Monday, May 11, 2009

So much for fiscal responsibility!

I'm trying to shake off a feeling of numb disbelief at the latest figures from our Government. They show that for every $1 the US government will spend this year, a full 50c will be funded by borrowing. According to one report:

OMB [Office of Management and Budget] Director Peter Orszag announced Monday that a $90 billion increase in the estimated deficit for each of the next two years would bring the deficit for fiscal year 2009 to $1.8 trillion and for 2010 to $1.3 trillion. President Obama's proposed budget for 2010 is $3.6 trillion. The 2009 budget was set at $3.1 trillion.

Those numbers are up from February's estimates. The budget deficits will be 12.9 percent and 8.5 percent of gross domestic product in those two years, Orszag said. The budget deficit for fiscal year 2009, which ends Sept. 30, is four times the record set last year.

. . .

Annual deficits would never dip below $500 billion and would total $7.1 trillion over 2010-2019. Even those dismal figures rely on economic projections that are significantly more optimistic than those forecast by private sector economists and the Congressional Budget Office. They rely on a 1.2 percent decline in GDP this year and a 3.2 percent growth rate for 2010.

That's just mind-blowing! Even working with much smaller numbers, if you and I tried to finance our private lifestyles by borrowing 50% of what we spent, we'd be bankrupt within a year or two. It's simply not possible to sustain such a level of expenditure unless one has capital to draw on - and we as individuals, and this country as a whole, don't have that capital.

I didn't have high hopes for President Obama when he took office. I'm now beginning to suspect that his financial illiteracy, ideological blindness and catastrophic incompetence will condemn America to two or three generations of impoverishment, as we fight our way out of the monetary morass he'll leave behind him.

(By the way, that has nothing to do with the fact that he's a Democrat. Given the GOP's spending record over the early part of this century, I daresay Republican Presidential candidate Senator John McCain wouldn't necessarily have been an improvement!)



Anonymous said...

If you had any hope at all over his pos taing officee, you had obviously been to the kool-ad fountain too often, heh. Anybody with any brains could look at where he came from(as much as we can know where he came from) and see that his coronation would be a disaster that the country may never recover from. Which is fine for most of the democraps.

Anonymous said...

Arrgh - taing=taking, officee=office; so much for proofing in the morning

raven said...

We are in bad shape. Really bad shape. Really, really, country crushing, political system ending BAD SHAPE!
This morning I watched the head of the "Inspector General" or some such title waffling about why she had no idea where the trillion we gave to the fed went. The numbers about our economy, in every catagory are so inconcievably frightening that it is now my conclusion there is a deliberate attempt to reduce us to abject poverty in order to make the introduction of a new socialist state the "only possible solution". The degree of out right fraud and theft is staggering. For lucid info on this I suggest Karl Denningers blog "The Market Ticker". He does a great job of bioling down the financial jibberish so normal humans can understand what is going on. The tarp, the bailouts, the swindle-us, it is either money being stolen out right, or money spent to buy votes. Every indice is twisted to make the situation seem rosy. Actual unemployment is pushing 18%, according to how the Gov. used to measure it.
I could go on with a list of items-
The point is, we are in such bad shape our very system may not survive the comeing storm. It is desperate and the american people are being deliberately lulled.