Obama's Office of Management and Budget (OMB) has decided to delay the congressionally required economic review of his February budget projections until the middle of August, which is after Congress leaves town for its summer recess and after Obama's declared deadline for passage of a healthcare measure. Republicans have suggested that the delay is related to the likelihood that the updated numbers would show a deficit greater than the $1.84 trillion figure the administration acknowledged in May. Obama listed economic assumptions that were rosier than any other public forecast in his February budget. Bloomberg.com noted that “The White House also said the jobless rate would average 8.1 percent this year, though it climbed to 9.5 percent last month.”
Thursday, July 30, 2009
Is Obama Suppressing Deficit Info to Push Healthcare?
From Thenewamerican.com
Geithner tried to reassure his Chinese counterparts that the federal budget deficit would not be allowed to expand out of control.
From Marketwatch.com
China's central bank holds an estimated $1.2 trillion worth of U.S. dollar assets.
In his opening remarks, Treasury Secretary Timothy Geithner tried to reassure his Chinese counterparts that the federal budget deficit would not be allowed to expand out of control.
"Already savings are up and our external deficit has fallen, and we are committed to taking measures to maintaining greater personal saving and to reducing the federal deficit to a sustainable level by 2013," Geithner said.
Chinese officials have unanimously criticized the buildup in the U.S. deficit and the Federal Reserve's expansionary monetary policy.
Fed chief Ben Bernanke said on Sunday that Fed policy is aimed at maintaining a strong U.S. currency.
Analysts said the talks might make progress is expanding China's role at the International Monetary Fund.
From the U.S. perspective, one goal of the discussions is to open up Chinese consumer markets to U.S. exports.
"China's success in shifting the structure of the economy towards domestic-led growth, including a greater role for spending by China's citizens, will be a huge contribution to more rapid, balanced and sustained global growth," Geithner said.
History Of Gov't-Run Health Care Is A Study In Skyrocketing Costs
In considering whether to expand the government's role in the delivery of health care or in health care insurance, it is worth looking at Medicare and Medicaid.
These two huge programs already make the government the largest player in the health care industry. The profligate nature of these two programs should raise lots of doubt about the Obama program doing anything but "busting" the budget.
In 1968 total spending by the federal government was $178.1 billion dollars. Forty years later in 2007, total spending had risen to $2,728.9 billion dollars. So the budget of the U.S. increased in dollar terms 15.3 times in that 40-year span.
Sunday, July 26, 2009
Growing Federal Debt threatens US National Security
From Isria.com
Republican Leader highlights consequences of massive new debt on the future of America’s national security-
‘The national debt threatens our way of life; it threatens the value of our national currency; and it threatens our ability to pay for entitlements that millions of Americans depend on. Yet, just as importantly, the national debt also endangers our position in the world, the long term capabilities of our military, and the long-term viability of the all-volunteer force that is currently serving us so ably and courageously in two very challenging wars’
Entitlement Reform May Begin With Social Security
From tpmdc.talkingpointsmemo.com
"I think we're in a position to be able to, either at the end of this year or early next year, start laying out a broader picture about how we are going to handle entitlements in a serious way," Obama said. "It may start with Social Security because that's, frankly, the easier one."
Obama says debt and deficits are "deep concerns"
From Reuters.com
President Barack Obama said on Wednesday that the national debt and budget deficit were "deep concerns" and that he was very worried about government spending. "The debt and deficit are deep concerns of mine," Obama told reporters during a televised news conference from the White House, explaining why he thinks the cost of healthcare needs to be reined in.Actions speak louder than words.
National Debt by year
From Seekingalpha.com
Below is the National Debt by year since the creation of our Republic. Since the creation of the Federal Reserve the National Debt has gone up by 400,000%.
The most fascinating period was the Presidency of Andrew Jackson from 1829 to 1837. He inherited a National Debt of $58 million and reduced it to $33,000 by 1835. No wonder the bankers hated him. We've added $10 trillion of debt since 1981.
Date
Dollar Amount
07/22/2009
09/30/2008
11,634,723,000,000.00
10,024,724,896,912.49
09/30/2007 9,007,653,372,262.48 09/30/2006 8,506,973,899,215.23 09/30/2005 7,932,709,661,723.50 09/30/2004 7,379,052,696,330.32 09/30/2003 6,783,231,062,743.62 09/30/2002 6,228,235,965,597.16 09/30/2001 5,807,463,412,200.06 09/30/2000 5,674,178,209,886.86
09/30/1999 5,656,270,901,615.43 09/30/1998 5,526,193,008,897.62 09/30/1997 5,413,146,011,397.34 09/30/1996 5,224,810,939,135.73 09/29/1995 4,973,982,900,709.39 09/30/1994 4,692,749,910,013.32 09/30/1993 4,411,488,883,139.38 09/30/1992 4,064,620,655,521.66 09/30/1991 3,665,303,351,697.03 09/28/1990 3,233,313,451,777.25 09/29/1989 2,857,430,960,187.32 09/30/1988 2,602,337,712,041.16 09/30/1987 2,350,276,890,953.00 09/30/1986 2,125,302,616,658.42 09/30/1985 * 1,823,103,000,000.00 09/30/1984 * 1,572,266,000,000.00 09/30/1983 * 1,377,210,000,000.00 09/30/1982 * 1,142,034,000,000.00 09/30/1981 * 997,855,000,000.00 09/30/1980 * 907,701,000,000.00 09/30/1979 * 826,519,000,000.00 09/30/1978 * 771,544,000,000.00 09/30/1977 * 698,840,000,000.00 06/30/1976 * 620,433,000,000.00 06/30/1975 * 533,189,000,000.00 06/30/1974 475,059,815,731.55 06/30/1973 458,141,605,312.09 06/30/1972 427,260,460,940.50 06/30/1971 398,129,744,455.54 06/30/1970 370,918,706,949.93 06/30/1969 353,720,253,841.41 06/30/1968 347,578,406,425.88 06/30/1967 326,220,937,794.54 06/30/1966 319,907,087,795.48 06/30/1965 317,273,898,983.64 06/30/1964 311,712,899,257.30 06/30/1963 305,859,632,996.41 06/30/1962 298,200,822,720.87 06/30/1961 288,970,938,610.05 06/30/1960 286,330,760,848.37 06/30/1959 284,705,907,078.22 06/30/1958 276,343,217,745.81 06/30/1957 270,527,171,896.43 06/30/1956 272,750,813,649.32 06/30/1955 274,374,222,802.62 06/30/1954 271,259,599,108.46 06/30/1953 266,071,061,638.57 06/30/1952 259,105,178,785.43 06/29/1951 255,221,976,814.93 06/30/1950 257,357,352,351.04
06/30/1949 252,770,359,860.33 06/30/1948 252,292,246,512.99 06/30/1947 258,286,383,108.67 06/28/1946 269,422,099,173.26 06/30/1945 258,682,187,409.93 06/30/1944 201,003,387,221.13 06/30/1943 136,696,090,329.90 06/30/1942 72,422,445,116.22 06/30/1941 48,961,443,535.71 06/29/1940 42,967,531,037.68 06/30/1939 40,439,532,411.11 06/30/1938 37,164,740,315.45 06/30/1937 36,424,613,732.29 06/30/1936 33,778,543,493.73 06/29/1935 28,700,892,624.53 06/30/1934 27,053,141,414.48 06/30/1933 22,538,672,560.15 06/30/1932 19,487,002,444.13 06/30/1931 16,801,281,491.71 06/30/1930 16,185,309,831.43 06/29/1929 16,931,088,484.10 06/30/1928 17,604,293,201.43 06/30/1927 18,511,906,931.85 06/30/1926 19,643,216,315.19 06/30/1925 20,516,193,887.90 06/30/1924 21,250,812,989.49 06/30/1923 22,349,707,365.36 06/30/1922 22,963,381,708.31 06/30/1921 23,977,450,552.54 07/01/1920 25,952,456,406.16 07/01/1919 27,390,970,113.12 07/01/1918 14,592,161,414.00 07/01/1917 5,717,770,279.52 07/01/1916 3,609,244,262.16 07/01/1915 3,058,136,873.16 07/01/1914 2,912,499,269.16 07/01/1913 2,916,204,913.66 07/01/1912 2,868,373,874.16 07/01/1911 2,765,600,606.69 07/01/1910 2,652,665,838.04 07/01/1909 2,639,546,241.04 07/01/1908 2,626,806,271.54 07/01/1907 2,457,188,061.54 07/01/1906 2,337,161,839.04 07/01/1905 2,274,615,063.84 07/01/1904 2,264,003,585.14 07/01/1903 2,202,464,781.89 07/01/1902 2,158,610,445.89 07/01/1901 2,143,326,933.89 07/01/1900 2,136,961,091.67
07/01/1899 1,991,927,306.92 07/01/1898 1,796,531,995.90 07/01/1897 1,817,672,665.90 07/01/1896 1,769,840,323.40 07/01/1895 1,676,120,983.25 07/01/1894 1,632,253,636.68 07/01/1893 1,545,985,686.13 07/01/1892 1,588,464,144.63 07/01/1891 1,545,996,591.61 07/01/1890 1,552,140,204.73 07/01/1889 1,619,052,922.23 07/01/1888 1,692,858,984.58 07/01/1887 1,657,602,592.63 07/01/1886 1,775,063,013.78 07/01/1885 1,863,964,873.14 07/01/1884 1,830,528,923.57 07/01/1883 1,884,171,728.07 07/01/1882 1,918,312,994.03 07/01/1881 2,069,013,569.58 07/01/1880 2,120,415,370.63 07/01/1879 2,349,567,482.04 07/01/1878 2,256,205,892.53 07/01/1877 2,205,301,392.10 07/01/1876 2,180,395,067.15 07/01/1875 2,232,284,531.95 07/01/1874 2,251,690,468.43 07/01/1873 2,234,482,993.20 07/01/1872 2,253,251,328.78 07/01/1871 2,353,211,332.32 07/01/1870 2,480,672,427.81 07/01/1869 2,588,452,213.94 07/01/1868 2,611,687,851.19 07/01/1867 2,678,126,103.87 07/01/1866 2,773,236,173.69 07/01/1865 2,680,647,869.74 07/01/1864 1,815,784,370.57 07/01/1863 1,119,772,138.63 07/01/1862 524,176,412.13 07/01/1861 90,580,873.72 07/01/1860 64,842,287.88 07/01/1859 58,496,837.88 07/01/1858 44,911,881.03 07/01/1857 28,699,831.85 07/01/1856 31,972,537.90 07/01/1855 35,586,956.56 07/01/1854 42,242,222.42 07/01/1853 59,803,117.70 07/01/1852 66,199,341.71 07/01/1851 68,304,796.02 07/01/1850 63,452,773.55
07/01/1849 63,061,858.69 07/01/1848 47,044,862.23 07/01/1847 38,826,534.77 07/01/1846 15,550,202.97 07/01/1845 15,925,303.01 07/01/1844 23,461,652.50 07/01/1843 32,742,922.00 01/01/1843 20,201,226.27 01/01/1842 13,594,480.73 01/01/1841 5,250,875.54 01/01/1840 3,573,343.82 01/01/1839 10,434,221.14 01/01/1838 3,308,124.07 01/01/1837 336,957.83 01/01/1836 37,513.05 01/01/1835 33,733.05 01/01/1834 4,760,082.08 01/01/1833 7,001,698.83 01/01/1832 24,322,235.18 01/01/1831 39,123,191.68 01/01/1830 48,565,406.50 01/01/1829 58,421,413.67 01/01/1828 67,475,043.87 01/01/1827 73,987,357.20 01/01/1826 81,054,059.99 01/01/1825 83,788,432.71 01/01/1824 90,269,777.77 01/01/1823 90,875,877.28 01/01/1822 93,546,676.98 01/01/1821 89,987,427.66 01/01/1820 91,015,566.15 01/01/1819 95,529,648.28 01/01/1818 103,466,633.83 01/01/1817 123,491,965.16 01/01/1816 127,334,933.74 01/01/1815 99,833,660.15 01/01/1814 81,487,846.24 01/01/1813 55,962,827.57 01/01/1812 45,209,737.90 01/01/1811 48,005,587.76 01/01/1810 53,173,217.52 01/01/1809 57,023,192.09 01/01/1808 65,196,317.97 01/01/1807 69,218,398.64 01/01/1806 75,723,270.66 01/01/1805 82,312,150.50 01/01/1804 86,427,120.88 01/01/1803 77,054,686.40 01/01/1802 80,712,632.25 01/01/1801 83,038,050.80 01/01/1800 82,976,294.35 01/01/1799 78,408,669.77 01/01/1798 79,228,529.12 01/01/1797 82,064,479.33 01/01/1796 83,762,172.07 01/01/1795 80,747,587.39 01/01/1794 78,427,404.77 01/01/1793 80,358,634.04 01/01/1792 77,227,924.66 01/01/1791 75,463,476.52
Calif. deficit deal likely just a temporary fix
From AP:
California's deal to close its $26 billion budget gap may end up doing what Gov. Arnold Schwarzenegger had hoped to avoid: kicking the state's problems down the road.Despite deep cuts to education and social programs, the deal struck late Monday is filled with assumptions and accounting gimmicks. Combined with a persistent recession, it is likely to lead to yet another multibillion-dollar deficit in the next fiscal year.
"Frankly, we may not be done yet," said Senate leader Darrell Steinberg, D-Sacramento. "We pray for better economic news sooner rather than later."
Is Social Security a Giant Ponzi Scheme?
From Fool.com
Jim Cramer has called Social Security the largest Ponzi scheme in history. To an extent, he's making a valid comparison. Like a Ponzi scheme, Social Security pays its benefits out of new contributions, rather than out of investment returns. Also, like a Ponzi scheme, Social Security is in the process of collapsing under its own weight. According to its most recent annual report, the Social Security trust fund is expected to be exhausted by 2037. With similarities like that, it's no wonder Cramer felt he could make the comparison.
White House putting off release of budget update
From AP:
The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.
The release of the update — usually scheduled for mid-July — has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.
What happened to the transparency promised during the campaign?
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