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Thursday, November 12, 2009

This Should Wake You Up

Good morning. Hope you slept well. You won't tonight, after seeing this, from the CBO website:

Federal Budget Deficit as a Percentage of Gross Domestic Product (By fiscal year)
Related Posts:
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For Crying Out Loud: "Barack Obama Deficit-Slayer"

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  1. This is a statistical artifact caused by a combination of tax revenues that are down immensely and a massive stimulus provision set to reverse the recession. In addition, the movement of Iraq and Afghanistan war funding onto the budget proper impacts the appearance of the chart. Nothing to see here, folks.

  2. @Ben - "Nothing to see here"? Keep dreaming. Here is the link to the CBO report, http://www.cbo.gov/ftpdocs/107xx/doc10708/11-9-09MBR.pdf. Read it. This is not the result of a budget accounting change, or if it is, the CBO is completely silent even though it talks about all the other factors. Here's what the CBO said: "The increase in the deficit of almost 7
    percentage points of GDP from 2008 reflected a sharp drop in revenues and a substantial increase in spending."

    As to military spending, the result was not significant as to the overall deficit: "Defense outlays grew by 7 percent ($42 billion) in 2009, well below last year’s growth rate of 12 percent (adjusted for shifts in the timing of certain payments)."

  3. Dream on, Ben. America's Debt load is fast approaching the amount of our entire GDP. That is like a family making 75K a year owing 75K in credit card debt. NOT OK.

  4. But Obama said things would be worse if we didn't do SOMETHING!
    I mean, imagine if we had done NOTHING?

    And this is the argument you get every time you bring these worsening charts and figures up. The Left absolutely REFUSES to acknowledge that there is a serious problem with this administration. Look at the unemployment - in spite of everything pointing to the contrary, we're always 'rounding the bend' or 'it's trending better' or 'recovery is happening over here and here and it's only a matter of time till the unemployment figures catch up' or some such nonsense. I am afraid that no matter how bad things get, you're going to have to deal with the myrmidons who follow this man. They will never admit he's wrong.
    Worse, (it is my opinion) he is doing this deliberately. If the country fails, he wins. It's that simple.

  5. Funny thing about facts... some people when presented with them tend to lose their minds! Thanks for another great post.

  6. The worst thing about these numbers are what's not shown anywhere but the Chinese business trades and a few others. A portion of world business is severing ties and agreements with American firms squarely because they see nothing but bad news in economic policy for the next 3 years in America. Let Ben explain away why this is occurring. I work with a Canadian firm which has reaped a 400% gross sales increase the foreign markets having taken such away from several American firms this February. All things considered this and two more like it I am directly aware of equates to almost 250,000,000 dollars having left the American system altogether. There are 100's more deals like this going on in Canada alone and I would not doubt 1000's globally.

    Simplistic answers from your uber left and what they are willing to laud as "recovery" reveal much of the minds behind them. Any wonder the rest of the planet is re-channeling around America?

  7. That's just the funded debt to GDP. Add the unfunded entitlements of Medicare and Social Security to get a clearer picture of the true fiscal position of the government. The National Center for Policy Analysis said in June that the unfunded entitlements for those two programs were $107 trillion. So what do the Marxist Democrats do, create a brand spanking new entitlement that will most likely cost multiples more than the CBO projects.

    Here's the link explaining the NCPA analysis:


  8. Jacobson, go read Paul Krugman's column and blog, and learn some frikkin economics.

  9. Obama said "things would be worse if we didn't do SOMETHING!"

    How about:
    1) hard labor camp for all inmates- they have to earn every cents to survive. why do we have to provide them housing, healthcare and let them torrorize us?
    2) bill countries for all services that their citizens lived in USA and used our services - from HC, foodstamp, education...no pain no gain! why do we have to pay and not them?
    3) put 100% tarrif/taxes on company used outsourcing workers. every dollars they paid for those contractors/workers. they have to pay the same amount as tax to USA. this is only way to stop or discourage outsourcing. plenty of US citizen/GC grad from college can not find jobs becuase they do not have chances to compete with foreign worker low wage. those contractor get free training and put american in bad shape.
    4) i am sure that most unemployees want to go back to work even at 50% pay cut to survive. why gov pay $1900 for unemployment benefits but not ask those ex-employers to hire ex-worker back at 50% compensation rate + unemployement benefit from gov? people only spend to bring back the economy. unemployment check only temporary help they live by the day.

  10. babylac, saying 100% tarrifs is one thing but are you willling to drastically cut your standard of living to make any form of American isolationism work?

  11. I'll be forwarding the CBO link (as should every citizen their senators) to Sen. Gillibrand and Sen. Schumer (fyi for those out-of-state, our senators in NY). They need a refresher on our national debt before the Senate Debate on Obamacare next week. They (and other Democratic Senators) need to understand how preposterous it is to say that a $3 trillion Healthcare Bill will cut the deficit when the government can barely curb its fast-growing, economy-killing appetite for deficit spending.

  12. The angle the GOP would do well to point out is that this is WORSE than socialism. This is one's cushy SEIU job depends on voting, organizing, and contributing to the Democratic Party. This is Democrats increasing their power to pay people to be Democrats and are far larger threat to our democracy than campaign finance. It's a scenario that is ultimately dangerous for the USA and the world should it play out.