A Fiscally Responsible President or The Flim-Flam Man–Never Trust A Lying Radical Socialist!

Posted on February 24, 2009. Filed under: Blogroll, Economics, Investments, Law, Links, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Talk Radio, Taxes, Video | Tags: Barack Obama, deficits, Economics, Fiscally Responsible, Politics, President Obama, social security |

Federal Budget Deficit Will Reach Levels Never Seen Before in U.S.

The budget deficit is projected to grow to 18 percent of GDP by 2082 even if the 2001 and 2003 tax cuts are allowed to expire and the AMT is not fixed. This will be driven by entitlement spending for Social Security, Medicare, and Medicaid, with deficits well above the 30-year historical average of 2.5 percent. Deficits of this size have never been seen in the U.S. and illustrate the need to reform these programs.

Federal Budget Deficit as a Percentage of GDP, 1962–2082

federal_deficits_gdp1

Source: Deficit Data from CBO Long-Term Budget Outlook, December 2007 (Extended Baseline Scenario).

http://www.heritage.org/research/features/budgetchartbook/fed-rev-spend-2008-boc-P9-Federal-Budget-Deficit-Will-Reach.html

The Flim-Flam Man (1967) George C. Scott & Slim Pickens

Washington News – Fiscal Responsibility Summit – Bloomberg

Obama: Cut deficit we inherited ($1.3T) by half 1st term, US Budget – Exercise in deception!

Obama Tries To Reconcile The Recovery Package w/ His Call For Fiscal Responsibility

Hillary Begs China to Buy Debt/Gold Almost Hits $1000- Glenn Beck

Dirty Little Secret – Universal Healthcare? Social Security?

I.O.U.S.A. Bonus Reel: Deficits and Social Security

I.O.U.S.A. Bonus Reel: A $53 Trillion Federal Financial Hole

Who does the political class in Washington D.C. think they are kidding talking about fiscal responsibility.

The political elites of both political parties in Washington D.C. are the most fiscally irresponsible in the entire history of the United States.

The professional politicians are lying and misleading the American people.

They have zero credibility. They are joke gone terrible bad.

You got to be kidding. They are all con men.

I for one am not buying into this play acting.

In early 2011 President Obama will rescind much of the 2011 and 2012 spending in the stimulus bill as not being needed as the economy recovers.

Why?

To be able to say that he has cut the deficits by 50% and stop the threat of increasing inflation.

To get to the 50% mark President Obama will drastically cut military spending just like President Clinton did.

When he runs again for President in 2012 Obama could then claim he is a fiscal responsible President.

In other words much of the stimulus spending now getting a lot the attention will be sacrificed for the greater good of an Obama second term.

Without having a line item veto, saying you will examine every item in a budget or bill is an exercise in reading not cutting spending.

Presidents submit budgets and Congress passes spending bills.

Presidents sign or veto bills not items in a bill.

Also, Social Security surpluses have been spent every year and are considered to be off budget and in eight years will be in deficit.

medicare__social_security_deficits_chart

Background Articles and Videos

The perfect metaphor for Obama’s suck-up summit

By Michelle Malkin • February 23, 2009 05:18 PM

“…If you missed the media coverage of President Obama’s suck-up fiscal responsibility summit today, you are lucky.

It was nauseating.

Republicans including John McCain and Eric Cantor joined Democrat tax cheat Charlie Rangel and spendocrat Henry Waxman, along with Obama corrupto-cronies such as the SEIU’s Andy Stern in a boot-licking session with Dear Leader.

He gathered them all in a press conference setting and called on them as if they were journalistic stenographers.

Obama paid lip service to bipartisanship. They paid lip service to bipartisanship. Obama declared the need to fix health care. They declared the need to fix health care. Obama said we had budget problems. They nodded their heads and bemoaned our budget problems.

It was one big game of…”

http://michellemalkin.com/2009/02/23/the-perfect-metaphor-for-obamas-suck-up-summit/

Social Security

“…Social Security in the United States currently refers to the federal Old-Age, Survivors, and Disability Insurance (OASDI) program.

The original Social Security Act^[1] and the current version of the Act, as amended^[2] encompass several social welfare or social insurance programs. The larger and better known initiatives of the program are:

Federal Old-Age, Survivors, and Disability Insurance
Unemployment benefits
Temporary Assistance for Needy Families
Health Insurance for Aged and Disabled (Medicare)
Grants to States for Medical Assistance Programs (Medicaid)
State Children’s Health Insurance Program (SCHIP)
Supplemental Security Income (SSI)

U.S. Social Security is a social insurance program funded through dedicated payroll taxes called Federal Insurance Contributions Act (FICA). Tax deposits are formally entrusted to^[3] Federal Old-Age and Survivors Insurance Trust Fund, or Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund. The main part of the program is sometimes abbreviated OASDI (Old Age, Survivors, and Disability Insurance) or RSDI (Retirement, Survivors, and Disability Insurance). When initially signed into law by President Franklin D. Roosevelt in 1935 as part of his New Deal, the term Social Security covered unemployment insurance as well. The term, in everyday speech, is used to refer only to the benefits for retirement, disability, survivorship, and death, which are the four main benefits provided by traditional private-sector pension plans. In 2004 the U.S. Social Security system paid out almost $500 billion in benefits.^[4] By dollars paid, the U.S. Social Security program is the largest government program in the world and the single greatest expenditure in the federal budget, with 20.9% for social security and 20.4% for Medicare/Medicaid, compared to 20.1% for military expenditure. ^[5] Social Security is currently the largest social insurance program in the U.S., constituting 37% of government expenditure and 7% of the gross domestic product^[6] and is currently estimated to keep roughly 40% of all Americans age 65 or older out of poverty.^[7] The Social Security Administration is headquartered in Woodlawn, Maryland, just to the west of Baltimore.

Largely because of the rise of neoliberalism, Social Security privatization became a major political issue for more than three decades during the presidencies of Gerald Ford, Jimmy Carter, Ronald Reagan, George H. W. Bush, Bill Clinton, and George W. Bush. …”

http://en.wikipedia.org/wiki/Social_Security_(United_States)

United States budget process

“…The process of creating the budget for the United States Government is known as the budget process. The framework used by Congress to formulating the budget was established by the Budget and Accounting Act of 1921^[1], the Congressional Budget and Impoundment Control Act of 1974^[2], and by other budget legislation.

Congressional consideration of the federal budget begins once the President of the United States submits a budget request, which is formulated over a period of months with the assistance of the Office of Management and Budget, the largest office within the Executive Office of the President. The budget request includes funding requests for all federal executive departments and independent agencies.

The President submits the budget request each year to Congress for the following fiscal year, as required by the Budget and Accounting Act of 1921. Current law (31 U.S.C. 1105(a))^[3] requires the President to submit a budget no earlier than the first Monday in January, and no later than the first Monday in February. Typically, Presidents submit budgets on the first Monday in February.

The President’s budget request constitutes an extensive proposal of the administration’s intended spending and revenue plans for the following fiscal year. The budget proposal includes volumes of supporting information intended to persuade Congress of the necessity and value of the budget provisions. In addition, each federal executive department and independent agency provides additional detail and supporting documentation to Congress on its own funding requests.

The next step is the drafting of a budget resolution. The United States House Committee on the Budget and the United States Senate Committee on the Budget are responsible for drafting budget resolutions. Following the traditional calendar, by early April both committees finalize their drafts and submit it to their respective floors for consideration and adoption.

A budget resolution, which is one form of a concurrent resolution, binds Congress, but is not a law, and so does not require the President’s signature. The budget resolution serves as a blueprint for the actual appropriation process, and provides Congress with some control over the appropriations process. No new spending authority, however, is provided until appropriation bills are enacted.

Once both houses pass the resolution, selected Representatives and Senators negotiate a conference report to reconcile differences between the House and the Senate versions. The conference report, in order to become binding, must be approved by both the House and Senate.

The federal government’s fiscal year currently begins on October 1st and ends on September 30th of the next calendar year. The federal fiscal year’s starting date was shifted from July 1 to October 1 in 1976. The period between the end of FY1976 and the start of FY1977 was called the Transition Quarter. An earlier shift in the U.S. government’s fiscal year was made in the 1850s. …”

“…

In general, funds for Federal Government programs must be authorized by an “authorizing committee” through enactment of legislation. Then, through subsequent acts by Congress, budget authority is then appropriated by the Appropriations Committees of the House and Senate. In principle, committees with jurisdiction to authorize programs make policy decisions, while the Appropriations Committees decide on funding levels, limited to a program’s authorized funding level, though the amount may be any amount less than the limit.

In practice, the separation between policy making and funding, and the division between appropriations and authorization activities are imperfect. Authorizations for many programs have long lapsed, yet still receive appropriated amounts. Other programs that are authorized receive no funds at all.^{[citation needed]} In addition, policy language — that is legislative text changing permanent law — is included in appropriation measures. …”

http://en.wikipedia.org/wiki/United_States_budget_process

Madoff Is a Piker

by John Stossel

“…But Madoff’s scam was small compared to Ponzi schemes the government itself runs: Social Security and Medicare.

By now we all know the government does not invest our payroll taxes and pay our benefits with the profits our money earns. In the beginning, writes economic historian Charlotte Twight in “Dependent on D.C.”, Americans were told Social Security was an insurance program. But the government was unable to sustain that bald lie.

In reality, our money, rather than being invested and kept in an actual “trust fund,” is immediately given to current retirees in Social Security benefits or to their healthcare providers in Medicare benefits. The government’s promise to pay for your retirement pension and medical care is just a promise. And a lie.

In theory, the promise could be kept by raising taxes on future workers, but there won’t be enough of them. Changing demographics are destroying the programs. A large working class can support a relatively small retired class, especially when life expectancy is 61 years and benefits don’t begin until 65. That’s how things were in the early years of Social Security. But when life expectancy grows to 80 and a large generational group — the baby boomers — retires expecting to be supported by a far smaller working class, that’s trouble. …”

http://townhall.com/columnists/JohnStossel/2009/01/07/madoff_is_a_piker