Reply With Quote
It was only 1.7 trillion last month. What happened? How much bigger will it be next month?
Anyone?
I already heard that this congress and president will double the debt in 5 years and triple it in 10. Now that assumes that we don't have inflation!
While it is currently predicted to be $1.84 trillion, I bet we bust $2 trillion this year.
And for you budget deficit experts, does this figure also include all those "off budget" expenses like the money the government borrows form the Social Security surplus?
While Bush was running $500+ billion deficits, I guess the new standard is $2 trillion.
****************
The White House Monday pushed up its forecast for the U.S. budget deficit for this year by $89 billion, reflecting the recession, a raft of new unemployment claims and corporate bailouts.
A fresh estimate of the deficit showed it coming in at $1.84 trillion—representing a massive 12.9 percent of gross domestic product—in the current 2009 fiscal year that ends on Sept. 30.
A prior White House forecast released in February projected a deficit of $1.75 trillion, or 12.3 percent of GDP.
The report may add to the political challenges facing President Barack Obama as he seeks to push through a new healthcare plan and other big domestic initiatives.
A White House official said the gloomier deficit picture reflected weaker tax receipts as the economy declined and higher costs for social safety-net programs such as unemployment insurance.
Spending on the government rescues for the financial and automobile industries was also a factor in the higher deficit, said the official, who spoke to reporters on condition of anonymity.
While the Democratic-led Congress has given its approval to the broad outline of Obama's proposed budget for the 2010 fiscal year that includes initiatives on healthcare, education and other items, some moderate Democrats and a number of Republicans have expressed wariness about the deficit outlook.
Republicans contend that Obama's agenda would sharply increase the size of government and add to a mountain of debt but Democrat Obama counters that the enormous deficits are a legacy of President George W. Bush, a Republican.
White House Budget Director Peter Orszag blogged Monday, saying the high deficits are being driven by an economic crisis that President Barack Obama inherited.
Orszag also said that the administration's latest budget deficit estimates reflect the latest data on tax receipts, federal bailouts and other government costs.
The report from the White House Office of Management and Budget also revised the deficit higher for the 2010 fiscal year, forecasting it at $1.26 trillion, or 8.5 percent of GDP, and up $87 billion from the $1.17 trillion projection given in February.
After taking office in January, Obama released a bare-bones version of his budget in February that offered a spending plan for 2010 carrying a price tag of $3.55 trillion. The White House revised up the size of the spending plan to $3.59 trillion.
And Monday, the Obama administration will propose raising nearly $60 billion over 10 years through changes to the estate tax law and closing certain domestic tax loopholes, an administration official said.
Funds raised will go to beef up a health care reserve fund, a $634 billion pot of money President Barack Obama wants to use to revamp the health care system and expand insurance to tens of millions of Americans who lack it.
The White House wants to raise $24 billion over 10 years by tightening rules related to the estate tax, a levy on an inherited part of an estate if the value exceeds an exclusion limit set by law. Currently, the first $3.5 million for an individual, or $7 million for a couple, are exempted.
The changes to the estate tax are related to how assets are valued, said the official, who was not authorized to be quoted.
Other proposals include denying tax deductions for firms with punitive damage claims, the official said.
Later on Monday, the administration will provide details on a series of tax proposals unveiled last week, said to raise $210 billion over a decade, to tighten rules related to overseas investments.
It was only 1.7 trillion last month. What happened? How much bigger will it be next month?
Anyone?
I already heard that this congress and president will double the debt in 5 years and triple it in 10. Now that assumes that we don't have inflation!
That's what you do in a recession.
I wonder if I will live to see the days when Quadrillion will be a common term in the American vernacular.
We'll probably adapt a global currency and deflate the value back down though.
That sucks.
Nah, that's what this country does all the ing time. We spend on credit to solve all of our problems. When we end up with stagflation can we finally write the epitaph on Keynesianism (which was originally devised to deal with jump starting an economy mired in depression, not to head off a recession or simply to enhance economic growth)?
The American Peso... coming to a bank near you real soon now!
But since we have a Socialis/Marxist/Fascist (you take your pick) president, maybe we should call it the American Mark. Look at what happened in Germany way back when...
I have this one hanging on my wall:
Social Security needs to be changed in a big way. En lement programs need to be put in check as well.
But at least thy're disclosing the full costs and not hiding war spending in emergency funding bills like Bush did.
I've read a bit on Keynesian economics, but I don't remember the part where the correct response to a recession is to bankrupt the entire country. Where can I find that?
I've read a bit the newspapers, but I don't remember reading that this country is bankrupt. Where I can find that?
Social Security is not even a drop in the bucket compared to Medicare. Medicare, simply put, will cause the insolvency of the U.S. government in our lifetimes by itself.
Yes. I'd like to know too.
Wouldn't it have been far better to let all failing en ies go bankrupt and extend unemployment until we recover?
I cannot get the idea of OCP from Robocop out of my mind when the government says a corporation is too large to fail. It can then only get bigger, and unstoppable.
Who here wants to live in Delta City?
Obama Consumer Products anyone?
... Anyone...
Look at Obama's ten-year budget. Then look at the CBO analysis of it.
And FWIW, I'm not a big fan of increased government spending either. But I haven't heard of any other economic theory that has been used in the real world to deal with recession/deflation). Certainly none that includes being fiscally conservative.
Lot of things can happen in 10 years. Again, what's your proposition to deal with this recession? Any tested economic policy you want to suggest?
One positive step would be to require anyone receiving government assistance to work, who can. Drug test them and make them earn their keep, or kick them off the programs. More productive citizens = more revenue and less spending.
When has Keynesianism actually worked? Doing something simply because 'that's what has been done before' does not, in and of itself, provide justification for the continued practice.
Let it play out. Government is not the solution, but the problem!
Not to mention, the left and right in this country worship at the altar of Keynes. Of course, he did give every politician the justification for ever increasing government spending while diminishing the concern for the use of debt financing.
We love tax cuts and government spending. At some point, something's got to give.
$2 trillion deficit? How about we agree to cutting spending by $1 trillion and increasing taxes by $1 trillion? Sound fair?
Japan during the Great Depression and again in the early '90s.
It has worked before, you just need to inform yourself better.
I'm still waiting for your proposed economic policy that will get the country out of this recession. If it's a tested and sound policy, even better yet.
How about cutting the bailout and social spending by 2.5 trillion instead?
Japan?
ROFL. Please, oh great one, inform me of when it has worked here.It has worked before, you just need to inform yourself better.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
