Shelby Sees "Financial Destruction" In Obama Budget

By: Daniel Carty
Topics: Budget

(AP Photo/Haraz N. Ghanbari)

Sen. Richard Shelby blasted President Obama's proposed budget Wednesday, calling it a "scary" plan will take the nation down the "road to financial destruction."

"What we see is scary. It projects huge deficits and then, ultimately, debt," the Alabama Republican told The Early Show. "I see in the budget the road to financial destruction."

On Tuesday, Mr. Obama defended his economic agenda during a primetime news conference.

"The best way to bring our deficit down in the long run is ... with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest," he told reporters. (Read AP's fact check of Mr. Obama's address.)

Mr. Obama also repeated the fact that he inherited a $1.3 trillion deficit from the previous Republican administration. Shelby conceded the point but said current projections would far exceed that amount.

"We had a deficit, but it was nothing like this. The projection of his years in office, by his own budget people, this will be larger deficits … than all the presidents put together from George Washington. This is scary," he said.

The president's budget is currently under revision by Congress and dour deficit projections might mean cuts to the spending plan.

Watch Bill Plante's budget report and Sen. Shelby's interview.

Last week, the Congressional Budget Office released projections for Mr. Obama's budget that would create a $1.8 trillion deficit for this year and $9.3 trillion deficits over 10 years – a figure that many economists think is unsustainable. Mr. Obama's estimates for the current year's budget gap are in line with the CBO, but his 10-year projection is much rosier – about $2.3 trillion less than congressional auditors foresee.

"I believe we've reached the tipping point and if we tip over, it's a point of no return. We're looking at inflation and financial and economic destruction," Shelby said.

He also told The Early Show that he would not work with the president on a compromise budget.

"I don't think we should compromise destruction of our economic system. And this is where we're going here. We should work with the president when we think the president is right. But I believe he is totally going down the wrong road here."

Shelby also weighed in on Treasury Secretary Timothy Geithner's recently announced plan to create public/private partnerships to buy up banks' toxic mortgage assets.

"We'll have to wait and see. … the devil is always in the details. We have to see how this is priced and how it works, because if you price these assets too high, people make a windfall – probably off the taxpayers. If it's too low, the banks won't sell them."

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by valh1 April 3, 2009 8:54 AM EDT: Obama wants the destruction of the American way of life. Crisis mode is what he is all about then more and more people will come to depend on Big Brother. Liberals are all the same. There is no CHANGE here just another fascist liberal in a different skin color.; Reply to this comment


by sjc_1 March 26, 2009 4:28 PM EDT: "..an implication that by returning to the policies of tax cuts for corporations and the wealthy, our problems will be solved."

I do not think that they wanted to solve OUR problems. They wanted the rich to get richer and write bigger checks to them. This is how you obtain power and maintain power. They do not really believe their own B.S. they just want us to.; Reply to this comment


by ianlou March 26, 2009 11:14 AM EDT: Why should we care about the rants of a Greasy Alabama Redneck?; Reply to this comment


by kiawest March 25, 2009 11:51 PM EDT: The EMBARRASSMENT is the people blindly following Obama, no matter how bad his budget and policies are and the impact they will have on our country. I'd say there are other states, just look at their Senators and the fact they are bankrupt, that are much bigger embarrassments than Alabama. Why do liberals always have to knock others and then cry when someone makes a comment they don't agree with.; Reply to this comment


by cgastelum March 25, 2009 6:16 PM EDT: Stop blaming all of Obama and crews failures on the republicans. The Democrats have been in control of Congress for the last two years. That's when the economy went down a cliff. They inherited their own mess and try to point fingers on the Republicans. What a joke he trys to fix the economy by spending more. He just used it as an excuse but you're too blind and dum to see it. That's all Liberals know is Bush this and Bush that. Look at what you're Mesiah is doing to our country. Do the math, he's spend more money in two months than all the presidents combined. So he says he inherited the deficit , so why not double it or triple it!!! That ought of fix it.!!! Right!!! Not!!! How dum does he think most of are??? I can see he has some of you fooled!! the ones with no brains and can't add. you just want government hand outs but guess what you're paying for all of this too..but you're just to dum to know it. Work and earn it, why should the rich pay for you they earned it. I'm middle class and I don't want government hand outs.; Reply to this comment


by sjc_1 March 25, 2009 4:40 PM EDT: "I don't think we should compromise destruction of our economic system..."

This sound like he is for an all out, no compromise destruction of our economic system. I guess that would be the conservative hard ball position.; Reply to this comment


by rettn-2009 March 25, 2009 3:58 PM EDT: More of the same from a person who has not had an original (not provided as a Republican talking point) thought since he was 10 years old.; Reply to this comment


by sjc_1 March 25, 2009 1:16 PM EDT: What is scary is ignoring Al Qaeda leading to 9/11. What is scary is lying about WMD to trump up an illegal war and invasion for oil...that is scary.; Reply to this comment


by midlclass March 25, 2009 1:06 PM EDT: AHH yess! more republicon doom and gloom! I don't recll the questioning buy shelby when the republican spending and tax cuts for the rich (`1.5 trillion) went through who paid for the bills then oh yea the middle class tax payer remember bush and congress did not veto or filibuster any republican bills for six years. here's aanother fine mess they've got us into; Reply to this comment


by labrat9999 March 25, 2009 12:54 PM EDT: Where the heck was the GOP and Shelby when Bush and gang were spending billions in Iraq and no MWD? I guess that was different because the war industry that the GOP supports was getting their cut. I say spend our tax dollars right here at home and say goodbye to Iraq sink hole! And why hasn't Shelby ever questioned Bush's statements about how the Iraq war would pay for itself out of oil revenue from Iraq. Has everyone forgotten Bush's speech to congress? Show me the money!!; Reply to this comment