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Obama's Budget Increases Deficit By 41% Over CBO Baseline Over Next Decade
In release timed perfectly so as not to interfere with the congressional vote last week, late on Friday the CBO put out its comparison of the Obama's budget, proposed back in February, with the CBO baseline assumption. The bottom line, and probably the main reason for the implicit S&P downgrade of the US, is that comparison the President's budget to the CBO baseline indicates that deficits are expected to rise by 41% over the next 10 years: the CBO project a deficit of $6.7 trillion while the President's number is $9.5 trillion, a 41% increase or $2.7 trillion. Got printing presses?
From the preface to the 53 page report which readers can peruse at their leisure or use as a paperweight:
At the request of the Senate Committee on Appropriations, the Congressional Budget Office (CBO) has prepared an analysis of the President’s budgetary proposals for fiscal year 2012, which were released on February 14, 2011. The analysis uses CBO’s economic assumptions and estimating techniques, rather than the Administration’s, to project how the proposals in the President’s budget would affect federal revenues and outlays and the U.S. economy. For tax provisions, the analysis incorporates estimates prepared by the staff of the Joint Committee on Taxation.
This analysis follows and supplements CBO’s “Preliminary Analysis of the President’s Budget for 2012,” which was released on March 18, 2011, as an attachment to a letter to the Chairman of the Senate Appropriations Committee. CBO has not changed its estimates from the ones presented there. Chapter 1 of this report reiterates that document, with additional figures and details about the differences between CBO’s and the Administration’s budget estimates. Chapter 2 presents CBO’s analysis of how the President’s proposals would affect the overall economy (relative to what would occur under current law) and, in turn, indirectly affect the budget.
And the only chart that matters, courtesy of John Poehling:
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and they are both too low
if money truly did grow on trees it would probably slow the fed down some. at least they'd have to impatiently wait for it to ripen first.
CBO clearly just making a political judgement on the debt.
bend over bitchezzzzzzzzzzzzzz. Free Vaseline for all US Citizens.
http://www.bloomberg.com/video/68795678/
Isn't Vaseline petroleum based?
I think its gonna be 'bend over americans, take it dry' one morning soon.
Look everyone!
The Hank Paulson/Ben Bernanke 'all your assets are destined for $0' play is back! They haven't even bothered to tinker with it or disguise it at all! It's TEOTW again, immediately, unless they get a blank check!
04-18 12:53: White House says not raising debt ceiling would immediately arrest US recovery, potentially cause global economic problem
lol, 2nd time Ive seen this imagery in print (and pics) in one day
from Attention America - wake the fuck up
Did that dufus say "social security is borrowing from the other side of the government?"
Excuse me!? Wasn't that the other way 'round?
LOL. Burning ban in effect. They will tax you for that.
Nahh. Throw the fiddle in the fire. With no pretro, we will need something to heat with.
Recently I just watch all this thoroughly insulted that Im part of this human race. Nothing but utter stupidity.
Somebody get Obama a better deficit cut planner. Anybody know somebody willing to take a salary cut and jump into O's team from JPM or GS?
Shit I am just a nobody, a nonbanker, and i damn well wont take the paycut either.
Durden might. Although sadly government bureaucrat probably pays better than Financial Crusader. But you dont get to wear such a cool cape and mask.
Repudiate the debt. End the Fed. Bring back the Lincoln Greenback and Kennedy Silver Certificate.
What about the real news? I need some updates on the royal wedding!!!!!
Watch CNBC maybe they might be able to tell you. Since Jeff Omelette is busy with giving handjobs to the admin, he might be able to stream it live.
I'd rather drink. Maker's Mark for me. That's the only damn good thing that came out of KY. (PS: My ex is from KY.) You don't have to be, or rather, it won't help to be sober in this market. "Just pour me a drink and I'll tell you some lies,"when your love's (country's) on the rocks -" Neil Diamond. On the other hand, dealing with real living, and the hardship it may soon entail after TSHTF...well maybe I'd rather die. Cheers.
Pass the Maker's...
"The pain of war cannot exceed the woe of aftermath"
-Led Zeppelin, The Battle of Evermore
That downgrade by the S&P has taken a serious chunk of value out of all those Treasuries the banks and the Chinese have in inventory...
I guess we should expect to see another 'airplane contrail' off the coast of California, this time not headed out to sea but towards the east coast?
Well I'm sure Hu is requesting an audience,
But all he's getting is the voice bot...
"Welcome to the White House Switchboard. To continue in English, press 1. To continue in Spanish, press 2. To continue in Chinese, please wait on the line. Our estimated wait for the next Chinese-speaking representative is...one...eon."
How "credible."
And since CBO is always wrong by at least 20-50%, you can bet the deficits will top 12-15 trillion $ in the next decade... But the US won't make it alive to 2020...
Weee!!! http://www.futuretimeline.net/subject/images/us-debt-graph-2020.jpg
Whew! Glad to see that things are only gonna be around twice as bad in the next ten years! I was so worried...
Ok, we can expect more layoffs and more companies closing up shop in the USA. Get ready folks,gonna get ugly. Buy food and bullets.
How's that Hope and Change working out for you?
What is amazing is the wishful thinking idiots who supported this Shiite destroyer, want me to take their advice now.
Fuck you.
Theyll soon realize they were just part of the Freikorps.
Isnt that a government work project?
He's not the destroyer ... that was W
He's just the guy chasing the snowball down the hill
get your vaseline ready!
ps: if only we could get W back ... remember the good ole times!
Bush just lowered the bar so much, people were willing to trust an America hating communist.
We have the government we deserve.
The truth WAS out there.
I did not vote for this dbag. So I am allowed to bitch.
The truth WAS out there, absolutely no one with a brain should be surprised by anything going on today, or in coming days. The truth was out there for anyone who cared to deal in reality. I didnt vote for this DBag or any of the others over the last 20 years.
Sorry, but Obama & Bush work for the exact same people, and it sure as hell isn't a very big collection (and CERTAINTLY isn't anyone who casts a ballot in our 'Amerikan Demokratic Process').
It's all a mirage. There's no choice. There's absolutely no substantive difference. There's only marketing.
spoken like someone who voted for obama. make and mistake then blame everyone else
chasing the snowball into hell!
Fuck you sycophant and fuck both Emperor George and Emperor Barry.
Back to HuffPo, I have seriously had enough of you.
drickster ... you're hot!
marry me!!
its a good thing to admit your problems in public - but get professional help
Hey rodent after u finish cursing out the socialists i dont suppose you live anywhere near arkansas and we might do a project car together?
Texas.
Although I have 10 acres in El Dorado.
Just in case.
I bought for deer hunting, but I haven't made it back there for a couple of years.
I figured you must have a connection or live close!. We need to get club zero hedge going so we can all fight it out up close and personal then pop a few cold ones.
Zero Hedge Deer Club has a very cool ring to it.
They have not heard the distinctive thunder of the .375 H&H Magnum in too long.
(I know it is overkill, but it is something I inherited from my dad. Family tradition.)
The woods are so thick down there, the zombies will be long dead before they kill a tenth of the game.
So it cant be that bad. Rally on. In the end, You die. Live life and enjoy what you have.
Well I got this lamp....and this paddleball game....OH and this chair....thats all I need.
Stick to the basics and Dont forget your Bible and bottle of Jack
And a .45 to put to your head when the whisky's gone.
Brew more. Corn mash is not difficult. Hell, if the frickin engine room on a destroyer can do it, so can you.
http://www.ehow.com/how_2330448_make-corn-whiskey.html
You just saved a lot of lives.
I'm a giver.
Must avoid shitting in pants too early.
Must hang onto.risk a tiny bit longer.
http://www.explosm.net/comics/2083/
How all budget proposals should be reviewed.
LOL. Was that a Harvard Term paper?
Hear the next president of the USA as current parties will continue to do nothing about the debt-which will lead to the USA default (crash correction) in 2013-2014:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2663#p31841
Treasury bubble is about to bust. That should mean no QE3.
I need a drink, heck need several.
All those college students were chanting Hopey Change, so how the fuck is that working out. Same shitz with the Pukes.
Interesting that the new CBO figures downgrade the expected revenues by hundreds of Billions of dollars from the presidents proposal while keeping spending virtually unchanged over the period, yeah, like that is going to happen. Having said that, they still expect revenue increases of better than ten percent for 2013 and 2014, bend over indeed
Serious question: Why can't we just go to a 15% flat tax. No deductions, everybody pays or goes to work at the poor farm. No more complicated tax code, no more hidden taxes, and no more bullshit excuses not to pay. I think that would be a good start.
They tried something similar in the 80s when they simplified the tax code. Since then it has been modified nearly 20,000 times. Yes, 20,000 times.
The problem is not just the code, but the structure. As long as the income tax exists, politicians will not be able to resist attempting to use it to forward their own agenda, pick winners and losers, and eventually create a tangled nightmare.
The real way out is to eliminate the income tax, repeal the 16th amendment, and transition to a consumption tax (such as the FairTax) which is agnostic toward the tax payer.
The marriage of the corporate world, the banking world and the political world is the problem. The politicians are too busy looking out for the lobbyists, themselves, and the entitlement majority which keeps them in power; you know, the 50% or so of Americans who do not pay any taxes.
You can't go to a flat tax and postcard sized return in Amerika because the accountants, tax attorneys, tax 'preparers', etc. & too many in the government would lose their jobs.
They've all lobbied hard and long with much money against any simple (but immensely better) system for years now.
The tax code is over 64,000 pages long and filled with the worst butchery of the english language known this side of Harlem.
That's a growth industry, just like the prison business, bitchez!
You forgot the War on Drugs business, the War on Poverty business, the Border Patrol business, the Democratize the Middle East business, and the ever expanding War on Terror business. Other than that, good explanation.
Those jobs are currently being outsourced to India. Yes, the US is so fucked that it is now offshoring both service and manufacturing sector jobs. And of course the congress will crusade to protect the foreigner's jobs.
The average age for a democracy is 200 years.
Well, I guess it was a good run.
Yep.
At least we can claim it took the US to defeat the US.
Liberals, and socialists are sure to burn in hell if hell exists.
Who knew servicing fraudulent debt had a cost?
Who knew a broken system strucutre...i.e. monetarism...further...monetarism without Glass-Steagall's limits would have such an effect?
Oh yeah, the people that put Glass-Steagall into effect in the first place....and those that wanted to get rid of it, because they knew what they could do. THIS.
P.S. enjoy the new 67% tax rate.
This is all just a prelude to calls for a Value Added Tax, so we can be no growth losers like western Europe.
After you net out the cash for caulkers program the deficit turns into a surplus. Or something like that.
Good news, everyone! Federal tax receipts will double in the next 8 years. *chuckle*
ut remember what Dick "Chainsaw" Cheney said,"Deficits don't matter."