Saturday, January 29, 2011
President Obama announced spending cuts that are projected to reduce the deficit by $400 billion over 5 years. At a quick glance this may seem impressive, but when we consider that the budget deficit is projected to surge to $1.5 trillion this year, this $80 billion dollar a year reduction is truly a drop in the bucket. This means that in the 5 year period, we will not even begin to balance the budget, yet alone pay down the debt. At best we will slow down the rate at which we are amassing debt, which (according to the Congressional Budget Office) will result in a net increase of $6 trillion! The reason why Obama's plan is pure fraud is because IF he were serious about balancing the budget, he would not have limited the cuts to discetionary non-defense spending. How can we hope to address our fiscal ills when over 60% of the budget is off the table. I anticipate that given political realities, the budget will only be balanced when foreign lenders cut off our overextended line of credit.