we needed to drastically change our spending habits.

This is Barack Obama and Harry Reid’s crowning achievement.

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Paul Krugman blames Tea Party Republicans.

[Y]es, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

Krugman then proceeds to argue that the S&P ratings agency has neither the right nor the authority to make ratings(!).

From Bird Dog.

Not so very long ago, at the time of his State of the Union address in January, Barack Obama was talking about more stimulus, “investment” in non-existent and uneconomic technologies, and the United States was firmly on the path to becoming another European-style welfare state. Looking back, Obama seems to be living in a different era. We are now in the period in which Americans recognize that government expansion and spending has gone too far, entitlements need to be rolled back, and the purposes and abilities of government re-evaluated. Obama has become a relic of the past, a fossil, and the Tea Party has been responsible.

Krauthammer, I think perfectly correctly views the still-pending-enactment debt bargain as a limited victory, but also as a turning point.

See the non-embeddable 2:01 video at Right Scoop.

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The same Charles Krauthammer had warned last Thursday:

I have every sympathy with the conservative counterrevolutionaries. Their containment of the Obama experiment has been remarkable. But reversal — rollback, in Cold War parlance — is simply not achievable until conservatives receive a mandate to govern from the White House.

Lincoln is reputed to have said: I hope to have God on my side, but I must have Kentucky. I don’t know whether conservatives have God on their side (I keep getting sent to His voice mail), but I do know that they don’t have Kentucky — they don’t have the Senate, they don’t have the White House. And under our constitutional system, you cannot govern from one house alone. Today’s resurgent conservatism, with its fidelity to constitutionalism, should be particularly attuned to this constraint, imposed as it is by a system of deliberately separated — and mutually limiting — powers.

Given this reality, trying to force the issue — turn a blocking minority into a governing authority — is not just counter-constitutional in spirit but self-destructive in practice. ...

November 2012 constitutes the new conservatism’s one chance to restructure government and change the ideological course of the country. Why risk forfeiting that outcome by offering to share ownership of Obama’s wreckage?

Michael Walsh explains the president’s game plan in the current negotiations over debt increases. The democrats are simply trying to blame Republicans for risking default, and doing everything possible to get a debt ceiling increase running past next year’s election in order to try to minimize their own vulerabilities on the issues of excessive spending and the deficit.

I liked his metaphorical comparison to the double dealing and intrigue in the Coen Brothers’ gangster movie Miller’s Crossing (1990). I guess the contrived and systematic insincerity must make Obama Bernie Birnbaum.

By now, the Obama “leadership” style should be blindingly apparent: Do nothing, lie in wait, and then counter-attack. Never present a plan if you can possibly help it, but deal exclusively in bromides and platitudes as you stake out the moral “high ground” and get ready to ambush the other guy. ...

Meanwhile, have your media allies, talking parrots, and court lickspittles prepare the ground with standard-issue talking points — “The Tea Party Republicans are terrorists,” for example. ...

Adamantly refuse to be pinned down about the specifics of anything, and have your platoon of Baghdad Bobs continue to insist (as good liberals always do) that up is down, black is white, and wishes are really horses, if not actual unicorns.

So the later Boehner walks into the trap, the quicker Harry Reid trumps him, and the sooner Obama can can declare for the umpteenth time that the time for talk is over, emerge as a hero — and get the debt-ceiling debate safely past the shoals of the next election, which is all he really cares about. Because, in case you hadn’t noticed, running for office is the only thing the Punahou Kid knows how to do.

As the deadline approaches and the complete annihilation of the entire world financial system as we’ve known it looms, or not, we spectators sitting on the sidelines far from the action are growing tired of the whole thing. Hearing second-hand reports of loud crashes and animal noises coming out of closed rooms gets boring after awhile.

Doubtless Armageddon-on-the-Potomac is great fun if you are yourself a player, but the rest of us recognized a good while back that we have the House, they have the Senate and the White House, and they hate us and vice versa, so no major substantive reform of the entitlement state, no permanent long-term resolution of excess federal spending can be expected to be possible until, and unless, the American public gives us a decisive mandate in 2012 (which I think they will).

In the meantime, Republicans should resist raising taxes, avoid selling out to democrats, but also avoid letting conservatives and Republicans getting saddled with the blame for all this.

Jim Garaughty, in his emailed Morning Jolt today, was marvelling, and poking fun, at the way conservatives are presently quarreling among ourselves about how all this should be handled.

I think a lot of the discussion among conservatives on Thursday can be summarized in one Twitter exchange:

Guy Benson: It would be awesome if people on our side would stop angrily questioning each other’s motives.

John Tabin: WHO’S PAYING YOU TO SAY THAT?

(John’s kidding.)

This isn’t the Civil War of Conservatism in the context of the Union vs. the Confederacy. No, that conflict looks simple and clear in its divisions: North vs. South, slaveholders vs. abolitionists, secessionists vs. unionists, etc.

No, this is messy, with lots of longtime allies and friends surprised to find themselves in opposition. This is the conservative version of the Marvel Civil War, a comic-book storyline in which all of the publisher’s most prominent heroes took sides on the institution of a “Super Hero Registration Act,” in which any person in the United States with superhuman abilities had to register with the federal government as a “human weapon of mass destruction,” reveal his true identity to the authorities, and undergo proper training. Those who signed also had the option of working for a government agency, earning a salary and benefits such as those earned by other American civil servants.

(Perhaps young, super-powered Americans have been listening to Derb’s “get a government job” lectures!)

Iron Man and Mr. Fantastic of the Fantastic Four supported the act. Captain America and Daredevil opposed it. And the storyline tossed away the familiar story of heroes’ fighting villains to the surprising, unpredictable, and incongruous sight of popular, noble heroes’ fighting other popular, noble heroes—each convinced that his view is the right one and the best way to protect his values.

Not as outlandish a metaphor as it seemed two paragraphs ago, huh?

Now we have Rush Limbaugh vs. Thomas Sowell!

Hat tip to Theo.

Richard Miniter, in Forbes, notes that we have no choice, we are going to have to stop increasing the beast’s rations. But that is a real problem for democrats, whose entire raison d’etre is the delivery of more federal money in return for support.

The Democratic Party, as we have known it for the past 70 years, is now in its last days.

Yes, the House Republicans may raise the debt ceiling for a mix of spending cuts and revenue raisers. Yes, Barack Obama may win the 2012 presidential contest. Yes, bureaucrats and judges will continue to impose new and costly regulations on the economy.

But it doesn’t matter. The long-term trends are almost all bad news for the left wing of the party.

This week’s fight over raising the federal debt limit exposes a key weakness in the warfare-welfare state that has bestowed power onto the Democratic Party: Without an ever-growing share of the economy, it dies. Every vital element of the Democrats’ coalition — unions, government workers, government contractors, “entitlement” consumers — requires constant increases in payments, grants and consulting contracts. Without those payments, they don’t sign checks to re-elect Democrats.

Read the whole thing.

Hat tip to Scott Drum.

The debt ceiling debate is less about spending than it is about the purpose of government. Under the impact of an economic recession, the train of the Great Society is approaching the edge of the New Frontier. Both sides are still trying to work out a New Deal, but another cuts and spending formula is not the solution. What we need is a serious and earnest discussion about why we are compulsively spending money.

A cocaine addict who runs out of money doesn’t have a spending problem, he has a drug problem. Telling him to cut back on how much money he spends on cocaine, or to shop around for cheaper cocaine isn’t the solution. It’s not about how much he’s spending, but about why. The problem isn’t in the math, it’s in the mindset.

Our cocaine is social justice. Like most junkies who are willing to sell anything and everything to keep the supply coming, Obama’s position in the budget debate is take everything—especially the military, but leave the social justice and the big government that administers it on the table. And also like most junkies, he has an endless supply of self-righteous speeches denouncing the people who just want him to stop.

In the rush of words, he postures, conflates compromise with confrontation, threatens and urges everyone to work together. There is no consistent message, only egotistical aggression and defensive need. Strip away the verbiage and you come away with a chorus of, “Mine, My Way, Mine”.

With all addictions, it is important to look for the root cause. The psychological weakness that allows the chemical rush to take over and become the defining principle of life. In this case it is a basic split over the purpose of government.

Be sure to read the whole thing.

Hat tip to the Barrister.

All you need to do is elect Barack Obama.

From Paul Ryan’s House Budget Committee, A Brief History of President Obama’s Fiscal Record:

January 20, 2009
President Obama sworn into office

President tells the American people in his Inaugural Address: “Those of us who manage the public’s dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.”

Debt Held By Public = $6.31 trillion
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February 17, 2009
President Signs into Law the Spending Stimulus

The stimulus adds $821 billion in new spending according to the Congressional Budget Office (CBO).

The White House promises this infusion of spending and borrowing would keep unemployment rate below 8%. As millions of Americans are painfully aware, that promise was broken.

Debt Held by Public = $6.48 trillion
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February 26, 2009
President Issues FY2010 Budget

The President’s budget adds $2.7 trillion in new debt in FY2010 and imposes $1.4 trillion in new taxes.

March 11, 2009
President Signs FY2009 Omnibus Appropriations Act

The massive spending bill includes 8,696 earmarks at a cost of $11 billion.

The spending bill adds $19 billion in new spending above the baseline – an 8.6% spending increase.

Debt Held by Public = $6.66 trillion
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April 29, 2009
Congressional Democrats Pass FY2010 Budget

The Congressional Democrats’ budget calls for a $2 trillion debt increase in 2010, and another 8.9% increase in non-defense discretionary spending.

The reconciliation process is abused to later pave the way for health care overhaul to be jammed into law.

Of note: this is the last time Congressional Democrats will bother budgeting.

Debt Held by Public = $6.85 trillion
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February 2, 2010
President Issues FY2011 Budget

The President’s budget more than doubles the debt; pushes the FY2011 deficit to a new record of $1.6 trillion; drives spending to a new record of $3.8 trillion in fiscal year 2011; and raises taxes by more than $2 trillion through 2020, under the administration’s own estimates.

Debt Held by Public = $7.85 trillion
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March 23, 2010
President Signs Health-Care Overhaul Into Law

The massive new law adds $1.4 trillion in new spending over the next decade, and over $2.5 trillion once the law is fully implemented.

Despite sluggish economic growth and high unemployment, the law imposes over $500 billion in new tax hikes. CBO Director Elmendorf would later testify that the law would reduce employment by roughly half a percent – a reduction of approximately 800,000 jobs.

Debt Held by Public = $8.18 trillion

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April 15, 2010
Congressional Democrats Decide Not to Do a Budget for FY2011

The 1974 Budget Act requires Congress to pass a budget each year by April 15.

In an unprecedented budget failure, House Democrats not only failed to pass a budget – they opted to not even propose a budget.

Debt Held by Public = $8.39 trillion
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July 21, 2010
President Signs Financial Regulatory Overhaul Into Law

In addition to heightened regulatory uncertainty, the massive new law adds $10.2 billion in new spending.

Debt Held by Public = $8.69 trillion
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February 14, 2011
President Issues FY2012 Budget

The President’s budget yet again calls for the doubling of the debt in five years, and tripling the debt in ten years.

The President’s budget spends $47 trillion over the next decade, imposes over $1 trillion in new tax hikes, and fails to address the drivers of the debt.

Debt Held by Public = $9.45 trillion

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April 13, 2011
President Delivers Speech on Deficit Reduction

The President appears to abandon his own budget by offering a ‘framework’ that calls for additional tax increases, defense spending cuts, and Medicare price controls – yet lacks sufficient detail to back-up claims of deficit reduction.

Debt Held by Public = $9.65 trillion

Michael A. Walsh, in the New York Post, identifies the key issue in the current political crisis, something at stake even more important than economic prosperity: the choice for America of freedom versus dependency.

When did it become the primary function of the federal government to send millions of Americans checks?

For this, in essence, is what the debt-ceiling fight is all about—the inexorable and ultimately fatal growth of the welfare state. If you don’t believe it, just look at President Obama’s veiled threat to withhold Grandma’s Social Security benefits if Congress doesn’t let him borrow another $2 trillion or so to get himself safely past the 2012 election.

The feds now borrow 43 cents of every dollar they spend. Under Obama, outlays have soared to nearly a quarter of GDP (the historical average is just under 20 percent)—and once ObamaCare starts to fully kick in around 2014, it will only rise.

Medicare, Medicaid, Social Security and debt interest consume—at the moment—nearly half of our $3.8 trillion budget. ...

The debt-ceiling cage match is the culmination of the Democrats’ 75-year-long fight to establish a voting bloc of dependents under the false flags of “compassion” and “social justice.” It’s sapped our strength, created a welfare mentality and, if unchecked, will reduce us to a nation of aging, resentful beggars with eyes cast permanently toward Washington.

The preamble to the Constitution talks about promoting the general welfare, not the welfare state. For the welfare state is incompatible with the rest of the preamble, which concludes: “and secure the blessings of liberty to ourselves and our posterity.” By definition, dependents are not free.

Via Jim Geraghty.

Hat tip to Theo.

Politico quotes Rep. Eric Cantor (R- VA) on the presidential temper tantrum that concluded the latest round of budget negotiations between the White House and Republicans.

Cantor said the two sides were too far apart to get a deal that could pass the House by the Treasury Department’s Aug. 2 deadline — and that he would consider moving a short-term debt-limit increase alongside smaller spending cuts — Obama began to lecture him.

“Eric, don’t call my bluff,” the president said, warning Cantor that he would take his case “to the American people.” He told Cantor that no other president — not Ronald Reagan, the president said — would sit through such negotiations.

Democratic sources dispute Cantor’s version of Obama’s walk out, but all sides agree that the two had a blow up. The sources described Obama as “impassioned” but said he didn’t exactly storm out of the room.

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Reuters adds a hilarious quotation from Mr. Obama.

U.S. President Barack Obama told Republicans at the conclusion of a stormy budget meeting on Wednesday that he would not yield further even if it puts his presidency at risk, a Republican aide said.

“I have reached the point where I say enough,” Obama said, according to the aide. “Would Ronald Reagan be sitting here? I’ve reached my limit. This may bring my presidency down, but I will not yield on this.”

Bringing to mind a skit broadcast a few months back by Jay Leno:

Republicans, these days, are finding themselves feeling exactly like the parental character in some old-fashioned moralizing English novel. Americans worked hard and lived responsibly and produced as cherished offspring and heir, the liberal elite. Our child, the liberal elite which we shall refer to henceforward as “Algernon,” it turns out, has grown up not into the sturdy young hero we desired, but rather into a vain, irreligious, and totally irresponsible habitué of the most extreme fashionable demimonde, a rake, and a spendthrift.

Inevitably, we learn that Algernon has exceeded his very generous allowance and run up massive debts. There is no possibility that Algernon can ever meet his obligations. Disgrace, dishonor, and debtors’ prison loom as gloomy prospects.

Young Algy has consequently returned to the family home he previously despised to beg his disappointed and estranged parent to intervene to save him. The scene is easily pictured. There is the sad, but still loving, grey-haired pater familias. There is the slightly crest-fallen, but still arrogant, young Corinthian. The father is theoretically willing to retrench and mortgage the estate and sacrifice for long years to come to save his son’s honor and keep him from prison, but he naturally considers himself obliged to make such assistance conditional upon genuine repentance and a complete break with the young man’s bad associations and pernicious habits.

It turns out, of course, that his life of iniquity in the fleshpots of the metropolis has coarsened young Algernon and fed his arrogance. Algy feels completely entitled to the life he has led, and has plans underway for even more ambitious forms of debauchery. Algy regards his father’s estate as already his own, and simply demands that his father assume responsibility for all his current debts and increase his allowance.

Sadly, the unhappy father explains that meeting even the current obligations Algernon has assumed is impossible with the income of the entire estate. To pay Algernon’s debts, land must be sold, the manor-house rented to strangers, tenants evicted and the commons converted to new enterprises to increase income. The entire family will have to curtail its expenses and live on a much more restricted scale for years.

But the wicked and ungrateful Algernon refuses to hear any of this. He bangs his fist on the table, abuses his father, and demands everything he asked for.

Sadly, the father explains that his son’s attitude, his hardened habits of iniquity, and his lack of responsibility make rescuing him impossible. As an alternative to prison, the father can only offer him a boat ticket to Australia and a small remittance for so long as he remains out of England.

The debt ceiling is going to be increased one way or another, and the only question has been what if anything Republicans could get in return. If Mr. Obama insists on a tax increase, and Republicans won’t vote for one, then what’s the alternative to Mr. McConnell’s maneuver?

Republicans who say they can use the debt limit to force Democrats to agree to a balanced budget amendment are dreaming. Such an amendment won’t get the two-thirds vote to pass the Senate, but it would give every Democrat running for re-election next year a chance to vote for it and claim to be a fiscal conservative. ...

The entitlement state can’t be reformed by one house of Congress in one year against a determined President and Senate held by the other party. It requires more than one election. The Obama Democrats have staged a spending blowout to 24% of GDP and rising, and now they want to find a way to finance it to make it permanent. Those are the real stakes of 2012.

Even if Mr. Obama gets his debt-limit increase without any spending cuts, he will pay a price for the privilege. He’ll have reinforced his well-earned reputation as a spender with no modern peer. He’ll own the record deficits and fast-rising debt. And he’ll own the U.S. credit-rating downgrade to AA if Standard & Poor’s so decides.

We’d far prefer a bipartisan deal to cut spending and reform entitlements without a tax increase. But if Mr. Obama won’t go along, there’s no reason Republicans should help him dodge the political consequences by committing debt-limit harakiri.

These days, when the President says that we have to “eat our peas,” I no longer know whether he’s offering a metaphor or invoking the Commerce Clause.

“Eat our peas” occurs around 1:05

Chriss W. Street points out what the country’s real budget looks like (before Obamacare):

The Federal government’s spendable tax revenue of approximately $170 billion per month; is roughly just enough to cover legally required Social Security / Medicare payments ($90 billion) and debt service (ranging from $10-40 billon per month) – and the most politically sensitive payments for military and unemployment ($40 billion).

Read the whole thing. He has some good explanations of how we got here.