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Huge Deficits May Alter U.S. Politics and Global Power
New York Times ^ | February 1, 2010 | David E, Sanger

Posted on 02/02/2010 3:33:45 AM PST by lbryce

In a federal budget filled with mind-boggling statistics, two numbers stand out as particularly stunning, for the way they may change American politics and American power.

The first is the projected deficit in the coming year, nearly 11 percent of the country’s entire economic output. That is not unprecedented: During the Civil War, World War I and World War II, the United States ran soaring deficits, but usually with the expectation that they would come back down once peace was restored and war spending abated.

But the second number, buried deeper in the budget’s projections, is the one that really commands attention: By President Obama’s own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.

For Mr. Obama and his successors, the effect of those projections is clear: Unless miraculous growth, or miraculous political compromises, creates some unforeseen change over the next decade, there is virtually no room for new domestic initiatives for Mr. Obama or his successors. Beyond that lies the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade. As debt grew more rapidly than income, that country’s influence around the world eroded.

Or, as Mr. Obama’s chief economic adviser, Lawrence H. Summers, used to ask before he entered government a year ago, “How long can the world’s biggest borrower remain the world’s biggest power?”

(Excerpt) Read more at ...

TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: debt; deficit; halcyondaysgoneby; marxist; nytimes; obamanomics; slimes; spending; times; usa
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To: lbryce

America will once again become great... but it may take a real revolution to get there... at the ballot box or otherwise.


21 posted on 02/02/2010 4:29:51 AM PST by LibLieSlayer (hussama will never be my president... NEVER!)
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To: Pietro

Great stuff, but I’d go further. Eliminate the Dept. of Education, as you suggested (it was nothing but a payback to the NEA by that idiot, Carter). Eliminate the EPA (need I even say why?). Eliminate’s useless. Eliminate the IRS by enacting the Fair Tax (or an acceptable, consumption-based alternative). Eliminate the National Endowment for the Arts. De-fund PBS. Offer private alternatives to Social Security (Bush kinda sorta tried this, but didn’t have the stomach for the backlash; he was on the right track). Combine Medicaid and Medicare into a single, much more streamlined organization. Dramatically cut the FCC and the (useless) SEC. Enact term limits...and fast. Pursue a “Balanced Budget Amendment” to the Constitution that prohibits any but balanced budgets; no deficits EXCEPT to allow, if necessary, deficits specifically targeted toward military expenditures during times of war.

These will make for a decent start....but only a start.

22 posted on 02/02/2010 4:34:39 AM PST by RightOnline
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To: Rome2000

I fear that the necessary change will come only after cataclysmic events in this country, as the Dems’ demagoguery will be used to ward off any meaningful cuts in government. With the huge number of freeloaders who are currently dependent on the teat of government handouts and a servile media bent on propping up an interloper, there will be no drastic changes without a major fight.

23 posted on 02/02/2010 4:39:32 AM PST by CASchack
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To: lbryce

24 posted on 02/02/2010 4:50:38 AM PST by Chode (American Hedonist *DTOM* -ww- NO Pity for the LAZY)
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To: lbryce
Obama needs to be fired immediately.
This is irresponsibility of the highest order. Unimaginable.
25 posted on 02/02/2010 4:54:18 AM PST by Chgogal (American Mugabe, get your arse out of my bank, my car, my doctor's office & my elec. utility.)
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To: qwertypie

America’s decline most certainly was instituted from the top, and extended through the progressivist movement that infiltrated the schools many decades ago. When the left got control over the academy, which happened overtly and finally in the late 1960s, it dedicated itself 100% to diminishing and corrupting the whole idea of America.

But Americans nonetheless still overwhelmingly consider themselves conservative and do not like these statist policies. However, in practice, their resistance has been weakened and, more than anything else, they have been confused and made to feel that the socialist model is inevitable. Look at the candidates offered by the major political parties. What choice is there?

But then we have things like the Tea Parties and the grass roots conservative movements, so I don’t think you can say that America is dead yet among the ordinary people. But Obama wants to drive a stake through our heart and make sure that America is dead once and for all.

26 posted on 02/02/2010 4:54:23 AM PST by livius
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To: meyer

I dunno. McCain has very poor judgement, but I don’t think he’s a Socialist. Even so, he would have been much better than the Obama-child.

27 posted on 02/02/2010 4:55:01 AM PST by rbg81 (DRAIN THE SWAMP!!)
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To: Chode
Not may. It will. And that is the reason it is being done.

And as our economy sinks to the depths that make the people in Haiti seem prosperous, obama’s worshipers chant, “We praise you,obama, our messiah and savior.

The sheep go baa. Things are good, “American Idol” is back. And obama is thinking, What a bunch of fools. As he prepares their demise.

28 posted on 02/02/2010 5:04:59 AM PST by sport
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To: Vanders9
Yes, indeed. As they say, from my mouth to God's ear.
29 posted on 02/02/2010 5:07:54 AM PST by lbryce (Obama Notwithstanding, America's Best Days Are Yet To Be .)
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To: lbryce

And that is exactly Obama’s agenda.

He wants to ruin this country.

Where is the GOP? Where is the tea party?

30 posted on 02/02/2010 5:13:50 AM PST by Reagan69 (The only thing SHOVEL-READY since BO's stimulus has been MICHAEL JACKSON (tammy bruce))
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To: RightOnline

“I’ll also add another essential ingredient: term limits.”

I fully agree - but how does this get passed with a Congress full of potential “career politicians”. Why on earth would they vote themselves out of their earthly heaven?
You are askng for honesty that they are not capable of mustering up.....because they know deep down inside term limits would fix many problems...but you see...they are just to comfortable in those deep leather seats.

31 posted on 02/02/2010 5:16:29 AM PST by 2Wheels
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To: 2Wheels

Granted....and we automatically know that any and all Democrats would vote against such.

I think the only way for this to happen is for the GOP to loudly proclaim it as a key plank in their party platform. No running away from it; they have to commit. If they’re voted into the majority, Americans would then expect them to step up. We’re all sick of weasels; the citizens of this country finally seem fed up with lying, “say anything to get elected then do what I want” politicians.

32 posted on 02/02/2010 5:19:38 AM PST by RightOnline
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To: 2Wheels

Excuse me...that should have said “too comfortable”

33 posted on 02/02/2010 5:19:48 AM PST by 2Wheels
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To: lbryce

Well, if we elect a Congress which will actually do its assigned tasks - one of which is to coin money, and regulate the value thereof - we can recover.

34 posted on 02/02/2010 5:22:25 AM PST by Jim Noble (Hu's the communist?)
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To: RightOnline

Hey have any of you see this video? It is shocking in ways, and I’m not sure how it will be viewed by the FReeper community - but it puts things in a perspective that still has my head bobbling.
I grew up hearing tidbits of this in the 60’s-70’s...and it was stuck in the recesses of my mind. Now, after this video - my entire viewing spectrum has changed and brought to surface many of the old indicators my Dad gave me many years ago.
So currently.....Obama is an enemy of the sovereign USA and I cannot stand anything about him, nor will you ever hear me call him “President”. He is an imposter to the most respected office in modern history. But this video may pursuade our thinking to consider Oboy is only a pawn among many pawns....including the Bushes and others. It does not thrill me to insult the Bushes - but this video proclaims there are a very select group of individuals who run it all...and I do mean all. They run oil, the war machine, the global finance schemes (the Fed), the stock meltdowns...etc.
You all have heard of and
I am not associated with them in any way - it is just when I see so much focus on Zero as THE singular culprit - no - he is only a punk covering for the bad boy billionaire club who RUN THE WHOLE MESS. None of which excuses him - these ‘presidents’ all walk into the Office knowing full well they are a tool for fools with money.....fools like a turd named Soros. He is one of many in their secret world who view all of us as nothing more than slaves to their global controlled agendas.
I urge every one to view this video with eyes wide open. And my ignorance forces me to say that I hope I am not breaking FR protocol by adding a link here like this.
And no - I do not post alot here. I learn more by reading than ranting.
I believe Obama, Biden, Pelosi and Reid should all be ousted by shear physical force by the people of this country immediately. They are bent on bleeding us (and themselves eventually) to death and are too stupid to even know it. This will come back on them one day.
(2 hours)

35 posted on 02/02/2010 5:52:33 AM PST by 2Wheels
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To: qwertypie; RightOnline; livius
America’s decline was not instituted from the top. All of my life, with only several instances of sanity, rank and file Americans went to the polls to vote in politicians promising the nanny state. Nobody held a gun to their heads or tricked them.

Bump for an absolutely correct statement, sir.

Don't want to hear about the tea party movement as a reversal of this trend either - not with all those handmade signs I saw at the town meetings demanding "Hands Off Medicare".

36 posted on 02/02/2010 6:14:30 AM PST by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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To: CASchack

You are right. As I have been saying here since I signed up, America will never give up on the freebie state until J6P’s collective noses have been rubbed in its failure. Good and Hard.

37 posted on 02/02/2010 6:17:20 AM PST by Notary Sojac ("Goldman Sachs" is to "US economy" as "lamprey" is to "lake trout")
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To: lbryce

I agree sir. We may have some rough times, but I think (and hope, and pray) that Americans will rise up this November and deal Obama a devastating political blow.

38 posted on 02/02/2010 6:24:14 AM PST by St. Louis Conservative
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To: Notary Sojac

One of the differences is that, rightly or wrongly, people perceive themselves as having paid for Medicare and Social Security. The oldest recipients, obviously, did not pay anywhere near enough, and the youngest payees will never collect much of anything. But my point is that these were separate programs that people do not see as a pure government handout, regardless of the actual details.

39 posted on 02/02/2010 6:36:59 AM PST by livius
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To: lbryce
This is a good realization that address an article I read recently why monetary policy does not work. The do not get into the numbers. Or they only give numbers that support their agenda. Both sides do this and sometimes it is just out of ignorance.
This NY article states after this writer gets into two numbers it concludes, what conservatives see from the beginning. The problem is that the usually American people turn out under normal circumstances when you get into the weeds, except now.
40 posted on 02/02/2010 7:25:52 AM PST by wmposh
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