View Full Version : Hey buddy, can you spare $1,300,000,000,000.00?

09-24-2004, 10:32 AM
From the AP (http://www.kentucky.com/mld/kentucky/news/nation/9741711.htm)

The Congressional Budget Office estimated Thursday that some of President Bush's budget policies plus other costs would add $1.3 trillion to federal deficits over the next decade.The Congressional Budget Office (CBO) is non-partisan.

Naturally, Bush insists that it won't be nearly so bad, but amazingly, he simply left Iraq and Afghanistan out of his proposed budget.

...A gradual reduction of U.S. military activity in Iraq and Afghanistan. Bush's budget proposed nothing for those activities.It's one thing to run up a huge deficit, but let's at least be honest with the taxpayers about it. Leaving huge items out of the budget is deceptive.

Scott Rosen
09-24-2004, 11:17 AM
That's a bunch of hooey.

The real budget gap is somewhere between 40 and 72 Trillion Dollars.

This problem is a lot bigger than Bush vs. Kerry. Neither one of them are even talking about it. Our nation is like a junkie and debt is our heroin. There's a good reason they're not talking about it--they don't have a clue as to how to deal with it.

link (http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/09/12/MNG2S8NOI21.DTL)

Kev Smyth
09-24-2004, 01:03 PM
The part I like best is that as the economy continues to expand each new cycle brings "record" levels of expenditure and debt. :D An no one bothers to really look at the relationship between the two. That wouldn't be nearly as much fun as pointing at the political opposition, pulling your hair, wringing your hands, and claiming economic collapse is eminent!! tongue.gif ;)

09-24-2004, 02:05 PM
Scott, the "fiscal gap" is an important issue, but it's slightly different than the subject of this thread.

Bush's $1.3 Trillion is a small part of it, but it's a part that can be addressed immediately.

"The journey of a thousand steps...." you know the rest.

The important thing is to start taking those steps in the right direction.

Scott Rosen
09-25-2004, 07:42 AM
Any talk about balancing the budget is naive. We are way beyond the point where traditional notions of paying back debt and balancing budgets make any sense.

This is the world of fiat currency, central banks and fractional reserve banking. If you try to apply old-fashioned solutions to this system, you will cause massive pain with no gain.

So far, the system has worked for us because we've been able to manage our debts by inflating our currency, and the rest of the world, which depends on our economy, has been willing to go along. There is no natural limit on the amount of inflation that our government can create. The only limit is the willingness of our foreign creditors to go along. For example, if OPEC decided not to take dollars for oil, we'd be in big trouble. If China decided it longer needed to hold US debt, we'd be in big trouble.

But thinking that you can address this problem by tweaking the US tax code, is like trying to stop a cruise missle with a peashooter.