Monday, February 14, 2011

Budget Still Out of Control

You can argue that the dialogue around cutting the budget going forward is a good start, but increasing the deficit to $1.6 billion from an initial $1.4 billion is the wrong direction. Bloomberg details:

President Barack Obama will send Congress a $3.7 trillion budget that would reduce deficits by $1.1 trillion over a decade, setting up a battle with Republicans who have already deemed the plan insufficient to reduce federal debt.

The deficit for the current fiscal year is forecast to hit a record $1.6 trillion -- 10.9 percent of gross domestic product -- up from $1.4 trillion the administration estimated previously, according to documents released this morning by the administration.


Source: GPO Access

4 comments:

  1. While the President is feeding us his line of garbage as to cutting spending, it came to my attention yesterday that the FED is considering a QE3 package as the 1.2 trillion dollars of worthless money they've already printed hasn't done what they though it would. All of the cuts in the world are not going to offset the hyper inflation and the costs that come with printing worthless money. M1 has grown 15.2% in less than 3 months and all of that is unbacked paper!

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  2. The level of Human Resources employed by the Federal Government reflect a number of things. Two wars, the addition of DHS to the Federal Gov't, and the fact that the Federal Gov't has to employ more people as a result of the private sector's failure to do so. We certainly need to cut but we also need to stop fooling ourselves that taxes can't rise for the rich. You'll never erase the debt or the deficit by failing to do so, regardless what Republicans say or do in Congress.

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  3. New budget crosses all the limits.. I don't think that budget could be better in future years.. You really did a very good analysis..Thanks ...

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