Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Obama Was Warned By His Economic Team That His Campaign Promises Would Create A Mountain Of Debt
TBI ^ | 1-23-2012 | Michael Brendan Dougherty

Posted on 01/23/2012 7:15:24 AM PST by 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)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: bankrupt; campaign; debt; deficit; economy; obama; obamanomics; spending

1 posted on 01/23/2012 7:15:33 AM PST by blam
[ Post Reply | Private Reply | View Replies]

To: blam

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


2 posted on 01/23/2012 7:17:39 AM PST by Joe the Pimpernel (Too many lawmakers, too many laws, too many lawyers.)
[ Post Reply | Private Reply | To 1 | View Replies]

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

Budget?

What budget?

We don't need no stinkin' budget !

3 posted on 01/23/2012 7:18:14 AM PST by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
[ Post Reply | Private Reply | To 1 | View Replies]

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

To which he responded, "So?"

4 posted on 01/23/2012 7:18:49 AM PST by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

A messiah need not listen to mere mortals.


5 posted on 01/23/2012 7:18:55 AM PST by fhayek
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

“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.


6 posted on 01/23/2012 7:19:43 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam
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....

7 posted on 01/23/2012 7:26:42 AM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 1 | View Replies]

To: freeangel

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!


8 posted on 01/23/2012 7:29:50 AM PST by FamiliarFace
[ Post Reply | Private Reply | To 6 | View Replies]

To: FamiliarFace

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


9 posted on 01/23/2012 7:31:59 AM PST by Col Frank Slade
[ Post Reply | Private Reply | To 8 | View Replies]

To: blam
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.
10 posted on 01/23/2012 7:40:29 AM PST by liberalh8ter (I don't like what the world has become....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Joe the Pimpernel

“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.


11 posted on 01/23/2012 7:45:08 AM PST by pieceofthepuzzle
[ Post Reply | Private Reply | To 2 | View Replies]

To: blam

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.


12 posted on 01/23/2012 7:59:14 AM PST by klb99 (I now understand why the South seceeded)
[ Post Reply | Private Reply | To 1 | View Replies]

To: grobdriver

“uh... and the problem with that is?”


13 posted on 01/23/2012 8:01:05 AM PST by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, Ping

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

http://www.nachumlist.com/


14 posted on 01/23/2012 8:23:07 AM PST by Nachum (The complete Obama list at www.nachumlist.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

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.


15 posted on 01/23/2012 8:30:32 AM PST by albionin
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

As if barry gives a Shiite.


16 posted on 01/23/2012 9:12:50 AM PST by crosshairs (Liberalism is to truth, what east is to west.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Texas Eagle
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!!

17 posted on 01/23/2012 9:25:11 AM PST by Only1choice____Freedom (FDR had the New Deal. President 0bama has the Raw Deal.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: blam
A Strange Appetite For US Debt
18 posted on 01/23/2012 10:24:31 AM PST by blam
[ Post Reply | Private Reply | To 1 | View Replies]

To: Col Frank Slade
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.

.

19 posted on 01/23/2012 10:50:07 AM PST by TLI ( ITINERIS IMPENDEO VALHALLA)
[ Post Reply | Private Reply | To 9 | View Replies]

To: blam

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

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


20 posted on 01/23/2012 11:04:28 AM PST by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: albionin

hasn’t Slck Willy made $85 million just doing speeches?


21 posted on 01/23/2012 11:04:51 AM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Nachum
If The U.S. Government Keeps Spending Money Like This We Are Doomed And If The U.S. Government Stops Spending Money Like This We Are Doomed
22 posted on 01/23/2012 11:14:28 AM PST by blam
[ Post Reply | Private Reply | To 14 | View Replies]

To: Only1choice____Freedom

Exactly. The only difference between President Urkel and a septic full of crap is the septic tank.


23 posted on 01/25/2012 5:20:37 AM PST by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 17 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson