A 50% Pick Up In Revenue In 2 Years: A Cheat Sheet For Obama's Wacky And Wonderful Budget

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Mon, 02/14/2011 - 12:37 | 959842 NOTW777
NOTW777's picture

how can anyone in the US point fingers at chinas fake data

Mon, 02/14/2011 - 13:05 | 959950 NOTW777
NOTW777's picture

cnbc talking about build america bonds - now only a few days behind ZH

Mon, 02/14/2011 - 13:17 | 959986 NOTW777
Mon, 02/14/2011 - 14:12 | 960221 NOTW777
NOTW777's picture

its good to work for the gov in CA

http://www.ktvu.com/news/26854805/detail.html

 

Mon, 02/14/2011 - 13:06 | 959951 SilverRhino
SilverRhino's picture

They have the GOOD drugs in these offices.  

Mon, 02/14/2011 - 15:12 | 960429 Cleanclog
Cleanclog's picture

Does "spending" include the wars in Iraq and Afghanistan yet or are they still off budget? 

Mon, 02/14/2011 - 12:38 | 959845 arkady
arkady's picture

Tyler, is it not spending - it is investing.

Mon, 02/14/2011 - 12:39 | 959848 101 years and c...
101 years and counting's picture

revenues are expected to "increase" as the Fed gives Timmy the interest payments back at the end of each fiscal year.  since the Fed will soon own all treasuries, this amount can only increase as debt spirals out of control, and the Fed buys it all.

LMAO.

Mon, 02/14/2011 - 12:42 | 959857 Dick Darlington
Dick Darlington's picture

Virtuous circle as the chair creature puts it nicely.

Mon, 02/14/2011 - 12:56 | 959921 hedgeless_horseman
hedgeless_horseman's picture

Licensing (to steal).

Mon, 02/14/2011 - 14:23 | 960270 Kayman
Kayman's picture

Dick

Uhhh... Virtuous circle Jerk....

Mon, 02/14/2011 - 12:42 | 959859 slaughterer
slaughterer's picture

Just one more algo spurt upwards, and we reach SPX 1332 today.  A perfect double of the March 2009 low of 666.  Wouldn't that make a lovely valentine's day gift from Bennie and his NYU jets for the pig men in the front seats?

Mon, 02/14/2011 - 12:50 | 959895 DB Cooper
DB Cooper's picture

The Fed has created a perpetual motion machine - hooray!

Mon, 02/14/2011 - 13:27 | 960010 hedgeless_horseman
hedgeless_horseman's picture

Little to no mention of QE or POMO by those Fourth-Estate Vigilantes at Bloomberg...

Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative deficits of more than $4 trillion through the end of 2015...

 

Net interest expense will triple to an all-time high of $554 billion in 2015 from $185 billion in 2010, according to the Obama administration’s adjusted 2011 budget.

 

“It’s a slow train wreck coming and we all know it’s going to happen,” said Bret Barker,...

 

Demand for Treasuries remains close to record levels at government debt auctions. Investors (PD Flippers) bid $3.04 for each dollar of bonds sold in the government’s $178 billion of auctions last month, the most since September, according to data compiled by Bloomberg. Indirect bidders, a group that includes foreign central banks, bought a record 71 percent, or $17 billion of the $24 billion in 10-year notes offered on Feb. 9.

 

Still, about $4.5 trillion, or 63 percent of the $7.2 trillion in public Treasury coupon debt, needs to be refinanced by 2016. That gives the government a narrowing window as growing interest expense will curtail its ability to spend.

 

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aQABI.bjAAkQ&pos=3

Mon, 02/14/2011 - 12:42 | 959855 TJWP
TJWP's picture

Perhaps someone from the federal reserve or treasury will simply bring sacks of benjamins to Obama's office 3 times a day, which he can then drop while flying Air Force One over the USA, raising consumer spending and therefore taxes.

Mon, 02/14/2011 - 12:42 | 959861 dick cheneys ghost
dick cheneys ghost's picture

turn out the lights............its over..........

Mon, 02/14/2011 - 12:45 | 959866 Cognitive Dissonance
Cognitive Dissonance's picture

As someone said this morning on CNBC as they "uncovered" the printed budget live.... "Who even reads this thing?".

Even though the guy was talking about the government wasting money on the printed version of the budget, his statement pretty much says it all.

Mon, 02/14/2011 - 12:49 | 959898 SilverIsKing
SilverIsKing's picture

Saw that too.  Maybe it was a backdoor plug for the Kindle.

Mon, 02/14/2011 - 12:43 | 959867 gwar5
gwar5's picture

Their assumptions are always magical.

CNBC will say the shortfall was unexpected. Bases covered.

Mon, 02/14/2011 - 13:21 | 960002 Zero Govt
Zero Govt's picture

Barrack 'Whacky Tobaccy' Obama has been sucking hard on some big spliffs to come up with a rising income... an economy 3 years deep into recession and Washington's still in LaLa Land 

Mon, 02/14/2011 - 14:22 | 960264 SantaFeDave
SantaFeDave's picture

Please don't denigrate marijuana like this.  Figures comprised in this budget can only come from hardcore meth or opiate usage.

Mon, 02/14/2011 - 14:26 | 960278 Cognitive Dissonance
Cognitive Dissonance's picture

Just goes to prove that Mary Jane is the gateway drug to QE 3.++

Mon, 02/14/2011 - 12:44 | 959869 slaughterer
slaughterer's picture

Would anyone in here short the RUT at its current resistance point of 826? 

Mon, 02/14/2011 - 12:45 | 959874 william the bastard
william the bastard's picture

Has QE been called off?

Mon, 02/14/2011 - 12:44 | 959871 centerline
centerline's picture

This is all so laughable at this point.  I wouldn't even know where to begin.  Everything points to a deflationary feedback loop, which indicates that the reality is Fed monetization into the great beyond.  Either a black swan gets sucked into the printing press and jambs up the gears - or we all get to shout out together "Shazam" as the slope to the tangent to our parabolic ponzi scheme curve approaches infinity.

Mon, 02/14/2011 - 12:47 | 959883 Cognitive Dissonance
Cognitive Dissonance's picture

"To infinty.....and beyond."

Buzz Bernanke.

Mon, 02/14/2011 - 13:27 | 960030 Backspin
Backspin's picture

Atually, tt's not parabolic, it's exponential, which is worse.  But yes, I get your point exactly.  This is some really bad stuff going on and the general population just doesn't realize it yet.

Mon, 02/14/2011 - 12:46 | 959879 DonnieD
DonnieD's picture

I love how he magically reduces the deficit by 500+ billion next year. That is hilarious.

Mon, 02/14/2011 - 12:50 | 959903 centerline
centerline's picture

My wife uses the same math (LOL).  

Mon, 02/14/2011 - 15:11 | 960426 Charles Wilson
Charles Wilson's picture

The Shopper's Rule:

 

"Look how much I saved!"

 

CW

Mon, 02/14/2011 - 15:39 | 960551 Blano
Blano's picture

By not only increasing revenues by 20+%, but by actually projecting DECREASED spending from FY 2011.  When was the last time THAT happened???

Mon, 02/14/2011 - 12:46 | 959880 buzzsaw99
buzzsaw99's picture

In other words, the more debt monetized, the stronger the "revenues!"

And the higher the gdp too!

BY JOVE HE'S GOT IT!

Mon, 02/14/2011 - 12:48 | 959885 Shameful
Shameful's picture

I'll take a crack at it.

When Zimbabwe Ben drowns us in his liquidity stream it will rock the hell out of prices. Wages will follow, but lag inflation, as is the norm. The increase in wages will of course increase tax revenue and drag people into higher tax brackets. All Ben has to do is get milk and gas to $20 and we should be able to hit these numbers no problem.

Mon, 02/14/2011 - 12:54 | 959918 centerline
centerline's picture

I'd speculate that the dynamics of our current situation will result in a pronounced lag effect.  Peripheral jobs (non-essentials) will get clobbered the worst.  It will all be about proximity to the essentials and the supply chain.

Mon, 02/14/2011 - 13:07 | 959956 Shameful
Shameful's picture

One only needs to crack open a history book and see what will happen.  The traditional middle class jobs will get hammered.  The educated classes that are highly specialized get absolutely destroyed as their wages don't even come close to keeping up with price increases.  In the past the producers of the more core goods and services tended to do better.  However we have largely outsourced those, or few jobs remain in the field because of automating, such as farming.  It will be quite bad.

But this does not change my argument.  If one raises the notational price of goods high enough it will provoke a notational increase in wages to some degree.  Such an increase can and will be captured by the revenuers.  Example prices increase 100%, wages increase 50%.  Well that 50% increase in wages will be taxed by Uncle Sugar in full so Uncle Sugar's notational revenue will increase as the purchasing power of the slave...err serf...err... citizen is radically reduced.

Mon, 02/14/2011 - 13:18 | 959989 blunderdog
blunderdog's picture

I was thinking pretty much the same strategy, but in that scenario, there's NO WAY the expenditures fall as projected.

Mon, 02/14/2011 - 13:25 | 960020 Shameful
Shameful's picture

WAD (Working As Designed)

Since when have the projected expenditures not been some fairy tale from candy land?  When those expenditures are that big and come right from a pixies backside you can know how well and truly scared the US is.  That is really their best case projection for spending...

Mon, 02/14/2011 - 13:36 | 960072 blunderdog
blunderdog's picture

Yep.  Really, we should just triple or quadruple Fed spending, anyway.  It's the only possible source for economic growth these days.  Would be great for equity prices.

It's taking way too long for the rest of the planet to burst into flames.

Mon, 02/14/2011 - 13:55 | 960153 ElvisDog
ElvisDog's picture

Two problems with your scenario - if prices rise by 100% most spending is going to rotate into food, energy, and other necessities. Discretionary spending would collapse. Since we're a service economy, if discretionary spending collapses the overall economy collapses too. The other problem is that if prices rise by 100% in a short period we would have social unrest, and social unrest is really bad for tax revenues.

Mon, 02/14/2011 - 14:31 | 960294 Kayman
Kayman's picture

Shameful

Now all you need to do is pass a law making all things ceteris paribus. And Deficits and Printing become a thing of the past.

Damn, this running an economy with moving targets is like playing Wack-a-Mole.

Gee, Ya think Ben and Obi ?

Mon, 02/14/2011 - 12:48 | 959889 buzzsaw99
buzzsaw99's picture

We've got to fund that trade deficit somehow! It's been down lately:

http://www.census.gov/indicator/www/ustrade.html

Mon, 02/14/2011 - 12:50 | 959899 brusty4
brusty4's picture

Lower tax rates resulted in higher revenues in the past.  Just saying. 

 

Mon, 02/14/2011 - 13:42 | 960105 ZakuKommander
ZakuKommander's picture

Yeah, the lower tax rates in the last decade are reaping benefit after benefit.

Mon, 02/14/2011 - 15:14 | 960435 brusty4
brusty4's picture

Revenues have risen.  Record high in 2007 before the recession hit.  We have a spending problem, not a revenue problem. 

Mon, 02/14/2011 - 12:51 | 959906 Hondo
Hondo's picture

I'm willing to bet the deficit in 2015 will be north of $2T........and when you take the funny money accounting out it will be even higher......by the way someone needs to audit the BLS and their methodologies....

Mon, 02/14/2011 - 12:51 | 959907 SheepDog-One
SheepDog-One's picture

I have to get this White House Kool Aid recipe, it must be a humdinger!

Mon, 02/14/2011 - 13:25 | 960019 NotApplicable
NotApplicable's picture

1 part Everclear,

1 part sugar (or HFCS if you are in a junior position)

Mon, 02/14/2011 - 13:34 | 960066 Prof Gulliver
Prof Gulliver's picture

And 2 trillion parts POM(O) juice.

Mon, 02/14/2011 - 12:55 | 959908 Grifter
Grifter's picture

Breaking: None of this matters, as scientists are hot on the trail of Tyche/Nibiru/Planet X/Nemesis

Translation: We are totally screwed.

Largest planet in solar system could be about to be discovered - and it's up to four times the size of Jupiter:

http://www.dailymail.co.uk/sciencetech/article-1356748/Search-Tyche-beli...

/Sarc

Edit: Binary system, bitchez (I can cross off "submit a ZH 'bitchez' comment" off my bucket list now!)

Mon, 02/14/2011 - 12:56 | 959910 Bam_Man
Bam_Man's picture

We wonder just where the tax increases will come from...

Three words: Value Added Tax (aka National Sales Tax)

I predict that the implementation of this tax will co-incide with a bi-partisan re-writing of the healthcare bill to include a "public option". Obama "the Great Compromiser" strikes again.

 

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