Originally posted by: boomerang
Originally posted by: Druidx
Two things I don't understand.
* How can the projected deficit grow after Obama's team identified $100 million in spending cuts?
* The CBO originally predicted a 9.1T deficit. In an attempt to minimized the effect of their spending, the Obama administration chuckled at that number and said it would ONLY be 7.1T. Now the Obama administration admits it will be 9 Trillion. If the Repugs had done that, people here screaming about lies and conspiracy. So why do the same people have no problem with the Obama "do-over" on the deficit predictions?
I'm hoping the first question is tongue-in-cheek.
As to the second, the monumental deficit spending is for programs they believe the country needs. They're the must-dos of a long wish list that's grown over the years. It doesn't matter what the cost is because the thought processes behind them are not based on hard data and common sense. They are instead based on "feelings". Deficit's of this unprecedented size would be criminal if "their" candidate was not it office. Their candidate is, so there is no problem.
BTW, these same folks will be crying big tears when inflation is in the high double digits. They'll be calling for yet more spending to correct that. When you spend 100, 1000 or 10,000 times more than you have, you still have to pay it back. You can generate more income or inflate the value of everything. In this case it will be both. We end up in a death spiral with no end in sight. Taxes are raised reducing the buying power of the public and in conjunction the cost of goods and services is through the roof. Unemployment remains at staggering levels. It's a big steaming bowl of not good. Eventually, someone gets in power that will take the necessary painful steps to start reversing the trend. It starts with cutting taxes. The left hates it, the right loves it and the cycle goes on and on and on.
But we've never seen deficit spending at these astronomical levels. We're in uncharted territory. When individuals get this far behind the eight ball, they declare bankruptcy. What does a country do?
From April of this year.
If you take out a 30 year mortgage you know the exact timeframe it will take to pay it back. How long will it take to pay back 9.1T? Not in my lifetime - that's for certain. Whatever happens means little to me. I won't be the one that has to pay it back.
Here's what a trillion looks like.