Obama to G20: USA to halve deficit by 2013

Discussion in 'Economics' started by Kassz007, Jun 18, 2010.

  1. http://news.bbc.co.uk/2/hi/business/10353247.stm

    This might be old news to some, but it's the first I've heard of this ambitous plan. Obama, in a letter to G20 leaders that stresses the need to not withdraw stimulus too quickly, has stated that the USA will reduce their budget deficit in half by 2013. Does anyone have a clue how this is possible? I mean, realistically, will the USA be able to cut spending + raise taxes enough to HALVE the budget deficit in just 2.5 years? I have my doubts.
  2. Complete and total horseshit.
  3. dtan1e


    more QE?

    Perhaps he actually meant to multiply x 2 instead of divide. Math was never his strong-suit.
  5. According to Reuters, he "also said public finance problems should be addressed "in the medium term" -- a warning that clamping down on budgets should not be done at the expense of economic recovery."

    I guess "medium term" is always 3-4 years from the current year. For the short-term, it's always spend-stimulate-spend....
  6. wpfund


    How convenient. By 2013 pres elections will over.
  7. pspr


    When you've doubled the deficit (annual spending above income) it is a lot easier to get it back down to where we are only burning through a more "usual" amount of deficit annually.

    We need to get the deficit to below zero (reduce the debt) enough to more than cover our interest payments.

    However, Democrats won't be able to reduce even the deficit from today's levels by 50%. It's not in their nature.
  8. Lucrum


    Obviously Big Ears Barry expects the G20 leaders to drink the Kool-Aid.
  9. rew


    Halving a $1.4 trillion deficit means having a deficit of "only" $700 billion -- 50% higher than it was during the pre-crash Bush years. (And those deficits were bad enough.) So even if this reduction is achieved I will be less than impressed.
  10. LOL

    best clown in town
    #10     Jun 18, 2010