How Do You “Invest” When You’re Broke?

Hey Obama, what part of “we don’t have any money” don’t you understand?

CBO: Federal deficit to hit $1.5T this year

Last month’s bipartisan tax cuts and spending deal has deepened the federal deficit dramatically this year, putting the government on track for a nearly $1.5 trillion shortfall — the largest in history — the Congressional Budget Office said Wednesday.

The sobering check on the country’s finances was announced a day after President Obama‘s address to Congress and underscored the country’s tenuous fiscal standing, which could doom many of Mr. Obama‘s initiatives to boost government spending on education, roads and other infrastructure.

The CBO did say the economy appears to be improving, albeit slowly, from a deep recession that drove the unemployment rate to more than 10 percent. The rate is still above 9 percent, despite efforts by Mr. Obama and Congress to pump money into the economy.

“It’s been a slow recovery by the standards of our past. The labor market in particular has been coming back slowly; income has been coming back slowly,” said CBO Director Douglas Elmendorf.

Social Security Will Post Shortfall This Year, CBO Says

Social Security will post a $45 billion shortfall in fiscal 2011 and will pay out more in benefits than it accepts in payroll taxes through at least 2021 without legislative changes, the Congressional Budget office said on Wednesday.

See also:
The Budget and Economic Outlook: Fiscal Years 2011 to 2021
CBO projects record-high $1.5 trillion budget deficit this year
As deficits, debt soar, Obama, Congress fail to confront them
Deficit Outlook Darkens
CBO forecast: frightening fodder for both parties
It’s official: The debt is ballooning. Now can we think clearly?
Social Security to Run Deficits for Foreseeable Future, CBO Says
Social Security fund now seen to be empty by 2037
Social Security to Operate in the Red for the Next 10+ Years: CBO
Social Security to run permanent deficits, says CBO
CBO: Social Security Will Run Permanent Deficits
A Roadmap for America’s Future

I swear, Is Paul Ryan the only adult in Washington? When are these moron politicians going pay attention, grow some spines, and start taking this fiscal crisis seriously. Every day that goes by, we dig ourselves deeper into the national debt hole and it becomes ever so much more difficult and painful to try and climb out of our self inflicted, bottomless deficit pit.

/we’d better just forget about pie in the sky choo choo trains and go straight to the required austerity budget measures

The 2010 Aftermath

Not total victory, but all in all, it was a very good day for Republicans.

After GOP landslide of Election 2010, what next for Obama?

The Republican Party has swept the Democrats out of power in the House and gained seats in the Senate, sending a strong message of voter discontent to President Obama on the economy.

Republicans scored at least a 60-seat gain in the House, the biggest partisan shift since the Democrats lost 75 House seats in 1948. In the Senate, the Republicans fell short of the 10 they needed to take control, and failed to capture their most-hoped-for quarry: the seat of Senate majority leader Harry Reid (D) of Nevada, who defeated tea partyer Sharron Angle by five percentage points. It is the first time in 80 years that the House has changed hands without the Senate following.

The historic wave that makes Rep. John Boehner (R) of Ohio the expected next speaker of the House also hands Mr. Obama the biggest challenge of his political career. Suddenly, the president has no choice but to work toward his unfulfilled 2008 campaign promise of greater bipartisanship. The alternative is gridlock and the appearance of ineffectiveness. But if Obama concedes too much to the Republicans, he risks losing the support of his Democratic base when he runs for reelection in 2012, as expected.

Maybe even more impressive and certainly just as important was the Republican near sweep at the state level. Republicans will now be in charge of redistricting in the majority of states, which will set legislative boundaries for the next ten years.

Forget D.C., look what Republicans won in state legislatures

This is especially important in years ending in ’00 because these newly elected governors and state legislators will (with the exception of California) be the ones redrawing legislative and congressional district lines that will stand for the next decade until the 2020 census. And occupying the governor’s mansion puts that party in control of an immense statewide political apparatus to help its presidential ticket two years hence.

Come January, Republicans will now run crucial governors’ offices in….

…major presidential battleground states like Florida (Rick Scott), Ohio (John Kasich), Pennsylvania (Tom Corbett) and Iowa, where former Gov. Terry Branstad returns. New Mexico voters elected their first female governor, Republican Susana Martinez, a Latino. Sometimes-maligned South Carolina voters chose Nikki Haley, who is not only the state’s first female governor but only the nation’s second of Indian American descent (Louisiana’s Bobby Jindal being the other.) Oklahoma also picked its first female governor, Republican Mary Fallin.

According to the authoritative Stateline.org, the country’s contests for governor and lieutenant governor cost $850 million. Heading into 2012, the GOP will control at least 29 of the 50 governor’s suites.
Perhaps more importantly, the Republican wave at the national level was also felt at the grass-roots level, where Republicans gained control of at least 19 more state legislative chambers, possibly two dozen as vote-counting continues.

The GOP will have a majority in at least 54 of the 99 state legislative chambers, including a minimum of 53% of state legislature seats (about 3,900). That’s the most the party has controlled in 82 years — and up about 700 seats from Monday.

Of course, we didn’t win them all and this one personally sticks in my craw. If it wasn’t for third party spoiler candidate Tom Horner (former Republican), Republican Tom Emmer would already easily be the next Governor of Minnesota. Mark Dayton should send Horner some flowers or candy or a tip or something.

Guv’s race: Long ride, no end in sight

A seismic shift in Minnesota’s political landscape unfolded Wednesday as the most game-changing election in a generation sent Republicans and the DFL scrambling for the last undecided prize — the governor’s office.

DFLer Mark Dayton unofficially leads Republican Tom Emmer by 8,856 votes — a margin so slight that it could trigger a hand-ballot recount for the second election cycle in a row.

Officials began the tedious, nerve-wracking task of locking up ballots, which both parties may guard around the clock.

The day’s events placed the state, yet again, in political suspended animation, awaiting the prospect of another recount brawl that could take months to resolve and get tangled in the courts.

See also:
2010 Elections Exit Poll Analysis: The Political Price of Economic Pain
Election Day 2010 and its aftermath
Exit polls Election 2010
Karl Rove, U.S. Chamber Amass Winning Record in 2010 Elections
Tea Party Top 10 biggest winners and losers
Statehouse wins put GOP in redistricting driver’s seat
Vote 2010 Elections: What’s Your Reaction to Republicans’ Big Win?
With 2010 Behind Us, A Look Ahead To 2012
Republicans celebrate, outline legislative goals
In Social Media Election, The GOP Capitalizes
How will Obama react to GOP gains?

Tuesday’s vote was an absolute thumping repudiation of Obama and the Democrats and their big government, far left agenda. Now that the Republicans have a tight leash on the Democrats, will the Democrats learn to play ball in the poetical center? Will the Democrats learn to at least read the destructive legislation they vote to cram down the throats of the American taxpayers, over the vociferous objections and protestations of the electorate.

/because, if the Democrats don’t learn their lesson this time, they’re going to get thumped even harder in 2012, the American people have spoken and they’ve had enough of Obama and the Democrats’ progressive socialism

How Can You Tell She’s Lying?

Her lips are moving.

Well, how’d that promise work out?

Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit Spending’

When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.

“After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.”

Pelosi has served as speaker in the 110th and 111th Congresses.

At the close of business on Jan. 4, 2007, Pelosi’s first day as speaker, the national debt was $8,670,596,242,973.04 (8.67 trillion), according to the Bureau of the Public Debt, a division of the U.S. Treasury Department. At the close of business on Oct. 22, it stood at $13,667,983,325,978.31 (13.67 trillion), an increase of 4,997,387,083,005.27 (or approximately $5 trillion).

Pelosi, the 60th speaker of the U.S. House of Representatives, has added more to the national debt than the first 57 House speakers combined.

See also:
Over $5 trillion in new debt since Pelosi promised ‘No New Deficit Spending’
Under Pelosi, national debt has increased $5 trillion
Pelosi: ‘We haven’t really gotten the credit for what we have done’
Nancy Pelosi May Be Out Whatever Happens
Nancy Pelosi Who?
Pelosi: ‘If I were not effective they wouldn’t care about me’
Obama says Pelosi will go down in history as one of the finest speakers in US
Texas Democrat Edwards, a Pelosi lieutenant, runs from her

Ten days left.

/vote like your future depends on it, because it does

Double The Record Bailout, Double The Criminality

Franklin Raines, Barney Frank, Maxine Waters, and all the rest of these thieving Democrat criminals should be made to forfeit of every last penny’s worth of their personal property and then be thrown in Federal prison for the rest of their lives. They’ve done immeasurable damage to the U.S. economy, the U.S. taxpayers, and everyone who own a house or a retirement account. And it’s not over yet and it’s only going to get worse.

Fannie and Freddie support may reach $363 billion by 2013

Mortgage finance giants Fannie Mae and Freddie Mac could need as much as $363 billion in government payments by 2013, regulators said Thursday.

The Treasury Department has pumped $148 billion into the agencies since the government took them over in 2008.

The new projections by the Federal Housing Finance Agency, based on a series of assumptions about home prices, indicate that Fannie and Freddie will require an additional $73 billion to $215 billion before 2013.

Read the projections:

Projections of the Enterprises’ Financial Performance

See also:

Fannie, Freddie May Draw $363 Billion, FHFA Says
Fannie/Freddie Bailout Could Total $363 Billion
Fannie, Freddie May Need $215 Billion More in Aid
Fannie & Freddie ‘could cost US $363bn’
Fannie Mae, Freddie Mac bailouts could hit $363 billion, report says
Fannie, Freddie bailout could hit $363 billion
US taxpayers warned Fannie Mae and Freddie Mac may need $363bn bailouts
Fannie Mae and Freddie Mac deep in the hole
Fannie Mae, Freddie Mac Bailout Costs Could Soar
Fannie and Freddie May Need Infusion
Fannie, Freddie Rise Despite Giant Potential Tab With U.S Treasury

Yes folks, the Fannie and Freddie bailout is going to end up costing more than the AIG and Auto bailouts combined, by an order of magnitude, and the U.S. taxpayers are going to get stuck with the bill.

/why do the known criminals who obviously caused this 1/3 of a trillion dollar mess remain unpunished?

Must Be Election Season

Oh, sure, it’s cheap political theater, but it’s the thought that counts and it’s got Democrats howling, so it serves its purpose.

In run-up to Nov. vote, GOP unveils ‘Pledge to America’

House Republican leaders vowed to reverse the course of Washington and “realign our country’s compass” in a wide-ranging agenda unveiled six weeks before the fall elections.

The 21-page “Pledge to America,” released Thursday at a Virginia hardware and lumber store, focused largely on government spending, the economy and ways to roll back ideas proposed by President Obama, including the new health care law.

“Government is out of control,” said House GOP leader John Boehner, sounding a theme repeated throughout the plan. “And we need to rein it in.”

An anti-Washington mood has endangered dozens of House Democrats this year, bolstering the GOP’s hopes that they can recapture the majority in the November elections. To do so, the party would need to win back 39 seats.

Democrats called the plan a retread: “The Republican agenda … will take us right back to the exact same agenda that failed middle-class families,” House Majority Leader Steny Hoyer said.

Read the pledge:

A Pledge to America

/Michael Ramirez

See also:
A Pledge to America – The Fall 2010 GOP Agenda
The GOP makes its “Pledge to America”
Pledge to America: good policy, good strategy
GOP’s ante: The pledge
Republicans unveil Pledge to America, but where was Paul Ryan?
Will the “Pledge to America” Produce a Single GOP Vote in November?
Democrats on the Pledge to America
GOP ‘Pledge to America’ infuriates some conservatives

Well, the “Pledge” certainly has provoked reactions from all sides, which I guess was the point. Whether you believe this is a serious document or a gimmick, it really doesn’t matter. Even if the Republicans take back the House and, by some miracle, manage to retake the Senate, as long as Obama is still sitting in the White House with his veto pen, the Pledge to America is going nowhere fast.

/the best Republicans can hope for, with control of the House, is to kill funding for the agenda the Democrats have already passed and try and starve it to death, which is certainly much better than a sharp stick in the eye

Enemy Of The Economy

Elizabeth Warren has never held a private sector job, never worked in the financial industry, and she hates banks, with a passion. So, what’s Obama’s brilliant idea? Let’s put her in charge of the new Bureau of Consumer Financial Protection bureaucracy! There’s only one problem, that position requires Senate confirmation and Warren is so toxic that even top Democrats know that there’s no way she would ever be confirmed. So, does that stop Obama, have Constitutional requirements ever stopped Obama? Hell no! Obama just ignored the Senate confirmation requirement and appointed her as his newest “czarina”.

Obama names Warren to new post

President Obama on Friday formally tapped Harvard Law Prof. Elizabeth Warren as a “special adviser” tasked with setting up a new consumer watchdog agency, sidestepping a thorny Senate confirmation battle and drawing the ire of Republicans.

Ms. Warren, who had been serving as head of the investigative board that oversees the $700 billion Wall Street bailout, is a hero to many progressives but is viewed coolly by financial firms turned off by her harsh rhetoric surrounding their role in the recession.

That’s likely one of the reasons Mr. Obama opted not to name Ms. Warren director of the Consumer Financial Protection Bureau as that position would require Senate confirmation — something that even Democrats, including Sen. Banking Committee Chairman Christopher Dodd, have said may not be possible. Instead, she will take the lead in establishing the new regulator, serving as a special adviser to Treasury Sec. Timothy Geithner and a special assistant to Mr. Obama.

See also:
Warren takes post; liberals cheer
Hurdles for Warren in Agency Launch
Warren is named bureau adviser
Obama taps Elizabeth Warren to launch Consumer Financial Protection Bureau
Barack Obama taps Elizabeth Warren for consumer watchdog job
What has Wall Street got against Elizabeth Warren?
Obama names consumer advocate Warren to new post
Obama makes it offical: taps Elizabeth Warren as financial consumer czar
Elizabeth Warren
Elizabeth Warren

Oh boy, just what this economy needs, a brand new gigantic government bureaucracy, created by someone with zero private sector experience, that will generate reams of onerous new government regulations. Is it any wonder why the United States has such an unfriendly business climate?

/somewhere in Germany, the Board of Deutsche Bank is smiling

Bogus Obama Math

Listen carefully.

Did you hear that Obama administration talking point? We can’t afford the $700 billion to extend the Bush tax cuts for the “wealthiest Americans”. But we really want to extend the “middle class” tax cuts.

Let’s do some math.

Bush tax cuts: What you need to know

What’s at stake for the deficit?

Treasury estimates the costs of making the tax cuts permanent for everyone is $3.7 trillion over 10 years.

Of that, $3 trillion accounts for the cost of extending them for the vast majority of Americans, as the president has proposed. The remaining $700 billion is the cost of extending them permanently for the high-income earners.

Um, so, we can afford $3 trillion, but not $3.7 trillion, according to Obama math. If we can’t afford the $700 billion for the tax cuts for the “rich” in the first place, where is Obama going to come up with the $3 trillion for the “middle class” tax cuts he loves so much and why is no one asking this question? What bull[expletive deleted]!

See also:
Obama: Republicans playing games with tax cuts
No time to play ‘games’ with tax cuts, Obama says
Obama Blasts GOP on Tax Cut Issue
Tax Cut Battle
Democrats divided over tax hikes
Moderate House Democrats Push for Vote on Extending All Bush Tax Cuts
More House Democrats call for tax cuts for all
Another Democrat Says Extend ALL Bush Tax Cuts
WHIP COUNT: Democrats in favor of extending all of the Bush tax cuts
Change: Pelosi Hints She’s Open To Full Tax Cut Extension

Obama is such a dishonest douche bag. He has no problem borrowing $3 trillion to play political class warfare ahead of the midterm election, but then he can’t seem to borrow the extra $700 billion to extend the tax cuts to those evil “rich” people, you know, the people who actually create most of the jobs in our economy.

/it’s real simple, with the country already over $14 trillion in debt, either we can afford all the tax cut extensions or we can’t afford any of them

Recovery Summer My Ass!

For weeks now, all the economic data have painted a grim picture of an economy that’s rapidly grinding to a halt. And yet Obama, Biden, and the rest of the Clown Car Club Democrats swear up and down, with supposedly straight faces, that the economy is turning around and is headed in the right direction. Either they’re deliberately lying or they’re incompetently insane, take your pick.

/Michael Ramirez

‘Recovery Summer’ goes bust

Declaring a “Recovery Summer” victory tour at the start of June must have looked like a pretty safe wager for the Obama administration. The economy seemed to have shifted firmly into gear during spring. Lawrence Summers, director of the National Economic Council, told the Financial Times in early April that the economy was “moving toward escape velocity. You hear a lot less talk of ‘W’-shaped recoveries and double-dips than you did six months ago.”

A big reason for White House optimism was a stronger job market. The economy added an average of 320,000 net new jobs a month during March, April and May, about half of them in the private sector. Granted, the unemployment rate still hovered close to 10 percent. But if the economy kept growing at a 3 percent annual clip or greater — creating lots and lots of new jobs in the process — unemployment would eventually fall, perhaps dramatically.

Since then, however, the economy has fallen back to Earth, and “Recovery Summer” looks more like a bad bet. Private sector job growth has fallen by two-thirds, and the unemployment rate is still at a sky-high 9.5 percent. And if the size of the U.S. work force, as measured by the Labor Department, had stayed constant since April — instead of shrinking by a million — the unemployment rate would be 10.4 percent. Jobless claims are at their highest level since February. Worse yet, the expansion is decelerating. After growing by 5.7 percent in the final quarter of 2009 and 3.7 percent in the first quarter of 2010, gross domestic product advanced by just 2.4 percent from April through June, according to the Commerce Department.

See also:
White House’s ‘recovery summer’ could be slipping away
Grim jobs report undercuts talk of a recovery
GOP Targets Obama’s ‘Recovery Summer’ Amid Economic Gloom
The recovery is losing steam, fast
Doubt keeps people from investing
Recovery a job killer on Highway 66
Obama’s Economic Recovery Hits a Snag

So, what’s Obama’s plan to restore positive economic momentum, where’s the leadership? Aside from blaming Bush, who left office a year and a half ago, and the Republicans at every opportunity, it appears Obama doesn’t have a plan, he’s AWOL on the economy, he has no idea what to do or what needs to be done. In fact, all the policy he has so far foisted upon the country has been economically counterproductive and has created nothing but market confusion and uncertainty.

/I think Obama needs another vacation, don’t you think he’s earned it?

The State Of The Union Is Not Strong

The U.S. economic forecast looks grim and we’re definitely expecting more rain.

UPDATE: CBO Estimates 2010 Deficit At $1.34 Tln

A new projection from the Congressional Budget Office forecast the federal government’s budget deficit for fiscal 2010 would total $1.34 trillion, improving to just over $1 trillion in fiscal 2011, which begins on Oct. 1.

If the CBO’s figures are reached, the deficit in the current fiscal year would be equal to 9.1% of U.S. gross domestic product, compared with fiscal 2009’s mark of 9.9%.

The latest figures from the nonpartisan agency portray a dreary picture of the U.S. economy, predicting U.S gross domestic product would only grow by 2% between the fourth quarter of 2010 and the same period next year.

It said the unemployment rate would not fall back to the long-term average of 5% until the end of 2014.

The CBO said since mid-2009, the recovery in the U.S. economy had been “anemic” compared with the periods following earlier recessions.

The projections involve several assumptions that likely make them optimistic. They assume the Bush-era tax cuts expire at the end of 2010, for example, and also that Congress makes no further annual adjustments to prevent the alternative minimum tax from hitting middle-class taxpayers.

The projections also don’t include any further government stimulus efforts to accelerate the lagging economy.

Read the report:

The Budget and Economic Outlook:
An Update

See also:
Keeping tax cuts beneficial in short term, harmful over long term, CBO says
Stimulus and tax cuts now, smaller economy later, CBO report says
Analysts: CBO GDP Forecast A Fantasy
Budget analysts: Near-record 2010 deficit of $1.3T
UPDATE 1-U.S. 2010 budget deficit at $1.342 trln – source
$1.3-trillion U.S. budget deficit expected
Projected US budget deficits threaten to curtail growth: CBO
Gloom weighs on fragile US recovery

The economy’s in shambles and getting worse by the day, so what does Congress and Obama do? Why naturally they all go on vacation for the rest of the month! Crisis, what crisis?

/if these so called people’s representatives don’t get deadly serious about making the hard and unpopular choices that are necessary to get us out of this massive deficit mess, we’ll soon be past the debt with interest tipping point and unable to avoid total economic collapse no matter what anyone does

Friday Night Bad News Dump

Obama was hoping you wouldn’t notice the new record deficit he set. It’s more than three times as large as the deficit was when Bush left office.

White House predicts record $1.47 trillion deficit this year, 9 percent unemployment next year

New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.

That’s actually a little better than the administration predicted in February.

The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.

The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012 — a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don’t think the unemployment rate will drop to those levels until well into this decade.

“The U.S. economy still faces strong headwinds,” the OMB report said. They include tight credit markets, a high inventory of unsold housing and retrenchment by state governments bound by balanced budget mandates. The European debt crisis has also had an impact.

See also:
Mid-Session Review
Budget of the U.S. Government

Federal budget deficit to exceed $1.4 trillion in 2010 and 2011
Forecast for 2011 Deficit Is Raised to $1.4 Trillion
Obama Budget Office Forecasts $1.47 Trillion Deficit This Year
Obama’s budget deficit heading further up
US deficit heads toward record $1.47 trillion
Federal deficit expected to reach record high
OMB: Economic pain will linger
US predicts record budget deficit
U.S. economy faces strong headwinds: White House
U.S. Trims ’10 Deficit Forecast as Economy Faces Headwinds
Republicans pounce on new OMB deficit predictions
Budget 2011: Past Deficits vs. Obama’s Deficits in Pictures

And remember, these record deficit projections are based on rosy White House economic assumptions.

Real GDP is expected to rise by 3.1 percent during the four quarters of 2010 and to increase 4.0 percent in 2011. The growth rate is projected to rise to 4.3 percent in 2012 and 4.2 percent in 2013 as the economy returns closer to its potential output level. Beyond 2013, real GDP growth is projected to moderate, declining gradually to 2.5 percent per year in 2018-2020.

If the U.S. economy falls short of these GDP projections, the now record deficits will become even worse. And you don’t even want to think about what happens if interest rates rise significantly and it costs the U.S. Government even more to borrow these incredibly humongous amounts of money.

/there’s no way that Obama can legitimately blame Bush for this budget mess anymore, although that won’t stop him from trying to revise history