Economics

Meet The New Obama, Same as The Old Obama: Tomorrow We Scrimp, But Today We Spend!

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So how's that "New Era of Fiscal Responsibility" working out? Sadly, in an incredibly predictable way.

From a USA Today account of President Barack Obama's proposed budget for fiscal year 2011:

President Barack Obama sent Congress a $3.83 trillion budget on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs.

The deficit for this year would surge to a record-breaking $1.56 trillion, topping last year's then unprecedented $1.41 trillion gap. The deficit would remain above $1 trillion in 2011 although the president proposed to institute a three-year budget freeze on a variety of programs outside of the military and homeland security as well as increasing taxes on energy producers and families making more than $250,000….

In addition to the freeze on discretionary nonsecurity spending, Obama is proposing to boost revenues by allowing the Bush administration tax cuts of 2001 and 2003 to expire at the end of this year for families making more than $250,000 annually, which the administration projects would raise $678 billion over the next decade. Tax relief for those less well-off would be extended.

The new Obama budget will also include a proposal to levy a fee on the country's biggest banks to raise an estimated $90 billion to recover losses from the government's $700 billion financial rescue fund. Those losses are expected to come not from the bank bailouts but from the support extended to General Motors and Chrysler and insurance giant American International Group as well as help provided to homeowners struggling to avoid foreclosures.

More here.

The one thing in Obama's favor? We can't say he didn't warn us that calling yourself serious about fiscal responsiblity was a code word for spendthrift. Again and again.

NEXT: Fiscal Fraud—or Frugality?

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  1. “Those losses are expected to come not from the bank bailouts but from the support extended to General Motors and Chrysler and insurance giant American International Group as well as help provided to homeowners struggling to avoid foreclosures”

    When did it become outright evil that people and businesses learn lessons the hard way?

  2. Why is Obama mocking the velvet portrait of himself in the background?

    And the lack of alt-text is racist.!

  3. ‘a $3.83 trillion budget’

    We’re getting tons of new apps with that.

    1. Apps or apes?

      1. How can a whole planet of them be racist?

  4. I will gladly pay you Tuesday for a trillion dollars today.

    1. Wimpiest President ever…..

    2. “Please, Brother, don’t choke on that soup. Biden’s even dumber than you are.”

  5. Any bets if China will pay for this, or is the Fed going to monetize the debt?

    1. Didn’t the Chinese government give Obama a tongue spanking for running up the debt? Not sure which way they will really go.

      1. Chinese tongue spanking? I will have to google it.

      2. China isn’t happy with Taiwan getting new military equipment from the U.S., either. And if the Chinese are too worried that their domestic real estate bubble is finally going to pop, they won’t be buying any U.S. debt soon.

        1. Chovanec will be good to watch:
          http://chovanec.wordpress.com/

    2. At this point, I believe the Chinese are trying to reduce their dollar exposure. Because they are such a huge part of the dollar market, though, they have to be very careful not to cause a collapse (at least, before they are ready).

      Ergo: The Chinese will buy just enough of our debt to prevent the dollar from collapsing.

  6. well, ill get it out of the way…

    CHANGE!

  7. So, I’ve heard tell that Warren G Harding beat a recession by cutting taxes and spending, but I can’t find materials to support this. Anyone know any good books on his presidency?

    1. I think all books on that subject were burned by orders of Washington because cutting taxes and spending is blasphemy and sacrilege in the Church of the Ever Expanding Spending, Taxes and Deficits

  8. Can’t we just have the monetary collapse now and get it over with? I’m tired of waiting for it.

    1. Be patient just a little longer. I’m working on it.

  9. Boiled scrimp, fried scrimp, scrimp scampi, scrimp gumbo, scrimp skewers, scrimp cocktail…

  10. Fried scrimps, boiled scrimps, baked scrimps, scrimp cocktail, scrimp scampi, scrimp gumbo,…

  11. There’s all kinda scrimps. Fried scrimp, boiled scrimp, scrimp scampi

    1. A lot o’ people don’t realize what’s really going on. They view life as a bunch o’ unconnected incidents ‘n things. They don’t realize that there’s this, like, lattice o’ coincidence that lays on top o’ everything. Give you an example; show you what I mean: suppose you’re thinkin’ about a plate o’ scrimp. Suddenly someone’ll say, like, “plate”, or “scrimp”, or “plate o’ scrimp” out of the blue, no explanation. No point in lookin’ for one, either. It’s all part of a cosmic unconciousness.

  12. In 2012 Obama is going to position himself as a fiscal conservative, running against the guy the put us deeper in debt. He’ll be campaigning against himself. Dumbass.

    1. Such a strategy is effective. Remember the scene in Blazing Saddles where the new sheriff kidnapped himself at gunpoint. The voting public doesn’t appear to be any smarter than that crowd.

  13. Caption Contest:
    Do you like it? Do you like it Barack? I call it “Blood of the American People Soup”.

  14. “Are you ready for that bag of deep-fried cocks I promised you?”

    1. Does it taste like chicken?

  15. I will gladly give you promises today for a trillion dollar deficit tomorrow.

  16. Of course Barack will monetize the debt; you have to destroy the dollar to get to that sweet super-national currency.

    It is the US or the Democratic Socialist Party, one of them is going to be gone soon.

  17. One thing that bugs me about these deficits is that they never incorporate the full cost of borrowing. What about the interest charges? If you borrow $1 billion, you end up having to pay much more than that, if it ever gets paid back at all…

  18. Well I guess it’s pretty clear I need to plan on buying some new equipment for the business over the next few years – better to lower my income and get something for the time and effort then to give it all to the state.

  19. Here is a fairly detailed article on Harding’s actions during the 1920-1921 depression.
    http://www.campaignforliberty……p?view=275

  20. or is the Fed going to monetize the debt?

    They’re trying, but those damned fat cat bankers are sitting on the money, instead of making loans to people who can’t pay them back. It’s a racist conspiracy, you know.

  21. Lord, please make me virtuous…but not today.

  22. Who is that with Obama? It looks like Norman Francis. What’s he doing there?

  23. Ah, so that’s what was in the unreleased medical dossier: the poor man suffers from a rare spinal condition which makes it difficult for him to keep his head level. (Not to mention those sudden spasms which cause him to bend deeply forward at the most inopportune times.

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