Obama Speech Details Leaked: Promises To Cut $4 Trillion In Deficit Over Next 12 Years (Or Less)

Tyler Durden's picture

In about an hour, the Teleprompter in Chief will once again address a nation on the topic of the exploding US deficit, which he can only hope has the attention span of an HFT algorithm, and has forgotten his proclamations on the same issue from early 2009. Among the things Obama will discuss:

  • Sets a goal of reducing US deficit by $4 trilllion in 12 years or less, according to a congressional source
  • Implements a deficit plan would curb deficits to 2.5% of GDP in 2015, 2% toward end of decade according to a congressional source
  • Wants US debt on "declining path", enforced by "debt failsafe" trigger of broad cuts, according to a congressional source
  • Seeks $770 billion in savings by 2023 in cuts to non-security discretionary spending according to a congressional source

Good luck with that. In the meantime... a clip from Obama circa February 2009 on where Obama saw the budget by the end of 2012. That did not...quite... work... out.

More details on the upcoming speech from Reuters:

According to congressional sources, Obama will propose:

  • Reducing the deficit by $4 trillion in 12 years or less
  • Curbing deficits to 2.5 percent of GDP in 2015, 2 percent toward the end of the decade
  • Ending Bush-era tax rates for the wealthiest Americans
  • Seeking $770 billion in savings by 2023 in cuts to non-security discretionary spending
  • Saving $480 billion in Medicare and Medicaid by 2023 and at least $1 trillion more by 2033.

Obama will use the speech to try to regain control of the spending
debate by drawing a contrast with a Republican plan to combine an
overhaul of the Medicare health program with lower taxes to reduce the
deficit by $4.4 trillion in 10 years.

Obama was expected to
point to recommendations made last year by his debt commission,
co-chaired by Republican Alan Simpson and Democrat Erskine Bowles, as a
starting point for discussion.

He has so far declined to endorse
their report but in a sign he was moving closer toward their findings,
the panel co-chairmen were expected to attend the speech.

deficit issue has become entangled with a vote Congress will consider in
the next few weeks on raising the nation's borrowing limit. Republicans
say they will not vote to lift the debt limit without commitments to
rein in long-term deficits.

The debt is expected to hit the $14.3 trillion ceiling as early as
mid-May and a failure to lift it could raise the specter of default and
ripple through financial markets.

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Dolar in a vortex's picture

Obama, creating or saving jobs and deficit since his birth in parts unknown.

jus_lite_reading's picture

Strange stuff but he is just a puppet of the banksters. Who cares what sensational crap he talks up. The most important news comes from japan!!! With radioactive STRONTIUM being found more than 20 miles from Fukushima AND NOW reactor 1 pressure is building up!


To me that is news!!! It means all those people in about 5 prefectures will never be able to return! Milliions of people maybe forced to live in empty Chinese ghost towns!


66Sexy's picture

I love how they throw dates around like 2015 and 2023 ... like this bullshit ponzi economy and ponzi fiat government will still be around then...

Hard1's picture

Totally agree, as liar in chief you just need to promise that the deficit/debt problem will be in control by the time you have (quietly) stepped out of office.

This holds not only in US, but also PIIGS+Japan.

There are no longer developed and emerging economies.  Now we have submerging and emerged.

TruthInSunshine's picture

Obamanomics is the best 'nomics ever.

Obamanomics = Bullshit²

SilverIsKing's picture

I wonder if anyone actually believes what he says.  I'm going to conduct an informal poll later today and tomorrow and ask what people think of his plan.

I want to get a handle on how deep the public has their heads buried in the dogshit.

If they actually buy what he's shoveling, he should actually put forth a plan that provides zillion dollar surpluses and new cars and homes for everyone by 2032.

perelmanfan's picture

My anecdotal evidence is that public ignorance on budget matters is vast. I asked CFOs of two major companies over the weekend what they thought of the Fed's quantitative easing. Neither had ever heard the term; had no idea what it mean. I'd guess not one person in 100 knows the meaning of fiat currency, and not one in a thousand knows such currencies have finite lifespans. Very scary.

jus_lite_reading's picture

Talk about lies! Breaking news from PM KAN says "evacuation area will be uninhabitable!"


Thats update 8 on that page! Incredible!!!!!! ITS ALWAYS ABOUT THE BENJAMINS!

ZackAttack's picture

The old principle of IBG,YBG. Screw it, promise 'em skittle-shitting ponies while he's at it.

I'll be gone, you'll be gone.

SheepDog-One's picture

Yes thats the real news going on in Japan, but detrimental to world banksters stocks so that story is 'Cntrl alt del' since it happened. 

BTW whatever happened to that war thingy in Libya? Havent heard a peep since the 1st day really.

HelluvaEngineer's picture

I think we won.  Something about missiles.  zzzzzzz

Shitters_Full's picture

Yes...ZH, where is the Fukushima news today?

Dolar in a vortex's picture

Milliions of people maybe forced to live in empty Chinese ghost towns!

Japanese people living in Chinese ghost towns? Bahahahaha!

That's the day the lion will be laying with the lamb.

jus_lite_reading's picture

HAHA I meant it as a joke... didn't you see the video the other day from Austrailia dateline showing 70 million apartment no vacant in China but they keep building? INSANE!

Strider52's picture

Yeah, that would be like 20 million illegal Mexican immigrants moving into California....oh, wait...

f16hoser's picture

4 billion? OUCH!!!!!!!!!!!


trav7777's picture

ROTFL,  bitchez

schoolsout's picture

So, if I read this right, the debt still climbs...



NOTW777's picture

its obamaobiden new math - we have to spend $ to get out of debt.  the new cost cutting is not spending as much.  

The Profit Prophet's picture

It's actually the new Keynesian math....you have to borrow 10 % of GDP in order to funnel enough free money to the Oligarchs to create the illusion of 1% GDP growth.  It's a great business model....borrow 10, make 1......borrow 10, make 1.

T.E.I.N. everyone!

SWRichmond's picture

This is the extent of the left's willingness to cut.  Wisconsin made it plain that lawlessness will be quickly applied by the public employee unions and the rest of the dependency classes in the event of any attempted deep cuts.  The Repubs and Dems don't want to be the ones to cut because they know what'll happen when the deficit is slashed by 10% of GDP.  Both sides will ride the boat until it sinks, then quickly blame the other side and keep the debate within the phony left-right thing. 

We are doomed.  This boat will sink.  There is no majority political will in this country to fix it, so it will not be fixed.  Buckle up.

Shameful's picture

Kick back, relax, and enjoy the free fall.

It is sort of exciting, in a drag race among the Developed world to see who can 3rd world themselves first.

Bob Sacamano's picture

This is what they say they are willing to cut.  Actual cuts (as reminded in the video) will be far less than what they say.

"When all is said and done, more is said than done."

We can not even cut spending to fund NPR without hysterical rants. 

The Wisconsin unions are scary -- going after businesses that do not publicly embrace their position. 

Game on folks -- it is us against them.  Align yourself only with like minded people.  The big government, dependency loving, low personal responsibility, victim class is coming after you.


Spastica Rex's picture

Yeah -- French Revolution MKII, American style coming soon to a neck near you, huh?

Bob Sacamano's picture

Ready for the revolution.  I await the opportunity to "greet" you. 

Spastica Rex's picture

Oh, I think you misuderstand me. However, there are way more of "them" than "you."


Good luck.

Bob Sacamano's picture

Understood - but some revolutions are not decided by headcount.   

The majority of folks who pay virtually no federal income taxes (and a few that do but who think they should live better - despite being easily in the top quartile of the world) like where all of this is headed.  The class warfare flames are being fanned by government - it is what most in government want.  They only see things as zero sum games -- for every winner, there is a loser.

If not already, at some point you and everyone else will be on one side or the other -- a victim of some sort or someone the victims want to get. 

ElvisDog's picture

I am not a fan of the Wisconsin unions, however there is nothing wrong with trying to organize a boycott of a business you disagree with. It is, dare I say, within their democratic rights.

Bob Sacamano's picture

But the business never suggested they disagreed with them.  They were boycotted because the business said they would take no position on the matter -- they would not put pro union / anti-governor signs in their windows.   Absurd.

Sofa King's picture

I know it's a misprint, but even the $4 Billion is a stretch

Tyler Durden's picture

It really is a misprint. Obama meant "quadrillion" pro forma for the DXY hitting 10

redpill's picture

Precisely, $4 trillion in 2023 dollars should be a breeze.

r101958's picture

LO-frigging-L. +1 redpill

carbonmutant's picture

You mean he can't even read a teleprompter right?

Who wrote this f**king script?

SheepDog-One's picture

OH $4 quadrillion! Well that makes more sense, seeing as by 2016 youll need $5 trillion just to buy 1 can of Spam.

Dr. No's picture

Ron Burgundy.  He will read anything on the teleprompter.

chunkylover42's picture

go f*ck yourselves, San Diego

jus_lite_reading's picture

LMAO! Teleprompter in Chief... Ron Obamao Burgundy

samseau's picture

Let's see... 4 trillion minus running deficiets of soon to be 2 then 3 trillion... nope, no problems here.



I think we should just start a movement to have everyone vote democrat, so they will spend even faster.  This way the current government will fall apart faster and we can go back to living in a productive society sooner.

silvertrain's picture

I wonder what the future gdp projections have to be for this scheme to get off the floor?

RafterManFMJ's picture

I have not voted last 2 elections, but I also thought of this, and will do as you have so preceptively suggested. Burn, baby, BURN!!

LFMayor's picture

run with the rope instead of pulling against it?  Very Wing Chung of you.  Since crash = ++(road warrior) I think it's a great idea.

nah's picture

its not about the law or money its about the power


the cops have to understand the rule

chumbawamba's picture

Cash to carbines.

Guns and gold.

That is power.

I am Chumbawamba.

redpill's picture

Any time any President speaks about fiscal years long past the end of their theoretical second term you know they are vomiting bullshit on to your face.

hedgeless_horseman's picture

...would curb deficits to 2.5% of GDP in 2015

War, foreign aid, bank bailouts,and entitlements now...pay later!