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So whatever happened to the deficit?
Washington Post ^ | 7-19-2014 | Al Kamen

Posted on 07/19/2014 5:47:48 AM PDT by Citizen Zed

Not so long ago the federal deficit was projected to destroy the country, our children’s future and just about everything else. Budget battles shut down the entire government for a couple weeks.

How times change.

A count by our colleague Alice Crites illustrates how the issue gained media traction – - especially after the Bush/Obama stimulus packages to mitigate Bush’s Great Recession – and how much it’s faded from the front pages.

So what happened? Simple answer, of course, is that the deficit is way down and, for now, no longer a big problem.


(Excerpt) Read more at m.washingtonpost.com ...


TOPICS: Chit/Chat
KEYWORDS: 2014election; 2016election; alicecrites; alkamen; demagogicparty; election2014; election2016; ibtz; memebuilding; obamadeficits; obamarecession; obamataxhikes; partisanmediashill; partisanmediashills; washingtoncompost; washingtonpost
Wait for it...


1 posted on 07/19/2014 5:47:48 AM PDT by Citizen Zed
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To: Citizen Zed
What ever happened to correct word usage?

Oh, whatever.

2 posted on 07/19/2014 5:52:37 AM PDT by Jess Kitting
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To: Citizen Zed

So we are going to have a “Republican” president in 2022 then?


3 posted on 07/19/2014 5:53:09 AM PDT by a fool in paradise (The new witchhunt: "Do you NOW, . . . or have you EVER , . . supported traditional marriage?")
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To: Citizen Zed

Shhhhhhhhhh! Speak vewy vewy quietly so nobody notices. Lookest thou over there. I see a unicorn.


4 posted on 07/19/2014 5:53:44 AM PDT by rktman (Ethnicity: Nascarian. Race: Daytonafivehundrian)
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To: Citizen Zed
Interesting take - the debt remains enormous and crushing, but since the annual deficit is a bit lower than it has been, all is rosy - until Obama leave office and the deficit starts rising again because the next administration won't be so good at fudging the numbers.

That's my story and I'm sticking to it.

5 posted on 07/19/2014 5:54:04 AM PDT by trebb (Where in the the hell has my country gone?)
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To: Citizen Zed

The line graph of the three “news”papers shows me that mainstream media seems to take its orders from one source. A deficicit that is “way down” to only a half trillion dollars a year seems like a big problem to me. This is especially true hen you consider that most of the decrease comes from reduced funding of the military after Obama surrendered in all of our wars.

If the GOPe wins in 2014 and 2016, you’ll see it skyrocket because the Progressive GOPe are bigger Keynesians than the Socialist Democrats.


6 posted on 07/19/2014 5:54:48 AM PDT by Bryanw92 (Sic semper tyranni)
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To: Citizen Zed

Who the hell is Al Kamen? Paul Krugman’s star student? He acts like half a trillion dollars is nothing.


7 posted on 07/19/2014 5:57:37 AM PDT by csmusaret (Will remove Obama-Biden bumperstickers for $10)
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To: Citizen Zed

Our dishonest government accounting system does not take into account accruing liabilities that are many times larger than the cash deficit. If those are taken into account, as businesses must do, the USA’s fiscal gap is more like $200 Trillion... But let’s not allow reality to interfere with the ongoing economic fantasy of our feel-good consumption orgy.


8 posted on 07/19/2014 6:03:53 AM PDT by JustTheTruth
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To: Jess Kitting
Ya ever notice how Barney Frank & Cris Dodd never get mentioned as possible reasons for the melt down. How they gamed the mortgage business right to the day it collapsed.

It just amazes me

9 posted on 07/19/2014 6:05:54 AM PDT by reefdiver (Be the Best you can be Whatever you Dream to be)
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To: Citizen Zed

This dumbass snarks away at those of us who criticize deficits, then crows about how the deficits are lowered under the Wizard of Ozbama (mostly via effed-up accounting, but I digress). He says it’s despite budget battles, etc, failing to mention the sequestrations. The latter is THE primordial factor in any deficit reduction we’re experiencing. The Wizard’s hands were tied by the dug-in House conservatives.


10 posted on 07/19/2014 6:09:38 AM PDT by Migraine (Diversity is great -- until it happens to YOU..)
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To: Migraine

The annual deficits may be declining ($400 billion per year is still irresponsible) but the cumulative deficit is what matters and it is reaching the point the feds will have to confiscate the retirement savings (401K’s and IRA’s) of the population to restore faith in the currency. The retirement savings of the American people in IRA’s and 401K’s totals about $16 trillion and the national debt totals about $17 trillion. Watch for a move to appropriate this money the next time there is a stock market meltdown. The government will take the money and put it in “safe” social security type accounts invested in government bonds.


11 posted on 07/19/2014 6:18:44 AM PDT by Soul of the South (Yesterday is gone. Today will be what we make of it.)
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To: Citizen Zed
It got sucked into the Federal Reserve, along with causing a horrific downdraft in economic Velocity


12 posted on 07/19/2014 6:28:17 AM PDT by HangnJudge
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To: Citizen Zed

Commodities of all kinds that have a worldwide market are skyrocketing in terms of the declining value of the US dollar. Those prices do not reflect any actual shortages. Those deficits buy more stuff for the government than than those inflated dollars buy later for you and me.


13 posted on 07/19/2014 6:34:40 AM PDT by jjotto ("Ya could look it up!")
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To: Citizen Zed

The CBO last week said if nothing changes the deficit would 106% of GDP by 2039. No worries mate


14 posted on 07/19/2014 6:53:08 AM PDT by DManA
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Rand Paul's immigration speech
...The Republican Party must embrace more legal immigration.

Unfortunately, like many of the major debates in Washington, immigration has become a stalemate-where both sides are imprisoned by their own rhetoric or attachment to sacred cows that prevent the possibility of a balanced solution.

Immigration Reform will not occur until Conservative Republicans, like myself, become part of the solution. I am here today to begin that conversation.

Let's start that conversation by acknowledging we aren't going to deport 12 million illegal immigrants.

If you wish to work, if you wish to live and work in America, then we will find a place for you...

This is where prudence, compassion and thrift all point us toward the same goal: bringing these workers out of the shadows and into being taxpaying members of society.

Imagine 12 million people who are already here coming out of the shadows to become new taxpayers.12 million more people assimilating into society. 12 million more people being productive contributors.
[Posted on 03/19/2013 7:04:07 AM PDT by Perdogg]
Rand Paul calls on conservatives to embrace immigration reform
Latinos, should be a natural constituency for the party, Paul argued, but "Republicans have pushed them away with harsh rhetoric over immigration." ...he would create a bipartisan panel to determine how many visas should be granted for workers already in the United States and those who might follow... [and the buried lead] "Imagine 12 million people who are already here coming out of the shadows to become new taxpayers...
[Posted on 04/21/2013 1:52:42 PM PDT by SoConPubbie]
[but he's not in favor of amnesty, snicker, definition of is is]

15 posted on 07/19/2014 6:55:48 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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Rand Paul On Shutdown: "Even Though It Appeared I Was Participating In It, It Was A Dumb Idea"
I said throughout the whole battle that shutting down the government was a dumb idea. Even though it did appear as if I was participating in it, I said it was a dumb idea. And the reason I voted for it, though, is that it's a conundrum. Here's the conundrum. We have a $17 trillion debt and people at home tell me you can't give the president a blank check. We just can't keep raising the debt ceiling without conditions. So unconditionally raising the debt ceiling, nobody at home wants me to vote for that and I can't vote for that. But the conundrum is if I don't we do approach these deadlines. So there is an impasse. In 2011, though, we had this impasse and the president did negotiate. We got the sequester. If we were to extend the sequester from discretionary spending to all the entitlements we would actually fix our problem within a few years.
[Posted on 11/19/2013 12:16:51 PM by Third Person]

16 posted on 07/19/2014 6:56:16 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...
...stimulus packages to mitigate Bush’s Great Recession... Simple answer, of course, is that the deficit is way down and, for now, no longer a big problem.
Washington Compost Partisan Media Shills ping.
17 posted on 07/19/2014 6:57:00 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: Citizen Zed
And...


18 posted on 07/19/2014 7:04:52 AM PDT by HangnJudge
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To: Citizen Zed
What ever happened to the "Bush is bankrupting the country" crowd?
19 posted on 07/19/2014 7:59:35 AM PDT by Kid Shelleen (Beat your plowshares into swords. Let the weak say I am strong)
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To: Citizen Zed

I’m not buying that the deficit is going to increase beginning in 2016.

The reason I’m not buying this is because while the CBO likely got the spending increases right—they underestimated the revenues coming in.

The fracking revolution for example is adding about 400 billion to the economy currently but in only 2-3 years that number will rise to one Trillion.

Revenues to the government from oil related enterprise will rise to 300 billion or so.

The USA is headed for the much country that preceded 1970 when oil peaked


20 posted on 07/19/2014 8:43:38 AM PDT by ckilmer (q)
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To: ckilmer

Tax dollars collected are inflated dollars. Deficit dollars buy more than tax dollars. Deficit dollars are going to be created until the system crashes. No one has the will to knowingly deprive anyone of their government goodies.


21 posted on 07/19/2014 8:49:50 AM PDT by jjotto ("Ya could look it up!")
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To: jjotto

Tax dollars collected are inflated dollars. Deficit dollars buy more than tax dollars. Deficit dollars are going to be created until the system crashes. No one has the will to knowingly deprive anyone of their government goodies.
..................
I agree that the feds are spending way too much money on stuff they shouldn’t be paying for. Its a terrible thing and a terrible waste.

However, my argument is something different. I’m saying that there’s a whole mountain of new revenue coming the way of the feds as a result of the fracking boom.


22 posted on 07/19/2014 9:31:41 AM PDT by ckilmer (q)
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To: ckilmer

My argument is that increased revenue only very temporarily reduces deficits because this government will always increase spending to the edge of what they might think is disaster.

Next year’s deficit buys less than the same amount in last year’s deficit, so if they think it’s “safe”, they will increase it.


23 posted on 07/19/2014 9:40:12 AM PDT by jjotto ("Ya could look it up!")
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To: jjotto

My argument is that increased revenue only very temporarily reduces deficits because this government will always increase spending to the edge of what they might think is disaster.
.....................
Agree. imho the pubbies will get control of congress in the fall. hopefully they’ll do something that will do a better job of enforcing better controls on the budget process.

Next year’s deficit buys less than the same amount in last year’s deficit, so if they think it’s “safe”, they will increase it.
..................
Yes this is about inflation. but there are plenty of other incentives for increasing spending.

My own thinking is that if you go back historically and look at the relationship between federal deficits and oil imports, you’ll notice that they tend to rise together. That is, the big red ink started in the 1970’s and these years coincided with the rise in USA oil imports.

Now this may be coincidental and not causal.

We’ll know the answer in a couple years. The answer will come as to whether the CBOE is correct or not. If the CBOE is correct and the the deficit rises as they predict then then the rise of oil imports and federal deficits together is coincidental.

If the CBOE is wrong and the federal deficit keeps shrinking after 2016 then we’ll know that the rise of oil imports is causal to higher federal deficits.


24 posted on 07/19/2014 10:21:14 AM PDT by ckilmer (q)
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