Sunday, October 19, 2008
Maxed out on Plastic! Housing starts hit 17 year low! bush says economy will recover Buffet says buy stocks! $1 trillion Budget deficit!
Maxed out on Plastic! Housing starts hit 17 year low! bush says economy will recover Buffet says buy stocks!
Congressional leaders and both presidential candidates are proposing billions of dollars in tax breaks and other measures to stoke economic growth, a surge in spending that could send the federal deficit soaring toward $1 trillion this year, creating the deepest well of red ink since the end of World War II. The government already has embarked on an unprecedented spending spree to halt the implosion of the U.S. financial system and is borrowing money at levels that some economists fear could undermine the nation's economic security for years to come. Congress could consider additional spending as soon as next month, potentially digging the nation's hole even deeper.
"We're going to make Ronald Reagan look like a piker in terms of deficit creation, I think," said Rudolph Penner, a senior fellow at the Urban Institute who served as director of the Congressional Budget Office during the Reagan administration. The numbers are adding up fast. Since President Bush signed an economic stimulus package in February, authorizing billions of dollars in rebates for American taxpayers, the government has pledged as much as $1.5 trillion to prop up the teetering economy. It has approved new mortgages for struggling homeowners, salvage operations for faltering financial institutions and a historic $700 billion bailout plan to pump money into banks paralyzed by the financial crisis. $500 billion already borrowed
The Treasury Department so far has borrowed nearly $500 billion from pension plans, foreign governments and other investors to replenish the coffers of the Federal Reserve. Since the end of August, the national debt has jumped from $9.6 trillion to $10.3 trillion, with borrowing for the bank bailout yet to come.
* Meanwhile, the budget deficit — the annual difference between government spending and tax collections — has risen rapidly. It jumped from $162 billion last year to $455 billion in the fiscal year that ended in September, largely because of the cost of the stimulus package, as well as slowing tax revenues and rising expenses in Iraq and Afghanistan. The budget picture looking forward is even bleaker. While the deficit is projected to be about $550 billion for the fiscal year that began Oct. 1, budget analysts have yet to figure in the effects of a recession, which could easily tack on another $100 billion. They also have not included the first $250 billion being spent on the bailout plan, which the White House budget office said this week must be added, even though much if not all of the money is eventually expected to be returned to the Treasury. And with options for a second round of stimulus spending starting at $52 billion — the size of the package proposed earlier this week by Republican presidential candidate John McCain — it's not hard to imagine the deficit rising to $1 trillion. That would approach 7 percent of the economy, a yawning budget hole not seen since 1946. It just gets worse and worse
As you know, this is just beginning and the necessary bankrupting of America is only one part of the manufactured perfect storm whose many tentacles are coming to a head perfectly for McCain if they can steal him in or Bush who has until January 20th to implement Executive order #51!
There is no way in hell the wrong I mean Right are going to allow this agenda stopped or this awesome power allowed in Democrats hands not to speak of the increasingly open racist, pro Christian, Fascist agenda letting a President Obama happen. Relax stay together stay in touch and keep on keeping on!