Obama urges creation of U.S. deficit panel

[KingYaba]

WASHINGTON (Reuters) - President Barack Obama called on the U.S. Congress on Saturday to create a bipartisan panel that would look at ways to rein in the country's soaring deficits.

Obama said in a statement the country faced a "serious fiscal situation" that stemmed from the recession he inherited from the Bush administration and years of "failing to pay for new policies."

The statement came ahead of Obama's State of the Union address, due on Wednesday, in which aides say he will make deficit reduction a major theme. Reuters (http://www.reuters.com/article/idUSTRE60M1NC20100123?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+reuters/businessNews+%28News+/+US+/+Business+News%29)

Yea I'm not surprised by this. I think President Bush tried to do the whole green thing with alternative fuels or something with his state of the union address. A pressing need was it? Anyway, if Obama can be credited with reducing the deficit and overall government spending his 2012 bid will be a lot easier. I just hope he goes into detail explaining how. What programs are to be cut? What programs are to be scaled back? Specifics please.

[Peace]

This wasn't Obama's idea.

"The plan has been offered by the top senators atop the Budget Committee, Kent Conrad, a Democrat form North Dakota, and Judd Gregg, a Republican from New Hampshire, who see it as the only way for Republicans and Democrats alike to take the leap into the treacherous business of curbing the deficit with politically unpopular tax increases and spending cuts."

[Badandy]

I just hope he goes into detail explaining how. What programs are to be cut? What programs are to be scaled back? Specifics please.

I'm hoping he goes into specifics too, but I doubt they're going to be what I like to hear. What I expect? A myriad of additional taxes on high-earners coupled with little to no spending reductions.

[NT1440]

While it sounds like a great idea, like most "bipartisan" efforts today I see it just becoming ridiculously polarized to the point where its just a bickering panel. Nothing will get done, but hey, its great PR.

[flopticalcube]

Its going to be difficult. Expect cuts in military spending but little else. Half of all states have already run out of unemployment funds and are leaning on the Fed for more cash. If revenue doesn't start building soon, even bigger deficits look ever more likely, maybe even another stimulus package.

[CorvusCamenarum]

Here's a radical idea: stop spending money. Stop spending money we don't have doubly so.

[Rodimus Prime]

Looks like another things to add to the growing list of "Feel Good" ideas from Obama.

Obama administration is looking like it will become known as the "Feel Good" administration.

[Eraserhead]

Its going to be difficult. Expect cuts in military spending but little else.

Which is the best place to do the cuts. That money is largely wasted.

[ucfgrad93]

What I expect? A myriad of additional taxes on high-earners coupled with little to no spending reductions.

Bingo, we have a winner!

[hulugu]

Here's a radical idea: stop spending money. Stop spending money we don't have doubly so.

The US government can't just stop writing checks today without creating a ripple-effect so disastrous that whatever gains that might be temporarily made would evaporate in time.

I'm hoping he goes into specifics too, but I doubt they're going to be what I like to hear. What I expect? A myriad of additional taxes on high-earners coupled with little to no spending reductions.

The reality is a fix will require both spending cuts and new taxes.

Furthermore, what do you think should be cut? And, by how much?

[ucfgrad93]

The reality is a fix will require both spending cuts and new taxes.

Furthermore, what do you think should be cut? And, by how much?

While I agree with that, the sad reality is that the government will most likely not deliver any substantial spending cuts. ALL departments should be cut. There should not be anything that is exempt from cuts.

[Desertrat]

The accumulated debts already racked up are already calculated to create deficits of around a trillion greenies a year for the next nine or ten years.

Rocks and hard places. Budget cuts mean reduced incomes for those surviving via government spending. Tax increases during this Depression--which actually is just underway--can't be all that much, and certainly can't reduce the future deficits in any meaningful way.

With the rate of monetization of our debt, at some point the dollar will resume its slide--which is the only way the government can reduce its debt: Inflate the currency, paying off with cheaper dollars. Which of course is why only our very short-term debt is selling. Foreigners aren't buying our long-term debt.

But an inflated dollar means that whatever money you have will continue to buy less and less and less.

That's the ongoing history of all fiat-money systems.

Ah, well. No matter what this study group determines, any recommendations will impact the authority of the Speaker and of the Chairman of the House Appropriations Committee. Ought to be an interesting cat'n'dog fight.

[Shivetya]

Isn't this slated to not start until after the next election?

[Desertrat]

"Isn't this slated to not start until after the next election?"

MIght do some good if that's the deal. But only if some of the wild-eyed spenders find a new line of work after November's election.

[hulugu]

...But only if some of the wild-eyed spenders find a new line of work after November's election.

I'll make you a deal, you get rid of yours, I'll get rid of mine. So to speak.

[ucfgrad93]

According to Fox News, the Senate has rejected this proposal.

http://www.foxnews.com/politics/2010/01/26/senate-rejects-obama-backed-task-force-reducing-deficit/

[Rodimus Prime]

According to Fox News, the Senate has rejected this proposal.

http://www.foxnews.com/politics/2010/01/26/senate-rejects-obama-backed-task-force-reducing-deficit/

I expect to see otherss point bring that up later.

I look over what Obama is wanting to do in the paper today. Lets just say it confirmed my thoughts on that this is nothing more than a "Feel good" thing.

It does nothing to rain in the projected trillion dollar deficit for 2011. It cuts an entire 15 mil out of a trillion in the spending and we all know they will find a way to spend that extra 15 mil. The act "freezes" spending on none defense spending basicly and even then that not saying much and it clear to me that this is just there to make us "feel good" and it look like they are trying to rein it in but really it going to allow them to spend more and cover it up.

This is a true "Feel Good". Got to love our "Feel Good" administration we have now.

[Eraserhead]

the Senate has rejected this proposal.

Shocking. I wouldn't have guessed that for a minute.

[ucfgrad93]

I expect to see otherss point bring that up later.

I look over what Obama is wanting to do in the paper today. Lets just say it confirmed my thoughts on that this is nothing more than a "Feel good" thing.

It does nothing to rain in the projected trillion dollar deficit for 2011. It cuts an entire 15 mil out of a trillion in the spending and we all know they will find a way to spend that extra 15 mil. The act "freezes" spending on none defense spending basicly and even then that not saying much and it clear to me that this is just there to make us "feel good" and it look like they are trying to rein it in but really it going to allow them to spend more and cover it up.

This is a true "Feel Good". Got to love our "Feel Good" administration we have now.

I was to cut $15 Billion, not million.;) The big thing about this was President Obama was only freezing discretionary spending. And unfortunately, that part of the budget is relatively small. Like you said, this is nothing more than a "look I'm trying to cut the deficit" and a feel good measure.

[Rodimus Prime]

I was to cut $15 Billion, not million.;) The big thing about this was President Obama was only freezing discretionary spending. And unfortunately, that part of the budget is relatively small. Like you said, this is nothing more than a "look I'm trying to cut the deficit" and a feel good measure.

Those 3 zero could be important. The less than 15% of the project deficit was what I was thinking. either way it is chump changed and truly a feel good. Clinton tried to rein it in. I will cut bush some slack for 01-02 because the economy was in the crappier and 9/11 but he failed to address it when get spending under control by 03 he should of had to bring it down

Obama I already can see going on a spending crazy not trying to rein it in just like Bush.

[Dont Hurt Me]

Shocking. I wouldn't have guessed that for a minute.No one is going to tell these guys what to, I dont think they even care that they have run us into the ground. Just amazing, we really need a new revolution in this country to take back our govt that was suppose to represent us.

[flopticalcube]

Those 3 zero could be important. The less than 15% of the project deficit was what I was thinking. either way it is chump changed and truly a feel good. Clinton tried to rein it in. I will cut bush some slack for 01-02 because the economy was in the crappier and 9/11 but he failed to address it when get spending under control by 03 he should of had to bring it down

Obama I already can see going on a spending crazy not trying to rein it in just like Bush.
Clinton left a surplus, did he not? If you are going to cut Bush slack for 01-02 then you must certainly cut Obama slack for 09-10. This recession is far worse than the previous one and its entirely a different beast as well as there was no credit contraction last time. Generally when it comes to politicians and deficit spending, I never get the feeling that it has anything to do with them. As Nixon once said, "We're all Keynsians now."

[Thomas Veil]

No one is going to tell these guys what to, I dont think they even care that they have run us into the ground. Just amazing, we really need a new revolution in this country to take back our govt that was suppose to represent us.Maybe not a revolution, but something else. The Tea Party loons fancy that they represent The People, but in fact they're just one more flavor of the far right fringe. The Republicans are also on the right, and the Dems are center-right. That leaves nobody representing the rest of us, and if any new party ever needed to be formed, it is from the direction of the left.

[Eraserhead]

Well then the US has to take that risk.

[flopticalcube]

http://www.marketwatch.com/story/deficit-to-hit-13-trillion-in-2010-cbo-says-2010-01-26


Deficit to hit $1.35 trillion in 2010, CBO says

The U.S. government will in 2010 record its second-biggest budget deficit since World War II, the Congressional Budget Office estimated Tuesday, while economic growth will probably stay "muted" for the next few years.

I would not expect any progress on the deficit until at least the next Presidential election.

[mcrain]

House Minority Leader John Boehner on Friday rebuffed a request from the Obama administration to work with Democrats to rein in soaring budget deficits, aides said. Instead, the Ohio Republican argued, the White House's plans for a bipartisan commission to address the deficits should be scrapped and redesigned.

Boehner told Treasury Secretary Timothy F. Geithner in a telephone call that Republicans would refuse to participate on the 18-member commission unless it were comprised equally of Republicans and Democrats, and unless all GOP members were appointed by their caucus leaders, according to a top Boehner aide.

http://fastflip.googlelabs.com/view?q=view%3Apopular&source=news#YXSCPNJN1_nmfM

Sound familliar? We want it done our way, or we won't do it at all! Throw away your plan and start over!

[yamabushi]

I highly recommend watching the Frontline episode dealing with the national debt.

Frontline: Ten Trillion and Counting (http://www.pbs.org/wgbh/pages/frontline/tentrillion/)

[fivepoint]

I highly recommend watching the Frontline episode dealing with the national debt.

Frontline: Ten Trillion and Counting (http://www.pbs.org/wgbh/pages/frontline/tentrillion/)

I'll check that out tonight if I get a chance, thanks.

Everyone should also take a look at this:
http://usdebtclock.org/

Particularly frightening? The 107 TRILLION in Unfunded Liabilities. And let's not forget what has gotten us here... progressive/liberal spending by both Democrats and Republicans. Endless entitlements, a quasi-imperialist foreign policy, and attempting to pay for everything through the redistribution of wealth which inevitably leads to less tax dollars entering the system. Unsustainable at it's very core...