Obama's Genius Plan to Cut the Deficit: Spend, Spend, Spend!
Fascinating. No wait, not fascinating, I meant disgusting.
President Barack Obama pledged on Monday to halve a record 2010 budget deficit by the end of his first term in office, but made tackling double-digit unemployment his immediate priority with a spending plan that risked public ire and a rough battle in Congress.
Criticized by Republicans for raising taxes on wealthy Americans, Obama is under pressure to convince investors and vital creditors like China that he has a credible plan to control the U.S. deficit and debt over time.
"We won't be able to bring down this deficit overnight, given that the recovery is still taking hold," Obama said after laying out $3.8 trillion in spending plans for the fiscal year to September 30, 2011.
"We will continue, for example, to do what it takes to create jobs. That is reflected in my budget. It is essential," he said in a televised statement from the White House.
Financial markets largely ignored the budget, which was previewed in his State of the Union address last week, and will be subject to lengthy wrangling between U.S. lawmakers.
Obama's blueprint now goes to a Congress deeply split on how to handle the twin woes of a massive deficit and high unemployment amid a still fragile emergence from recession.
Lawmakers girding for the annual budget battle will be in no mood to anger voters ahead of congressional elections in November.
The budget forecast a $1.56 trillion deficit in 2010, or 10.6 percent of gross domestic product (GDP), up from a 9.9 percent share of GDP in 2009.
But wait, that's not all! Blow up the deficit now and we'll throw in nationalized housing at no additional cost to YOU! (*terms and conditions apply, like your great great great grandchildren still paying this shit off in 2123)
WC Varones (by way of Calculated Risk) shows us even the TARP Inspector General is a tad concerned by this turn of events:
To the extent that the crisis was fueled by a “bubble” in the housing market, the Federal Government’s concerted efforts to support home prices risk re-inflating that bubble in light of the Government’s effective takeover of the housing market through purchases and guarantees, either direct or implicit, of nearly all of the residential mortgage market.
Well shit, we should have NO problem trimming the deficit by a couple trillion before this asshat is out of office, right?
Say it with me now kids: DOOMED!
Even the Fed has admitted unemployment is likely to stay high at least until the middle of the decade so how in the hell does Obama think throwing more money at the problem will solve it? More importantly, where in the hell does he think the money will COME FROM!?