Thursday, February 26, 2009

Massive debt explosion!

Don't watch the ball,watch the quarterbacks eyes.This is standard practice for a good defensive safety.It needs to be for Obama politics as well.He is diverting our attention to his claim that he will reduce the budget deficit to $533 billion by the end of his first term.That in itself is no claim to fame as that amount would qualify as the largest deficit in history,present year excluded.

What he's not promoting,however,is the effect on the accumulated Federal debt.By his number projections,he estimates the total gross Federal debt at the end of 2012 to be $16.193 trillion.That's an increase of $6.207 trillion dollars in just his first term!An average of $1.55 trillion per year!

Obama,of course,will claim credit for his inherited deficit.OK,we'll give him a credit of $1.19 trillion for the CBO projected deficit for 2009.That still leaves Obama 100% responsible for $5.017 trillion.Care to go out 10 years?The debt will climb to $23.140 trillion dollars.I'm not sure Parker Brothers could print that much Monopoly money.Even if they could,imagine the save the planet crowd with that many trees killed.

One more X factor is his claim on accounting for the stimulus.He only claims 33% of the amount on stimulus or bailout spending expecting a 2/3 return on the investment.If this is true that he's only using 1/3 of the amount spent for accounting purposes,would it be unreasonable to state that the true amount spent is 2/3 higher?Transparency at it's finest!More to come...

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