On 09/01/2011 05:39 PM, Michael Madigan wrote: > When Bush left office, the deficit was around 400 billion, it is now 1.3 > trillion.
The federal deficit for the FY ending September 30, 2011 is projected to come in at 1.3 trillion, but this fiscal year contains many extraordinary events and challenges that are not of a recurring nature, (eg see excerpt below). The deficit or surplus for each year can vary widely, depending on conditions. There seems to be some confusion about the difference between a deficit and the national debt. A Business closes its book once each year and the profit or loss is closed into retained earnings. The federal government also closes its book at the end of a fiscal year, (eg FY), and recognizes either a surplus, (eg profit in business terms), or a deficit, (loss in business terms). To the extent the government operates at a deficit during any period, (eg has more expenses that revenue), the government must finance the deficit by borrowing, (eg issue debt like treasury bonds). When the treasury bonds are issued, it increases the national debt to the extent new treasury bonds are being issued faster than periously issued treasury bonds are being retired, (eg paid off). Some people seem to think that a balanced budget amendment to the constitution is the solution to government deficits, but actual operational revenue and expense rarely match budget projections, so at the end of a fiscal year the government will almost always have a surplus or deficit from actual operations, whether the budget was balance or no. #-------------------------------------- Excerpt: "2011 has seen drags on the economy in the form of a sharp rise in oil prices, the disruption to global supply chains as a result of the earthquake in Japan, a slowdown of growth in Europe, a sluggish rebound in the housing market, and uncertainty surrounding congressional action on the debt ceiling," said the report. The U.S. housing market is "so severely out of balance" that it is hampering the economic recovery, and the nation should endeavor to trim the large inventory of foreclosed homes, U.S. Federal Reserve Governor Elizabeth Duke said at a housing forum held in Washington, D.C., Thursday. The OMB held that the current economic growth and job creation pace were not strong enough to bring down the unemployment rate to an acceptable level, predicting that the nation's unemployment rate would edge down to 8.3 percent next year from the 9.1 percent in July. Obama's jobs creation package to be unveiled next week will not only give a boost to the short-term economic expansion, but also lay the foundation for long-term economic growth, White House spokesman Jay Carney told reporters Thursday. The office also said it would take several years of healthy job growth to offset the nearly 9 million jobs that were lost between January 2008 and February 2010. "With continued growth, the unemployment rate is projected to fall, but it is not projected to fall below 6 percent until 2016," said the report. http://news.xinhuanet.com/english2010/world/2011-09/02/c_131092457.htm #----------------------------------- Regards, LelandJ > > ----- Original Message ----- > From: graham dobson<[email protected]> > To: ProFox Email List<[email protected]> > Cc: > Sent: Thursday, September 1, 2011 6:25 PM > Subject: Re: [OT] Some scary events in Republican party > > The figure quoted in the economist puts the actual cost of the TARP between > 10 billion and 15 billion. The trillions of dollars rise in the deficit was > well underway before the current administration took office. > > > From: Carl Lindner<[email protected]> > To: 'ProFox Email List'<[email protected]> > Sent: Wednesday, August 31, 2011 7:30:53 PM > Subject: RE: [OT] Some scary events in Republican party > > a lot of money was paid back - I wonder where it went > > -----Original Message----- > From: [email protected] [mailto:[email protected]] On Behalf > Of Nicholas Geti > Sent: Wednesday, August 31, 2011 6:26 PM > To: ProFox Email List > Subject: Re: [OT] Some scary events in Republican party > > If the TARP made money, why is the deficit projected to be in the hole by > $14 trillion over the next ten years. Something is not adding up. > > > ----- Original Message ----- > From: "graham dobson"<[email protected]> > To: "ProFox Email List"<[email protected]> > Sent: Wednesday, August 31, 2011 1:27 PM > Subject: Re: [OT] Some scary events in Republican party > > > > > others to follow. How's this for starters: the biggest event is the bailouts > giving to bankers and wall streeters. Trillions of dollars wasted with no > > The bail outs are likely to cost a fraction of the initial figures. The > government has actually made money selling GM and AIG shares. Also TARP the > original bail out plan was drawn up by Hank Paulson, Bush's Treasury > secretary, not Obama. There are Nobel prize winning economists who feel the > best way forward for America is to spend more money on infrastrucure and > raise taxes on the most wealthy (money that needs to be put to work rather > than saved as it is now) both of which are Obama ideas that will probably [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
