Federal deficit on track for a record this fiscal year
Government debt to exceed U.S. economy
By Stephen Dinan - The Washington Times
12:16 p.m., Monday, February 14, 2011
"...Obama‘s budget, released Monday, was conceived as a blueprint for future spending, but it also paints the bleakest picture yet of the current fiscal year, which is on track for a record federal deficit and will see the government’s overall debt surpass the size of the total U.S. economy."
"...Obama‘s budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by Sept. 30, the end of the fiscal year. That would be 102.6 percent of GDP — the first time since World War II that dubious figure has been reached.
And the budget projects the government will run a deficit of $1.645 trillion this year, topping 2009’s previous record by more than $230 billion."
Taxpayers Still Paying For USA
Bankruptcy In 1930
Published 05 February, 2004
"The U.S. Constitution created by our founders and the 13 colonies - that original "United States of America" - no longer exists. It was replaced by the "Corporate United States" to deal with the corporate national debt."
"In reality, our legal and judicial system of "Corporate America" is an illegal system imposed on the taxpayers to force them to pay off the bankruptcy debt in 1930 - a debt that will never be paid off."
Rich: Budgeting For Dummies
By Howard Rich
February 25, 2011
"..It’s no surprise that political leaders are talking a good game. Americans have finally grasped the rough outlines of their government’s looming fiscal collapse — and are demanding deep cuts in an effort to restore some semblance of sanity to the spending process."
"But glaringly inadequate spending reductions are only the beginning of the problem — far graver dangers lurk within our government’s shoddy accounting and chronic refusal to address the root causes of this impending implosion.
Consider these numbers: In 2008, the White House Office of Management and Budget projected a total three-year deficit of $334 billion for fiscal 2009-11.
These projections were made before the onset of the recession, obviously, but a year later — when America’s economic free fall was in full effect — OMB was still projecting ludicrously low deficits. In fact, two years ago OMB projected a total three-year deficit of only $302 billion for fiscal 2010-12.
The actual shortfalls for fiscal 2009 and 2010 ended up being $1.4 trillion and $1.3 trillion, respectively — the largest federal deficits since World War II. And the projected deficits for fiscal 2011 and 2012 are currently estimated at $1.6 trillion and $1.1 trillion.
Yet even these astoundingly high numbers are based on dubious fiscal forecasting. For example, the Congressional Budget Office is projecting that the government will owe $5.5 trillion in interest payments on its ballooning $14.2 trillion debt over the coming decade. But that figure represents the best-case scenario. More realistic forecasts put the 10-year interest tab closer to $7.5 trillion.
Whichever amount you assume, interest payments on the debt will dwarf the $478 billion in cuts that Obama has proposed over the coming decade — as well as the $2.5 trillion in cuts proposed by the Republican Study Committee over the same time period..."
Thats's no rounding error
GOP harps on CBO budget analysis
By ABBY PHILLIP
03/18/11 6:16 PM Updated: 03/18/11 7:26 PM
The nonpartisan Congressional Budget Office says the federal budget deficit would be $2.3 trillion -- yes, trillion -- higher than the Obama administration predicted for the plan the White House submitted to Congress last month.
The difference, the CBO says in a report released Friday, stems from vastly different projections about the effect of current law on revenues and mandatory spending, and also differing projections about the effects of Obama's own policies.
Altogether, the report raises significant questions about the administration's projections, as well as the White House's mantra of responsibility in government.
Republicans have already seized on the report, saying that Obama has always overstated his administration's posture on deficit reduction, and the CBO has only confirmed what they have said all along: that the president's budget actually raises the deficit over time, instead of lowering it.
"In short, the CBO analysis proves that the president’s budget accelerates our dangerous and unsustainable trajectory. It is the most irresponsible spending plan a president has put forward in our time," said Jeff Sessions, the Senate Budget Committee's ranking Republican...
CBO: Obama understates deficits by $2.3 trillion
The Associated Press
March 18, 2011, 2:46PM ET
A new assessment of President Barack Obama's budget says it underestimates future deficits by more than $2 trillion over the upcoming decade.
The Congressional Budget Office estimate says that if Obama's February budget submission were enacted into law it would produce deficits totaling $9.5 trillion -- an average of almost $1 trillion a year.
Obama's budget foresaw deficits totaling $7.2 trillion over the same period...
United States Congressional Record, March 17, 1993 Vol. 33, page H-1303:
"It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent..."
"The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States..."
[see: Propaganda and the Art of Deception]
Mandatory Spending to Exceed all Federal Revenues — 50 Years Ahead of Schedule
By JEFFREY H. ANDERSON
Mar 16, 2011
"We have now gotten to the point — as I noted yesterday — where if national defense, interstate highways, national parks, homeland security, and all other discretionary programs somehow became absolutely free, we’d still have a budget deficit. The White House Office of Management and Budget projects that in the current fiscal year (2011), mandatory spending alone will exceed all federal receipts. So even if we didn’t spend a single cent on discretionary programs, we still wouldn’t be able to balance our budget this year — let alone pay off any of the $14 trillion in debt that we have already accumulated."
"Through the years, mandatory spending has steadily increased (with some fluctuation from year to year) in relation to revenues. Here is mandatory spending as a percentage of total federal receipts, by year, according to published White House figures:
1970: roughly 33 percent
2000: 47 percent
2005: 61 percent
2010: 90 percent
2011: 101 percent
The trajectory seems clear. Meanwhile, President Obama has not proposed entitlement reform. He has, however, proposed adding a massive new entitlement: Obamacare. At the same time, the baby boomers’ retirements are looming, which means higher entitlement expenditures and a smaller proportion of the population available to finance them. In light of all of this, what do the Obama administration’s projections for mandatory spending as a percentage of total federal receipts look like, going forward? Here they are:
2012: 81 percent
2013: 73 percent
2014: 7o percent
2015: 69 percent
Obama’s 2011 Budget Proposal: How It’s Spent
Rectangles in the chart are sized according to the amount of spending for that category. Color shows the change in spending from 2010.
Budget policy talk in the dark
By JAGADEESH GOKHALE & DAVID SCHOENBROD
3/10/11 4:35 AM EST Updated: 3/10/11 6:16 AM EST
"President Barack Obama says he wants an “adult conversation” about the budget. He also wrote that the “administration is committed to creating an unprecedented level of openness in government.” This commitment was in his first official action as president: a memorandum on “transparency and open government.”
Yet the White House’s Office of Management and Budget is keeping secret the detailed and long-term budget projections and parameters that it uses to forecast the deficit in future years, unlike the previous administration — which divulged this information yearly.
To acquire the information necessary for an “adult conversation” on the budget, we formally requested that OMB Director Jack Lew release the projections. The response was a letter stating that the information was “not available to the general public.”..."