Author Topic: Obama: Corruption, Deception, Dishonesty, Deceit and Promises Broken  (Read 221748 times)

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #525 on: March 26, 2011, 08:35:34 AM »
Yes - I posted the video. 


Were those girl scouts with the batons, helmets, and riot gear? 


 

And you have it on solid proof that it was Obamas Security...who worked for the whitehouse security team what called the SWAT team?.. is that what you are assessing?

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #526 on: March 26, 2011, 08:36:27 AM »
And you have it on solid proof that it was Obamas Security...who worked for the whitehouse security team what called the SWAT team?.. is that what you are assessing?

did you watch the video?  Were those neighborhood watch called out on granny? 

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #527 on: March 26, 2011, 08:38:19 AM »
did you watch the video?  Were those neighborhood watch called out on granny? 


So you are saying that was the SWAT team?

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #528 on: March 26, 2011, 08:41:13 AM »

So you are saying that was the SWAT team?


No, it was Gomer Pyle and officer Krupke.   ::)  ::)

Quik question Trump or obama - who you votin for?       

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #529 on: March 26, 2011, 08:43:32 AM »
Dude... all of the dumb ass comparisons trying to divert the attention away from your lie is old..

and i cant debate until you fess up to fabricating this and jumping the gun..

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #530 on: March 26, 2011, 08:45:03 AM »
Obama's security detail coordinated with the local people to call out swat and riot, and jack boots on granny.  I posted the video.   did that look like Matlock to you?   

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #531 on: March 26, 2011, 08:47:33 AM »
Now.. is it
A. Obama called the SWAT TEAM on grandmothers

or

B. Local police who were dressed in riot gear, were ordered by that towns Commanding officer (not by obama or his "security detail"  ::) to make room for the presidents motorcade that was stopped and posed a security threat..



 and if you sit here and act like there isnt a threat to a stopped motorcade ill have to ask OZMO to block you from the political board

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #532 on: March 26, 2011, 08:49:05 AM »
Obama's security detail coordinated with the local people to call out swat and riot, and jack boots on granny.  I posted the video.   did that look like Matlock to you?   


So you are sticking with the swat story...
and "coordinated with" does that mean you have proof his security detail told someone to call the swat team.. and for the record it was proven by that town head of police that there werent any swat.. ...

any more?...lol this is fun

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #533 on: March 26, 2011, 08:53:05 AM »

So you are sticking with the swat story...
and "coordinated with" does that mean you have proof his security detail told someone to call the swat team.. and for the record it was proven by that town head of police that there werent any swat.. ...

any more?...lol this is fun

No, it was the local girls' club selling lemonade in those helmets, riot gear, and billy clubs in hand. 

BY - this thread is viral on FR as well, so thanks for the post count increasing.     

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #534 on: March 26, 2011, 08:59:35 AM »
No, it was the local girls' club selling lemonade in those helmets, riot gear, and billy clubs in hand. 

BY - this thread is viral on FR as well, so thanks for the post count increasing.     

so because you dont want to look bad youll keep posting these sarcastic responses.. trying to stop where you are.. dont wanna dig a deeper hole..

Now was it The SWAT team or Local officers in riot gear?

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #535 on: March 26, 2011, 09:06:09 AM »
so because you dont want to look bad youll keep posting these sarcastic responses.. trying to stop where you are.. dont wanna dig a deeper hole..

Now was it The SWAT team or Local officers in riot gear?

Who do you think asked for the jack boots out there to protect osama from the grannies?


Bro - dont you at all feel remotely embarressed yet at the disgusting fraud you and your ideological butt buddies gave us with Obama?   

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #536 on: March 26, 2011, 09:13:40 AM »
Who do you think asked for the jack boots out there to protect osama from the grannies?


Bro - dont you at all feel remotely embarressed yet at the disgusting fraud you and your ideological butt buddies gave us with Obama?   
so you dont think a stopped motorcade poses a threat to the president?

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #537 on: March 26, 2011, 09:18:52 AM »
so you dont think a stopped motorcade poses a threat to the president?

I think obama/osama poses a far more threat to this nation at this point than any motorcade, even if it were filled with mb/al qeada, ms-13/ crips, bloods, hells angels, mongols, arayan brotherhood, arayan nation, vatos loco, mexican mafia, etc.

He is the tip of the spear for every anti-american force in the world at this point.

Thank you for supporting him.  Your contribution to our collapse is noted. 

     

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #538 on: March 26, 2011, 09:26:54 AM »
I think obama/osama poses a far more threat to this nation at this point than any motorcade, even if it were filled with mb/al qeada, ms-13/ crips, bloods, hells angels, mongols, arayan brotherhood, arayan nation, vatos loco, mexican mafia, etc.

He is the tip of the spear for every anti-american force in the world at this point.

Thank you for supporting him.  Your contribution to our collapse is noted. 

     

so... you are going to try to argue this down to mush adding your editorial twist and opinion to a question asked about the facts of the call.. well if thats how you operate...


i just come from different stock.. where proof and lack of sensationalism rule the day.. not the pre teen like behavior you display on a daily basis..  ::)

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #539 on: March 26, 2011, 09:30:12 AM »
so... you are going to try to argue this down to mush adding your editorial twist and opinion to a question asked about the facts of the call.. well if thats how you operate...


i just come from different stock.. where proof and lack of sensationalism rule the day.. not the pre teen like behavior you display on a daily basis..  ::)

I posted the video - it speaks for itself.

Thank you for supporting the collapse of the nation.     

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #540 on: March 26, 2011, 08:02:27 PM »
I posted the video - it speaks for itself.

Thank you for supporting the collapse of the nation.     
it dosent...as i can dress up in a police outfit and it dont make me a policeman

police can dress up in riot gear.. dont make them SWAT

and as you stated his securituy detail called sway.. but really the police chief told police in riot gear to march.. there was no swat as Quincy Ill dosent have a swat.

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #541 on: March 26, 2011, 09:15:54 PM »
Obama goes deep, sets new record
03/25/2011, 10:50 pm
Comment on this story

Thomas Sowell


Random thoughts on the passing scene:

They say that records are made to be broken. President George W. Bush set a record by adding $3.2 trillion to the national debt over the course of his eight years in office. But Barack Obama has already beaten that record with $4.4 trillion in just his first three years in office.

People who thoughtlessly give money to panhandlers on the street seem not to realize that this is making installment payments on the degeneration of America.

Don't mention "municipal golf courses" to me. It sends my blood pressure up through the roof. What earthly excuse is there for spending the taxpayers' money subsidizing a golf course? Politicians can't even invoke "the poor," as they do when trying to justify other government boondoggles.

The vocabulary of the political left is fascinating. For example, it is considered to be "materialistic" and "greedy" to want to keep what you have earned. But it is "idealistic" to want to take away what someone else has earned and spend it for your own political benefit or to feel good about yourself.

Lou Gehrig was probably the greatest clutch hitter of all time. Although his career was cut short by the disease that bears his name, in seven of his 14 full seasons he had over 150 runs batted in. (Babe Ruth was second with five seasons.) And Gehrig still holds the career record for home runs with the bases loaded.

Economists are often asked to predict what the economy is going to do. But economic predictions require predicting what politicians are going to do-- and nothing is more unpredictable.

An e-mail from a perceptive reader points out that, although Congressional "earmarks" represent a very small part of federal spending, they can be used as bribes to buy the votes of members of Congress on bills involving the spending of vastly larger sums of the taxpayers' money.

When political commentators from the Fox News Channel had books whose sales would normally make the New York Times' non-fiction best-seller list, the New York Times changed the rules for putting books on that list. Thus best-selling political books by Mike Huckabee and Dick Morris appeared last Sunday on a more obscure list of miscellaneous personal advice and how-to books, such as "Weight Watchers New Complete Cookbook."

When the Federal Reserve cites statistics to claim that there is not much evidence of inflation, we need to keep in mind that the statistics they rely on exclude food and energy prices. The cost of living is no sweat if you can do without electricity and food.

Even if it could be proved that judges who are making rulings that go counter to the written law produce better results in those particular cases than following the letter of the law would have, that does not make society better off. When laws become unreliable and judges unpredictable, lawsuits become a bonanza for charlatans, who can force honest people to settle out of court, for fear of what some judge might do.

The mainstream media never expressed half the outrage about Mao Zedong as they did about Ronald Reagan. Yet, when it came to killing millions of innocent civilians, even Hitler was an amateur compared to Mao.

The Obama administration seems to be following what might be called "the Detroit pattern" -- increasing taxes, harassing businesses, and pandering to unions. In the short run, it got mayors re-elected. In the long-run, it reduced Detroit from a thriving city to an economic disaster area, whose population was cut in half, as its most productive citizens fled.

Safety advocates who say that we shouldn't take chances, but should ban things that might be unsafe, don't seem to understand that if we banned every food to which somebody had an allergy we could all starve to death.

The vile people who picket the funerals of American soldiers killed in action are far away enough from the mourners not to be heard. It is media attention that magnifies their sick message.

Intolerance may not promote progress but it can promote survival. An intolerant Islamic world may outlast the Western world that seems ready to tolerate anything, including the undermining of its own fundamental values and threats to its continued existence.

THOMAS SOWELL is a senior fellow at the Hoover Institution, Stanford (Calif.) University. His website is www.tsowell.com.


 

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #542 on: March 26, 2011, 09:42:05 PM »

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #543 on: March 27, 2011, 06:03:23 AM »
$5B Hollywood Handout Bankrupting Obamacare
Thursday, 24 Mar 2011 05:51 PM

By Chris Gonsalves



http://www.newsmax.com/InsideCover/health-care-law-unions/2011/03/24/id/390680?s=al




$5 billion handout to states, big corporations, and Hollywood unions to subsidize health insurance for early retirees is threatening to bankrupt a major part of the year-old healthcare reform law, according to staffers of the House Energy and Commerce Committee.

A small percentage of the organizations signed up for the plan has already drained more than $500 million from the program’s coffers.

Like many provisions in Obamacare, the “Early Retiree Reinsurance Program” has largely escaped public scrutiny and congressional oversight. The program provides subsidies to employers and unions to cover between $15,000 and $90,000 of the healthcare costs for early retirees.

The ERRP program was designed primarily to help early retirees over age 55, along with their spouses and dependents, who are not eligible for Medicare.

Nearly 5,500 organizations have been approved to participate in the program. Among the 253 participants that received more than $535 million in ERRP funding last year were Hollywood unions such as the Screen Actors’ Guild, and large corporations like Boeing, Northrop Grumman, and Sara Lee.

The lion’s share of ERRP reimbursements went to state governments, followed by non-profits, corporations, unions, and religious organizations, the report says.

Over one-third of the of the money spent in 2010, some $182 million, went to just five government entities: California Public Employees’
Retirement System — $57.8 million; State of New Jersey Treasury Department, Pension Accounting Services — $38.6 million; Georgia Department of Community Health, State Health Benefit Plan — $35 million; Commonwealth of Kentucky — $29.7 million; and Employees Retirement System of Texas — $20,982,299.

The retiree reinsurance money was supposed to last until 2014. The program received $5 billion — the same amount provided for high-risk coverage pools for people with pre-existing conditions. But with 10 percent of the allocated funds already spent on less than 5 percent of program participants in just a few months, the fund will likely run dry by early next year, according to Richard Popper, Director of the Office of Insurance Programs at the Center for Consumer Information and Insurance Oversight.

“The Early Retiree Reinsurance Program is helping to control healthcare costs and protect coverage for early retirees and their families,” says HHS Secretary Kathleen Sebelius. “This program is providing critical financial relief to help states, private employers and other organizations preserve access to affordable health coverage for millions of Americans.”

The House staffers report concluded differently, however.

“With the public debate focused squarely on the spiraling costs of the federal budget, and this administration’s lackluster efforts to create job growth, the committee staff was surprised to learn that the healthcare law would subsidize the early retirees of corporate America, Hollywood, state, county and municipal employees, as well as unions,” the Congressional staffers wrote.

“It is inappropriate that a bill sold to the American people as healthcare legislation would contain a sweetheart deal for unions and Hollywood, and it is grossly inefficient that in troubling economic times, the American taxpayer would be asked to subsidize the healthcare costs of massive corporations.”


© Newsmax. All rights reserved.


Read more on Newsmax.com: $5B Hollywood Handout Bankrupting Obamacare
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #544 on: March 27, 2011, 08:29:04 AM »
it dosent...as i can dress up in a police outfit and it dont make me a policeman

police can dress up in riot gear.. dont make them SWAT

and as you stated his securituy detail called sway.. but really the police chief told police in riot gear to march.. there was no swat as Quincy Ill dosent have a swat.

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #545 on: March 27, 2011, 06:46:20 PM »

 The Obama gas tax
By Troy Senik   10:54 AM 03/25/2011
 



If you’ve been spending much time at the gas pump lately, chances are you’ve been spending a lot less time everywhere else. With fuel costs soaring, everyday Americans are being forced to cut back on even routine car trips to avoid breaking the bank. In the last month alone, average gas prices have gone up nearly fifty cents per gallon. And because the cost of fuel is critical to supplying a wide array of goods and services, we’ll soon see prices skyrocketing everywhere.

While this trend appears to have gotten worse amid the turmoil in the Middle East — including the supply interruption in Libya — it has been a steadily rising pattern since even before the Middle East uprisings. In fact, gas prices are up 67 percent since President Obama took office a little more than two years ago. Lest you think this analysis one-sided, during the same period in President Bush’s tenure gas prices increased by only seven percent.

Yet that doesn’t seem to bother President Obama much. Earlier this month, he said that we can’t drill our way out of our energy problems. That is like suggesting you can’t medicate yourself out of an illness.

Opening up America’s vast domestic resources is literally the only realistic way to ease the pressure. It can lower prices at the pump, curb our reliance on foreign energy producers, and create new jobs right here on our soil. In short, it can do all the things that alternative energy claims to do but simply cannot despite billions of taxpayer dollars.

Yet President Obama has blocked energy exploration at every turn. For his secretary of the interior, he chose former Colorado Senator Ken Salazar, a man who once said that he wouldn’t want more domestic oil production opened up even if gas prices hit $10 a gallon. Then, in the wake of last year’s Gulf oil spill, the administration imposed a moratorium on deepwater drilling — a freeze that is effectively still in place today.

In addition to pushing up unemployment rates in the Gulf, these policies are keeping 97 percent of America’s offshore oil and gas off limits. To add insult to injury, President Obama recently told an audience in the newly oil-rich nation of Brazil, “We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.” Don’t hold your breath for an economic recovery as long as the president of the United States is willing to do more investing in foreign economies than he is here at home.

If the president wants to complain about the effects gas prices are having on his popularity, he has only himself to blame. He has it in his power to push prices downward — and keep them down — with new energy exploration. Until he is willing to make that change, we’ll consider the higher prices at the pump the “Obama gas tax.”

Troy Senik is a Senior Fellow at the Center for Individual Freedom (www.cfif.org).


Read more: http://dailycaller.com/2011/03/25/the-obama-gas-tax/#ixzz1Hr2TB9Y8


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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #546 on: March 28, 2011, 12:05:12 AM »
it dosent...as i can dress up in a police outfit and it dont make me a policeman

police can dress up in riot gear.. dont make them SWAT

and as you stated his securituy detail called sway.. but really the police chief told police in riot gear to march.. there was no swat as Quincy Ill dosent have a swat.

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #547 on: March 28, 2011, 10:42:03 AM »
While Slowing BP Oil Spill, Administration Slowed Flow Of Information Too, Claims Coast Guard Report
By Mike Levine


Published March 28, 2011 | FoxNews.com

 

WASHINGTON -- The Obama administration failed to set up an "effective" communications system during last year's BP oil spill and threatened its own credibility by "severely restricting" the release of "timely, accurate information," according to a newly released report commissioned by the U.S. Coast Guard.

Quietly posted on the Coast Guard's website two weeks ago, the report offers the first major assessment of the federal government's communications efforts during the worst oil spill in U.S. history.

"Several layers of review and approval by the White House and (Department of Homeland Security) prevented timely and effective crisis communications and hindered the Coast Guard's ability to ... (keep) stakeholders informed about the status of the response," the report reads, adding that "accurate and timely messaging from the response organization improves transparency with the public."

Information centers in Houma, La., and Mobile, Ala. -- established by the Coast Guard in accordance with pre-set plans for major disasters -- were "effectively muted," the report reads.

Photographs could not be released without Washington's blessing, and Coast Guard officials leading efforts on the ground "were not authorized to conduct media interviews, hold press conferences or send press releases without prior approval from DHS," according to the report.

Asked about the report, sources with knowledge of White House and DHS involvement went even further, saying the administration "looked at this as a political problem, not an operational problem." After all, one source said, the 2010 midterm elections were drawing closer as the oil spill crisis deepened, and the White House "went into campaign mode."

An administration official, however, strongly disputed that contention, saying involvement from the White House and DHS in Washington was "a necessary step" after what began as a relatively routine Coast Guard response became a "unique and unprecedented" government-wide effort. More than 40,000 people took part in the response.

"Calls were coming in -- both in Washington and in the Gulf region -- and it was imperative given all the moving pieces that information remain consistent," the official said. "Throughout the course of the spill, we executed a successful effort to consolidate the release of information among 17 federal agencies."

The official noted that DHS appointed outgoing Coast Guard Commandant Thad Allen to be the National Incident Commander, effectively the government's "principal spokesman." The report described Allen as a "credible spokesman" who "proved to be an effective means of communicating a unified message to the public."

In addition, the official said, the administration engaged in a "robust" effort to keep the public informed, including daily briefings by Allen and daily "fact sheets" issued to the press and posted online.

At the same time, the report reads that the Coast Guard lacked "enough senior personnel with the requisite crisis communications training and/or experience to effectively manage the public affairs campaign for an incident of this magnitude," and those who had the requisite training or experience "were quickly overwhelmed by the tremendous demand for information."

Early on, senior Coast Guard officials made public missteps. In the days after the explosion ripped through the Deepwater Horizon in April 2010, Rear Adm. Mary Landry, then the head of the response effort in the Gulf region, told reporters, "We do not see a major spill emanating from this incident."

In a statement to Fox News, a Coast Guard spokesman said the newly released report "does not reflect the views of the Coast Guard," but one of the sources with knowledge of White House involvement said it "depends on who you talk to." Essentially, the source said, the oil spill response created "a clash of cultures," with operational needs scraping against political ones.

Nevertheless, the report states the communications system put in place was a departure from prior practice, with White House and DHS officials in Washington becoming gatekeepers to information about developments in the Gulf Coast.

"If any level of the response organization is restricted from interacting with the media and the public in any way, it has the potential to damage the credibility of the Federal Government and erode public trust," the report reads.

Information about the incident was "channeled up" to the Unified Area Command, the regional hub of the response effort, where it "was packaged and released after review and approval" from the DHS public affairs office in Washington, the report reads. At the time, some of the most senior Coast Guard officials expressed frustration with the process, a source said.

"The additional handling and approval process for releases of information often prevented the response organization from providing real-time information," according to the report. "Because the Coast Guard was severely restricted in its ability to distribute timely, accurate information, it was perceived by some that the Federal Government was purposely withholding information pertaining to the incident from the American public."

The administration official, however, insisted such a process is routine in federal government, saying agencies "do run things up the chain, and they come back down" every day. In addition, the source who said the White House "looked at this as a political problem, not an operational problem" noted the Bush administration looked through a similar prism and likewise took control of the message during Hurricane Katrina in 2005.

"Negative press equals lost votes," the source said. "It's not a political party thing, it's about political operatives and what's in their comfort zone."

The newly released report offers no specific cases of delayed or restricted information, and one source said he was not aware of any substantive information or photograph ultimately prevented from being released. But, the source said, it would take up to eight hours for DHS or the White House to approve a photograph's release. Another source involved with the oil spill response said he knew of at least one press release that was not immediately sent out due to fears it could upset environmental activists.

In one instance, a Coast Guard official was directed to release information that -- unbeknownst to him -- was at best misleading, according to two sources. The information related to whether the White House was controlling the oil spill message.

In May 2010, amid media concerns that access to impacted areas was being restricted, a Coast Guard public affairs official told The Associated Press that the White House had to sign off on all requests for tours of the spill zone. In response, the White House referred questions to Coast Guard Lt. Commander Rob Wyman who told The Associated Press that the official's description of the process was incorrect and that all requests from media were "decided on by the command center in Robert, La."

Those assertions contradict the findings of the newly released report, and administration officials did not deny that the official's initial assessment was correct after all. An e-mail to Wyman Sunday seeking comment was not returned.

The administration official, meanwhile, dismissed the report, which offers no direct attribution for its statements, as little more than "an opinion piece." Only six pages of the 167 pages address the issue of "external communications," with the rest of the report analyzing other aspects of the response like other recent reports have.

"Compared to the meticulously researched and sourced Oil Spill Commission Report (released Wednesday), this one is sufficiently lacking in both and, as such, is being received accordingly," the official said.

The official said the report "is just one of many reports that have and will continue to inform the Coast Guard's efforts to prepare for and respond to a catastrophic oil spill."

The report, officially dubbed an "Incident Specific Preparedness Review," was authored by an 11-member team of representatives from inside and outside government. Nearly 100 people were interviewed by the team, more than a third of them current or former Coast Guard officials. Four DHS officials and two White House officials were interviewed. The report was finalized in January.

Perhaps ironically, some within the Coast Guard wanted to issue a press release two weeks ago announcing the report's release, but those efforts were quashed.

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #548 on: March 28, 2011, 10:50:43 AM »
it dosent...as i can dress up in a police outfit and it dont make me a policeman

police can dress up in riot gear.. dont make them SWAT

and as you stated his securituy detail called sway.. but really the police chief told police in riot gear to march.. there was no swat as Quincy Ill dosent have a swat.

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Re: Step by Step: How Obama is collapsing America and destroying the nation
« Reply #549 on: March 28, 2011, 12:21:24 PM »
CBO: Obama Underestimates Deficit by $2.3 Trillion !!
Fiscal Times ^ | 03/28/2011 | James C. Cooper




Obama’s budget credibility took a hit from the nonpartisan Congressional Budget Office this month, when CBO said the administration’s 2012 budget proposal will not deliver the deficit improvement in the coming decade that it promised.

CBO’s analysis said deficits through 2021 would total $2.3 trillion more than those projected in the budget document prepared by the White House Office of Management and Budget (OMB). Instead of falling to 3 percent of GDP by 2017 and remaining near that level through 2021, CBO analysts say the deficit would never go below 4.1 percent of GDP and would begin to rise toward the end of the period, hitting 4.9 percent in 2021.

The analysis will add fuel to the Republican’s fire as the Washington budget battle heads down to the wire — again. In lieu of an official budget, the latest in a series of temporary spending bills that have kept the government operating will expire on Apr. 8. President Obama will have to negotiate a deal with House Republicans who want $61 billion in spending cuts in order to keep the government running until the end of the current fiscal year on Sept. 30. Still, Obama’s bigger challenge will be the hard choices facing the 2012 budget and new pressure to reduce future deficits.




The projected failure to reach 3 percent of GDP is important. At that level the so-called “primary budget,” which excludes interest payments, is in balance. A deficit maintained at that level typically means that debt held by the public is not growing any faster than GDP. The administration’s numbers show public debt stabilizing at about 77 percent of GDP, but CBO projects the White House’s proposals would double the debt by 2021, causing a steady rise to a hefty 87 percent of GDP, up from 62 percent in 2010.

CBO’s projections differ from those of the OMB for two broad reasons. First, there are differences in the underlying forecasts of what would happen without any of the proposals in Obama’s 2012 budget; that is, if current policy was unchanged for the next 10 years. That difference accounts for some $1.3 trillion of the $2.3 trillion disparity, due in large part to the administration’s more upbeat forecast for economic growth. The White House sees growth averaging 3.9 percent per year over the next five years vs. CBO’s 3.3 percent. The other $1 trillion reflects differing estimates of the cost of new programs and savings on existing programs.

Senate Republican Leader Mitch McConnell (R-KY) recently issued a quid pro quo linking GOP support for raising the $14.3 billion statutory ceiling on federal debt to Obama’s agreement to long-term spending cuts that would address the unsustainable path of fiscal policy. The Treasury Dept. says the debt limit will be reached between Apr. 15 and May 31. Economists have warned that market reaction to hitting that ceiling could harm the economy, if holders of U.S. Treasury securities demand higher yields out of uncertainty over the government’s ability to function and meet its obligations.

If McConnell and the GOP are able to bring Obama into a discussion of long-term deficit reduction, the national debate over taxes and entitlement programs will ratchet up several notches. “The policy changes that are needed will significantly affect popular programs or people’s taxes or both,” said CBO Director Douglas Elmendorf at a policy conference in early March. On the revenue side, taxes on individual income and social insurance account for more than 80 percent of all revenues. As for spending, annually funded discretionary programs outside of defense are only 19 percent of all outlays and cannot alone solve the problem, which means mandatory entitlement programs will have to be a part of any solution.