Great News – The US Deficit is Completely Out of Control!

2009 August 25

by Jason

budget deficit 2009 More great news has come out today about the state of the United States federal deficit… Hint: It’s worse than you think and doesn’t add up to lower taxes. (At best it will be 9 trillion, but most likely it will be much worse.)

Frankly, it is a disaster in the making. It is as if the Democrats want to drive the US economy straight off the cliff. It just reassures my thinking that in the minds of liberals, no amount of debt is of concern, as long as their socialist agenda is accomplished.

Think with me for a moment, what is it liberal Democrats want?… Answer: A massive government leading to massive power over the people.

If you are unable to see this agenda and disagree with my statement, than it is clear to me you are already brain washed, completely brain dead, or worse. Every debt chart answer coming from the liberal Democrat party involves more government, more spending, more taxes, and more debt. Their minds are not even capable of solving a problem without more government. They seem to have a ‘marxist’ virus, that screams big government, redistribution of wealth, and massive deficits. It is clear they worship at the alter of government, and will stop at nothing until it their agenda is accomplished and the Constitution is dead.

Where does this lead us? You guessed it, massive debt and an eventual implosion of the United States of America. This implosion may even be desired by those on the outer left fringe, because it allows them to remake the US Constitution to fit their power hungry obsession.

Now that I’ve said my piece, below is an excerpt from an excellent article from the Wall Street Journal on the subject…

Mr. Obama’s White House and the Congressional Budget Office told us that current U.S. fiscal policy is “borrow and spend” on a hyperlink. The good news is the deficit for 2009 will be “only” $1.58 trillion, about $250 billion lower than expected thanks to less need for TARP funds. But the Obama fiscal plan envisions $9 trillion in new borrowing over the next decade, which is $2 trillion more debt than the White House predicted earlier this year. The 2010 deficit also rises by about as much as the 2009 deficit falls from January, so even the TARP windfall gets spent.

We’ve never fretted over budget deficits, at least if they finance tax cuts to promote growth or spending to win a war. But these deficit estimates are driven entirely by more domestic spending and already assume huge new tax increases. CBO predicts that debt held by the public as a share of GDP, which was 40.8% in 2008, will rise to 67.8% in 2019—and then keep climbing after that. CBO says this is “unsustainable,” but even this forecast may be optimistic.

Here’s why. Many of the current budget assumptions are laughably implausible. Both the White House and CBO predict that Congress will hold federal spending at the rate of inflation over the next decade. This is the same Democratic Congress that awarded a 47% increase in domestic discretionary spending in 2009 when counting stimulus funds. And the appropriations bills now speeding through Congress for 2010 serve up an 8% increase in domestic spending after inflation.

Another doozy is that Nancy Pelosi and friends are going to allow a one-third or more reduction in liberal priorities like Head Start, food stamps and child nutrition after 2011 when the stimulus expires. CBO actually has overall spending falling between 2009 and 2012, which is less likely than an asteroid hitting the Earth.

Federal revenues, which will hit a 40-year low of 14.9% of GDP this year, are expected to rise to 19.6% of GDP by 2014 and then 20.2% by 2019—which the CBO concedes is “high by historical standards.” This implies some enormous tax increases.

CBO assumes that some 28 million middle-class tax filers will get hit by the alternative minimum tax, something Democrats say they won’t let happen. CBO also assumes that all the Bush tax cuts disappear—not merely those for the rich, but those for lower and middle income families as well. So either the deficit is going to be about $1.3 trillion higher than Washington thinks, or out goes Mr. Obama’s campaign promise of not taxing those who make less than $250,000.