Obama Was Warned By His Economic Team That His Campaign Promises Would Create A Mountain Of Debt

TBI ^ | 1-23-2012 | Michael Brendan Dougherty

[blam]

Obama Was Warned By His Economic Team That His Campaign Promises Would Create A Mountain Of Debt

Michael Brendan Dougherty
Jan. 23, 2012, 8:57 AM

Ryan Lizza reports for the New Yorker that on December 15 2008, a few short weeks before his inauguration, president-elect Obama was presented with a 57-page memo on the depth of the economic crisis drafted by Lawrence Summers and other economic advisors.

The memo informed the president that if he enacted his campaign promises in the current environment, he would shoot a gigantic hole into the nation's budget.

“Since January 2007 the medium-term budget deficit has deteriorated by about $250 billion annually,” the memo said. “If your campaign promises were enacted then, based on accurate scoring, the deficit would rise by another $100 billion annually. The consequence would be the largest run-up in the debt since World War II.”

Lizza's reporting also mentions the huge divide between Peter Orzsag, the budget director who suggested the president scale back his agenda, lest he run up historic deficits, and Christina Romer, the incoming chairman of the Council of Economic Advisers who wanted to suggest stimulus plans as large as the $2 trillion hole in the economy.

But Summers argued against a stimulus that was too large.

He offered the President four illustrative stimulus plans: $550 billion, $665 billion, $810 billion, and $890 billion. Obama was never offered the option of a stimulus package commensurate with the size of the hole in the economy––known by economists as the “output gap”––which was estimated at two trillion dollars during 2009 and 2010. Summers advised the President that a larger stimulus could actually make things worse

(snip)

The full 57-page memo will be made public by the New Yorker later today.

(snip)

[Joe the Pimpernel]

That would mean nothing to a man who has never earned an honest day’s pay in his life.

[Izzy Dunne]

he would shoot a gigantic hole into the nation's budget.

Budget?

What budget?

We don't need no stinkin' budget !

[grobdriver]

Obama Was Warned By His Economic Team That His Campaign Promises Would Create A Mountain Of Debt

To which he responded, "So?"

[fhayek]

A messiah need not listen to mere mortals.

[freeangel]

“he would shoot a gigantic hole into the nation’s budget. “

But that was one of husseins goals all along. Destroy this country’s economy and essentially bring third world “values” along with class warfare and racism.

[Texas Eagle]

You people just don't understand. President Clouseau faced a more huger economic problem than he expected.

Even though he said himself during the 2008 campaign that the Bush economy was the worst economy since The Great Depression.

If you can't comprehend how a 4.5% unemployment rate is worse than a 9% unemployment rate....

[FamiliarFace]

You are right, this was one of his goals all along. The collapse of the American economy would be just the “boost” he needed to usher in a completely socialist/Marxist “utopia”. Then he could rightly install his own dictatorship.

We are well on our way to his dictatorship unless America votes this bum out!

ANYBODY BUT OBAMA!

[Col Frank Slade]

He probably didn’t even bother to read it ..

[liberalh8ter]

I suspect after Obama leaves Washington, the documentation proving Obama ignored all of the expert's warnings will be plastered everywhere. Dems always eat their own when the chips are down. He'll be vilified by the very people who declared he was the Messiah.

[pieceofthepuzzle]

“That would mean nothing to a man who has never earned an honest day’s pay in his life.”

Bingo!
Private schools, bankrolled somehow throughout college, paid for being a community organizer - basically living a privileged life - but, ironically he probably feels that he is the chosen one who will help the masses while punishing ‘the privileged’. A clueless jerk with a sophomoric world view and a simplistic and erroneous ideology.

[klb99]

Lest we forget, 1/2007 is when the dems took control of the House..........funny how it’s never mentioned that they controlled the purse from 2007 to jan 2011.

[MrB]

“uh... and the problem with that is?”

[Nachum]

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/

[albionin]

He doesn’t care. He will get out of office and he will forever be hailed as a hero by all the looters. He will become wealthy doing speeches and have the red carpet rolled out for him by the anti-living.

[crosshairs]

As if barry gives a Shiite.

[Only1choice____Freedom]

Even though he said himself during the 2008 campaign that the Bush economy was the worst economy since The Great Depression.

And yet, he says he did not know how bad it really was!!

[blam]

A Strange Appetite For US Debt

[TLI]

He probably didn’t even bother to read it ..

It was a printed memo.

Now, if they had loaded it into a teleprompter he would have zipped right through it.

.

[cuban leaf]

From 2009. Very relevant and lays this out in a way even an obama supporter can understand:

http://www.youtube.com/watch?v=P5yxFtTwDcc