Obama says he's calling your bluff

[John Adams]

Why is this already a fight? Some consensus builder. Here's an idea that would help us all and even before he presents it, he's calling people out. Horrible leadership. Horrible.

 

President Obama says it'll be put-up or shut-up time on cutting deficits soon enough.

 

Obama said on Sunday that he would deliver serious deficit reduction proposals next year. And when he does, those politicians who talk tough on debt simply to score votes will have to show their hand, he said.

 

"When I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, because I'm calling their bluff," the president said at a press conference during the G-20 summit in Toronto

.

 

 

http://money.cnn.com/2010/06/28/news/econo...icit_reduction/

[keepthefaith]

Why is this already a fight? Some consensus builder. Here's an idea that would help us all and even before he presents it, he's calling people out. Horrible leadership. Horrible.

 

.

 

 

http://money.cnn.com/2010/06/28/news/econo...icit_reduction/

 

 

He won't cut any entitlement plan that mostly benefits the less productive class and he won't cut anything that employs a government or union worker. He'll want tax increases on a variety of revenue sources and o course, the upper wage earners.

 

You'll hear Obama talk about defecit reduction but you won't hear him talk about cutting spending except for military spending.

 

And yes, his administration will publish numbers which when put under scrutiny will be a huge stretch.

[....lybob]

The United States Federal Budget for Fiscal Year 2010, titled A New Era of Responsibility: Renewing America's Promise,[1] is a spending request by President Barack Obama to fund government operations for October 2009–September 2010. Figures shown in the spending request do not reflect the actual appropriations for Fiscal Year 2010, which must be authorized by Congress.

 

Estimated receipts for fiscal year 2010 are $2.381 trillion, an estimated decrease of 11% from 2009.

$1.061 trillion – Individual income taxes

$940 billion – Social Security and other payroll tax

$222 billion – Corporation income taxes

$77 billion – Excise taxes

$23 billion – Customs duties

$20 billion – Estate and gift taxes

$22 billion – Deposits of earnings

$16 billion – Other

 

The President's budget for 2010 totals $3.55 trillion. Percentages in parentheses indicate percentage change compared to 2009. This budget request is broken down by the following expenditures:

 

Mandatory spending: $2.184 trillion (+15.6%)

$695 billion (+4.9%) – Social Security

$453 billion (+6.6%) – Medicare

$290 billion (+12.0%) – Medicaid

$0 billion (−100%) – Troubled Asset Relief Program (TARP)

$0 billion (−100%) – Financial stabilization efforts

$11 billion (+275%) – Potential disaster costs

$571 billion (−15.2%) – Other mandatory programs

$164 billion (+18.0%) – Interest on National Debt

 

 

US receipt and expenditure estimates for fiscal year 2010.

Discretionary spending: $1.368 trillion (+13.1%)

$663.7 billion (+12.7%) – Department of Defense (including Overseas Contingency Operations)

$78.7 billion (−1.7%) – Department of Health and Human Services

$72.5 billion (+2.8%) – Department of Transportation

$52.5 billion (+10.3%) – Department of Veterans Affairs

$51.7 billion (+40.9%) – Department of State and Other International Programs

$47.5 billion (+18.5%) – Department of Housing and Urban Development

$46.7 billion (+12.8%) – Department of Education

$42.7 billion (+1.2%) – Department of Homeland Security

$26.3 billion (−0.4%) – Department of Energy

$26.0 billion (+8.8%) – Department of Agriculture

$23.9 billion (−6.3%) – Department of Justice

$18.7 billion (+5.1%) – National Aeronautics and Space Administration

$13.8 billion (+48.4%) – Department of Commerce

$13.3 billion (+4.7%) – Department of Labor

$13.3 billion (+4.7%) – Department of the Treasury

$12.0 billion (+6.2%) – Department of the Interior

$10.5 billion (+34.6%) – Environmental Protection Agency

$9.7 billion (+10.2%) – Social Security Administration

$7.0 billion (+1.4%) – National Science Foundation

$5.1 billion (−3.8%) – Corps of Engineers

$5.0 billion (+100%) – National Infrastructure Bank

$1.1 billion (+22.2%) – Corporation for National and Community Service

$0.7 billion (0.0%) – Small Business Administration

$0.6 billion (−14.3%) – General Services Administration

$19.8 billion (+3.7%) – Other Agencies

$105 billion – Other

[/dev/null]

Obama said on Sunday that he would deliver serious deficit reduction proposals next year.

 

As Bills fans, we all know how everything will improve next year

[Magox]

Neither party will do enough to keep the bond watchdogs off of our backs, its just a matter of time, maybe next year, the year after, I dont know, but it will happen. None of them have the guts to touch Medicare, Education, Defense and S.S.

 

We are lucky as hell that interest rates on our debt is at record lows, once our bond rates soar, thats when the our own austerity measures will come.

[John Adams]

Neither party will do enough to keep the bond watchdogs off of our backs, its just a matter of time, maybe next year, the year after, I dont know, but it will happen. None of them have the guts to touch Medicare, Education, Defense and S.S.

 

We are lucky as hell that interest rates on our debt is at record lows, once our bond rates soar, thats when the our own austerity measures will come.

 

I'm not one for predictions (unlike you) but I'll see how I do predicting what Obama will tout as deficit reduction strategy:

 

(1) No more Iraq/Afghanistan by 2012

(2) Increase tax rates for top earners

(3) Increase capital gains rates

(4) Increase certain spending and tout revenue it will save in the future

(5) Slight decrease in military spending

[Dave_In_Norfolk]

Neither party will do enough to keep the bond watchdogs off of our backs, its just a matter of time, maybe next year, the year after, I dont know, but it will happen. None of them have the guts to touch Medicare, Education, Defense and S.S.

 

We are lucky as hell that interest rates on our debt is at record lows, once our bond rates soar, thats when the our own austerity measures will come.

We are "lucky" because not enough capital is being borrowed, so money is cheap. When the rates go up it will be because economic activity is picking up, hopefully more people will be working and tax reciepts will pick up as well.

 

That's the thing most people either ignore on purpose or are simply ignorant too, the deficit is being fueled by the slow economy in two ways, not just higher spending, but tax reciepts are down with so many out of work and business lagging.

 

 

Obama's "deficit cutting" is all politics. He's a good politician, and with the American people so ignorant, he has to be.

[OCinBuffalo]

We are "lucky" because not enough capital is being borrowed, so money is cheap. When the rates go up it will be because economic activity is picking up, hopefully more people will be working and tax reciepts will pick up as well.

 

That's the thing most people either ignore on purpose or are simply ignorant too, the deficit is being fueled by the slow economy in two ways, not just higher spending, but tax reciepts are down with so many out of work and business lagging.

 

 

Obama's "deficit cutting" is all politics. He's a good politician, and with the American people so ignorant, he has to be.

Yes we are soooo ignorant.

 

You have confused ignorance with caring. People know what's happening. They just don't want to hear the details or the whining. We want results. The simple fact of the matter, both at the state and Federal level, is: Government has gotten too big to be "sustainable"(God I love using that word against the dolts).

 

Medicare is going out of business in 7 years, 8 tops. That's not sustainable(tee hee did it again ). No amount of hemming and hawing and blaming the American people is going to fix that. Real solutions are required. I have heard exactly squat. In fact, the only thing I have heard is: "Let's raid medicare to pay for the new health care nonsense". Somebody remind me again why we had to elect the Democrats to Congress in 2006 immediately, or the country would be in big trouble.....

 

The simplicity of this is mind numbing: you can't create a government that only works when the economy is booming, and is solely predicated on taking investment money away from people who create jobs. IF we are supposed to believe that we can't live without massive government, then that means it has to work, in all seasons, or it needs to go. Edit: along with the people who keep saying that we can't live without it.

 

And you know what? I don't care. They made this mess starting with FDR, LBJ, and right on through to Little Lord Obamaroy. If they won't fix it, it will have to die. I couldn't care less, and I am certainly not "ignorant", especially not when it comes to Medicare. I don't have a problem with liberal philosophy, and it's fair to say these are noble ideas. But, I have a massive problem with the economically stupid solutions they create in a failed effort to support that philosophy.

 

They never learn from their mistakes. One after the other, it's always the same cycle of fail/blame everybody else/fail.

[IDBillzFan]

He's a good politician, and with the American people so ignorant, he has to be.

Sorry. He's not even a good politician. And the American people aren't near as ignorant as he thinks they are.

[3rdnlng]

We are "lucky" because not enough capital is being borrowed, so money is cheap. When the rates go up it will be because economic activity is picking up, hopefully more people will be working and tax reciepts will pick up as well.

 

That's the thing most people either ignore on purpose or are simply ignorant too, the deficit is being fueled by the slow economy in two ways, not just higher spending, but tax reciepts are down with so many out of work and business lagging.

 

 

Obama's "deficit cutting" is all politics. He's a good politician, and with the American people so ignorant, he has to be.

 

So I take it you buy into the idea that a booming economy will provide the government with more tax dollars?

[Magox]

We are "lucky" because not enough capital is being borrowed, so money is cheap. When the rates go up it will be because economic activity is picking up, hopefully more people will be working and tax reciepts will pick up as well.

 

That's the thing most people either ignore on purpose or are simply ignorant too, the deficit is being fueled by the slow economy in two ways, not just higher spending, but tax reciepts are down with so many out of work and business lagging.

 

 

Obama's "deficit cutting" is all politics. He's a good politician, and with the American people so ignorant, he has to be.

Once rates go up, it could be for a few reasons, one as you pointed could be due to economic activity picking up, and that would be healthier. But, unfortunately when our rates soar, it wont be due to this reason, it will be because of our National debt concerns, see Greece, Spain, Ireland, Italy etc. etc.

 

Their rates are going up because of their fiscal situation, and as I pointed earlier its only a matter of time before the bond vigilantes turn their focus towards us.

 

I dont doubt that economic activity will pick up, slowly but gradually, but the amount of tax reciepts that increase wont be enough to overcome the spending and eventual interest rate increases on our debt to ward off the bond watchdogs.

 

Yes, our deficit issues is twofold as you point out, spending and lower tax reciepts, but the main problem is spending, and unfortunately for this country, there is virtually no hope of a dramatic increase in tax reciepts over the next few years, as Bill Gross and El Erian correctly point to.

 

And Obamas "Deficit cutting" politics. ya, politics is all that it is, because there is no real, tangible policy or plan that he has. He is a spender, plain and simple, and if he gets elected for a second term, he will learn really quickly that his policies suck and are destined to fail, but who knows, maybe in 2015 he will still be blaming Bush and maybe there will be a few lemmings that will believe him.

[Magox]

I'm not one for predictions (unlike you) but I'll see how I do predicting what Obama will tout as deficit reduction strategy:

 

(1) No more Iraq/Afghanistan by 2012

(2) Increase tax rates for top earners

(3) Increase capital gains rates

(4) Increase certain spending and tout revenue it will save in the future

(5) Slight decrease in military spending

I agree with 2-5, we will still be in Afghanistan by 2012 and beyond.

 

And in regards to my predictions, Im more of a macro guy, I rarely make predictions of the stock market and etc. If you look at my predictions on the Dwight Drane thread, its all macro, and so far what I have been predicting is following that course, as I expected.

[keepthefaith]

The United States Federal Budget for Fiscal Year 2010, titled A New Era of Responsibility: Renewing America's Promise,[1] is a spending request by President Barack Obama to fund government operations for October 2009–September 2010. Figures shown in the spending request do not reflect the actual appropriations for Fiscal Year 2010, which must be authorized by Congress.

 

Estimated receipts for fiscal year 2010 are $2.381 trillion, an estimated decrease of 11% from 2009.

$1.061 trillion – Individual income taxes

$940 billion – Social Security and other payroll tax

$222 billion – Corporation income taxes

$77 billion – Excise taxes

$23 billion – Customs duties

$20 billion – Estate and gift taxes

$22 billion – Deposits of earnings

$16 billion – Other

 

The President's budget for 2010 totals $3.55 trillion. Percentages in parentheses indicate percentage change compared to 2009. This budget request is broken down by the following expenditures:

 

Mandatory spending: $2.184 trillion (+15.6%)

$695 billion (+4.9%) – Social Security

$453 billion (+6.6%) – Medicare

$290 billion (+12.0%) – Medicaid

$0 billion (−100%) – Troubled Asset Relief Program (TARP)

$0 billion (−100%) – Financial stabilization efforts

$11 billion (+275%) – Potential disaster costs

$571 billion (−15.2%) – Other mandatory programs

$164 billion (+18.0%) – Interest on National Debt

 

 

US receipt and expenditure estimates for fiscal year 2010.

Discretionary spending: $1.368 trillion (+13.1%)

$663.7 billion (+12.7%) – Department of Defense (including Overseas Contingency Operations)

$78.7 billion (−1.7%) – Department of Health and Human Services

$72.5 billion (+2.8%) – Department of Transportation

$52.5 billion (+10.3%) – Department of Veterans Affairs

$51.7 billion (+40.9%) – Department of State and Other International Programs

$47.5 billion (+18.5%) – Department of Housing and Urban Development

$46.7 billion (+12.8%) – Department of Education

$42.7 billion (+1.2%) – Department of Homeland Security

$26.3 billion (−0.4%) – Department of Energy

$26.0 billion (+8.8%) – Department of Agriculture

$23.9 billion (−6.3%) – Department of Justice

$18.7 billion (+5.1%) – National Aeronautics and Space Administration

$13.8 billion (+48.4%) – Department of Commerce

$13.3 billion (+4.7%) – Department of Labor

$13.3 billion (+4.7%) – Department of the Treasury

$12.0 billion (+6.2%) – Department of the Interior

$10.5 billion (+34.6%) – Environmental Protection Agency

$9.7 billion (+10.2%) – Social Security Administration

$7.0 billion (+1.4%) – National Science Foundation

$5.1 billion (−3.8%) – Corps of Engineers

$5.0 billion (+100%) – National Infrastructure Bank

$1.1 billion (+22.2%) – Corporation for National and Community Service

$0.7 billion (0.0%) – Small Business Administration

$0.6 billion (−14.3%) – General Services Administration

$19.8 billion (+3.7%) – Other Agencies

$105 billion – Other

 

OK libs, here are the numbers. What do you do to get back to a balanced budget. Put your plans here.