Archive for the ‘economics’ Category

Barack Obama’s biggest critic: Charles Krauthammer

May 20, 2009

The dinner guest that night at George Will’s house in Chevy Chase was intellectually nimble, personally formidable and completely baffling, recalled columnist Charles Krauthammer – who was getting his first up-close look at President-elect Barack Obama.

“We sat around and said, ‘Does anybody really know who he is and what he wants to do, now that we’ve had this?'” Krauthammer recalled of Obama’s January sit-down with conservative columnists. “And the answer was no. We don’t know.”

By Ben Smith
Politico

Conservative columnist Charles Krauthammer sits in his Washington office.

Conservative columnist Charles Krauthammer sits in his Washington office.

“I didn’t understand what he was up to until he just unveiled it openly, boldly, unapologetically and very clearly within two weeks of his inauguration,” Krauthammer told POLITICO in an interview in his corner office off Dupont Circle. “That’s what was so stunning.”

Since then, Krauthammer has emerged in the Age of Obama as a central conservative voice, the kind of leader of the opposition that that economist and New York Times columnist Paul Krugman represented for the left during the Bush years: A coherent, sophisticated, and implacable critic of the new president.

Obama, he has written in his syndicated Washington Post column, is committed to “radical health-care, energy and education reforms,” central to a “social democratic agenda” that promises deep – and ominous – transformations to American life. The columnist has offered, in five installments, a “unified theory of Obamaism.”

At a moment when the right is decimated and divided, and unsure what to think of the new administration, Krauthammer’s confidence is much in demand. His columns circulate widely on conservative e-mail lists and blogs, and even his utterances on Fox News are received as gospel: National Review Online’s group blog, The Corner, posts long transcripts of his remarks without comment, under the heading, “Krauthammer’s Take.”

“He’s the most important conservative columnist right now,” said Times columnist David Brooks.

Read more: http://www.politico.com/ne
ws/stories/0509/22743.html#ixzz0G3O9v7cf&B

Obama at Albuquerque Town Hall Today: Likely To See Tea Party People Angry About Overspending

May 14, 2009

Many observers on the left and right alike do not support or even understand the tea party movement. While the Rio Grande Foundation was not involved in organizing the April 15th Albuquerque Tea Party we have been working closely with the leaders of the movement to transform it from an amorphous one-day protest event into a viable pro-taxpayer movement.

These ideologically-based observers have mistakenly focuses on taxation. The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children. If the left has a valid point about the tea parties, it is that they did not spring up under President Bush who massively expanded government and placed burdens on our children and grandchildren via policies like the Medicare Prescription Drug Bill and the Iraq War that we’ll be paying for long into the future.

But rather than admitting that we as a nation face dire fiscal issues and questioning the merits of trillions of dollars of bailouts (a policy begun under Bush but expanded under Obama), commentators have ignored this inconvenient truth (Republicans becease they don’t want to own up to the fact that they helped create them and Democrats because they want to ignor the issue now that they’re in power). Our nation’s massive debt and unfunded liabilities – at more than $65 trillion it now exceeds the GDP of the world – is conveniently ignored.

The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.

Many observers on the left and right alike do not support or even understand the tea party movement. While the Rio Grande Foundation was not involved in organizing the April 15th Albuquerque Tea Party we have been working closely with the leaders of the movement to transform it from an amorphous one-day protest event into a viable pro-taxpayer movement.

These ideologically-based observers have mistakenly focuses on taxation. The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children. If the left has a valid point about the tea parties, it is that they did not spring up under President Bush who massively expanded government and placed burdens on our children and grandchildren via policies like the Medicare Prescription Drug Bill and the Iraq War that we’ll be paying for long into the future.

But rather than admitting that we as a nation face dire fiscal issues and questioning the merits of trillions of dollars of bailouts (a policy begun under Bush but expanded under Obama), commentators have ignored this inconvenient truth (Republicans becease they don’t want to own up to the fact that they helped create them and Democrats because they want to ignor the issue now that they’re in power). Our nation’s massive debt and unfunded liabilities – at more than $65 trillion it now exceeds the GDP of the world – is conveniently ignored.

The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.

By Paul Gessing
Albuquerque Conservative Examiner

Related:
Governors of Texas, South Carolina to Host “Tea Party 2.0″ This Week

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ALBUQUERQUE, N.M. (AP) — New Mexicans will get to hear from President Barack Obama about his efforts to stop credit card companies from taking advantage of consumers when he makes a visit to the state for a town hall.

Obama is scheduled to arrive in Albuquerque aboard Air Force One late Wednesday. The town hall will be held at Rio Rancho High School on Thursday.

Obama has said he supports legislation that would prohibit arbitrary credit card rate hikes and make it harder for people under 21 to get a card. He has told Congress he wants a bill on his desk to sign by Memorial Day.

On Tuesday, Senate Democrats vowed not to back down to credit card companies as the banking industry warned that the proposed legislation would make it harder for responsible customers to get credit.

Obama’s visit will be his first to New Mexico since his election last fall. He handily won the state’s five electoral votes after making several stops during the campaign, including one in the waning days that drew tens of thousands of people to an outdoor rally in Albuquerque.

Read the rest:
http://finance.yahoo.com/news/Obam
a-to-hold-town-hall-at-apf-15233055.html?.v=1

Top Ten Reasons The Republican Party Will Recover

May 13, 2009

Here’s our Peace and Freedom list of the top ten reasons to expect the Republican Party to make gains over the course of the next two to four years:

1)  The economy: Despite the huge spending measures already enacted by the Obama administration, including the stimulus and the many ‘bailouts,” the economy may not even start any really significant recovery until this time next year.  Voters are already tiring of the recession and showing discontent.

Related:
Bank of England: Recovery will be slow, starting next year
.
New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

2)  Democratic leaders like Harry Reid, Nancy Pelosi, and John Murtha.  There is already rumbling that our Congressional leaders are disappointing voters.  Most polls rate congress very poorly even though some 60% like Obama.  Scandals, a lack of integrity and broken promises on transparency can add to the woes of Democrats easily over time.

Related:
Pushy Practices of Pelosi, Murtha Back To Haunt Them?
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Democratic Party a “One Man Show” — After Obama, It’s a “Second-Division Ball Club”
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Pelosi Vehemently Challenges CIA’s Account of Briefings To Her on Waterboarding; Agency “Lied to Congress”
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“Democratic Party is Bought and Paid For By The Unions” Lawmaker Says

House Speaker Nancy Pelosi of Calif. gestures during a news ...

3)  National debt, deficit and spending.

Related:
America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?
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What Did We Get for $180 Billion “Bailout”? AIG Still “Toxic”
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One Hundred Billion Goes To IMF: Money U.S. Taxpayers Will Likely Never See Again
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Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

4)  Taxes.  Taxes will go up.  There is just no way to support all our current spending let alone the promises of overhauls to health care, education, and the environment without raising more money and that means raising taxes.

Related:
Taxes: People and Business Flee Higher Rates; Why Can’t Obama, Congress Get That?
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Governors of Texas, South Carolina to Host “Tea Party 2.0″ This Week


Gov. Rick Perry, Texas
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5)  Unexpected world events.  Just as nobody could have predicted 9/11, there could well be an event as yet unknown that unfolds to change the game for everyone before long.  Just as Joe Biden predicted last year, this president will be tested….

Related:
Battles over energy may lead to wars, Russian strategists conclude

China’s Navy Grows and the World Watches Warily
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6)  Democratic Infighting.  This is the party that has, for a long time, been unable to get along with itself, for too long, before all hell breaks loose….

7)  Inflation.  With all the borrowing of the federal government, inflation is indeed likely.  Nobody will like that one bit.  Which will hurt incumbents….

8)  Loss of buying power and credit.  Obama’s current campaign to rein in the credit card companies is admirable but it may result in millions of people unable to get the credit they’ve grown used to….Expect retail sales to lag other indicators of recovery…..

Retail sales remain slow in April:
http://finance.yahoo.com/news/Reta
il-sales-drop-apf-15227744.html?.v=3

9)  Broken Promises.  “Green jobs” won’t be as numerous or high paying as once promised and work for good jobs will dry up as GM and Chrysler and others move more jobs overseas….The health care overhaul may actually harm enough people that there could be a backlash that wants to punish lawmakers…

Related:
Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions
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Obama, Daschle and Socialized Medicine: Care of GE
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Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

10) Desire for Change/Hope (The Pendulum): In our American system, the pendulum has been swinging to and fro; from Republicans to Democrats and back again for almost all of time.  People will tire of our current way of doing business and even the euphoria over Obama will wane.

Related:
Republican Party Dead? Hardly. Polls Show Erosion and Doubt in Democratic Advantage

Bonus:

11) Traditional Republican Discipline.  The Republicans in general have traditionally shown much more discipline and togetherness than Democrats.  The current squabbling over Cheney, Powell, Gingrich, Rush et al can be expected to wind down as elections near.

12)  The law of unintended consequences.  President Obama has changed so much, so aggressively, so often, so soon in his presidency that the effort is unprecedented.  But this could mean that there is trouble lurking that has not been foreseen.  And we know how well our government foresees things: like the current recession….

13)  Bad Obama planning and staff work.  Nobody had time to read the stimulus?  This will come back to hurt the president and the Democrats in Congress.  Many other examples of stupidity an ineptitude come to mind…..

14)  The “Tea Parties.”  “The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children,” wrote Paul Gessing in the Albuquerque Conservative Examiner.  “The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.”  The fact that people are taking to the streets — people who are both Democrats and republicans — is unprecedented.John E. Carey
Peace and Freedom
In this photograph released by the White House, Air Force One ...

 

Related:
Republicans Determined to Lose?
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Obama Backs Off Promise to Release Abuse Photos
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If you had told me some of these Obama stories three months ago I would have said “impossible!”
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Obama’s Dumb Moves Getting More Difficult to Ignore? On Friday Mainstream Media Realizes Monday’s Cabinet Meeting Was Laughable, Really

Conservatives Need To Recommit to Conservative Values

Michelle Malkin:
http://michellemalkin.com/2009/05/1
3/big-labors-investment-in-obama-pays-off/

http://hotair.com/archives/2009/05/13/
stupid-rnc-to-pass-resolution-rebrand
ing-democrats-the-democrat-socialist-party/

Bank of England: Recovery will be slow, starting next year

May 13, 2009

The Bank of England warned on Wednesday that the UK’s recovery from its worst recession in decades is likely to be slow.

By Angela Monaghan
Telegraph (UK)

Mervyn King, the Bank’s governor, played down evidence that “green shoots” are starting to appear in some areas of the economy, and said it was impossible to say when recovery would come, or how sustainable it would be.

“The economy will eventually heal, but the process may be slow,” he said at a press conference as the Bank published its latest quarterly Inflation Report.

In its central projection, the Bank’s Monetary Policy Committee (MPC) predicts the economy will start to grow again next year, in contrast to the Chancellor’s forecast that the economy will start growing by the end of this year.

Read the rest:
http://www.telegraph.co.uk/finance/financetop
ics/recession/5317808/Bank-of-England-Go
vernor-Mervyn-King-warns-UK-recove
ry-will-be-slow.html

America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?

May 13, 2009

Prices have risen on credit default insurance on US government bonds, meaning it costs investors more to protect their investment in Treasury bonds against default than before the crisis hit. It even, briefly, cost more to buy protection on US government debt than on debt issued by McDonald’s. Another warning sign has come from across the Pacific, where the Chinese premier and the head of the People’s Bank of China have expressed concern about America’s longer-term credit worthiness and the value of the dollar.

The US, despite the downturn, has the resources, expertise and resilience to restore its economy and meet its obligations. Moreover, many of the trillions of dollars recently funnelled into the financial system will hopefully rescue it and stimulate our economy.

The US government has had a triple A credit rating since 1917, but it is unclear how long this will continue to be the case. In my view, either one of two developments could be enough to cause us to lose our top rating.

First, while comprehensive healthcare reform is needed, it must not further harm our nation’s financial condition. Doing so would send a signal that fiscal prudence is being ignored in the drive to meet societal wants, further mortgaging the country’s future.

Second, failure by the federal government to create a process that would enable tough spending, tax and budget control choices to be made after we turn the corner on the economy would send a signal that our political system is not up to the task of addressing the large, known and growing structural imbalances confronting us.

For too long, the US has delayed making the tough but necessary choices needed to reverse its deteriorating financial condition.

Read the rest from the Financial Times:
http://www.ft.com/cms/s/0/5534bd04
-3f27-11de-ae4f-00144feabdc0.html

Related:
Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions

Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions

May 13, 2009

This is exactly why all Americans should be gravely concerned about the current rates of government spending:

“Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans,” said Senate Democratic Leader Harry Reid of Nevada on March 23, 2005. “In reality, the program is on solid ground for decades to come.”
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Yesterday, Social Security trustees said that Social Security will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner than predicted last year.

The trustees said Medicare was in even worse shape. They said that the trust fund for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year’s report.

Both of these programs are likely to be adding to the national debt before long.

President Obama has already added to the national debt with the $787 billion stimulus, the omnibus spending bill topping $400 billion, enormous “bailouts,” and budgets in the trillions.

He still wants to fix health care, education and the environment.
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On Monday, the Office of Management and Budget said for the first time ever, the U.S. government is borrowing 50 cents of every dollar it spends.
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This could even still go up.

Barack Obama and democrats will quadruple the U.S. deficit this year, based upon the current rate of spending and receipts.

The receipts of the U.S. government from taxes paid was down 15% in January 2009 compared to January 2008.  In April, receipts were off a full 30%.

April 2009 was the first April since 1983 that the U.S. government spent more than it took in….

Meanwhile, U.S. government spending is way up: up fully $38 billion in April alone over April 2008.

The difference between receipts and money spent is the deficit and that could exceed $1.8 trillion this year; added to the U.S. burden of borrowed money and interest paid.

The massive budget deficit created by democrats this year represents a massive 12.9%of gross domestic product. President Obama expected the deficit level to be 12% of GDP this year. This puts the US above the UK deficit that runs more than 10% of GDP, and puts the US above troubled states Pakistan and Hungary.

As several commentators have said, the U.S. would not be given permission to join the EU with this much debt….

Makes one ask: if the January and February government economic predictions on debt and deficit are $600 billion too low by May 11: what else is wrong and how bad can it get?

All the budget and debt figures in the Obama plan are based upon assumptions and prediction which have already been proven to be way wrong….

Social Security and Medicare Finances Worsen; Likely Will Add To Nation’s Debt
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Obama Debt, Budget Numbers Stagger Most (One Trillion = Million Million)
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U.S. Government Borrowing 50 Cents on Every Dollar Spent; Interest Likely To Rise
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America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?

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From CNN Money

The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.

The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier, the government said in the monthly budget report.

“This is historic,” said Dan Clifton, head of policy research at Strategas Research Partners. “Our country has never seen something like this.”

From October – the beginning of the fiscal year – to April, total revenue declined 19%, Clifton said. That’s the largest drop in revenue and almost double the previous record, he said.

Notably, April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government’s response to it.

The downturn is a triple whammy to government revenue: fewer people are working and providing income taxdollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.

“It’s a perfect storm of every tax revenue source declining at once,” Clifton said.

At the same time, government is spending massive amounts to try to recapitalize the nation’s financial system and spur economic growth.

In March, the government added $191.6 billion to the deficit.

Spending: The total outlays for April were $287.1 billion, a decrease from $320.5 billion spent in March.

Spending is up 26% year-over-year, according to Clifton, who said the number is “astronomical. Even a fifth of that increase would have been a big deal.”

So far this fiscal year, the government has spent $2.06 trillion and expects to spend $3.94 trillion for the full year ending Sept. 30.

Total receipts for April were $266.2 billion, bringing the total amount that the government has taken in so far this year to $1.3 trillion.

Read the rest:
http://finance.yahoo.com/news/US-budge
t-deficit-jumps-with-cnnm-15222803.html?.v=7

http://hotair.com/archives/2009/0
5/13/us-speeding-towards-financial-crash/

Social Security and Medicare Finances Worsen; Likely Will Add To Nation’s Debt

May 12, 2009

The financial health of Social Security and Medicare, the government’s two biggest benefit programs, worsened in the past year because of the severe recession.

Trustees of the two programs said Tuesday that Social Security will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner.

Related:
Borrowing Needed For Social Security? We Weren’t Supposed To Ever Get There
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The trustees said Medicare was in even worse shape. They said that the trust fund for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year’s report.

The financial health of Social Security and Medicare, the government’s two biggest benefit programs, worsened in the past year because of the severe recession.

Trustees of the two programs said Tuesday that Social Security will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner.

The trustees said Medicare was in even worse shape. They said that the trust fund for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year’s report.

Read the rest from the Associated Press:
http://news.yahoo.com/s/ap/20090512/ap_on_bi_
ge/us_social_security;_ylt=AvqmzIuVOc
fCoMd_qqydNsOs0NUE;_ylu=X3oDMTJ
qcmQ3azJ1BGFzc2V0A2FwLzIwMDkwNT
EyL3VzX3NvY2lhbF9zZWN1cml0eQRjc
G9zAzMEcG9zAzkEc2VjA3luX3RvcF9z
dG9yeQRzbGsDc29jaWFsc2VjdXJp

http://www.butasforme.com/2009/0
5/12/medicare-social-security-too-big-to-fail/

Republican Party Dead? Hardly. Polls Show Erosion and Doubt in Democratic Advantage

May 12, 2009

Last October, 51% of voters said Democrats had the best plan for the economy.  Today only 44% still think that.

In October, 47% of voters thought the Democrats had the right plan for national security.  Today that vote of confidence in Democrats on national security is only 41%

In fact, the Democratic edge on issues such as health care, education, ethics, taxes and immigration is slipping.

A lot can make the voters change their minds and the tremendous spending of the Obama Administration offers great hope to Democrats.  But the poll numbers for support for all this spending are slipping.

Related:
Top Ten Reasons The Republican Party Will Recover

Today, Florida Governor Charlie Crist, a Republican, said he would run for the U.S. Senate from Florida.

Crist is a moderate that supported Obama’s stimulus.

“Here in Florida, we’ve shown that when we put people first and work together much can be accomplished, and I intend to bring that same approach to Washington,” Crist said in a statement announcing his bid.

He has maintained approval ratings in the high 60-percent range despite the state’s gloomy economy, budget cuts, a high foreclosure rate and the highest unemployment level since 1975.

Pollsters say Crist’s bipartisan approach has seen him through.

FILE - In this Thursday, Jan. 22, 2009 file photo, Gov. Charlie ...

Gov. Charlie Crist (AP Photo/Phil Coale, file)

Crist will be worth watching and may be a barometer of the future of the Republican Party.

The quietly rusting Democratic advantage
http://www.redstate.com/moe_lane/2
009/05/11/rasmussen-and-the-quie
tly-rusting-democratic-advantage/

Christ to run for Senate:
http://news.yahoo.com/s/ap/20090512/ap_o
n_re_us/us_senate_race_crist;_ylt=ApCZm
AScUU3f.BusHm5tf0es0NUE;_ylu=X3oDM
TJsY2htcXU1BGFzc2V0A2FwLzIwMDk
wNTEyL3VzX3NlbmF0ZV9yYWNlX2
NyaXN0BGNwb3MDMwRwb3MDOQR
zZWMDeW5fdG9wX3N0b3J5BHNsa
wNnb3ZjcmlzdHRvcnU

Related:
“Democratic Party is Bought and Paid For By The Unions” Lawmaker Says

Thanks Obama! Number of Government Workers and Fat Faychecks Growing

May 12, 2009

President Obama’s call last year for “shared sacrifice” doesn’t extend to federal employees, at least based on the details of his administration’s 2010 budget released this week.

At a time when the official unemployment rate is nearing double digits, and 6.35 million people are receiving unemployment benefits, the U.S. government is on a hiring binge.

Executive branch employment — 1.98 million in 2009, excluding the Postal Service and the Defense Department — is set to increase by 15.6 percent for the 2010 fiscal year. Most of that is thanks to the Census Bureau hiring 102,000 temporary workers, but not counting them still yields a net increase of 2 percent in one year.

There’s little belt-tightening in evidence in Washington, D.C.: Counting benefits, the average pay per federal worker will leap from $72,800 in 2008 to $75,419 next year.

From CBS News
Read the rest:
http://www.cbsnews.com/blogs/2009
/05/12/business/econwatch/entry5
007862.shtml

Obama Debt, Budget Numbers Stagger Most (One Trillion = Million Million)

May 12, 2009

Republican strategists have a problem. The scale of what President Barack Obama proposes to do to the American economy is so enormous, so far-reaching and so potentially disastrous that the opposition party is having a hard time describing it.

By  Byron York
Chief Political Correspondent
Washington Examiner

“How do you translate the numbers into something that people can grasp to represent the broader problem?” a Republican pollster asked in a recent conversation. John Boehner, Mitch McConnell and other GOP leaders would love to hear an answer, but the pollster didn’t have one.

GOP message mavens are struggling with something that academics call “insensitivity to scope.” It affects us all; we can understand something on a small scale but have a difficult time comprehending the same thing on a massive scale.

Insensitivity to scope is a major obstacle to understanding the Obama administration’s $3.6 trillion 2010 budget. People simply have trouble understanding a number so big. A recent poll asked Americans how many million are in a trillion. Twenty-one percent of respondents got the answer right — it’s a million million. Most people thought it was a lot less.

Republicans are facing that obstacle as they try to explain the dimensions of Obama’s spending plan. The GOP pollster told me he tries to explain it by asking people to think of a dollar as a second — one dollar, one brief tick of your watch. A million seconds, the pollster explained, equals eleven days. A billion seconds equals 31 years. And a trillion seconds equals 310 centuries.

The task of educating voters got a little more urgent Monday, when the government announced the not-terribly-surprising news that federal tax revenues will be smaller this year than previously thought. After a review of the Obama budget’s numbers before formal submission to Congress, Budget Director Peter Orszag said this year’s deficit will be $1.841 trillion — $89 billion more than previously estimated. If you’re listening to the ticks of your watch, that’s about 570 centuries.

You may remember last week that Obama proposed, with much fanfare, $17 billion in budget cuts. Now, his budget director announces that the deficit will go up by $89 billion. “A paperwork change increased the size of the deficit more than five times greater than the savings they proposed last week,” one key Republican Senate aide told me. The deficit will likely grow again in a few months when the budget office does a routine midyear review.

Read the rest:
http://www.washingtonexaminer.com/politics
/Obamas-dangerous-budget-leaves-GOP-at-lo
ss-for-words-44754742.html

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Washington Eaminer Editorial

There is a cleverly constructed sentence in the AP report about the 2009 budget deficit being $89 billion higher than expected, which will raise the projected annual deficit to $1.8 trillion, or nearly four times as much as the previous record. Here’s how AP explained it: “The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in (emphasis added).” In sports journalism, such a sentence is called covering for the home team, which in this case includes the present and previous White House occupants and the present majority in Congress.
 
The two key words in that sentence are “structural imbalance.” Sounds like something beyond the ability of mere mortals to change, doesn’t it? Part of the natural order, kind of like the swine flu. It just happens. Out in the real world beyond Washington, “structural imbalance” means: Washington politicians are on a spending rampage the likes of which has never before been seen anywhere  in human history. The spenders include President Barack Obama, Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi, plus a supporting cast of bureaucrats like Treasury Secretary Timothy Geithner and his predecessor, Henry Paulson, and the Democratic majorities in the Senate and House (joined by a few Senate Republicans). These officials are terminally afflicted with what Sen. Tom Coburn, R-OK, calls “federal spending disease” (FSD) an incurable addiction in which the sufferer is utterly unable to stop spending other people’s money. An intervention by voters is the only effective treatment.
 
If not treated promptly, FSD, like alcoholism, leads inevitably to complete physical breakdown, loss of homes, jobs, cars, respect, everything. The breakdown is not limited to the sufferer, however. Like the alcoholic who must drink hard liquor every waking moment, massive budget deficits are the key symptom of late-stage FSD. The alcoholic dies, but with FSD, the nation, not the spenders, goes bankrupt. Even today, with Obama just beginning to manage the government, Geithner’s Treasury department must offer higher interest rates on bonds it sells to finance planned deficits because bondholders worry about Washington’s future repayment ability if taxes are not soon hugely increased. But those increases would kill economic growth, sending government revenues spiraling downward and eventually leaving Washington only one choice – repudiation of debt or bankruptcy. Either way, American prosperity will be a distant memory for generations to come. Intervention cannot come too soon.