The Obama 2009 budget deficit will close in on two trillion dollars. Or between 12.5% and 13% of GDP. When added to current federal spending and state-level government expenditures, the government will be a staggering 40% of GDP this year. One caveat to the President's numbers: the two trillion dollar deficit assumes economic growth for the next two years. In other words, if the economy stagnates or worsens (which much of the "smart money" in the world of business and finance predict; least of which is Warren Buffett), then the deficit will exceed two trillion dollars this year.
Treasury Secretary Tim Geithner tells Capitol Hill that the plan will bolster the economy. Well, considering that the Dow is touching 12 year lows after digesting President Obama's budget proposals and Mr. Geithner's bank "rescue" plans, those with money on the line are obviously not betting that either plan will bolster much of anything anytime soon.
Vote Responsibly,
Noble Servant
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