Obama's economic collapse

[trooper]

DITORIAL: Obama’s economic collapse

July 29 2011

Rosy scenarios defeated by grim reality

Smack in the middle of the debt-ceiling crisis comes word that the economic situation is worse than everyone thought. New Commerce Department figures show the gross domestic product (GDP) growing at an anemic 1.3 percent rate in the second quarter of 2011. Even more alarming, the initial first-quarter 1.9 percent figure was sharply downgraded to a scant 0.4 percent. If the second-quarter rate is later reduced that much, it would signal that the country is in a recession. Most Americans suffering during this historic downturn wouldn’t be surprised.

The weak GDP numbers raise serious questions about the economic assumptions on which the various budget projections and debt-ceiling plans are based. Revenue projections assume an unrealistic growth rate of nearly 3 percent through 2020. The claimed savings in the plans - whether they are from the House, the Senate or the purported “secret” White House plan - are only cuts against projected spending. They are the equivalent of someone claiming to be frugal for not going on a planned unsustainable spending binge but instead just splurging on a moderately pricey shopping spree.

While spending levels are hard numbers, the revenue side of the equation is soft; it is based on the amount of money the economy is expected to generate. When GDP drops, future revenue declines and deficits go up. Thus, even the Senate debt-ceiling plan, which seeks to take the issue off the table for the 2012 election, may no longer give President Obama and the Democrats the necessary margin of safety.

The new numbers also show the widening gap between Mr. Obama’s promised economic performance and what he has delivered. His first budget was ironically titled “A New Era of Responsibility,” but the country saw the opposite.

With comfortable Democratic margins in both houses of Congress, the government sought against common sense to spend the country into a robust recovery. But that’s not how markets work. The era of big government returned with a vengeance, and America has continued to teeter on the brink of collapse throughout the entire Obama term.

The results of this reckless approach are clear. The first Obama budget promised GDP growth of 4.0 percent in 2011. Instead, the current annual rate is 1.3 percent, and year-to-date growth annualizes to less than 1 percent. The promised unemployment rate for 2011 was 7.1 percent, to drop to 6 percent in 2012. Actual June unemployment was 9.2 percent, up from 8.8 percent in March and showing no signs of declining. The projected 2011 federal deficit was $912 billion, which was supposed to be almost halved by 2012, to $581 billion.

Unfortunately, the nation’s finances have gone in the other direction. The Congressional Budget Office now projects the 2011 deficit at $1.5 trillion. For purposes of comparison, the actual budget deficit for all of 2007 was $160 billion. Perhaps the United States needs to return to the old era of responsibility.

Comparing economic reality to the promises of two years ago illustrates the shaky ground on which the war over the debt ceiling is being waged. All the plans, from every side of the spectrum, are exercises in prognostication that are certain to be wrong. The intense passions being generated over which plans “save” however many trillions of dollars over the next decade are a waste of energy. These plans are fictions based on unrealistically rosy scenarios. The only numbers that really matter are those on the bottom line. The real battle will come this autumn when Congress grapples with the coming fiscal year’s federal budget. That battle will truly separate those who want to do what it takes to save America from insolvency from the tax-and-spenders who pretend there is no crisis.

http://www.washingtontimes.com/news/...omic-collapse/

[Texhad]

Right on!

Blessings,

Texhad

[Shorty98]

Don't get me wrong I'm not a huge Obama fan, but I vote, I am a well invested dinarian, It just amazes me to read several new post a day about OBAMA and the budget, and the the must comical thing the BIRTH CERTIFICATE.... the BC I won't touch (what a joke)but even with the budget , republicans can't even agree to disagree. Oh and I can provide links! I know my status says I'm a newbie but I been a member of the DINAR community for a long time. I came to DV to get info on the latest DInAR news, not how much one hates the president.... The fact is when he took the oath he put his self behind the 8 ball. Go RV.... GO TRUTH... and go to bed!

[aaanth]

it is a very strange thing but you are not going to find many Obama supporters on these dinar sites. not just this one but pretty much all of them, at least the ones that are the most popular. it seems that a lot of those invested in this dinarama are from the south or the southern states and/or inner city urban cultures so, Obama is no favorite son around those parts, that's for sure. i'm writing this as i see a picture of Sarah Palin above me with the caption that reads "SHOULD SARAH RUN? vote now. Sarah, "ditz brain" Palin can find her support on these sites but not The President Of The United States. ya' know, just Rv so i can just get the hell out of this craziness. Sarah Palin for PRESIDENT??? are you kidding me? that would certainly be the height of ridiculous now wouldn't it be? bet i'm gonna get bashed for this but i'm sorry, to actually run ads supporting a person who has the qualifications of a hummingbird and dis the prez, in just wrong... c'mon. bring it. cause i really don't care... this needed to be said...

Edited July 30, 2011 by aaanth

[capt.cliff]

that's the real problem--no one cares about the country anymore other than complaining ,making it easy for the[ 526 plus one president] vultures to devour the carrion!

capt cliff

[Carrello]

Thanks Mr. Bush. I have never had a turd sandwich before, and then you made me pay for it.

[Lutie]

Thanks Mr. Bush. I have never had a turd sandwich before, and then you made me pay for it.

[/quote

Time to grow up Libs and take responsibility. The lets blame Bush thing is really getting old and it makes you sound like youv'e had your head in the sand for the last 2 years. I know your smarter then that because your on this site.

[RickOhio]

Do you really think that it was only going to take 2 years to come out of the situation this country was put in by Bush? It took a year of scrambling just to insure we didn't collapse.

[Rogue Knight]

Still can't believe that people blame Bush, especially when he was one of the authors of the The Plan ( the investment opportunity for the RV/RI of the Iraqi dinar). Hey thanks for making me money and giving us little guys a chance, but we will slap you in the mouth too?!!! If you are invested and educated enough in this, you should know the facts.The Fair Housing Act was passed under Clinton ( Fannie Mae and Freddie Mac downfall) as well as NAFTA ( outsourcing of American jobs). The only reason he did well was the RV of the Kuwaiti Dinar in 1991, fact is that he started the dominoes falling through today. But you folks are telling me that spending over 4 trillion since Obama was elected is ok?No one President can be blameless, but for God's sake- every President in office should be accountable for the current situations. Instead of junior high finger pointing... man up Obama, stop your whining like a five year old. Do your job and not care about the next election, quit you political posturing and speaking out of both corners of your mouth and talking about bipartisanship, while still placing blame because you are not getting your way... what makes you so right Obama? He is full of SH*! and a Godless traitor.

Edited July 30, 2011 by Rogue Knight

[2fast4u2c]

Carello....Clinton is the one that pushed NAFTA thru because we didn't need $10 an hour jobs...we were too high tech. Ask Clinton why India and China pay him 25 million per year. That is fact. That is why Hillarious did not want to discliose their income.

[LTnicks]

well congress is in session, all you a@sholes are the reason why America is a joke. you need to learn to get along and do what needs to be done or resign your post.

I will always stand behind the elected president, and with that said, I have a strong dislike for democrats and republicans. these parties are killing us all they do is bash one another, they dont appear to acomplish much else

can we please pass a budget now

[iqdheadlines]

we r goin g to have ahige eccomiic crisasss guys beliuvew me it iait bull shitt