$4 Trillion deficit cut in over 12 YEARS! This is another joke, right??

Discussion in 'Economics' started by S2007S, Apr 13, 2011.

  1. S2007S


    This has to be a joke, $4 Trillion in over 12 years, how about we double that to $8 Trillion and instead of 12 years cut it to only 3 years. Yes this is very achievable, just start cutting everything, there is no need to keep the spending going like it is going, raising the debt ceiling is just another mistake they are ready to do, if they were so interested in cutting the deficit how about no raise in the debt ceiling in the next few weeks and start cutting everything, everywhere right this second. Nah thats not going to happen, the US economy as upside down as it is can only be supported by trillions in spending, its so used to it that any small cut in spending can put this economy even deeper into the hole its already in!!!! Enough of the nonsense talk start cutting right now!

    Obama Proposes Cutting Deficit By $4 Trillion Over 12 Years
    Reuters | April 13, 2011 | 02:34 PM EDT

    President Obama said Wednesday that tackling the U.S. budget deficit would require broad sacrifice and said that he would refuse to renew Bush-era tax breaks for wealthier Americans.

    "We cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. And I refuse to renew them again," Obama said in remarks outlining his plan to tackle the country's massive debt problem.

    Obama's speech called for reducing the U.S. deficit by $4 trillion within 12 years or less.

    The president warned that steadily rising debt could cost jobs and harm the economy and force the country to borrow more from other countries such as China.

    "If our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money — making it harder for businesses to expand and hire, or families to take out a mortgage," he said. But he added: "We can solve this problem."

    Obama, who has been criticized by both Democrats and Republicans for taking too low a profile in the debate over how to tame long-term debt and deficits, said the budget savings should be achieved through a mix of spending cuts and revenue increases through higher taxes.

    Here are some highlights of the plan, according to a factsheet distributed by the White House before the speech:

    Debt Reduction Goal
    # Obama believes a goal of $4 trillion in deficit reduction over 12 years or less is achievable, and projects that it will reduce deficits as a share of the U.S. economy to about 2.5 percent of GDP in 2015, and put deficits on a path toward close to 2.0 percent of GDP toward the end of the decade.
    # The plan includes a "debt failsafe" trigger that would require an across the board spending reduction if budget projections by 2014 do not show the debt-to-GDP ratio has stabilized and is declining in the second half of the decade.

    The trigger would ensure that deficits as a share of the economy average no more than 2.8 percent of GDP in the second half of the decade, the White House said. It would not apply to Social Security, low-income programs, or benefits for Medicare enrollees and would include an unspecified mechanism ensuring it does not exacerbate an economic downturn or interfere with the ability to respond to a national security emergency.

    Spending Cuts
    # Obama will suggest cuts in non-security discretionary spending to generate an additional $200 billion in savings over 10 years beyond the $400 billion in savings in the fiscal 2012 budget proposal he offered in February. The White House said that would generate $770 billion in deficit reduction over 12 years.
    # Obama's debt reduction framework sets a goal of holding the growth in base security spending below inflation, while ensuring the capacity to meet national security responsibilities, which would save $400 billion by 2023, the White House said.

    # In addition to his healthcare overhaul law, Obama is proposing reforms to the government's Medicare and Medicaid insurance programs for the elderly and poor that the White House said would save $340 billion over 10 years and $480 billion by 2023, including proposals already included in Obama's budget.

    Over the subsequent decade, the president's proposal will save well over $1 trillion, the White House said.

    Savings From Mandatory Programs
    # In addition to savings already presented in Obama's budget to such programs as agricultural subsidies and the federal pension insurance system, Obama's plan includes a target of $360 billion in savings from other mandatory programs by 2023, the White House said.

    Tax Reform
    # Obama is calling on Congress to undertake comprehensive tax reform that produces a system that is fairer, has fewer loopholes, is less complex and is not rigged in favor of those who can afford lawyers and accountants to game it, the White House said.

    Social Security
    # Obama's plan calls for efforts to strengthen the government's Social Security pension system but does not seek to privatize it, although the factsheet offered no specifics.

    With the U.S. deficit expected to hit $1.65 trillion this year, proposed triggers would force automatic, across-the-board cuts in spending if budget targets are not met by 2014.

    The aim is to ensure that deficits as a share of the economy average no more than 2.8 percent of gross domestic product in the second half of the decade.

    Past presidents have put in place similar "triggers".

    Obama's proposal came a week after Paul Ryan, House of Representatives Budget Committee chairman, offered a blueprint for $4.4 trillion in deficit cuts.

    Obama wants to draw a sharp contrast with the Ryan plan, which would combine an overhaul of the Medicare health program with lower taxes.

    Even before he spoke, Republicans sought to gain the upper hand in the debate by underscoring what they said was a serious debt problem and rejecting any notion of higher taxes.

    "It is time to act," said Senate Republican leader Mitch McConnell. "We don't believe a lack of revenue is part of the problem, so we will not be discussing raising taxes."

    The deficit issue has become entangled with a vote Congress will consider on raising the nation's borrowing limit.

    Republicans say they will not vote to lift the limit without commitments to rein in long-term deficits. The debt is expected to hit the $14.3 trillion ceiling as early as mid-May and a failure to lift it could raise the specter of default.

    Analyst Chris Edwards of the Cato Institute, a think tank that favors limited government, said that his initial impression of Obama's proposal was that "there's not much new" in it other than the deficit triggers. He noted the triggers could force tax increases as well as spending cuts.

    "That's obviously not going to fly with the Republicans," Edwards said.
  2. the US economy as upside down as it is can only be supported by trillions in spending, its so used to it that any small cut in spending can put this economy even deeper into the hole its already in!!!!

    Look at the trillions of dollars generated by the housing bubble in respect to how this money generated jobs, and we had a good economy rolling along and this money is all gone.

    This is how much money is needed to get things back to a level we are used to. Imo, this is why the Fed is singing the QE song.

    Any cuts are a big deal. But many of these problems began a long time ago with unsustainable funding.
  3. Daal


    He says he won't allow the bush upper income tax cuts to be extended but the only way he can say that honestly is if he will also say in his campaign to 2012 that he plans to raise taxes on people making less $250K. Obviously the Republicans will propose all or nothing and if he means what he says he will take nothing

    Is he a man enough to tell the truth?
  4. Time to cut defense spending by up to 2/3rds, close all overseas military bases, get out of all wars.
  5. Thats his gimmick. He overspends by 1.6 trillion per year, then cuts 350 billion per year out of that overspending, adds it up over 12 years and says "look how much I cut from the budget!!!" The same idiots who voted for obama fall for it.
  6. Bob111


    exactly..with screaming again about "historic cuts", drama,gvt shutdown etc..like they did last friday. what a show! with zero results ...as expected . SSDD

  7. We should cut spending until white house & capitol are both in foreclosure. :D

    Only then we can think of real solutions.

    Kill "Corporatism" (corporate socialism), & supress the war machine.

    Maybe we could have less enemies, a more powerful military, an excellent market & plenty of opportunities.

    I hope for the best I prepare for the worst.
  8. Its called politics dude.

    Sometimes I think we need a REAL DICTATOR FOR 10 YRS.

    The romans used to have this measure when facing extreme crisis.
  9. Who the fuck cares anymore? Seriously?

    The Dems or the Reps do not have the balls to get the fiscal house in order. "Not on my watch" is their mentality. Pass it on to future generations is their motto.

    No one in DC will get serious.

    And the American People? What the fuck are they going to do? You think that the "People" will get off their lazy asses, leave Dancing with the stars and other reality shows to face the music?

    Do you think that the Majority of the American People are ready to go to all ends...to start a civil war, to start marching and start forcing the Political body to make serious cuts? HELL NO.

    My motto is: making that money, managing my own investments and building up my net worth...FUCK THE REST OF THE AMERICAN PEOPLE.

    Let them lay in their own shit, begging for change, looking through trash cans for their next meal, all the while mumbling that they should have done something to prevent the collapse.

    And if the "collapse" does not come in my time, I leave what I have to my niece and nephew. Even though they are set, I will still live it to them. And the Human Society as well.

    There is a song that I rock every morning when I get up to get my starbucks. "I GET MONEY" by 50 cent.


    I suggest most of you start learning the lyrics and stop worrying about the bullshit that takes your focus away so you will end up in poverty.

    This includes all you "Daytraders" who have not yet hit your first million. Time to wake up and find something that can get you to 7 zeros before it's to late.

    I wish my friends on ET and in life that they "Get Money". The rest can parish for all I care. That is the name of the game now, war has started against those who want success. The masses want to pull success down to their poverty level. Fuck That.

    Mr. Politician
    Raise taxes on 250k or more? Why? Because 90% of Americans can not bring home that amount or more? Why punish those of us that are successful?

    Raise taxes after you cut spending you fucking pathetic Politicians.
    Maybe, if you would cut across the board in drastic measures and show us that you are serious...then I would have no problem paying more taxes.

    But you'r the Fools in DC. I will pay myself out well under 250K there ass clowns. I will keep well over 80% of my profits in the LLC, plenty of write offs within the LLC. I will still be able to keep most of my earnings you fucking fools.

    So who are you gona really punish? THE MIDDLE CLASS. You will kill job growth, you will be forced to raise taxes on those who do not have 'itemized' deductions and write offs.

    So be it. It's your war on the Successful People. In the end, the money will flee, the successful people will still keep their networth and you will create on Giant Shit Pond of poor leaches. That is your end goal, to enslave the masses. Sorry, I'm far from the masses and I know your game.
  10. Realistically, we'll never see the deep cuts we need unless/until things get really bad. Even with miniscule cuts, Nancy Pelosi acted like we were starving every elderly person and child in the country.

    Every time we talk about a serious cut, special interest groups swarm the media like roaches at a dirty restaurant: handout lovers (both "low income" who game the system and corporate), the unions, the military industrial complex and neo-cons ("it will destroy national security"), celebrities, Pelosi/Reid/Obama types telling sob stories.

    Very few want to have a serious and sober conversation.
    #10     Apr 13, 2011