Free Markets, Free People


Fiscal deficit increases 15.7% in first half of 2011

Something to keep in mind when President Fiscal Responsibility lectures us all tonight on how important fiscal discipline is and how it is a priority of his to reduce the deficit and debt.

The US budget deficit shot up 15.7 percent in the first six months of fiscal 2011, the Treasury Department said Wednesday as political knives were being sharpened for a new budget battle.

The Treasury reported a deficit of $829 billion for the October-March period, compared with $717 billion a year earlier, as revenue rose a sluggish 6.9 percent as the economic recovery slowly gained pace.

2011 spending isn’t something he “inherited”.   It’s his.  And the budgets he previously laid out for the next 10 years are not deficit or debt reducing budgets by any stretch.

original deficit

 

As we know, last year’s deficit was in the $1.4 trillion range, much closer to the CBO estimate than the White House fantasy.  Same with ‘09.  Sod disregard the White House spin and go with the CBO’s 2 year track record of being pretty much on the money – no pun intended.

Also note that the deficit is supposed to be under a trillion dollars this year and supposedly hits its lowest point when?  Why election year of course.  Then it again steadily builds as ObamaCare relentlessly kicks in, approaching a trillion dollars again in ‘19.

This is the White House projected budgets, folks.  This is what they see us spending, or plan on anyway.  But tonight we’re going to be treated to a “major speech” by the architect of this mess telling us how concerned he is with the deficit and how important it is to him to address it.

Print this chart and keep it handy when he presents his  spin.

Oh, by the way, remember the campaign promise to cut the deficit in half by the end of his first term?  You didn’t know at the time that $800 billion in the hole would do the trick did you?  You didn’t know he planned on a deficit of $1.8 trillion did you?

Suckers.

~McQ

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8 Responses to Fiscal deficit increases 15.7% in first half of 2011

  • We are screwed.
    This guy cannot be allowed more time in office past his term.

    • Dude, it ain’t just him.  It’s about 535 members of Congress and several tens of millions of deadbeat Americans who insist on getting their check from Uncle Sugar.  I agree that he’s making it much worse, but it most certain ain’t just him.

      • Yeah, doc, to be sure.
        Byron York is saying his new whiz-bang future-killing budget is “tax, then spend”.
        My thing is that these people (all of them) have to be stopped.

    • If Obama gets re-elected, they will need to teach begging in the schools

  • More good news …

    Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

    • And the CPI is not a valid measure of inflation. Productivity and technology (production efficiencies), velocity of money, economic stagnation, and other factors put a damper on PRICES, but rising prices are only a RESULT of inflation, not the CAUSE.
      The CPI is another bogus Keynesian measure to go along with GDP/GNP (hides government spending including nuc’lear government spending binges) and UI which is appropriate to a mystic/wizards pap.

  • JPMorgan’s Earnings Point to a Double Dip

    A 3 percent decline in consumer loans is pretty extreme. While this might be good for the long-run—households are repairing their balance sheets by taking on less debt—it is definitely not a good sign for near term economic growth. Declining consumer credit could push us into another recession—or be evidence that one has already begun.

    Households see bad times ahead .. this can’t be good for an Obama re-election.

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