2006 Budget - $3.5 Trillion Deficit????

Displaced Bama Fan

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Holy cow!

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53366

A report scheduled to be released by the Treasury Department tomorrow is expected to show the true deficit in the Bush administration's 2006 federal budget to be an astounding $3.5 trillion in the red, not $248.2 billion as previously reported.
If this is true, he and every member of Congress that voted for the budget and any special spending, should be brought up on charges of treason.

Just a side note...this is not the overall federal debt, just one year of "borrowing" to pay for all our social programs and other "crap" our government spends...like a medical center at UAB.
 
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jthomas666

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Holy cow!

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53366



If this is true, he and every member of Congress that voted for the budget and any special spending, should be brought up on charges of treason.

Just a side note...this is not the overall federal debt, just one year of "borrowing" to pay for all our social programs and other "crap" our government spends...like a medical center at UAB.
While I have no doubt that much of the earmarked spending is crap (bridge to nowhere), I wouldn't characterize the UAB medical center as crap. You might have problems with the federal government spending the money, but the cost v benefit is fairly evident (unlike the bridge to nowhere).

Yet more evidence that we need true lobbying reform, as well as term limits in the House to prevent the true crap (bridge to nowhere) from getting thrown in with legitimate projects.

It'd also help if the president would remember that he does, in fact, have a funky stamp that reads "VETO".
 

Displaced Bama Fan

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You're right...non-Constitutional spending - which the UAB medical lab/center would have been part of.

The President needs a line item veto, but this one wouldn't have used it anyway.
 

NYBamaFan

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This is not new, and it was not started by Bush. Historically, deficits have been defined as spending within a given year above tax revenue for that year. They have never included the future cost of having underfunded things like SS or medicare for future needs.

A great example that we discussed was the medicare Rx plan. The future costs of that bill will exceed 10 trillion dollars, but no one thought that this was important because the bill wouldn't come due until much later. Well, it will come due some day - and the person in office when it does come due will be blamed.

We are selling our future for social programs today. End them, and our country has a chance. Continue down this road, and we are screwed.
 

NOSty

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Would ya'll prefer our government to run a surplus?

During our last surplus, did our taxes go down? Were we being attacked all over the world or the attackers?
 
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Bodhisattva

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Bodhi - Where are you???? Tell me this is not real. Geez, I'm about to throw up. I literally have a gnawing in my stomach as a result of this article.
I'm not sure if the specific deficit amount is correct, but NYBF's definition of how the government plays fast and loose with the numbers is right. It's a shell game. Spend like crazy today because the bill is not due until tomorrow. Come up with populist programs that people think they want; let our children's generation deal with the debt collector.

The government can shackle business with horrible legislation like Sarbannes-Oxley, which costs many times more than any derived benefit. Does the government have to adhere to its own rules? No. Does the government have to adhere to market-created accounting and finance standards? No. Government is incompetent, corrupt, hypocritical and expensive.

We are on a ship where the captain (President), the crew (Congress), and most of the passengers (citizens) are retarded when it comes to basic economic knowledge. The few that get it are doomed to suffer from a Cassandra complex.
 
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Bamaro

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If you don't mind the gov't taking more than they need, there is a spot on the tax return to donate to the cause. Are you doing it?
But right now they need it to pay for the past. The long term goal should be for it to be balanced. Read Bodhi's post above, he hit the nail on the head.
 

Queasy1

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Isn't really surprising. Pretty much all budget estimates over the last several decades never take into account the deficits caused by Social Security. This isn't a Bush thing, it is a Federal Government thing.

This paragraph right here explains it:
"The $248 billion federal budget deficit figure results from what basically amounts to a cash flow analysis," Williams explained. "On a cash basis, the Treasury takes all the tax revenue, including Social Security taxes, as current income. The trick is that Treasury essentially steals the money that comes in on Social Security taxes, without accounting for any offsetting Social Security liability. When you run your accounting that way, the Treasury gets to report a federal budget deficit that dramatically reduces the real figure."
That's the way the Federal Government has been running for a loooong time.
 

exiledNms

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I've decided to operate in the same manner. My bank has been notified that I now consider my mortgage and my property & income taxes off-book liabilities and that I will not choose to actually fund said liabilities. They no longer count. Now I'm off to work on that "give myself a raise & increase my own retirement benefits" thing...:cool:

exiled
 

NYBamaFan

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I've decided to operate in the same manner. My bank has been notified that I now consider my mortgage and my property & income taxes off-book liabilities and that I will not choose to actually fund said liabilities. They no longer count. Now I'm off to work on that "give myself a raise & increase my own retirement benefits" thing...:cool:

exiled
omg - TOO FUNNY...
 

Bodhisattva

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I've decided to operate in the same manner. My bank has been notified that I now consider my mortgage and my property & income taxes off-book liabilities and that I will not choose to actually fund said liabilities. They no longer count. Now I'm off to work on that "give myself a raise & increase my own retirement benefits" thing...:cool:

exiled
LOL! :biggrin:
 

cbi1972

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I've decided to operate in the same manner. My bank has been notified that I now consider my mortgage and my property & income taxes off-book liabilities and that I will not choose to actually fund said liabilities. They no longer count. Now I'm off to work on that "give myself a raise & increase my own retirement benefits" thing...:cool:

exiled
Hattiesburg attorneys
 

Tidewater

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DBF, that link has to be wrong. Even Dubya couldn't run up a deficit that big:eek2:
The enormous jump is due to a radical change in accounting techniques. Not that I disagree with the new assessment of exactly where the deficit is, just that the jump from $248 Billion to $3.5 Trillion was not because of a one-year jump in spending, but because the author of this report included liabilities in Medicare and Social Security that the Federal government, reporting the "normal" $248 billion deficit, counts off budget.
That prescription drug benefit for Medicare is just more gasoline on the flames.
The US enjoys huge benefits from being the benchmark economy (for example, the global oil price is quoted in dollars per barrel; think about what that means for US oil consumers). Whenever the Federal government runs a deficit, someone has to buy the T-bills to loan the Federal government the money. If those investors are foreign, and they get tired of buying US T-bills, the US dollar will have to get real cheap real fast (or pay enormous interest rates) to get foreigners to want to own dollars. How would you like to have a home mortgage at 45%, or buy gasoline at $100/gallon?
The last one to die before the crash will end up the big winner. Just about anybody who lives after that will find life, shall we say, difficult.
 

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