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Budget projected to be cut in half by 2009

Stunt

Stunt

Diamond Member
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More great economic news out of the US. The budget deficit forcast for this year is expected to be $350billion and the US is on track to halve the deficit by 2009, almost exactly what GWB has promised.

After reading this, I decided to go figure out just how bad the US's financial situation was reative to the rest of the first world/g8.
Budgets (2004 #s):
Canada - $151b rev, $144b exp = $7b surplus (0.7% gdp) w/ 570b debt = 56% debt to gdp.
France - $1005b rev, $1080b exp = $75b deficit (4.3% gdp) w/ 68% debt to gdp.
Germany - $1200b rev, $1300b exp = $100b deficit (4.2% gdp) w/ 66% debt to gdp.
Italy - $768.9b rev, $820.1b exp = $51.2b deficit (3.2% gdp) w/ 105.6% debt to gdp.
Japan - $1401b rev, $1748b exp = $347b deficit (9.3% gdp) w/ 164.3% debt to gdp.
Russia - $106.4b rev, $93.33b exp = $13.1b surplus (0.9% gdp) w/ 28.2% debt to gdp.
UK - $834.9b rev, $896.7b exp = $61.8b deficit (3.5% gdp) w/ 39.6% debt to gdp.
US - $1862b rev, $2338b exp = $476b deficit (4% gdp) w/ 65% debt to gdp.
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So does the US's financials get overhyped? I think so. With a deficit inline with the rest of the g8 (with the exception of canada and russia) a lower debt to gdp than most and projections of smaller deficits, the US is doing just fine at the moment.
 
Wow, Italy and Japan are bonzo crazy.

That said, it wasn't long ago US Budget projections had the US at a $2trillion surplus(total accumulated Surplusses) right around 2009(10 actually). So I take Predictions/Projections with a huge grain of salt.
 
Just because we are in line with or better than others doesn't mean it isn't a problem or is "ok". However I agree that it is over-hyped by some doomsayers.

CsG
 
So the rest of the world sucks along with the US (except maybe Canada and Russia who currently have a "surplus")? $350,000,000,000 = about $3,180 per working person in the US for this year alone.

Fiscal responsibility in this country sucks! (other countries too).

I still say that we can pull a G8 debt relief in a few years and cancel the debt, just like Africa! 😀

And the "twin" trade deficit, which is growing in the opposite direction is bound to have an even more adverse effect as it grows. Damn China and it's currency pegged to the dollar! :Q

At least the budget deficit is heading toward the right direction. Maybe not fast enough, but at least on it's way. Solid growth would be a welcome sight to help push it down faster. Opening trade barriers would be both a spur to growth, lower trade deficits, and increased revenues to help push the budget deficit even lower. Might even create a few ONSHORE jobs or two! 😉
 
Originally posted by: robertcloud
The problem is we are running a deficit while the economy is growing.
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Agreed, Surpluses should occur in the upswings, deficits in the recessions. This is FAR from a recession! 😛
 
Originally posted by: Stunt
Originally posted by: robertcloud
The problem is we are running a deficit while the economy is growing.
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Agreed, Surpluses should occur in the upswings, deficits in the recessions. This is FAR from a recession! 😛
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Correct. ~4% economic growth fourth quarter 2004. Continued strong economic growth in Q1 2005, leading indicators are positive.
 
Luckily the Bush SS debt-funded privatization plan is looking DOA, so we won't have an extra couple of trillion added to those estimates.
 
Originally posted by: DaveSimmons
Luckily the Bush SS debt-funded privatization plan is looking DOA, so we won't have an extra couple of trillion added to those estimates.
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going into bush's pocket.
 
Originally posted by: sandorski
Wow, Italy and Japan are bonzo crazy.

That said, it wasn't long ago US Budget projections had the US at a $2trillion surplus(total accumulated Surplusses) right around 2009(10 actually). So I take Predictions/Projections with a huge grain of salt.
Click to expand...

The nineties have been problem times for the japaneese, they're getting back on feet again i hope though.
 
Originally posted by: Stunt
SS is off-budget, so don't bother with that argument here.
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Well, not technically. It's "surplus" of $100 Billion goes into the general revenues (leaves IOU behind) so technically, without SS money, we would be $100 Billion MORE in a hole each year than now. Of course, in a few years that changes.

 
Originally posted by: Engineer
Originally posted by: Stunt
SS is off-budget, so don't bother with that argument here.
Click to expand...

Well, not technically. It's "surplus" of $100 Billion goes into the general revenues (leaves IOU behind) so technically, without SS money, we would be $100 Billion MORE in a hole each year than now. Of course, in a few years that changes.
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Yeah, I think everything spent/recieved should be "on-budget" so the American people can see exactly what the revenue is and what is spent. This game of hide the money and giving one's self an IOU has got to stop.

CsG
 
The SS will be misleading as it will be high and contribute to create a "surplus" where a large deficit will be projected. But if people understand this, everything should be on budget.
 
Originally posted by: Stunt
SS is off-budget, so don't bother with that argument here.
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My point is that the Bush plan for transitioning to private accounts required an extra $2+ trillion in government borrowing (minimum) over the next decade to cover the initial costs of the change.

This is separate from needing to increase revenue and/or cut benefits in traditional SS to keep it fully funded in 2042.

(That was my main opposition to the plan -- now is not the right time to add the extra debt without cutting spending first.)
 
John Snow? Get real. If you believe what he says, you probably believe in the tooth fairy. He was brought in because he follows Cheney's "Deficits don't matter" theory of economics, remember?

Let's try the historical, rather than the hysterical perspective. When GWB took office, the tax and spending policies in place were projected to provide huge surpluses in the 2009 timeframe, and were essentially balanced at the time. Now, of course, the projections call for halving the annual deficit to a mere $250B/yr or so, and an increase of total indebtedness on the order of several trillion dollars.

And that's defined as progress. Whew.
 
The budget is often overblown, but it's still inexcusable to have a $400 billion deficit. To me it's incredible they'd even consider having a debt like that. That's the one thing that pisses me off about Bush/Congress, is their inability to cut the deficit significantly. They need to bite the bullet and close the deficit gap.
 
Originally posted by: ntdz
The budget is often overblown, but it's still inexcusable to have a $400 billion deficit. To me it's incredible they'd even consider having a debt like that. That's the one thing that pisses me off about Bush/Congress, is their inability to cut the deficit significantly. They need to bite the bullet and close the deficit gap.
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I agree 100% :thumbsup:
 
Clinton: We will payoff all American debt by 2009
Bush: We will cut what we are borrowing by half by 2009.

Bush fan: But country xyz is borrowing more so Bush is still the greatest.

Yeah Okay.
 
Originally posted by: rchiu
Clinton: We will payoff all American debt by 2009
Bush: We will cut what we are borrowing by half by 2009.

Bush fan: But country xyz is borrowing more so Bush is still the greatest.

Yeah Okay.
Click to expand...


And you want to be the typical clinton fanboy and assume the internet bubble would not have burst or 9/11 would not have happened.

The cbo projections included neither of these events.

 
Originally posted by: charrison
Originally posted by: rchiu
Clinton: We will payoff all American debt by 2009
Bush: We will cut what we are borrowing by half by 2009.

Bush fan: But country xyz is borrowing more so Bush is still the greatest.

Yeah Okay.
Click to expand...


And you want to be the typical clinton fanboy and assume the internet bubble would not have burst or 9/11 would not have happened.

The cbo projections included neither of these events.
Click to expand...

If I lost my job, I adjust my life style and balance my spending. A fiscally responsible administration adjusts spending if something happens to the economy. This administration started a war with a reason proven to be wrong, continue to spend massive amount on military relative to the rest of the world, all at a time when government revenue is reduced.

You can believe this "trickled down economy" and all these spending will eventually boost economy. I see these massive spending trickled down to some previleged people's pocket and worry that my kids is gonna pay for the debt this country is borrowing now.
 
Originally posted by: rchiu
Originally posted by: charrison
Originally posted by: rchiu
Clinton: We will payoff all American debt by 2009
Bush: We will cut what we are borrowing by half by 2009.

Bush fan: But country xyz is borrowing more so Bush is still the greatest.

Yeah Okay.
Click to expand...


And you want to be the typical clinton fanboy and assume the internet bubble would not have burst or 9/11 would not have happened.

The cbo projections included neither of these events.
Click to expand...

If I lost my job, I adjust my life style and balance my spending. A fiscally responsible administration adjusts spending if something happens to the economy. This administration started a war with a reason proven to be wrong, continue to spend massive amount on military relative to the rest of the world, all at a time when government revenue is reduced.

You can believe this "trickled down economy" and all these spending will eventually boost economy. I see these massive spending trickled down to some previleged people's pocket and worry that my kids is gonna pay for the debt this country is borrowing now.
Click to expand...


And if clinton had been elected a 3rd term he would have cut the budget 300B to meet the reduced tax receipts from the recession. NOt likely as this past year democrats and republicans alike squealed like stuck pigs on a proposed 20B cut to the budget.

Time to take your partisan blinders off.

 
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