Tuesday, May 18, 2010

Flores Paints Grim Picture of U.S. Budget Deficit

American assets ripe for plucking by Chinese creditors

If Bill Flores has said it once, he's said it a thousand

He's not running for Congress for his own personal

He's doing it for his kids and his grandchildren and their

America's willy-nilly deficit spending puts 40 cents of each
budgeted dollar under the column of money borrowed from
foreign governments like China.

"This is a debt that our government is levying on our
children and grandchildren," Mr. Flores said on Tuesday.

What's more, it is a debt secured with American assets such
as petroleum reserves, timberlands, uranium deposits and
other precious commodities which rightfully belong to the
American people.

Maybe it takes an accountant to point out the painful truth.
The stark facts are these.

Comparison of American foreign debt posture to that of
Greece puts a lot of light on the subject and its perilous

The simple truth is that the Greek level of debt is at 115
percent of that nation's gross domestic product. That's why
the International Monetary Fund approved a $40 billion
bailout, said Mr. Flores.

But America's credit picture is equally grim.

"A recent report from the IMF found that U.S. debt will
reach 100 percent of GDP by 2015. That same report found
that America needs to reduce its structural deficit by 12
percent of GDP, while Greece only needs to reduce its
deficit by nine percent," according to Mr. Flores.

American deficit spending for April was $82.7 billion.

"That is the 19th straight month that we have run a budget
deficit," said Mr. Flores.

"For the first seven months of this fiscal year, the
cumulative budget deficit is nearly $800 million...This
year's projected deficit is $1.5 trillion - up form last
year's $l.4 trillion.

"The Obama budget that passed Congress, with the support of
Congressman Chet Edwards, put us on a path to double our
national debt in five years and triple it in ten years."

The solution?

Get rid of Speaker Pelosi, Congressman Edwards and other
liberal Democrats and hire conservative Republicans such as
himself, said Mr. Flores.

"It is time we stop Washington's wasteful spending!" he

At a recent public appearance, Mr. Flores addressed some of
the opposition research the Edwards camp has done on him.

He answered allegations that international investment banker
George Soros controlled his startup offshore oil company,
Phoenix Exploration, in this way.

When he formed Phoenix Exploration, he said, an equity
contributor joined the limited liability partnership with a
pool of liquid cash matched by money put up by the Soros

"I didn't care where he got his funding. That wasn't our
deal," he told the Republican District 17 Executive

The fact that he obtained funding from Mr. Soros did not
confront the future of Phoenix Exploration.

"I have never met George Soros," he said. "The truth is, he
(Soros) has money lent out all over the globe."

Mr. Soros is a Hungarian Jew who fled Nazi oppression during
World War Two and became a porter and waiter in London where
he obtained an education as an international investment
banker. Some people object to his politics and his

Mr. Flores assured voters and party officials alike that he
has divested himself of his holdings in the petroleum
company he founded. He is running for Congress as a retired
executive who has created American jobs for Americans in
American businesses for the past 30 years.

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