Taking Debt To The Next Frontier (Congress, generations, polls, Obama)

[Delta Planter]

Unbelievable. Unreal.

Late Friday, the Congressional Budget Office issued its review of the Obama budget. It's a standard exercise for the CBO, except this time the results were stunning.

According to the CBO, the Obama administration lowballed its deficit forecast by $482 billion over the next four years and $2.3 trillion over the next 10. In other words, the CBO says that 10-year deficits will be 33% higher than the president claims, should his plans get enacted.

This makes Obama's budget one of the worst accounting jobs ever put forward in modern times by a new administration.

Head 'em up, move 'em out, Rawhide! IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Taking Debt To The Next Frontier

Be sure to check out the editorial cartoon, too. A winner!

[malamute]

We're only seeing the beginning. When the first few bailouts don't work, they'll be followed by trillions of dollars more.

At some point in time, we reach the breaking point. Maybe that will be when we lose control over the interest on that fast growing debt. We're already to the point where we all know that debt can never be paid down, the politicians have blown it. They could have taken the needed measures which were to let fraudulent and poorly run banks fail because at that time there were many smaller banks and credit unions which would have survived.

The politicians are only making a bad-enough problem much much worse.

[vec101]

Run, don't walk, to the Tax Day Tea Party nearest you. Perhaps we can convince govt to stop spending so much of our tax money.

So many people think - raise the taxes on the rich, what is the big deal? They don't think all this increased spending is going to affect them. Do they really not realize the increased spending is also going to affect their taxes?

** Good news - the DOW skyrocketed by news of the Toxic Asset plan. That is fantastic - I love it. The down side - the cost could reach $1 trillion.

At its core will sit $75-$100bn of taxpayer’s money – flowing from the $700bn Troubled Assets Relief Programme (TARP) pool – which will give the government “purchasing power” of $500bn with the aid of private investors. Over time, the Treasury announced, the programme may double, depending on demand from both buyers and sellers.
US Treasury's $1 trillion toxic asset rescue plan lifts Dow Jones - Telegraph

The Treasury plans to leverage that money to buy $500 billion worth of toxic assets with financing from the Federal Deposit Insurance Corp, a U.S. bank regulator, and the Federal Reserve, with the potential to reach to up to $1 trillion.

Treasury plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy distressed "legacy" loans from banks. Factbox: U.S. Treasury Details Toxic Asset Plan - Top News: The Post Chronicle

http://market-ticker.denninger.net/archives/894-Open-Letter-To-The-FDIC-Ombudsman.html

** Last week:

Fed would purchase $300 billion of Treasury bonds and upped the Agency purchase program from $100 billion to $200 billion in debt and from $500 billion to $1.25 trillion in mortgage-backed securities (MBS). So these actions will increase the Fed's balance sheet by $1.75 trillion, from $2.05 trillion on Mar. 18 to $3.8 trillion probably by the middle of this year. Showing a sense of urgency at last, the Fed purchased $158 billion in MBS last week.

Such an explosion of the Fed's assets must be matched by an identical explosion in the Fed's liabilities, i.e., high-powered money, which consists of currency and bank reserves Experts Track Treasury's Toxic-Debt Plan - BusinessWeek

** The G.I.V.E. Act to increase volunteerism in the US is getting increased funding. There will be more paid "volunteer" positions, more money is going for the costs of the programs, student colllege scholarships are included, etc.

GIVE renews old programs and creates new ones. Some of the programs under GIVE are the National Civilian Community Corps, a Corporation for National and Community Service, the Energy Conservation Corps, Senior Corps, etc.
The website is at Corporation for National and Community Service
More on the bill which has passed the House and is going to the Senate at GovTrack: H.R. 1388: Text of Legislation, Placed on Calendar Senate

The Generations Invigorating Volunteerism and Education (GIVE) Act would dramatically increase funding for AmeriCorps, with a goal of expanding from 75,000 volunteers to 250,000. The bill also would increase education funding and establish a summer service program for students, paying $500 (which would be applied to college costs) to high-school and middle-school student who participate. The bill would also expand service options for seniors and veterans. http://www.opencongress.org/bill/1/111-h1388/show

These plans, and more, look to be good and hopefully will ehlp our economy. But who is paying for all this?

[vec101]

Run, don't walk, to the Tax Day Tea Party nearest you. Perhaps we can convince govt to stop spending so much of our tax money.

So many people think - raise the taxes on the rich, what is the big deal? They don't think all this increased spending is going to affect them. Do they really not realize the increased spending is also going to affect their taxes?

** Good news - the DOW skyrocketed by news of the Toxic Asset plan. That is fantastic - I love it. The down side - the cost could reach $1 trillion.

At its core will sit $75-$100bn of taxpayer’s money – flowing from the $700bn Troubled Assets Relief Programme (TARP) pool – which will give the government “purchasing power” of $500bn with the aid of private investors. Over time, the Treasury announced, the programme may double, depending on demand from both buyers and sellers.
US Treasury's $1 trillion toxic asset rescue plan lifts Dow Jones - Telegraph

The Treasury plans to leverage that money to buy $500 billion worth of toxic assets with financing from the Federal Deposit Insurance Corp, a U.S. bank regulator, and the Federal Reserve, with the potential to reach to up to $1 trillion.

Treasury plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy distressed "legacy" loans from banks. Factbox: U.S. Treasury Details Toxic Asset Plan - Top News: The Post Chronicle

http://market-ticker.denninger.net/archives/894-Open-Letter-To-The-FDIC-Ombudsman.html

** Last week:

Fed would purchase $300 billion of Treasury bonds and upped the Agency purchase program from $100 billion to $200 billion in debt and from $500 billion to $1.25 trillion in mortgage-backed securities (MBS). So these actions will increase the Fed's balance sheet by $1.75 trillion, from $2.05 trillion on Mar. 18 to $3.8 trillion probably by the middle of this year. Showing a sense of urgency at last, the Fed purchased $158 billion in MBS last week.

Such an explosion of the Fed's assets must be matched by an identical explosion in the Fed's liabilities, i.e., high-powered money, which consists of currency and bank reserves Experts Track Treasury's Toxic-Debt Plan - BusinessWeek

** The G.I.V.E. Act to increase volunteerism in the US is getting increased funding. There will be more paid "volunteer" positions, more money is going for the costs of the programs, student colllege scholarships are included, etc.

GIVE renews old programs and creates new ones. Some of the programs under GIVE are the National Civilian Community Corps, a Corporation for National and Community Service, the Energy Conservation Corps, Senior Corps, etc.
The website is at Corporation for National and Community Service
More on the bill which has passed the House and is going to the Senate at GovTrack: H.R. 1388: Text of Legislation, Placed on Calendar Senate

The Generations Invigorating Volunteerism and Education (GIVE) Act would dramatically increase funding for AmeriCorps, with a goal of expanding from 75,000 volunteers to 250,000. The bill also would increase education funding and establish a summer service program for students, paying $500 (which would be applied to college costs) to high-school and middle-school student who participate. The bill would also expand service options for seniors and veterans. http://www.opencongress.org/bill/1/111-h1388/show

These plans, and more, look to be good and hopefully will ehlp our economy. But who is paying for all this?