Skip to comments.6 Ways Obama's Budget Is Worse Than Everyone Thinks
Posted on 04/11/2013 4:22:52 AM PDT by IBD editorial writer
Fiscal Policy: Shorn of its accounting gimmicks, the president's budget isn't a "balanced" plan to get the debt crisis under control. It's a monument to fiscal irresponsibility.
With much fanfare and a lot of media hype, President Obama unveiled his latest budget plan two months late. An IBD review of Obama's budget finds that, among other things, it:
Boosts spending and deficits over the next two years. Obama's own budget numbers show that he wants to hike spending over the next two years by $247 billion compared with the "baseline," ...
(Excerpt) Read more at news.investors.com ...
I love it how this man lies to everyone - has some economic adviser that can play with numbers - but when someone of equal grade sits down and pulls his little explanation apart - no one in the media says one word. The progressive movement is not only the liberals, but include the GOP and media in the US. Our elected leaders have failed us - our society that voted this train wreck into office will have their day of reckoning when the ceiling does collapse - and no one cares - no one is there to pick them up - and they are left to stand in the sewer they voted for. Ask the people on Long Island and other places where a storm hit - the govt. doesn’t care. They will make sure they are taken care of - the rest of us — “Get outta here”...
” - - - after releasing his 65-day-overdue budget, Obama claimed: “The numbers work. There’s not a lot of smoke and mirrors in here.”
Fact is, if it weren’t for smoke and mirrors, Obama would have no budget plan at all. - - - “
Thanks for posting this excellent article.
The primary “Smoke and Mirrors” (SAM) used by all Federal politicians and bureaucrats is to avoid using year to year actual spending to define a spending increase or decrease.
They use a reduction in the rate of estimated increase in year to year spending as a definition for either an “investment”
or a “cut,” respectively.
Why Investor’s Business Daily, and other Financial News Firms do not correct this SAM thought error in their printed and spoken word raises the question of collusion, perpetuation of an obvious fraud, or both.
The second SAM is the time frame used in the spending or “burn” rate of taxpayer dollars.
Federal politicians and bureaucrats all use the Commie Ten Year Plan time frame when reporting the total dollars increased or decreased for their various spending plans.
This 10 year time period is used primarily because the estimated changes on a yearly basis are very small, and multiplying by 10 tricks the gullible financial media into believing that the estimated changes will be large.
For example, at the present Federal burn rate of 10 billion dollars a day, the total burn rate per year is 365.25 days per year X 10 billion dollars per day = 3,652.5 billion, (=3.6525 Trillion), dollars spent or “burned” per year.
Using the Commie 10 Year Plan method of reporting that comes to 3,625.5 billion dollars burned per year X 10 years = 36,255 billion dollars burned in 10 years or, 36.255 Trillion dollars burned.
Working backwards, a reduction in total spending of 1,000 billion, (= 1 Trillion), dollars over the entire 10 year time period would be 1,000 billion dollars not burned per 10 years divided by 10 years = 100 billion dollars not burned per year.
!00 billion dollars not burned per year divided by 365.25 days per year = 0.273785+ billion, (=273,785 + million) dollars not burned per day for every 1 Trillion dollars not burned over 10 years.
IF the present Federal burn rate were to be held constant at 10 billion taxpayer dollars a day for ten years, AND 1 Trillion dollars were to be not burned over 10 years, THEN that would amount to a true reduction in the total burn rate of 0.027385+ %, far less than the rate of increase in the inflation of a modest 2 %, as decreed by the Federal Reserve.
The reality is that the US Federal Burn rate of taxpayer dollars has increased every year on a year to year basis from LBJ’s addition of the Welfare Tax Burden of Medicare to the present.
The third Smoke and Mirrors is that all spending plans, including the Ryan “Budget,” have NO decrease in the total, year to year Federal dollars spent per year.
Hence, when summing up these three Smoke and Mirrors used by “both “ political parties, the total National Debt will continue to increase, the credit rating of the US Federal Government will continue to be downgraded, and default by the US Federal Government is guaranteed.
Read More At Investor’s Business Daily: http://news.investors.com/ibd-editorials/041013-651427-obama-budget-is-worse-than-everyone-thinks.htm#ixzz2Q9qbpFA9
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