Obama Budget Grossly Understates Deficits

President Barack Obama’s fiscal 2010 budget proposal, which carries the title "A New Era of Responsibility," actually calls for a new era of irresponsibility when it comes to adding to the national debt. Obama has made the highly publicized pledge to cut the deficit “in half, ” to $533 billion, by the end of his term, and that pledge is reflected in his new budget proposal. However, this pledge is fraught with numerical chicanery. Before the forecasted annual deficit drops to $533 billion in the Obama budget, it first shoots up to $1.75 trillion for the current fiscal year, which ends this September 30. The baseline that is being used in order to portray a $533 billion deficit as a 50 percent cut is not the $453 billion deficit for the previous fiscal year. Obviously, if last year's record-setting deficit were being used as the baseline, then Obama's projected $533 billion deficit for the end of his first term would mean an 18-percent increase, not a 50 percent decrease. The baseline that is instead being used is the $1 trillion-plus deficit that was being projected for the current fiscal year when Obama became president. Of course, President Obama has since championed spending programs that have ballooned that projection to $1.75 trillion. Not only that, but he supported big-spending programs as a U.S. senator that contributed to the deficit he inherited as president, including last year's $700 billion TARP legislation.

How do you cut the annual deficit to "only" $533 billion while still increasing the national debt by about $1 trillion or more every year? It's being done the same way past administrations have done it: concealing the enormity of the deficits through the "off-budget" theft of “trust funds.” Prime among these are the Social Security trust fund, Medicaid, and federal employee retirement trust funds. Those funds are being filled with "IOUs" that are not factored into the deficit figures. Each of these funds will come due in the coming decades, and taxpayers will pay the price of the liability for them straight out of their tax bills. “Trust fund” theft accounts for $250-400 billion per year in concealed additional debt. President Obama also conceals about $100 billion per year in debt from TARP and “direct loan” accounts for various financial bailouts, all of which remain “off budget.”

www.thenewamerican.com...

Prime among these are the Social Security trust fund, Medicaid, and federal employee retirement trust funds. Those funds are being filled with "IOUs" that are not factored into the deficit figures. Each of these funds will come due in the coming decades, and taxpayers will pay the price of the liability for them straight out of their tax bills. “Trust fund” theft accounts for $250-400 billion per year in concealed additional debt.

Nice budget plan. Hijack SS, Medicaid, and federal employee retirement funds to help HIDE what the real deficit is.

What a sham.

Yep..looks like we'll be going in the hole every year till at least 2019...that's reassuring!

Lies...lies...lies.

I'm being extremely optimistic when I say this, but I don't think he can pull it off without the health care industry laying off a 1/4 of its workers.

He is already on about how care givers are charging to much for Medicaid services and he is going to tell them to deal with it, which means lay offs.

This is starting to look like his intention is to crash every profitable sector of our economy so government can come in and take over.

His proposed amount of spending makes doing what he wants impossible. I guess he hasn't heard that China hates us. They are not going too keep loaning to us. Then you can say bye bye US Government.

This is sickening, what is even worse is that they go on and on about how the other party spends spends spends, then they go and do the same thing, and the freaking people of this nation allow them to get away with it.

Well, when they start debating the budget we will see how much it either A) balloons by, or B) gets cut. My guess is that it is going to be option A and they are going to grow the budget by another half trillion before it is all said and done with at this point.

Something has to give they cannot keep this shell game going on for too much longer, something is going to fallout.

I have a feeling one the health care industry starts laying people off then that is going to be the first domino.

I don't know, If I could predict what was going to happen I'd fly to Vegas and get rich and have some fun before the house of cards collapses.

Its like one president comes in and takes away our privacy rights and freedom of information rights and some constitutional rights. Then another one comes in and takes away our free market and will take away many gun rights.

So between the two of them we will be what, a broke version of China?

I have said time and time again that the US accounting system is one of the biggest problems our economy has.


What good is an accounting system that you can manipulate to reach your goals or make you look better than you really are?

reply to post by Hastobemoretolife


I don't know what him and his administration is thinking. Everything they seem to do makes things worse.

If he wanted to try to do something like Universal health care he should shore up the damn budget first.

Instead the debt just keeps getting piled on. He is gambling with our future...if it's even that.

Like I have stated in other posts...and you as well...one can't help but think what he is doing is intentional...he has to know that we can't do all of this.

Public outrage will continue to grow...I know it will....the "Tea Parties" were just a small start of what is to come.

reply to post by David9176


That it is, it is just a start.

If a lot of people don't start getting outraged about all of this and they don't start doing it soon, then it is going to take even longer to fix all the damage that he has done.

I just wish people would wake the hell up and realize that if we don't stop this out of control spending nobody is going to have a future.

reply to post by Hastobemoretolife

If a lot of people don't start getting outraged about all of this and they don't start doing it soon, then it is going to take even longer to fix all the damage that he has done.

Well let's hope they don't think like my old man..who chooses to ignore it. I told him he shouldn't as he is on both SS and Medicare.

I guess he thinks it will get better....I ranted on him for awhile but I didn't seem to get anywhere with him...others are seeing it though.

If they have a "tea party" by me, i'll do whatever I can to go and stand along with anyone else who is participating.

I'm just sick and tired of this nonsense.

I just wish people would wake the hell up and realize that if we don't stop this out of control spending nobody is going to have a future

Yeah, right now it looks bleak at best. I think we can fix it..but the longer it continues to happen, the more difficult it will be to get back on our feet again.

I've been accused by others of being nothing but doom and gloom...but the reality is that it's going to get bad...might as well face it and be ready for it.

There is a time to be optimistic....it's not that time yet. I don't see light at the end of the tunnel yet. I think we will get there eventually..but by the time we do the damage will have been great.

Hopefully the goodness of people will once again shine over greed and we can get this country back to what it once stood for.

That is something I can be optimistic about...I think people are generally good, and when the time is right, I think they will show it.

It may be a great thing to see.

Originally posted by Hastobemoretolife

This is starting to look like his intention is to crash every profitable sector of our economy so government can come in and take over.

Well first off healthcare industry is a pile - my pops is dying and his medications are $75,000 a month here, your PREMIUMS at work

while in MEXICO they would be less than $1,000 USD

Anyhow the funny thing about your above statement is that the OPPOSITE was the basis of NEO CONSERVATIVE ideology.( not D )

BASED upon Rands philosophy - the neocons are also obsessed by pre FRENCH revolution economics of

en.wikipedia.org...-faire_economic_philosophy
laissez-faire economic philosophy

This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (November 2008)
Laissez-faire activists support little or no state intervention on economic issues, which implies free markets, minimal taxes, minimal regulations and private ownership of property. They support certain kinds of negative liberty as opposed to positive liberties, such as wealth redistribution, given by the state. However, some laissez-faire proponents, like progressive libertarians prefer negative income tax as a replacement to the existing welfare system, arguing that it is simpler and has fewer of the "perverse incentives" of "government handouts".
Their opposition to wealth distribution is based on the belief that it takes capital from the most productive sectors of the economy and gives it to the less productive sectors, and is enforcing economic egalitarianism, which reduces productivity and the incentive to work. They may further argue that any temporary equality of outcome gained by redistribution would quickly collapse without coercion because people have different levels of motivation and native abilities, and would make different choices based on their differing values. Material inequality, they argue, is a necessary outcome of the freedom to choose one's own actions without imposing on others.
Supporters of laissez-faire favor a state that is neutral between the various competing interest groups that vie for privileges and political power in a country. They are critical of mixed economies on the grounds that it leads to an interest-group politics where each group is seeking to benefit itself at the expense of another and the consumer. They oppose government funding or regulation of schools, hospitals, industry, agriculture, and social welfare programs.
According to them, any government intervention such as regulation, protectionism, creating legal monopolies, competition laws, or taxes, interfere with this judgment being reflected accurately in the price and the maximization of economic utility. Their opposition of competition law and the U.S. Food and Drug Administration, stating that they are corrupt and benefits the corporations instead of the consumer.
They tend to believe that minimizing taxes decreases the chance that the government would fund bad programs and prevents citizens from needing government assistance because they have more of their own money

(see "starve the beast").

WELL the modern NEOCON realized that why "starve the beast" ( beast- government ) when you could drain it of its blood or $$$$$.

The result would be a lack of confidence in government, while advancing the Objectivism based beliefs.

READ BLUE PRINT FOR A NEW AMERICAN FUTURE - and BUSH CO objectives... MET.

As far as OBAMA'S budget we will see - the GOP (not neocon's ) said the same things about Clinton - VERY spot on - (LESS the GAY lover crap)

However we are much worse off now -

REMEMBER HOOVER balanced the budget BEFORE the GREAT DEPRESSION took hold -
Thats a fact -

READ

I'm gonna watch...

SOME Glen Beck

THE YEAR IS 2011-

NUCLEAR BOMBS ARE FALLING ON YOUR CITY

GANG MEMBERS ARE RAPPING YOUR FAMILY MEMBERS

THE ONLY FOOD LEFT IS MAGGOTS AND TOILET WATER

OBAMA HAS BUILT A DIAMOND ALTER AND IS EATING WHITE BABIES WITH A1 STEAK sauce....


COULDN'T RESIST

READ ABOUT HOOVER



[edit on 2-3-2009 by mental modulator]

I guess some people just go through life like everything is hunky dory, every time you turn on the news it is nothing but Doom and Gloom. I don't really see anything to be optimistic about at this current time in the regularly scheduled program.

Personally I'm ready for it all to collapse because it is going to happen. No fiat money has ever survived it has always failed.

I know how it feels with your old man, my dad is the same way. He can't even read the news anymore because he gets so P.O.'d is what he told me. Makes me feel bad, but I told him this was coming about two years ago.

The only thing that worries me is when are we going to hit the bottom,and nobody knows.

So I really don't see anything to be optimistic about, its like we are stuck with all the negatives and nothing positive.

We can fix it but we have about a year at most before we can't fix it.

edit - added a " ' " and t to the can in my last sentence.

[edit on 2-3-2009 by Hastobemoretolife]

Originally posted by Hastobemoretolife
I guess some people just go through life like everything is hunky dory, every time you turn on the news it is nothing but Doom and Gloom. I don't really see anything to be optimistic about at this current time in the regularly scheduled program.

Personally I'm ready for it all to collapse because it is going to happen. No fiat money has ever survived it has always failed.

I know how it feels with your old man, my dad is the same way. He can't even read the news anymore because he gets so P.O.'d is what he told me. Makes me feel bad, but I told him this was coming about two years ago.

The only thing that worries me is when are we going to hit the bottom,and nobody knows.

So I really don't see anything to be optimistic about, its like we are stuck with all the negatives and nothing positive.

We can fix it but we have about a year at most before we can fix it.

Well on a personal note - I had my mother, father and granny gravely ill all at the same time... I have seen thing and done things that I never thought I could, so maybe the past couple of years have hardened me,

I can't imagine worse than what I have just endured.

As long as we do not have war here... we will endure - HOPEFULLY we WILL LEARN from ALL the mistakes of GOVERNMENT and PRIVATE endeavors - to ignore one would be to ignore both.

HEY D!