The Receding Economy, Surging Spending

American Spectator ^ | 7/8/09

[FromLori]

America's emerging policy issue is the federal budget deficit. According to the 7/2 released CNN/Opinion Research Corp. poll of 1,026 adults (conducted 6/26-28 with a 3.1% +/- margin of error), the federal budget deficit ranked second only to the economy as "the most important issue facing the U.S. today." That's ahead of health care, the wars in Iraq and Afghanistan, and energy policy.

The public's concern is not surprising. While the U.S. economy has been shrinking, the U.S. government has been anything but. The recession's effect on the federal spending and the deficit can be painted in a few bold strokes. Even using the Congressional Budget Office's March estimates -- which do not include the effect of recent spending legislation -- it's not a pretty picture. Federal outlays, the true measure of the government's size, are estimated by CBO to be $3.853 trillion this year.

This is greater than the entire U.S. economy was in 1984. The federal government now consumes more than America produced just a generation ago.

Those federal outlays now account for 27.4 percent of all America produces today. Less than three-fourths -- 72.6 percent -- is left for all the nation's other uses. This ratio of spending to the total economy is higher than at any point since WWII.

In nominal dollars, today's deficit measures $1.667 trillion. This is far and away the largest nominal deficit in our nation's history. That figure is 3.6 times greater than the previous record deficit of $459 billion, which was reached just last year. Total federal spending, did not reach the level of this year's deficit until 1999. In fact, today's nominal deficit is greater than the previous five years' deficits ($1.599 trillion from 2004 through 2008) put together! The previous eight years' net deficit of $2.005 trillion is

[handy old one]

Now let me get this straight. The Dems wan’t to tax the rich and give to the poorand have for years right!! Now they are giving the money to the rich?? What gives!!

[TexasFreeper2009]

My parents (obama voters) actually believed he would cut spending! ROFL

[handy old one]

No he’s just cutting your spending. With all the people loosing their jobs they can’t spend except on what they need to stay alive.

[FromLori]

I didn’t see anything like that in the article? I know obama is bought and paid for by the banks if that is what you are referring to?

http://www.businessinsider.com/henry-blodget-is-obama-in-wall-streets-pocket-2009-4

http://www.bloomberg.com/apps/news?pid=20601039&sid=aNMQDysdnKRc&refer=home

Catherine Austin Fitts
http://www.opednews.com/articles/6/Obama-s-New-World-Order-by-Stephen-Lendman-090410-741.html

From No Quarters...

Let’s start with the numbers. Why is a first term Senator pulling down almost $300,000 a year from Goldman Sachs, Lehman Brothers, Bear Stearns, Fannie Mae, Freddie Mac, AIG, Countrywide Financial, and Washington Mutual? He has not even completed his fourth year in the Senate and received a total of $1,093,329.00 from these eight companies and their employees. (all data from OpenSecrets.org). John McCain’s numbers, according to OpenSecrets.org for the period 1990-2008 (i.e., 18 years worth of data) only collected $549,584.00. In other words, Barack is receiving $273,582.25 (and 2008 is not over) per year while McCain raised a paltry $30,532.44.

Want another shocker? Barack Obama has received more from one source–Goldman Sachs $542,252.00–than McCain has from all of the companies combined. Who the hell is more beholden to lobbyists? And why does a junior Senator from Illinois rate this kind of dough?

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

CITI-FRAUD, PURPOSELY or incompetently The Resident cut a real bad deal for US!

http://mcauleysworld.wordpress.com/2009/03/01/obamas-citi-group-move-crash-burns-obama-pays-premium-for-citi-stock-that-goes-bust/

While sucking us dry to the tune of $45 Billion!

http://www.reuters.com/article/newsOne/idUSTRE52F3MP20090316

Movin on Up to the Treasury

http://online.wsj.com/article/SB123732747181462245.html

US of Citi-fraud, Coincidence??

http://www.americablog.com/2009/02/united-states-of-citibank.htmlh

Top Donor to the Resident’s Inaugeration.

http://www.newsmax.com/insidecover/citibank_obama_donors/2009/01/15/171703.html

AIG Kickback

http://www.redstate.com/california_yankee/2009/03/17/obama-received-a-101332-bonus-from-aig/

Freddie/Fannie Payoffs

http://newsbusters.org/blogs/noel-sheppard/2008/12/07/ap-blames-gop-freddie-mac-fiasco-ignores-obama-donations

Government Sachs

http://tpmmuckraker.talkingpointsmemo.com/2009/03/government_sachs_tarp_funds_just_the_tip
_of_th_ic.php

From Op Ed
While not on the Center for Responsive Politics list of the top 20 contributors to the Obama presidential campaign, Mayer-Brown’s partners and employees are in rarefied company, giving a total of $92,817 through December 31, 2007, to the Obama campaign. Seven of the Obama campaign’s top 14 donors consist of officers and employees of the same Wall Street firms These seven Wall Street firms are (in order of money given): Goldman Sachs, UBS AG, Lehman Brothers, JP Morgan Chase, Citigroup, Morgan Stanley and Credit Suisse. There is also a large hedge fund, Citadel Investment Group, which is a major source of fee income to Wall Street. There are five large corporate law firms that are also registered lobbyists; and one is a corporate law firm that is no longer a registered lobbyist but does legal work for Wall Street. The cumula tive total of these 14 contributors through February 1, 2008, was $2,872,128

http://www.opensecrets.org/pres08/contrib.php?id=N00009638&cycle=2008

And how SWEET it is to be on his list of Bribers! Citi-FRAUD who was broke remember?

http://www.reuters.com/article/newsOne/idUSTRE52F3MP20090316

And I know the Fed is LYING about the money supply is that what you mean?

http://mises.org/story/3525

[A.Hun]

And a lot of people here actually thought Bush was a big spender! Bwahahaha!!!!

These are just projections...the actual deficits will be far worse...the House Dems just gave most government agencies a 12% budget increase.

[FromLori]

Thanks for posting say can you post the graphs from this too where it shows the FEDS are lying about the money supply?

http://mises.org/story/3525

[handy old one]

All the money (stimulus) going to Banks, Auotmobile manufactures, other who are not using the money to grow the economy but their own pockets.

[whitedog57]

If you want to see a presentation on the receding real estate market, look at this site:

http://mason.gmu.edu/~asander7/

Look for Presentation to NAIOP on Commercial Real Estate, July 2009

Pretty sobering stuff! Long, but worth a glance.

[misterrob]

The tax receipts in 2000 were based on the tech boom. Once that went away the problems began. Bush’s years would have looked a lot worse if it wasn’t for the credit binge.

[A.Hun]

Certainly! Thanks for your posts!

[FromLori]

Well when they asked helicopter ben where was the missing 9 trillion I guess he forgot and when they asked him to divulge where the other money went he forgot again so?

http://moneynews.newsmax.com/financenews/feds_lost_nine_trillion/2009/05/12/213463.html?s=al&promo_code=7F9F-1

http://www.godlikeproductions.com/forum1/message810383/pg1

http://romanticpoet.wordpress.com/2009/05/13/federal-reserve-cannot-account-for-9-trillion-dollars/

[A.Hun]

Bush's deficits were primarily due to the drop in revenues caused by that and his tax cuts. The difference between now and then is that the tax cuts took us out of the recession.

The Repubs couldn't cut spending, but as a % of GDP they kept it in line.

On the other hand, Obama and the Dem's massive spending has doomed us to another depression. (A lot of the nation is now figuring that out, only its too late.)

[whitedog57]

A forgotten fact.

When the Clinton “miracle” ran out and he raised taxes and increased regulation, the economy started to die. Credit was eased to cope with the declining economy.

Bottom line: GOVERNMENT OUT OF BUSINESS!!!!!!!!

Joing the Von Mises Institute!!!

[handy old one]

Transparent = I forgot as the correct answer!

[coconutt2000]

I see Obama is restoring fiscal responsibility to our government... Just like he promised. /sarc

[FromLori]

Yea lol and who is he trying to kid you know who will makes lots of money from crap and tax besides the usual suspects like gorezilla lo and behold government sachs!

http://www.canadafreepress.com/index.php/article/5216

http://finance.yahoo.com/techticker/article/273773/Bailouts-for-Everyone,-But-Who’s-Going-to-Rescue-Uncle-Sam;_ylt=Akbq0.MBEjqBC3lOVxtpX47eba9_

http://warofillusions.wordpress.com/2009/03/30/obama-maurice-strong-al-gore-key-players-cashing-in-on-chicago-climate-exchange/

http://www.klamathbasincrisis.org/globalwarming/gorestrongobamaclimatechange033109.htm

http://canadafreepress.com/index.php/article/6485

The new world devised by Maurice Strong and George Soros

http://www.canadafreepress.com/maurice-strong.htm

http://bluelori.blogspot.com/2009/07/government-sachs-for-cap-and-trade.html

[misterrob]

What we have happening right now is the aftermath of a credit bubble. Thank Greenspan as well as both the Repubs and democrats for their screwing around with the market.

[misterrob]

He made several blunders. CRA, signing Phil Graham’s bill and the Telecom Act of 1996. All three had bad implications on the market.

[handy old one]

Since we as the American people own so many companies when do we get jobs for the unemployed and payed back?? That is not what the government wants to hear now is it??