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White House Expects Deficit to Spike to $1.65 Trillion

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posted on Feb, 14 2011 @ 05:53 AM
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And since they are ALWAYS WRONG... and to the DOWNSIDE... you can bet it could reach 2+ trillion.

White House Expects Deficit to Spike to $1.65 Trillion

The White House projected Monday that the federal deficit would spike to $1.65 trillion in the current fiscal year, the largest dollar amount ever, adding pressure on Democrats and Republicans to tackle growing levels of debt.

The projected deficit for 2011 is fueled in part by a tax-cut extension that President Barack Obama and Republican lawmakers brokered in December, two senior administration officials said. It would equal 10.9% of gross domestic product, the largest deficit as a share of the economy since World War II.

At $1.65 trillion, the administration's projection for the 2011 deficit is significantly larger than the $1.48 trillion estimated by the non-partisan Congressional Budget Office a few weeks ago.


And now they are lying about the 2010 deficit :

In fiscal year 2010, the deficit was $1.29 trillion.

Total lie. The real deficit for fiscal year 2010 (October 1 2009-September 30 2010) was 1.64 trillion and for the year (January 1 2010 to December 31 2010) it was 1.73 trillion.

Don't believe me? Go calculate it yourself on the Treasury website.

And last year, the White House predicted a deficit of 1.26 trillion for 2010.

The OMB raised its deficit projection for fiscal 2010, which begins Oct. 1, from the $1.26 trillion forecast in May, reflecting slower economic growth this year and next because of “the severity of the crisis in the U.S. and in our trading partners,” said Christina Romer, White House chief economist, who along with Orszag briefed reporters on the report.

The median estimate of 31 economists in a Bloomberg News survey completed Aug. 21 was for a fiscal year 2010 deficit of $1.3 trillion.

... real number being 1.64 trillion, that's a 30.2% difference. No biggie right?

So now let's say they are wrong by the same margin... that'll make a 2.148 trillion deficit for 2011! Total recovery there!
edit on 14-2-2011 by Vitchilo because: (no reason given)

edit on 14-2-2011 by Vitchilo because: (no reason given)




posted on Feb, 14 2011 @ 06:02 AM
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What I find ironic and sad about the numbers game is how it leads us to make all sorts of false assumptions and accusations and tends to make us overlook the reality of the situation, which in turn leads to poor decisions and stalemates. To bring this country back, we will need to spend some money. But we can't do that because we've already overspending on the things that some deem vital and insist on keeping and we're having to deal with the interest payments on those bonehead moves that financed these boneheaded wars of choice and keep all the corporate interests afloat, which do in turn affect some of the real issues we need to be more concerned with now, like unemployment, housing, infrastructure, energy, the eroding tax base, and so on.

More time is spent on finger-pointing and accusations and figuring how best to use the harsh realities against the "other side" than to identifying the real priorities and making any actually sound decisions. Big old vicious cycle. Is there any real way out of this given the game our Congress is playing and the rules they're playing by?



posted on Feb, 14 2011 @ 06:16 AM
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Is there any real way out of this given the game our Congress is playing and the rules they're playing by?

With the current government? With the current lobbyists? With the current FED? With the current thinking of most Americans? No way in hell.

The system needs a TOTAL reboot... and societies NEVER DID THIS IN HISTORY on their own. It never happened. Ever. To change, it needs a collapse. And the only to change the system for the good is real good honest people take charge after the collapse...

The way it's going now, it's unlikely that it will happen... if there's ``reform``, it will be done by the crooks of Wall Street/FED/Corporations and the people will get screwed over into slavery even more.

So unless there's a real group that takes over that is genuinely for the people by the people, forget it. Basically the US needs what has never happened in history.
Well maybe the American Revolution, but even then, some will say it was a plot by the British secret societies... so...

This is the end of America. Won't be long now before this is felt into the bond market. I doubt investors will stand for 2+ trillion deficits....but eh, after all, maybe Goldman Sachs, JPMorgan and Bank Of America can buy all the bonds!

PRINT BABY PRINT! And if they continue printing like mad, the US will export more inflation... which will cause more Egypts, Yemen, Algeria, Tunisia and the like.

Then governments, afraid of that, will drop the US dollar and call for a new world currency...

WILL DROP? Oh wait...

IMF discusses plan to replace dollar as reserve currency
edit on 14-2-2011 by Vitchilo because: (no reason given)



posted on Feb, 14 2011 @ 06:48 AM
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What i'm 'seeing' is this:



"At $1.65 trillion, the administration's projection for the 2011 deficit is significantly larger than the $1.48 trillion estimated by ..."
~ a $170 Billion difference ~

"And now they are lying about the 2010 deficit :
In fiscal year 2010, the deficit was $1.29 trillion. The real deficit for fiscal year 2010 (October 1 2009-September 30 2010) was 1.64 trillion"
~ a $350 Billion difference ~



In both years 2009-10 and 2010-11...the deficits were nearly the same...$1.64 Trillion
2011 Should be ~$100 Billion more, to account for the interest payments paid on 2010's debts

are you dissing them for accounting & numbers fudging?

The CBO or whomever is always going to paint a rosier picture than reality...
just look at how unemployment is steadily retreating & incomes are rising and the CPI is steady
with little inflation



posted on Feb, 14 2011 @ 08:09 AM
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reply to post by St Udio
 




are you dissing them for accounting & numbers fudging?

Yep. I'm saying that if last time they said they would have a 1.26 trillion deficit they had a 1.64 trillion deficit... Then if they predict a 1.65 trillion deficit, the real deficit will end up being upwards of 2 trillion $.

And yep, they are totally lying about the inflation and unemployment numbers... but that everyone already knows.



posted on Feb, 14 2011 @ 10:02 AM
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reply to post by Vitchilo
 





...The projected deficit for 2011 is fueled in part by a tax-cut extension that President Barack Obama and Republican lawmakers brokered in December, two senior administration officials said. It would equal 10.9% of gross domestic product, the largest deficit as a share of the economy since World War II...


LYING TRAITORS!

They blather on about Tax cuts but never mention the LAWS they passed that put us in the hole in the first place and the laws they just passed in 2010 that will INCREASE the federal PAYROLL and DECREASE the tax base!

BOTH of the following changes will spawn an army of enforcers in the FDA and the IRS while killing small business.

50% of the US labor force work for small business. Obamacare makes a change in the tax law governing 1099's that is going to be a NIGHTMARE for ALL businesses and force many small businesses to close their doors. Worse it will greatly impede the start of new small businesses. It effects not only businesses but all the store clerks, salesmen and anyone fills out an expense report or sells to a business.

The second fiasco is the Food Safety Law. Most American farmers, despite the media's hype, have to work a second job to support their farm. The average net income for US farms is $19K. Very few farms actually get tax payer money and those are normally the large corporate farms. The addition of food safety regulation and the new 1099 tax changes are going to push many out of business and the Tester Amendment Does NOT Help Small Food Producers. A Lawyer says the new law May effect home gardens.

The USA produces 25% of the world's grain. 40% of the USA is farmland and come 2012 when the Food Safety Law goes into effect, the US government will have just put out of business the majority of the 2,055,230 family farms leaving just the 73,752 Corporate farms. (2002 Ag Census)

This destruction of American farming is intentional and started right after WWII. The key moves were the 1995 World Trade Organization Agreement on Ag and the 1996 farm bill called the "Freedom to Farm Act" both written by the VP of Cargill Dan Amstutz. Those two not only wiped out many farmers in the US but all over the world. The "Freedom to Farm Act" also got rid of the US strategic grain reserve. As of 2008 the USDA reported "The Cupboard is bare" see: History, HACCP and the Food Safety Con Job



The economic disparity between industrial farms and those that retain locally owned and controlled farms may be due in part, to the degree in which money stays in the community. Locally owned and controlled farms tend to buy their supplies and services locally, thus supporting a variety of local businesses. This phenomenon is known as the economic “multiplier” effect, estimated at approximately seven dollars per dollar earned by the locally owned farm. PEW REPORT



posted on Feb, 14 2011 @ 10:30 AM
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We're in a hole. A deep hole. A really, really, really deep hole. A hole so deep that if someone were to drop an acorn in the hole, by the time it landed, it would be an oak. But it would be an oak that went, "YAAAAAHHH" all the way down the hole.

And Obama wants us to dig deeper to get out of the hole.




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