Voter outrage shown through a Tea Party gathering in front of the Glendale City Hall after both Stimulus and Omnibus spending bills were passed out of congress (without transparency or being read by members of Congress) and signed by Barack Obama. Image Credit: Edmund Jenks (2009)
Barack Obama's $3.834 trillion answer to the American voter
The Obama Administration has been in office now for a little over one year, and the Democrat party led Congress (House of Representatives and Senate) has been in office for a little over three.
In this time of Democrat political party leadership, we have seen our economy blow-up and our Government spending balloon to levels (even adjusted for inflation and cost of living) that defy logic. The Stimulus and Omnibus spending bills passed out of Congress and signed into law about ten months ago increased the budgets of the departments of Government on average of about 24% - the perspective on this type of increase is that budgets of Government are generally increased to reflect the increased cost of living and inflation or between 2-3% … no more than 4%. The American voter reacted to this increase in Government spending by organizing gatherings throughout the country on April 15, 2009 – Tax Day, and increased communication at Town Hall meetings throughout the year to voice their displeasure with the direction and depletion of our working labors.
This activity became known as the Tea Party Movement – this is a movement created by a Government wanting to become bigger and bigger in order to gain even greater control over our daily lives … and thereby control over our money. The Tea Party Movement is not left/Democrat Party or right/Republican party politics but a movement of Democrat, Republican, and Independent voters who wish to have our country seek a smaller Government and get back to the values outlined in the founding document of our country – The Constitution.
In November 2009, the Tea Party Movement spoke. Entrenched Democrat political party Governors were replaced in Virginia and New Jersey ... and just last month, Massachusetts voters booted out the decades long one-party representation by Edward (Ted) Kennedy (deceased) and the Democrat Party with the stunning election of Scott Brown to the US Senate.
Today, Barack Obama and his administration issued his proposal for the budget of the US Government to a record $3.834 trillion from October 2010 to September 2011. A $1.6 trillion total deficit is projected and as measured against the size of the economy, the $1.6 trillion deficit equals about 11% of the United States gross domestic product.
Debt would double under Obama's plan. Image Credit: The Heritage Foundation
This excerpted and edited from the New York Times –
$100 Billion Increase in Deficit Is Forecast
By JACKIE CALMES - Published: February 1, 2010
The additional tax cuts and public works spending that President Obama has proposed to spur job creation would add $100 billion to this year’s deficit, bringing it to nearly $1.6 trillion, according to an administration official.
A deficit of that size for the fiscal year that ends Sept. 30 would be about $150 billion greater than last year’s deficit, which was the highest since World War II.
Measured against the size of the economy, a $1.6 trillion shortfall would equal almost 11 percent of the gross domestic product. Economists generally consider annual deficits above 3 percent to be unsustainable.
Voter outrage expressed in handmade posters in front of the Glendale City Hall after both Stimulus and Omnibus spending bills were passed out of congress (without transparency or being read by members of Congress) and signed by Barack Obama. Image Credit: Edmund Jenks (2009)
This analysis excerpted and edited from Reuters –
Analysts View: 2010 budget deficit to hit new record
Reuters – February 1, 2010
Following are analysts' comments after President Barack Obama on Monday projected in his budget for the fiscal year to September 30, 2011 the budget deficit would soar to a fresh record of $1.56 trillion in 2010.
ANDRE BAKHOS, PRESIDENT, PRINCETON FINANCIAL GROUP, NORTH BRUNSWICK, NEW JERSEY
"We're talking about a record budget with record deficits. In it we have I believe $100 billion stimulus on top of what's already been approved in the past, and it's going to be interesting to see how that plays up.
PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK & CO., NEW YORK:
"I don't think there is anything out there that is job creating and I don't have much confidence that some of the spending cuts will actually happen.
"I would rather come in today and focus on fundamental earnings rather than what the government's budget deficit is going to be. It's going to be large, it's going to be big and that's the most disappointing thing and this [budget] doesn't change that."
MARC OSTWALD, CURRENCY, RATES STRATEGIST, MONUMENT SECURITIES, LONDON:
"When the deficit is that size and you want to cut it meaningfully, you have to do more.
"It is still tinkering around the edges. One has to look at more meaningful things in terms of what will actually reduce the deficit, (which is) the revenue picture.
"This is really something that is going to have an impact on equities, rather than the dollar or Treasuries because it's individual areas (such as aerospace) what may be impacted."
KORNELIUS PURPS, STRATEGIST, UNICREDIT MIB, MUNICH
"The problem of how we're going to deal with these huge deficits, not only in Greece but in the UK, Germany, this question is unsolved and today's (U.S.) budget figures are just another confirmation that it's probably a huge problem. The bond markets have little choice when it comes to investing in triple-A securities like U.S. or German Bunds because other countries are probably faring even worse than these triple-A rated countries, so I wouldn't expect a particularly negative bond market reaction."
PETER DIXON, ECONOMIST, COMMERZBANK, LONDON
"Probably the spending cuts are not really sufficient to generate the kind of savings required to get the U.S. fiscal balance back in order anytime soon. It looks like we are going to have a situation in which the U.S. budget deficit and consequently the amount of debt will be an issue."
KENNETH BROUX, MARKET ECONOMIST, LLOYDS TSB, LONDON
"It looks to me like they are bumping up the deficit forecasts very near term so frontloading the spending just to stabilize the labor market. That's what they want to concentrate on going into the Congressional elections in November. Raising spending near term, get the deficit up but bring it down after that. If they will bring it down below 10 percent next year it will be some unqualified success."
DAVID BUIK, PARTNER, BGC PARTNERS, LONDON
"They have chosen the path of glory which is to spend their way out of trouble and this just endorses it. The taxpayers will pay for this and I think it will damage growth very badly."
Barack Obama does not care about the economic damage his Progressive political philosophy will bring to the country he calls home and has been elected to manage from the highest Executive management position in the land.
Welcome world, to Carter’s Second Term!