Posted on 04/19/2010 3:35:35 AM PDT by Scanian
It's getting harder to trust Washington's numbers. There was, for example, the not insignificant matter of fuzzy health care budgeting. How it was possible for the CBO to budget six years of health care spending based on ten years of revenues is still a puzzle to me. There was also the little matter of restoring a 22% cut in Medicare and Medicaid reimbursement for physicians, a problem solved by shifting the expense to a separate bill. Then there was the odd coincidence of the autumn Labor Department jobs numbers coming in above what private-sector economists estimated they would be just as the health care debate culminated. What luck for the Democrats, as the figures (later revised) implied a stronger economy more able to pay for the legislation.
As a result of such hijinks, most Americans do not trust what Congress and the president are telling them about the economy, but there does exist at least one accurate gauge of the economy and, in particular, of the impact of current deficits on future economic stability -- and that is the bond market. Unlike politicians, who have no difficulty arriving at revenue figures based merely on how much they wish to spend, bond traders judge the soundness of government credits based on actual spending and revenues.
(Excerpt) Read more at americanthinker.com ...
“Democratic politicians continue to put the nation’s fiscal survival at risk even as they impanel a special committee (the Financial Crisis Inquiry Commission, chaired by a long-time member of their own party) to report on the causes of fiscal crises — but not until after the November elections, lest any of their own names appear in the report. Investment advisors, on the other hand, must produce something more than excuses. What the advisors are telling us at the moment is that government debt is not a good deal. It is not a good deal for investors, and it is even worse for the nation at large. “
Very interesting article. Thanks for posting...many interesting facts but I had to re-post this paragraph...kind of says it all
Fuzzy math is your friend. figures (later revised) implied a stronger economy,unexpected?.
Glad you liked the post.
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