True deficit: 3.5 trillion

Discussion in 'Economics' started by Pekelo, Dec 14, 2006.

  1. Pekelo


    Analyst says coming Treasury report will document 'unsustainable' pace

    "The 2006 edition of the Financial Report of the United States is due out tomorrow.

    "Typically, the Treasury reports the budget deficit on current accounts basis. That's why Treasury announced recently that the 2006 federal budget deficit was going to be $248.2 billion. But it is a gimmick," Williams claimed.

    "When we see the Treasury report on Friday we are probably going to find out that the real 2006 federal budget deficit is more like $3.5 trillion.""
  2. SOLID54


  3. clacy


    The out of control spending on both sides of the isle is very demoralizing. The next political movement that runs on major speding reform and fiscal responsiblity will, IMO, prove to be a huge success.
  4. Pekelo


    Good article. I specially liked this line:

    " (The others, including the Defense Department, still have record-keeping troubles so severe that auditors refuse to certify the reliability of their books, according to the government's annual report.)"
  5. S2007S


    :eek: :eek:
  6. Joma


    Well, they need some bucks more.....LOL:D

    Spending on Iraq, Afghanistan and the global war on terror would reach a record $170 billion in fiscal 2007 under the latest U.S. Defense Department emergency spending request.

    The military's request for $99.7 billion more in funding comes on top of the $70 billion that Congress approved in September and is 45 percent higher than the $117 billion in supplemental funding approved last year.

    The request, under review at the White House, is in a 17- page, Dec. 7 memo from Deputy Defense Secretary Gordon England. About half the new money -- $48 billion -- would go to the Army, which says its costs have risen sharply as fighting in Iraq and Afghanistan drags on and more equipment is damaged or destroyed.
  7. Tuneman


    the war spending is a drop in the bucket compared to the mandatory spending insisted on by the dems. We have to privatize social security, and health care in order to get our budget down. The reason why we have deficit problems is because of the socialist properties of our Government.
  8. clacy


    I probably agree with you politically most of the time tuneman, but I have to place some of the blame on the Republicans as well. Unfortunately they have decided that they have to hand out entitlements to get votes just like the dems have been doing for decades. The prescription drug plan comes to mind.

    Spending on defense is an absolute must considering the radical Islamists want to kill each and every one of us.

    Social security is a big culprit and one that has to be dealt with soon, IMO.

    Foreign aid it seems should be curtailed until we can at least balance our own books. I can't think of many good reasons to throw money away in places like Africa, the Middle East, when we are in debt. The corruption of those governments eliminates 90% of the good that can come from this type of aid anyway.
  9. While a threat, radical Islam pales in comparison to SSN and illegal immigration. Unfortunately, SSN reform and illegal immigration aren't going to be dealt with until it's far too late, which was like yesterday.
  10. True. Fiscal conservatives have expressed dismay at the levels of spending by this GOP Congress but those critics ignore important facts. The level of non-discretionary spending, i.e. entitlements, has made spending reductions difficult without actually cutting programs. We all know humans protect what's theirs. We've created a tax system where around 90% of wage earners (so about 99% of the population) are net consumers of government. At some point we'll be down to around 35 guys paying for everyone else.

    Also, many tend to forget a couple of little things from just several years ago. We had a stock market CRASH. We had a massive loss of new jobs, primarily in tech. We had a major terror act leading to further economic uncertainty. Nine tenths of this board blew out in the summer of 2002. So the Fed eased and Congress spent. Keynes 101. The proper thing to do since 2005 would have been to cut spending. However GOP'ers were worried about the 2006 elections. It's one thing to have the Dem nut job who's opposing you accuse you of supporting the war. But to have Libs saying your both a warmonger AND a Rep who cut Head-Start or subsidized agriculture is death. So we spend. And the Dem's will OUTSPEND the old GOP majority. So they'll tax. And since most American's are consumers of government they'll CHEER increased taxes.

    I'm at a point where I don't care anymore. It's too late anyways. America is Brazil and nothing can stem the tide.
    #10     Dec 15, 2006