The Price is Right…It’s From The Government!! Obama’s Budget Deficit!!

Obama’s administration plans to spend $3.8 Trillion in 2013 with revenue of only $2.9 Trillion.  That’s right…our government will spend almost $1 Trillion more than it takes in…………AGAIN!  It should be no surprise that despite sequester, the budget deficit for 2014 will be $.8 Trillion.  Oh, boy, that sequester deal really worked, didn’t it!!  The US National Debt is rapidly approaching $17 Trillion and nobody seems to care or be concerned. (Click on the National Debt Clock below to see how fast the debt is adding up.) Our representatives in Washington must think we are total idiots!  Well, I guess we get what 52% of the voters wanted.  And therein lies the problem!  Remember only 50% of people pay federal income taxes!

“A Renewed Sense of Urgency” Obama Style*

Standard & Poor’s downgraded the U.S.credit rating from AAA to AA+ on Friday.  President Obama said nothing.  This was the first such downgrade in U.S. history.  It happened on Obama’s watch.  Saturday the air waves were filled with commentary from politicians, pundits, and economists.  Obama said nothing.  The Sunday talk shows covered the downgrade almost to the exclusion of everything else. Obama said nothing. 

Baseline Budgeting – The Elephant in the Room

Baseline budgeting is at the heart of the problems with the national debt.  The Office of Management and Budgeting (OMB) prepares a baseline based on estimates of spending, revenue, deficit (or surplus), and the public debt expected during a fiscal year under current laws and current policy.  The baseline includes projections for 5 and 10 years into the future. 

Obama, Congress, & the “Vig”

For those of you not familiar with the “vig,” it is the interest required by a bookie, loan shark, or crime syndicate to float a loan to their “customer!”  The vig is also referred to as the “juice” on the loan.  And, in the old days, if you failed to pay the “vig,” the mob whacked your knees….or fed you to the sharks!