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Obama Adviser: Deficit Likely Worse Than Planned (Laura Tyson)
Dow Jones Newswires (subscription) ^ | July 07, 2009 | David Roman and P.R. Venkat

Posted on 07/07/2009 7:57:32 PM PDT by CutePuppy

The U.S. government's budget deficit will likely be wider than expected this year, a top White House adviser said Tuesday.

Speaking at the Nomura Asia Equity Forum in Singapore, Laura Tyson, a member of President Barack Obama's Economic Advisory Panel, said the U.S. economy faces a worse situation than previously believed, and the deficit - already the widest since World War II - may surpass a previous projection of around 12% of gross domestic product.

Tyson said her remarks represent her own views and not the administration's official position.

.....

As to the size of this additional stimulus, she said it's too early to quantify, and "we'll have a much better idea towards the end of the year."

She added that the current stimulus package should create or sustain 3.5 million jobs, as planned, but its effect on unemployment will be less than previously expected because the crisis has had a greater impact on unemployment than anticipated.

.....

One way for the U.S. government to reduce its debt and eliminate the budget deficit would be to increase government revenue as a portion of gross domestic product to a level comparable with that of Canada, she said.

She cited a recent report by the Organization for Economic Cooperation and Development showing that among OECD countries, U.S. government revenue as a percentage of GDP is higher than only that of Slovakia.

"If the government could get a way to get to Canada's intake, the debt and deficit problem would go away," she said. "In five years, we would go from deficit to surplus."

Tyson also said deflation remains a risk for the U.S. economy that "cannot be written off yet." She warned against attempts to fuel a recovery based on the housing sector.

"A real estate or construction boom won't get us out of this."

.....

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: asfaraseyecansee; debt; deficit; deficits; lauratyson; stimulus; stimulus2; taxes; unemployment
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To: CutePuppy
She added that the current stimulus package should create or sustain 3.5 million jobs, as planned, but its effect on unemployment will be less than previously expected because the crisis has had a greater impact on unemployment than anticipated.

But, but, but I thought all that money for dem pet projects would brink in millions of jobs.../s .....

21 posted on 07/07/2009 8:12:25 PM PDT by GOPJ (Central park didn't hit 85 degrees in June this year - last time was 1916. Al Gore is nuts.)
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To: donmeaker
The planned recession was the "October Surprise"

There is ZERO chance the DOJ will investigate.

More likely the ultracorrupt gangster Obama DOJ
will kill anyone who dares whistleblow.

22 posted on 07/07/2009 8:13:53 PM PDT by Diogenesis ("Those who go below the surface do so at their peril" - Oscar Wilde)
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To: GOPJ

“She added that the current stimulus package should create or sustain 3.5 million jobs, as planned, but its effect on unemployment will be less than previously expected because the crisis has had a greater impact on unemployment than anticipated.”

Translation: It won’t in theory create 3.5 million jobs because many of those 3.5 million jobs were lost. But it did create 3.5 million jobs; you just can’t see them on paper.

In a similar vein, I myself create 8.5 million jobs mowing the lawn tonight. They don’t show up on paper, but by God, they’re there!


23 posted on 07/07/2009 8:17:41 PM PDT by CaspersGh0sts
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To: 240B
Precisely. Threw trillions - economy's got much worse.
It's only logical to add more trillions in spending if you wish to continue the trend and if the achieved (by the 1st “stimulus”) result was actually not sufficiently bad...
24 posted on 07/07/2009 8:17:55 PM PDT by alecqss
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To: Nachum

Wow, this is a real surprise, lol!


25 posted on 07/07/2009 8:18:21 PM PDT by Victoria Delsoul
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To: Victoria Delsoul
LOL.

Amazing, huh?

26 posted on 07/07/2009 8:18:53 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: CutePuppy

27 posted on 07/07/2009 8:19:07 PM PDT by Diogenesis ("Those who go below the surface do so at their peril" - Oscar Wilde)
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To: GOPJ

It’s not the economy they knew.


28 posted on 07/07/2009 8:19:11 PM PDT by alecqss
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To: Nachum

It is, lol!!


29 posted on 07/07/2009 8:20:26 PM PDT by Victoria Delsoul
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To: CutePuppy

Where is my jobs, WAURA!!
30 posted on 07/07/2009 8:20:34 PM PDT by CaspersGh0sts
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To: CutePuppy
Should we start a pool to guess what the first Obama Budget Deficit will end up being?

I'll go first, 1,993 Trillion.

We can figure out what the winner gets later.
Probably another Tax Increase.

31 posted on 07/07/2009 8:29:15 PM PDT by Kickass Conservative (One Man's Messiah is another Man's Fuhrer...)
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To: Kickass Conservative

Make that 1.993 Trillion.


32 posted on 07/07/2009 8:30:01 PM PDT by Kickass Conservative (One Man's Messiah is another Man's Fuhrer...)
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To: CutePuppy

Hum te dum.....

.....moved more cash out of the country today....

....hum te dum.....


33 posted on 07/07/2009 8:41:54 PM PDT by Uncle Miltie (It's the spending, stupid!)
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To: CutePuppy
Buy GOLD. Coins, bullion, ETFs, mining stocks.

I'm no gold bug. But the Obama administration is starting to mumble about a "second stimulus," which will mean printing even more dollars. Having at least 10% of your investments in gold is a good hedge against a debased dollar.

34 posted on 07/07/2009 8:42:49 PM PDT by southernnorthcarolina (Now with ConstructionCam! Click on my name and follow the progress.)
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To: Kickass Conservative
Make that 1.993 Trillion.

At this rate, your first guess of $1,993 trillion might actually be closer.

35 posted on 07/07/2009 8:45:58 PM PDT by AAABEST (And the light shineth in darkness: and the darkness did not comprehend it)
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To: Libloather; CutePuppy; Liz; AT7Saluki; writer33; GOPJ
WORKING THESIS Obama, Soros, Rahm are taking control of the US financial system-----$17.5B stimulus was hidden in New Jersey......

ITEM VP Biden admitted on ABC's This Week with George Stephanopoulos that the Obama Admin "misread" the economy when he pushed the stimulus bill. The admin thought unemployment would not exceed 8% this year (it is now at 9.5%). Also discussed is the need for another stimulus package.......(STUCK ON STUPID So if the first one did not work, do it again).....(Excerpt) Read more at freedomslighthouse.com. Watch video.

POINTS TO PONDER Creating jobs was apparently NOT the reason for the stimulus.

POINT ONE On June 9 President Obama called a press conference to announce, "Several financial institutions are set to pay back $68B to taxpayers." While Mr. Obama's announcement was welcome news, it was assumed that any money or profit would be returned to the general funds from whence it had come in order to pay down the debt. The truth, however, is that the money returned by the banks is finding new life as part of what amounts to a Treasury Department-controlled slush fund.

POINT TWO We keep reading and hearing Congress rushed to approve the "$787 billion stimulus package" early this year, but very little of it has been used. Now uber-Lobbyist Thomas Hale Boggs, Esq (Patton Boggs) was interviewed by nightly network news last week. Boggs said there's $2 TRILLION federal stimulus waiting to be distributed..... AND that he is getting unprecendented numbers of calls from all over the US......from those who want a piece of it. Boggs is the son of former Cong Hale Boggs and sister of ABC-TV commentator Cokie Roberts.

POINT THREE Obama tapped VP Joe Biden to "allocate" the stimlulus $$trillions. Biden's family was involved with Texas financier H. Allen Stanford, now charged with an $8 billion offshore fraud, the WSJ said. The Bidens $50 million fund was jointly branded between the Bidens' Paradigm Global Advisors LLC and a Stanford Financial Group entity, and was known as the Paradigm Stanford Capital Management Core Alternative Fund, the paper said. Stanford-related companies marketed the fund to global investors and also invested about $2.7 million of their own money in the fund, the paper said, citing a lawyer for Paradigm.......... Paradigm Global Advisors is owned through a holding company by the VP's son, Hunter, and Joe Biden's brother, James, according to newspapers.

POINT FOUR How can this be legal? A jaw-dropping policy the White House released late on a Saturday afternoon........hoping we would not notice. "Following OMB’s review, the Obama Administration has decided to make a number of changes to the rules that we think make them even tougher on special interests and more focused on merits-based decision making. First, we will expand the restriction on oral communications to cover all persons, not just federally registered lobbyists. For the first time, we will reach contacts not only by registered lobbyists but also by unregistered ones, as well as anyone else exerting influence on the process. We concluded this was necessary under the unique circumstances of the stimulus program."

POINT FIVE The Reserve Primary Fund's recent failure was "a tragedy" said Crane Data. Without details, sounds like a very strange charge. It may just be a diversion and scapegoating in a broad "War on Wall Street" that Obama, Soros and FDIC's Sheila Bair, among others, are engaged in right now, to get complete control of our financial system.

POINT SIX Obama hid $17.5 BILLION of his $2 TRILLION stimulus in NJ. The $17.5 BILLION cannot be accounted for. EDITORIAL June 22 reported NJ promised complete transparency.....but there is virtually no information on the $17.5B federal largess via a Web site — www.recovery.nj.gov. A NJ TASK FORCE was created to review every step of the process and ensure that stimulus funds are awarded based on clear and appropriate criteria and then distributed in a prompt, fair and reasonable manner. The Web site, as currently constituted, does none of that. END EDITORIAL

Americans have no way of knowing if stimulus is being laundered in NJ (and other states), and/or is being illegally directed to Democrat campaign coffers.

36 posted on 07/07/2009 8:53:14 PM PDT by Liz (When people fear govt, we have tyranny; when govt fears the people, we have freedom.)
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To: CutePuppy

Good grief, Laura D’Andrea Tyson; another Clinton retread!


37 posted on 07/07/2009 9:03:54 PM PDT by SuziQ
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To: AAABEST

Don’t think that didn’t occur to me.

We live in very scary times.


38 posted on 07/07/2009 9:07:34 PM PDT by Kickass Conservative (One Man's Messiah is another Man's Fuhrer...)
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To: Kickass Conservative

I’m going low - 1.54 Trillion


39 posted on 07/07/2009 9:10:44 PM PDT by frogjerk (C-NJ)
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To: CutePuppy
the crisis has had a greater impact on unemployment than anticipated

No, Laura, it's YOUR POLICIES that are CAUSING THE CRISIS!

40 posted on 07/07/2009 9:12:48 PM PDT by kcvl
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