Obama urges creation of U.S. deficit panel

KingYaba

macrumors 68040
Original poster
Aug 7, 2005
3,415
12
Up the irons
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

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

macrumors Core
Apr 1, 2005
19,467
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Space--The ONLY Frontier
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."
 

GfPQqmcRKUvP

macrumors 68040
Sep 29, 2005
3,211
373
Terminus
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

macrumors G5
May 18, 2008
12,141
13,989
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

macrumors G4
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.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,132
4
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.
 

hulugu

macrumors 68000
Aug 13, 2003
1,819
10,235
quae tangit perit Trump
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

macrumors P6
Aug 17, 2007
17,540
8,165
Colorado
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

macrumors newbie
Jul 4, 2003
2
706
Terlingua, Texas
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.
 

Desertrat

macrumors newbie
Jul 4, 2003
2
706
Terlingua, Texas
"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.
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,132
4
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.
 

ucfgrad93

macrumors P6
Aug 17, 2007
17,540
8,165
Colorado
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

macrumors G4
Oct 9, 2006
10,132
4
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.
 

flopticalcube

macrumors G4
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

macrumors 68020
Feb 14, 2004
2,435
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OBJECTIVE reality
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.
 

flopticalcube

macrumors G4