Obama and his phoney deficit numbers

I ran across across an interesting little gem...

BEHIND OBAMA’S PHONY DEFICIT NUMBERS

By Dick Morris 02.1.2010

President Obama is being disingenuous when he says that the budget deficit he faced “when I walked in the door” of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.

Congressman Joe Wilson might have said “you lie,” but we’ll settle for “you distort.”

(As Mark Twain once said, there are three kinds of lies: “lies, damn lies, and statistics.”)

Here are the facts:


In 2008, Bush ran a deficit of $485 billion. By the time the fiscal year started on October 1, 2008, it had gone up by another $100 billion due to increased recession-related spending and depressed revenues. So it was about $600 billion at the start of the fiscal crisis. That was the real Bush deficit.

But when the fiscal crisis hit, Bush had to pass TARP in the final months of his presidency which cost $700 billion. Under the federal budget rules, a loan and a grant are treated the same. So the $700 billion pushed the deficit — officially — up to $1.3 trillion. But not really. The $700 billion was a short term loan. $500 billion of it has already been repaid.

So what was the real deficit Obama inherited? The $600 billion deficit Bush was running plus the $200 billion of TARP money that probably won’t be repaid (mainly AIG and Fannie Mae and Freddie Mac). That totals $800 billion. That was the real deficit Obama inherited.

Then…he added $300 billion in his stimulus package, bringing the deficit to $1.1 trillion. This $300 billion was, of course, totally qualitatively different from the TARP money in that it was spending not lending. It would never be paid back. Once it was out the door, it was gone. Other spending and falling revenues due to the recession pushed the final numbers for Obama’s 2009 deficit up to $1.4 trillion.

So, effectively, Obama came close to doubling the deficit.

Obama seems not to understand that the deficit is the jobs problem. To add to the deficit in the hope of creating more jobs is an oxymoron. Additional deficit spending just crowds out small businesses trying to borrow money to create jobs and consumers seeking credit to buy cars and homes.

Soon, when the Fed stops printing money and we have to borrow real funds from real lenders, the high deficit will send interest rates soaring, further retarding growth and creating a cost-push inflation.

The interest rate we are now paying for the debt — about 3.5% — is totally artificial and based on the massive injection of money supply created by the purchase of mortgage backed securities by an obliging Federal Reserve. Once these injections of currency/heroin stop, the rate will more than double, sending our debt service spending into the stratosphere. Once we had to choose between guns and butter. Now we will have to choose between guns and butter on the one hand and paying our debt service on the other.

Obama’s program of fiscal austerity in this new budget is a joke. He freezes very selected budget items while he shovels out new spending in his stimulus packages. If he wanted to lower the deficit, here’s what he could do:

1. Cancel the remaining $500 billion of stimulus spending and

2. Cancel the $300 billion of spending in stimulus II.

Those are the real numbers. Or, as Al Gore would have it, “the inconvenient truth.”

http://www.dickmorris.com/blog/2010/02/01/behind-obamas-phony-deficit-numbers/#more-714

 

What did Dick Morris say would have happened if nothing had been done? Let me guess, it would have just fixed itself? Did Dick Morris forget that the economy was close to completely collapsing? Any fool knows that you can tell whatever story you want with numbers.

The real problem are the crooks on Wall Street. Something should be done to regulate those people so this doesn't happen again.

 

I hope he retunrs to see what Tuba left him. op:

 

Im sure some on here think he is a lying crook or something close to it but I have always found Mr. Morris to be educated and honest.

To the guy above who asked what Obama shouldve done? Well, the majority of Americans who had to pay for the bailout mind you, those people didnt want the bailout. The collective American said F*ck em, someone else will come around

 

I can't decide if his flip flopping on which side of the dem-pub debate he's on is because he's a sincere moderate, confused, always wanting to be on the winning side, or just uninformed. I like to think he's sincerely moderate, but I'm a bit cynical of anyone that's been a power player in Washington so long.

 

This crap would not happen if D.C. would actually listen to the people that put them in office.

 

what, pray tell, did the "crooks" on wall street do exactly?
this should be good.

 

what, pray tell, did the "crooks" on wall street do exactly?
this should be good.

 

First they invent these wonderful new types of adjustable mortgages. Then they trick people like your grandma or your good FRIEND into going with the cheaper version, because the economy is doing so well, while making all the money upfront. The economy takes a crap, the rate goes up on the mortgage. People can't afford their mortgage anymore then default. The banks are now screwed. The housing market colapses (Glad to summarize)

I am one of the many that believed the bailout was an extremely unpopular move, but I also believe it was necessary. I hope those banks felt completely ashamed and embarrassed to take that money. Some must have, because many have paid it back, or are currently working to pay it back. Now we need some regulation, because the next generation may not remember how we got into all this crap and make another poor decision.

Just a note to the people above that are so worried about our new President's scruples... It's okay to believe and trust in somebody. Life sucks if you never do.

 

brilliant

 

horse feathers

 

I'm needing 100 million to bailout my horse feather factory.

 

just pluck em and reuse em

 

haha, get real, about where the real crooks are...a hint: they have the power of govt.

 

First they invent these wonderful new types of adjustable mortgages. Then they trick people like your grandma or your good FRIEND into going with the cheaper version, because the economy is doing so well, while making all the money upfront. The economy takes a crap, the rate goes up on the mortgage. People can't afford their mortgage anymore then default. The banks are now screwed. The housing market colapses (Glad to summarize)

I am one of the many that believed the bailout was an extremely unpopular move, but I also believe it was necessary. I hope those banks felt completely ashamed and embarrassed to take that money. Some must have, because many have paid it back, or are currently working to pay it back. Now we need some regulation, because the next generation may not remember how we got into all this crap and make another poor decision.

Just a note to the people above that are so worried about our new President's scruples... It's okay to believe and trust in somebody. Life sucks if you never do.

 

you have no idea what you are talking about

 

Wall street sells mortgages?

 

apparently

 

I bet lousyut thinks his insurance and healthcare come from Wall Street

 

dick morris has always been know as a tea bagger