Home > Federal, National > Looook how many zeroes in deficit now. True figure exceeds world GDP by $10 trillion. Why Democrats don’t care about $9.7 trillion debt

Looook how many zeroes in deficit now. True figure exceeds world GDP by $10 trillion. Why Democrats don’t care about $9.7 trillion debt

March 11, 2010

Looook how many zeroes in deficit now!

True figure exceeds world GDP by $10 trillion

 


Posted: March 08, 2010

By Jerome R. Corsi
© 2010 WorldNetDaily

As the Obama administration prepares to finance a 2010 budget deficit expected to top $1.5 trillion, the American public is largely unaware that the true negative net worth of the federal government reached $70.7 trillion last year. That’s more than $70,000,000,000,000. The figure is five times last year’s U.S. GDP and exceeds the world GDP by about $10 trillion.

“The future of this course is hyperinflation,” said John Williams, editor of the electronic newsletter Shadow Government Statistics. “We are headed to a point where the magnitude of U.S. federal budget deficits will undermine investor confidence in the U.S. Treasury.”  

Williams argues the total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, have effectively placed the U.S. government in bankruptcy. He comes to that conclusion even without taking into consideration any future and continuing social welfare obligations embedded in the Obama administration’s planned massive overhaul of health care insurance.  

Statistics generated in Williams’ most recent newsletter demonstrate the real 2009 federal budget deficit was $4.3 trillion, not the $1.417 trillion previously reported by the Congressional Budget Office, according to the 2009 Financial Report of the United States Government as released by the U.S. Department of Treasury Feb. 26.

 

The $1.417 trillion “official” budget deficit numbers (provided by the white house to the CBO) are calculated on a “cash basis” method.

The $4.3 trillion budget deficit based on data reported in the 2009 Financial Report of the United States Government is that the official budget deficit in which all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur. These are calculated on a “GAAP basis” (Generally Accepted Accounting Practices) that includes year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare. (where the cash basis does not).

He suggested the GAAP accounting position of the U.S. will be even worse in 2010.

“On a cash basis, the Obama administration is projecting a 2010 federal budget deficit about $1.5 trillion, but that is based on positive economic growth for 2010,” Williams noted. “Tax revenue in 2010 will not live up to government projections, especially as more federal bailouts are likely to be needed to extend unemployment benefits or to keep the states out of bankruptcy.”

 For further explanation, more….. http://www.wnd.com/index.php?fa=PAGE.view&pageId=127360



Why Democrats don’t care about $9.7 trillion debt


Posted: March 09, 2010
 

As reported by the Washington Post, “President Obama’s proposed budget would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday.”

CNN adds, “Of that amount, an estimated $5.6 trillion will be in interest alone.”

The Post continues: “The CBO (Congressional Budget Office) and the White House (are) … both predicting a deficit of about $1.5 trillion this year – a post-World War II record at 10.3 percent of the overall economy. But the CBO is considerably less optimistic about future years, predicting that deficits would never fall below 4 percent of the economy under Obama’s policies and would begin to grow rapidly after 2015.

“Deficits of that magnitude would force the Treasury to continue borrowing at prodigious rates, sending the national debt soaring to 90 percent of the economy by 2020, the CBO said.”

CNN adds that “By 2020 the (CBO) estimates debt held by the public would reach $20.3 trillion, or 90 percent of GDP. That’s up from 53 percent of GDP in 2009.”

I suspect that most Americans, if asked whether these numbers trouble the Democratic leadership and President Obama, would answer in the affirmative.

 They would be wrong.

 They would be wrong because the Democratic Party and the president are leftists. And most Americans, including most Democrats, do not understand the left. They may understand liberalism; but President Obama, Nancy Pelosi, Harry Reid and most Democratic representatives and senators are not liberals; they are leftists. And most Americans do not understand the difference between liberal and left. They do not realize, for example, that there is no major difference between the American Democratic Party and the leftist social democratic parties of Western Europe. They do not know that from Karl Marx to Obama, the left (as opposed to liberals) has never created wealth because it has never been interested in creating wealth; it is interested in redistributing wealth.

Therefore, unprecedented and unsustainable debt, a debt that will negatively affect most Americans’ quality of life, renders the dollar increasingly undesirable and undermines America’s prestige and power in the world – these developments do not particularly disturb the left. They may trouble the president, the Democratic Party and others on the left on some political level, but that pales in comparison to what the left really wants: a huge government overseeing a giant welfare state and a country with far fewer rich Americans.

Achieving those goals is far more important than preventing a decline in the American quality of life. The further left one goes, the more contempt one has for the present quality of American life in any event. The left regularly mocks many of the symbols of that life – from the three-bedroom suburban house surrounded by a white picket fence to owning an SUV (or almost any car) because Americans should be traveling on public buses, trains and bicycles.

The dollar’s prestige is declining, and as for America wielding less power in the world, that is a positive development for the American left. It is the world community as embodied in the United Nations that should wield power throughout the world, not an “overstretched,” “imperialist” and “militarist” United States according to them.

 I used to believe that left and right have similar goals for America, that they just differed in the means they wanted used to get there. I was mistaken. The left has a very different vision of America than those who hold the founding values of America, most especially individualism and small government. And if the price of a once-in-a-lifetime possibility of getting to a giant welfare state dominated by the left is America’s steep financial decline, that is a price fully worth paying in their minds.

 Dennis Prager hosts a nationally syndicated radio talk show and is a visiting fellow at the Hoover Institution at Stanford University. His website is www.dennisprager.com.

Who’s getting richer under the Obama regime? Find out in “Obamanomics: How Barack Obama Is Bankrupting You and Enriching His Wall Street Friends, Corporate Lobbyists, and Union Bosses”

 

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