Deficit

Obama Expecting To Lose in 2012, But Return in 2016?

File:Mardi Gras Flying Monkey On Frenchman Street.jpg


Costumed revelers on Frenchmen Street, New Orleans Mardi Gras Day.


 


Many advance indicators show Republicans winning the presidential nod in November. But it’s likely Obama has his eyes on the presidency in 2016. A loss shortly, but the possibility of rebound in 2016, is what the doctor ordered for Obama’s hopes.


Now, the economy is tanking—big time. The deficit has already exceeded $16 trillion.


One of hundreds of military situational indicators is SNAFU—something that aptly describes Obamacare--a major SNAFU.


This presidency has been described as starting out with SNAFU, but started going TARFUN soon after, and was totally FUBAR before long.

The Budget Solution By Ryan

Can Ryan’s budget be a light in the forest fire? The Obama Administration has generated so much debt, we are at a make-or-break point this election. A prime example of a possible remedy can be shown in Paul Ryan’s budget, and specifically in the FNS Supplemental Nutrition Assistance Program (SNAP)-formerly called the Food Stamp Program. It seems few remember the saying: Feed a man a fish and he will eat for a day. Teach him how to fish, and he will eat for a lifetime.


The above truism sheds light on every negative statement made about the Ryan Budget. Albeit, quite a few were made. The amount of food assistance each family needs is directly related to the priorities by the family on feeding their own children. That priority supersedes having 3 TV’s instead of two, normal vehicles instead of fancy ones, fewer CD’s, I-Pods, and toys to propel one through the day.

New debt chart shows US per-capita debt higher than Greece

Senator Jeff Sessions (R-Alabama) has released a new chart that compares the relative per-capita national debt placed upon citizens of the most indebted nations of the world.

The surprise (to some)?  That US citizens ALREADY have the highest per-capital national debt load in the world.  Higher even that Greece, which, as anyone who has been watching the news for the past year would know, has been going through a horrific debt crisis as a result of not being able to borrow more more to repay the money it has already borrowed...because the people they want to borrow it from (prospective bond buyers, etc.), don't believe they will be able to pay the money back.

How long before bond investors start to believe that about the United States?

Sessions released a statement which merits repeating here.  It offers his take on the debt - and the lastest Obama administration budget - as follows:

Super Committee: Super Failure

Did anyone with commonsense really think that a rigged congressional "Super Committee"   --  formed because of the failure of the United States Congress to come up with one or two or three or four trillion dollars worth of needed cuts to the federal debt  --   would ever accomplish their goal?

Actually, the "Super Committee's" assigned task was to come up with at least $1.2 trillion worth of cuts over the next decade or there would be automatic cuts across the federal government including half coming the defense budget.  Of course, the Democrats protected Medicare and Medicaid from any cuts or reform except maybe a couple billion dollars of administrative savings or whatever.

The "Super Committee" was doomed to failure because the Democrats stacked their half of the 12-member committee with left-wing idealogues.  The Republicans put on the committee a few Republicans who in the past have shown willingness to compromise, although there were a couple very conservative members selected by the Republican leadership.

Everyone will recall all the doomsday scenarios put out by Barack Obama and his party and their friends in the news media about the pending debt ceiling crisis early this year; then the crisis was put off for a couple more months, then the crisis was put off until last summer when the debt ceiling   --  absolutely for sure this time no question about it this time  --  had to be raised or the country would go bankrupt.

Social Security coming up short (spending more than it takes in)

Although it's far from a surprise and has long been predicted, it's finally a reality: Social Security is now officially paying out more than it is taking in.

Of course, Social Security has taken in more than it has paid out pretty much since its inception...which would lead a normal person to think there's a big fat piggy bank just waiting to pay out all those benefits, right?  Wrong.  The truth is that the government has faithfully borrowed every dime of that surplus over the years and spent it on, well, everything.

Bruce Krasting looks at the public data on the Social Security "Trust Fund" and points out that the numbers are headed in the wrong direction...pointing out that this wasn't expected to happen for another five years or so.

This is the cost of the protracted recession and the failure of the
economy to generate new jobs. The 2008-2009 increase in benefits was at
a nosebleed level of 9.5%. That level has collapsed to 3.9% in the
2009-2010 period.  ...

Obama's deficit commission is running out of money

From the long list of ironies when it comes to our government and how it operates, comes the news that Obama's bipartisan deficit commission is about to run out of operating funds.

If you remember, this was the commission that Obama created by executive order back in April because he didn't want to go along with a congressional version being pushed by Republicans that would have taken tax increases off the table in terms of recommendations that the commission could make (and force to a vote in Congress).

From the Fiscal Times:

The 18-member commission faces the daunting challenge of coming up with proposals by Dec. 1 to tame the federal government’s trillion-dollar budget deficit.  But the panel’s own budget is only $500,000, barely enough to cover office rent and the salaries of four staff members.

Filed under: 

The Tea Parties and the coming spending wars

In years past, most major political blowups over American fiscal policy that altered the political landscape were over the revenue side of the equation, meaning taxes.  People begin to feel the pinch of higher taxes and they fight back, demanding that elected officials cut taxes, and supporting political candidates who promise that they will do just that.  In some states, they've even been able to get initiatives on the ballot and push tax cuts themselves - California's prop 13 comes to mind.

But as Michael Barone points out, the new Tea Party related political activism over fiscal issues is different from the fiscal fights of the past.  Now it's about spending.

What we are seeing is a spontaneous rush of previously inactive citizens into political activity, a movement symbolized but not limited to the Tea Party movement, in response to the vast increases in federal spending that began with the Troubled Asset Relief Program legislation in fall 2008 and accelerated with the Obama Democrats' stimulus package, budget and health care bills.

Social Security Going Broke - Faster

As pretty much anyone and everyone who's paid any attention to the news for the past generation knows, Social Security, as it is currently configured, is going to run out of money.  It's simple math.  But it has always (to a great many people) seemed like a distant prospect, not something that demanded to be dealt with right now.

For decades and decades, the program has muddled along, with a few tweaks here and there, running a surplus of funds paid it by workers versus benefits paid to retirees.  And, of course, the federal government "borrowed" those surpluses from the Social Security fund and spent them on just about everything else under the sun.  Which means there has been an ever growing IOU in the "trust fund".  Couple this with the beginning retirements of baby boomers, and many people have pointed out that it's going to be a problem sooner rather than later.

Well, guess what?  That day of reckoning is here.  Via USA Today:

2011 Budget Video: a demonstration of the budget freeze

So, what kind of impact will Obama's budget "freeze" actually have on the budget?  Since, as they say, a picture is worth a thousand words, the following video says quite a bit...

Pass it on.

Filed under: 

Senate version of health care RAISES the deficit

Not as though this should be a shock to anyone, but over the weekend the government's Chief Actuary for Medicare and Medicaid gave their official estimate of the impact of the Senate's version of health care reform on the government's balance sheet.

The result?  Red ink.  Two-hundred and eighty billion worth over the coming decade.

Via Human Events:

Regarding “Coverage,” CMS estimates that the measure will “reduce the
number of uninsured from 57 million under current law to 23 million”
primarily by increasing eligibility for Medicaid.  What this does is
shift the cost burden from the federal government to cash-short states.
It’s an accounting gimmick, not a cost savings.
...

Syndicate content