Fed. Gov Will Borrow 40% of Money It Spends Next Year

[OklahomaTuba]

Thanks China!!!!!

The report shows that 39.9% of all federal income will be borrowed, making borrowing the single largest share of revenue in 2010. The next largest component of federal revenue is the personal income tax, which accounts for only 27.3% of federal fundshttp://www.cnsnews.com/news/article/53246

Obama's Borrowing is also 10 Times Greater Than Reagan's.

And Reagan's deficits were considered unsustainable. And won and ended the Cold War.

[My Opinion Matters]

In other news, OU has a football game on Saturday.

[49r]

Is CNS News another member of the liberal propaganda hype machine?

[OklahomaTuba]

Is CNS News another member of the liberal propaganda hype machine?I'm guessing not, since they don't seem to worship at the alter of teleprompter Jesus.

[Harry Beanbag]

This is my favorite part:


Entitlement programs, by contrast, including Social Security, Medicare, and Medicaid account for 38.2 percent of total government spending.

[rainiersooner]

Obama's Borrowing is also 10 Times Greater Than Reagan's.


What is it adjusted for inflation? I'm asking, not trying to make a point.

[OklahomaTuba]

What is it adjusted for inflation? I'm asking, not trying to make a point.They don't say, but inflation hasn't been that high. I think it just shows the explosion of federal spending and decline in tax collections from the economic collapse.

[rainiersooner]

This is an interesting table - it shows debt as % of GDP:

http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

I'm having a hard time discerning what conclusions I should draw from this (we're much lower than Japan but much higher than Russia).

[OklahomaTuba]

This is an interesting table - it shows debt as % of GDP:

http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

I'm having a hard time discerning what conclusions I should draw from this (we're much lower than Japan but much higher than Russia).Russia is a basketcase. Its more an oil-based hedgefund then governement.

Japan OTOH went whole-hog into the whole Keynesian theory bull****.

They spent more then they will ever be able to pay off to build immaculate roads, high speed rail, beautiful buildings, cradle to grave entitlements all in an effort to "stimulate" the economy after the crash in 1990.

And what do they have to show for it now???

A lost decade, thats what. Have you seen their demographics?? Ouch. Not good!!

Which is exactly what is going to happen here I'm afraid.

An interesting take on this from my favorite economic blog:


No Amount of Stimulus Will Work

The problem with Keynesian clowns is they never look ahead to when the stimulus stops. By definition "stimulus must end" and as soon as it does, unless the stimulus created lasting new jobs, there will be nothing to show for it other than debt.

And interest must be paid on that debt. And that interest has to come to come from somewhere, either more taxes, or printing money and cheapening the dollar. That means there is a price to pay down the road for stimulus today. Keynesian clowns act as if there is no price down the road.

Since you cannot spend what you don't have (without long-term negative consequences), the key to a solid recovery comes from a buildup in savings, lower taxes, and letting consumers keep more of their money (as opposed to government deciding how and when it should be spent).

In short, no amount of artificial stimulus can possibly work because government cannot allocate capital in an efficient manner (repairing roads that do not need to be repaired is proof enough). This is something that academic wonks trapped in their ivory towers apparently will never understand.

Creating a better business climate, with less government waste, will work. However, the right plan will take time and patience, traits that Government bureaucrats and academic wonks both lack. Unfortunately, but not unexpectedly, we are moving in exactly the wrong direction as noted in Obama's "Cap and Trade" Energy Plan Will Cost Jobs.

There is a price to be paid for reckless expansion of credit and we are paying the price now. All artificial stimulus does is prolong the agony. The greater the stimulus, the greater the period of future agony, just as happened in Japan. Ironically Keynesian and Monetarist clowns shouted for more stimulus all the way, and they are doing so again now.http://globaleconomicanalysis.blogspot.com/2009/07/no-amount-of-stimulus-will-work.html

[delhalew]

This is an interesting table - it shows debt as % of GDP:

http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

I'm having a hard time discerning what conclusions I should draw from this (we're much lower than Japan but much higher than Russia).

This is crucial and signifies the end of our Republic.

In place of the Wiki, I offer this.http://www.usgovernmentspending.com/federal_debt_chart.html:(

I realize it doesn't look like the end of the world yet, but the fiscal policies of the current admin combined the cluster**** that is THE FED signals bad bad news.