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| Obama Has Plan to Slash Deficit, Despite Stimulus Bil |
| 2009-02-22 |
| Here's the NYT laying the groundwork for this week's disaster. After a string of costly bailout and stimulus measures, President Obama will set a goal this week to cut the annual deficit at least in half by the end of his term, administration officials said. Oooh, that felt good. Now pull my other leg. The reduction would come in large part through Iraq troop withdrawals and higher taxes on the wealthy. Or maybe he's going to withdraw the wealthy from Iraq and tax the troops. I get confused. The president inherited a deficit for 2009 of about $1.2 trillion, which will rise to more than $1.5 trillion, given initial spending from his recently enacted stimulus package. So the $800 billion porkulus only increases the deficit by $300 billion. As a liberal arts major, I can see that. His budget blueprint for the 2010 fiscal year, which begins Oct. 1, will include a 10-year projection showing the annual deficit declining to $533 billion in the 2013 fiscal year, the last year of his term, officials said. And I'm sure that projection is going to have a probability associated with it, especially for years 5-10. While that suggests a two-thirds reduction, exceeding Mr. Obama’s goal of at least half, advisers note that the current deficit as a starting point is inflated by one-time expenses to stimulate the economy. So the Democratic Congress is going to refuse to extend all those goodies. Right. Crack is only mildly addictive compared to this stuff. Measured against the size of the economy, the projected $533 billion shortfall for 2013 would mean a reduction from a deficit equal to more than 10 percent of the gross domestic product — larger than any deficit since World War II — to 3 percent, which is the level that economists generally consider sustainable. Mr. Obama will project deficits at about that level through 2019, aides said. I'm just glad all these smart people in Washington are taking care of my money for me. Check, please. |
| Posted by:Matt |
| #43 EC - can you tell us what you do? (In a general way, of course - don't want to alienate those clients. ;-p) And yes, your quality shows through. |
| Posted by: Barbara Skolaut 2009-02-22 22:09 |
| #42 Strange thing, but I still get a lot of clients from the U.S., despite the recession. I'm trying to explain it this way: In recession times, quality prevails. |
| Posted by: European Conservative 2009-02-22 20:10 |
| #41 I'm already starting to worry about the post recession period. Nothing at all to worry about there ... literally. |
| Posted by: AzCat 2009-02-22 20:05 |
| #40 "Obama will be loathed by the rest of the world, and GW Bush the great champion of free trade will be elevated to near sainthood." Hmmmm, phil. Wonder if it would be worth it to the rest of us? I'm thinking, I'm thinking.... |
| Posted by: Barbara Skolaut 2009-02-22 19:54 |
| #39 Maybe the Obama regime is that smart? Tanking the USD is actually not a bad strategy because it causes far more pain for Europe and China than it does for the USA. And it definitely solves the debt problem. Mind you Obama will be loathed by the rest of the world, and GW Bush the great champion of free trade will be elevated to near sainthood. |
| Posted by: phil_b 2009-02-22 19:45 |
| #38 If we had 10% inflation for a few years, the national debt would decline as a percentage of GDP. Only if interest rates were held below the rate of inflation for years. In which case the USD would tank - parity with the Yen anyone - and inflation explode. Zimbabwe here we come. |
| Posted by: phil_b 2009-02-22 19:35 |
| #37 > Obama has a plan So do the cylons! |
| Posted by: Bright Pebbles the flatulent 2009-02-22 18:24 |
| #36 Mr/Ms haveanoodle, welcome to the 'burg. Anyway, to pick up on what you're saying....I was wondering why all of these gun-ownership restriction bills have been accelerating lately. I suspect there are some very nervous heads underneath the "crowns". |
| Posted by: Cornsilk Blondie 2009-02-22 17:54 |
| #35 "Their goal is to make as many people as possible as dependent as possible on government, in effect making them perpetual Democrats." or sometimes we come to hate the thing we depend on? and maybe rebel? i feel like why else would the secret service have that new gatling gun except for crowd control against citizens? i have seen the future, and it sucks, and a lot of us might be become bewee bewee angwee. |
| Posted by: haveanoodle55 2009-02-22 16:33 |
| #34 "Their goal is to Swell the dependent class - the 'moochers' who's alligence is to whoever is providing the food and circuses whatever their crimes. You can't have that with a vibrant productive class providing jobs and pride in oneself." Give a cigar to the crazy man. The Dems are completely uninterested in having this crisis end. Their goal is to make as many people as possible as dependent as possible on government, in effect making them perpetual Democrats. |
| Posted by: no mo uro 2009-02-22 16:11 |
| #33 It will be interesting to see what happens when the economy remains in the crapper for his entire term. The populace is not going to be happy. They are not going to buy into his "lets go farther into debt and tax the rich more" approach. If the economy does not come out of this, and I think it won't, then he is screwed. It will be up to very blatant corruption for him to retain the presidency. |
| Posted by: remoteman 2009-02-22 15:48 |
| #32 "Has this stupid shit never heard of the Laffer effect? IS he so fucking idiotic that he doesn't realize where the capital to form businesses comes from? Is he so blind as to demolish those who create jobs?" He's heard of the Laffer Effect alright, he just believes that being on the other side of the curve will accomplish both his economic and his political goals in one shot. |
| Posted by: Floluse Guelph4724 2009-02-22 15:39 |
| #31 The fact is that Obama and the left know all this - they are counting on it. Nobody gets to the position they are in by being stupid or foolish. The fact is that - their alligience is not to the United States or the freedom [for which it stands] but to the 'world order' - the United Nations, Multi-Culturism, and European style Socialism. In order to promote them the United States has to be brought low. They lost in Iraq - they hope to win on the economic battlefield. What do you think is going to happen when the latest 'stimulus' bill runs out - and you now have millions of jobs dependent on bloated spending? Why the only possible answer is yet-another stimulus bill - and another and another. The bill will _never_ be paid. Their goal is to Swell the dependent class - the 'moochers' who's alligence is to whoever is providing the food and circuses whatever their crimes. You can't have that with a vibrant productive class providing jobs and pride in oneself. They know exactly what they are doing - which makes their crimes even worse. |
| Posted by: CrazyFool 2009-02-22 15:05 |
| #30 My f'ing congressman was in town late last week touting what the stimulus bill is going to bring to the community. F'ing local paper ate it up. Didn't mention the much larger number that it is going to suck out of the community. |
| Posted by: Darrell 2009-02-22 15:03 |
| #29 "Has this stupid shit never heard of the Laffer effect? IS he so fucking idiotic that he doesn't realize where the capital to form businesses comes from? Is he so blind as to demolish those who create jobs?" No, yes, and he doesn't care, OS. >:-( |
| Posted by: Barbara Skolaut 2009-02-22 15:01 |
| #28 Ya gotta love the way they play with the semantics to try and make it sound good. "the projected $533 billion shortfall for 2013 " That $533B is the LOWEST ANNUAL INCREASE in the etire term. That means that Obamanation's first term project deficit MINIMUM is greater than $2.13TRILLION and probably closer to $4 trillion as all of the long term surprises in that porkulus bill start kicking in to both kill the economy and gush cash. We are sooooooooooooooooooo screwed. |
| Posted by: AlanC 2009-02-22 14:38 |
| #27 Stupid fucker Obama. The top 50% pay 97% of the taxes The top 25% pay 86% of the taxes The top 1% pay 39% of the taxes. Thats right, the bottom 50% pay 3% of all taxes while the top 1% pay 39%. Has this stupid shit never heard of the Laffer effect? IS he so fucking idiotic that he doesn't realize where the capital to form businesses comes from? Is he so blind as to demolish those who create jobs? He and Congress are going to come down with lead poisoning if they keep this up. |
| Posted by: OldSpook 2009-02-22 14:30 |
| #26 Obama plans to tax the hell out of the businesses and the investor class. Fits well with his philosophy of "From each according to his ability, to each according to his needs". |
| Posted by: DMFD 2009-02-22 14:21 |
| #25 You really can fool most of the people most of the time. Even without the just passed greatest transfer of wealth in this nation's history, the first wave of baby boomers reach 65 in 2011. Tell me what that does to entitlement programs, tax collection and equity markets. |
| Posted by: ed 2009-02-22 14:18 |
| #24 I just saw that he is going to raise business taxes and increase the rate on the top rate on those making more than $275K per year by 40%. Both should do wonders for the economy. We are going to lose at least a decade to this foolishness. |
| Posted by: remoteman 2009-02-22 14:08 |
| #23 Smoke---meet mirrors. |
| Posted by: Alaska Paul 2009-02-22 14:02 |
| #22 Obama has a plan...... I'll read no further thank you. |
| Posted by: Besoeker 2009-02-22 13:46 |
| #21 > I'm already starting to worry about the post recession period. I'm worried there wont be a post recession period. |
| Posted by: Bright Pebbles the flatulent 2009-02-22 13:24 |
| #20 Laugh a minute, that's what it is. |
| Posted by: Richard of Oregon 2009-02-22 13:10 |
| #19 ... projection showing the annual deficit declining to $533 billion in the 2013 fiscal year ... So the lowest deficit Bambi projects for himself while in office is higher than the highest deficit George Bush ever recorded. The deficit for 2009 at $1.5 trillion is higher than the last four Bush deficits combined. |
| Posted by: Steve White 2009-02-22 12:01 |
| #18 I'm already starting to worry about the post recession period. That's five to 10 years out, if we're lucky. I'm worried about right now. |
| Posted by: DoDo 2009-02-22 11:56 |
| #17 #12 Obama can cut the deficits by half by 2013. He is smart and determined, and he is trying very hard. So give him a break, and stop criticizing him. Here Here! He's already flushed out 4 or 5 wealthy, administration appointee Democratic NON-Tax Payers and maid them pay up. I'll give him credit for that. |
| Posted by: Besoeker 2009-02-22 11:50 |
| #16 By attacking viv, you guys are denying that this is the dawning of the age of... the Obamessiah. |
| Posted by: Darrell 2009-02-22 11:47 |
| #15 Hush, Viv is make the visit. Hi Viv! All is good. |
| Posted by: Shipman 2009-02-22 11:26 |
| #14 He just doubled it, you moron. |
| Posted by: Parabellum 2009-02-22 11:00 |
| #13 Viv either you forgot the sarcasm tag or you are a complete idiot. Seeing you entered your missive twice, I'm betting on the latter. |
| Posted by: AlanC 2009-02-22 11:00 |
| #12 Obama can cut the deficits by half by 2013. He is smart and determined, and he is trying very hard. So give him a break, and stop criticizing him. viv |
| Posted by: viv 2009-02-22 10:55 |
| #11 Obama can cut the deficit by 2013. He is smart and determined. He is trying very hard, so give him some credit instead of criticizing him all the time. www.evergreenspace.com |
| Posted by: viv 2009-02-22 10:52 |
| #10 Tax the troops, they already got free health care and many freebie meals. They've started that. Prior to the 90s, troops, their families, and those who weathered through to retirement did get free medical care. Then TRICARE was initiated and the troops pay for their families and the retiree pay as well. The government has been itching to increase the rate for years, still below commercial levels but we talking 1k+ per annum. Retiree care is quickly becoming an unfinanced commitment as its been eating into operational funds for the active with projections to be over 50% of all medical costs in a few years. A lot of that retiree expense comes with the older retirees who never received much of the volunteer Army pay rates when serving and were promised compensation in medical care if and when they reached retirement eligibility. Also until recently, officers received Basic Subsistence Allowance [another mechanism to avoid putting the funds against Basic Pay for later computation of retirement pay] and had to pay for their meals [plus a surcharge] when said meal was provided by the government in cantonment or in the field [they debt their pay]. So, that would be an 'increase' in government charges [ie tax] on the troops, not something new. |
| Posted by: Procopius2k 2009-02-22 10:43 |
| #9 Oh that's easy. Take everyone's pension and 401K fund and place it into a Social Security type fund (since the Gov't knows best how to invest it in such dark times). Borrow it and replace it with I-O-U (or more likely I-screw-U's). Don't include the I-screw-U's when you compute the debt. Profit! |
| Posted by: CrazyFool 2009-02-22 09:41 |
| #8 #4 - Ship, what I like about the idea is that it wold put some real teeth into the concept of a Taxpayers Revolt. "Secretary Geithner, there's a gentleman outside who says that his name is Mad Dog Mattis and that he's here for his refund check." |
| Posted by: Matt 2009-02-22 09:32 |
| #7 I'm already starting to worry about the post recession period. If we had 10% inflation for a few years, the national debt would decline as a percentage of GDP. He might see this as a win. |
| Posted by: mhw 2009-02-22 08:54 |
| #6 So let me get this straight. On Wednesday he doubles the deficit. On Saturday he announces he's going to cut the deficit in half (bring it back to status quo) over the next few years. The man's a freakin' genius! I want my money back. |
| Posted by: Parabellum 2009-02-22 08:50 |
| #5 "Now pull my other leg" More like pull my finger. |
| Posted by: no mo uro 2009-02-22 08:20 |
| #4 Matt's on to something. Tax the troops, they already got free health care and many freebie meals. Not to mention constant free travel. |
| Posted by: .5MT 2009-02-22 08:01 |
| #3 Well, he already projected what would happen to the economy by the end of his term, slashing budget deficits to half of what he say inherited deficit. Just hope his calculation were right. |
| Posted by: Justin low 2009-02-22 07:47 |
| #2 Well, yeah.....if you just do that magic "make the zeros at the end disappear" accounting trick that some third world dictators have perfected, it could happen. |
| Posted by: Cornsilk Blondie 2009-02-22 06:09 |
| #1 Yep, gut defense. Redux 1976, 1992. The scorpion can't help itself, it acts according to its nature. |
| Posted by: Procopius2k 2009-02-22 03:45 |