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Obama Speech Details Leaked: Promises To Cut $4 Trillion In Deficit Over Next 12 Years (Or Less)

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http://www.zerohedge.com/article/obama-speech-details-leaked-promises-cut-4-billion-deficit-over-next-12-years-or-less

In about an hour, the Teleprompter in Chief will once again address a nation on the topic of the exploding US deficit, which he can only hope has the attention span of an HFT algorithm, and has forgotten his proclamations on the same issue from early 2009. Among the things Obama will discuss:

Sets a goal of reducing US deficit by $4 trilllion in 12 years or less, according to a congressional source

Implements a deficit plan would curb deficits to 2.5% of GDP in 2015, 2% toward end of decade according to a congressional source

Wants US debt on "declining path", enforced by "debt failsafe" trigger of broad cuts, according to a congressional source

Seeks $770 billion in savings by 2023 in cuts to non-security discretionary spending according to a congressional source

Good luck with that. In the meantime... a clip from Obama circa February 2009 on where Obama saw the budget by the end of 2012. That did not...quite... work... out.

More details on the upcoming speech from Reuters:

According to congressional sources, Obama will propose:

Reducing the deficit by $4 trillion in 12 years or less

Curbing deficits to 2.5 percent of GDP in 2015, 2 percent toward the end of the decade

Ending Bush-era tax rates for the wealthiest Americans

Seeking $770 billion in savings by 2023 in cuts to non-security discretionary spending

Saving $480 billion in Medicare and Medicaid by 2023 and at least $1 trillion more by 2033.

Obama will use the speech to try to regain control of the spending debate by drawing a contrast with a Republican plan to combine an overhaul of the Medicare health program with lower taxes to reduce the deficit by $4.4 trillion in 10 years.

It would appear that Obama is indeed confusing debt and deficit unless he's expecting the US deficit to balloon further and is saying say a $1.5tr deficit is normal and he's going to prevent it from becoming $5.5tr?

I'd love to know if he has confused debt/deficit how he expects to reduce it if the US can still add to it by 2% YoY.

I can't wait for this speech if is going to say all this its going to be hilarious.

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http://www.zerohedge.com/article/obama-speech-details-leaked-promises-cut-4-billion-deficit-over-next-12-years-or-less

It would appear that Obama is indeed confusing debt and deficit unless he's expecting the US deficit to balloon further and is saying say a $1.5tr deficit is normal and he's going to prevent it from becoming $5.5tr?

I'd love to know if he has confused debt/deficit how he expects to reduce it if the US can still add to it by 2% YoY.

I can't wait for this speech if is going to say all this its going to be hilarious.

Does any politician understand basic economics let alone the difference between debt and deficit?

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:lol::lol:

Riiiight he's going to reduce it, the printing press sez no!

Surely the printing press is the quickest solution to cutting deficit?

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I took it to mean...

Every year over the next 12 years, there will be a deficit. If the deficit each year is 1 trillion, that will add up to 12 trillion dollars worth of extra debt.

Obummers plan is to reduce the accrued deficit for this 12 year period by 4 trillion.(however much that turns out to be) ie. it's still a shit plan, just buying time by stretching out the plan, hoping sonething will come along in the meantime.

Either that,or Obummer is indeed thicker than a thick thicky and doesn't know the difference between deficit and debt.

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Surely the printing press is the quickest solution to cutting deficit?

Maybe he thinks it is like those old style car odometers. If you keep adding to the debt and deficit then eventually it'll roll back over to zero again.

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http://www.zerohedge.com/article/watch-obama-make-more-impossible-promises-about-budget

Two years after Obama promised to cut the budget in half by the end of his first term (it appears he was confused by math symbols: he meant divide by half), here he is again, reading from the teleprompter, and making a bunch of senseless promises that have no chance in hell of coming true. Most notably, Obama will promise to cut $4 trillion over the next decade. Of course since by $2020 the budget deficit will be measured in quadrillions, a $4 trillion cut out of $X quadrillion is actually perfectly feasible. Which is why we take back everything we said: Obama will absolutely come through on his promise.

Obama Speech here

But after Democrats and Republicans committed to fiscal discipline during the 1990s, we lostour way in the decade that followed. We increased spending dramatically for two wars and anexpensive prescription drug program but we didn't pay for any of this new spending. Instead,we made the problem worse with trillions of dollars in unpaid-for tax cuts tax cuts that went toevery millionaire and billionaire in the country; tax cuts that will force us to borrow an average of $500 billion every year over the next decade.

.........

Of course, that's not what happened. And so, by the time I took office, we once again foundourselves deeply in debt and unprepared for a Baby Boom retirement that is now starting to takeplace. When I took office, our projected deficit was more than $1 trillion. On top of that, wefaced a terrible financial crisis and a recession that, like most recessions, led us to temporarilyborrow even more. In this case, we took a series of emergency steps that saved millions of jobs,kept credit flowing, and provided working families extra money in their pockets. It was the rightthing to do, but these steps were expensive, and added to our deficits in the short term.

Here's why. Even after our economy recovers, our government will still be on track to spend more money than it takes in throughout this decade and beyond. That means we'll have to keep borrowing more from countries like China. And that means more of your tax dollars will go toward paying off the interest on all the loans we keep taking out. By the end of this decade, the interest we owe on our debt could rise to nearly $1 trillion. Just the interest payments.

Then, as the Baby Boomers start to retire and health care costs continue to rise, the situation will get even worse. By 2025, the amount of taxes we currently pay will only be enough to finance our health care programs, Social Security, and the interest we owe on our debt. That's it. Everyother national priority education, transportation, even national security will have to be paid for with borrowed money.Ultimately, all this rising debt will cost us jobs and damage our economy. It will prevent us from making the investments we need to win the future. We won't be able to afford good schools, new research, or the repair of roads and bridges all the things that will create new jobs and businesses here in America. Businesses will be less likely to invest and open up shop in a country that seems unwilling or unable to balance its books. And if our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money making it harder for businesses to expand and hire, or families to take out a mortgage.

Not seen any talk of a balanced budget.

So he saved jobs in the short term but may have sacrificed the long term employment prospects.

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Obama talking complete and utter nonsense, as usual. I can only presume he is, in fact, completely loopy.

Just making promises in regards a period in which he largely will not have tenure, even if he wins the next campaign.

I.e. total ********.

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http://market-ticker.org/akcs-www?post=184151

What sort of crap does this jackass think he's going to get away with?

Of course, what we’ve been debating here in Washington for the last few weeks will affect your lives in ways that are potentially profound. This debate over budgets and deficits is about more than just numbers on a page, more than just cutting and spending. It’s about the kind of future we want. It’s about the kind of country we believe in. And that’s what I want to talk about today.

To fix the deficit and Federal Debt you must accept that when the cuts take place, the economy will contract. This is not avoidable. It's simply math. If you don't understand it Barack, go look up the definition of "GDP" on Wikipedia and contemplate that "G" (government spending) adds directly, dollar-for-dollar, to it.

Therefore, spending cuts will decrease GDP dollar for dollar when the money originally was borrowed, since that spending was conjured - it was not transferred from somewhere else (that would otherwise pick it back up.)

We believe, in the words of our first Republican president, Abraham Lincoln, that through government, we should do together what we cannot do as well for ourselves.

How did that work out for those who believed in Lincoln's Greenbacks? Specifically, how much money did you lose in what amount of time if you just bought them when originally issued and sat on them?

What was the purpose of those Greenbacks? To permit Lincoln to spend wantonly and recklessly on the Civil War, of course. Wanton and reckless spending.... gee, who's been doing that lately?

Part of this American belief that we are all connected also expresses itself in a conviction that each one of us deserves some basic measure of security.

Beyond the common defense of the nation, which incidentally includes preventing every one of the illegal aliens now in this nation from coming here, at gunpoint if necessary, I entirely disagree. I do not deserve any such "basic measure", especially if I do nothing on my own to obtain and secure it, or even worse, if I intentionally destroy my ability to provide it for myself.

As some examples of things I might do that would result in such an outcome, I point to the choice to drink too much booze, consume large amounts of illegal, addictive drugs, smoke lots of tobacco, Supersize myself at various fast food joints and spend myself into debt peonage instead of saving for my own retirement and old age.

Should I do any of those things I "deserve" exactly what I receive as a consequence.

But more to the point, life in general isn't fair. Call it God, call it Karma, or just call it luck. It doesn't matter. Not everything bad that happens is our own fault, although a lot of it is. Some of it is bad genetics - random chance as who our parents were, and the genes they contributed. Some of it is being in the wrong place at the wrong time - the random tornado that comes through town does happen.

But these events, and the risk they may happen, are not unknowns. They are in fact known risks. There's always the random chance that things will go poorly, and there always has been. That's why we have private insurance and why we should put aside a material portion of what we earn - so we can provide for ourselves and those we care about if one of those bad things happen.

You seem to believe in a nation where those "bad things" are not risks that we must face on our own. Where we "deserve" mitigation of that which the universe serves up - either by God, or by random chance.

More of Denniger ranting at the link.

As usual he's not overly impressed...

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Game over for China. Sorry fellas, you lost.

Depends, if they've been dumping their dollars discreetly i.e. what was postulated in a video I posted up somewhere, where 'agents' have been going to the US with backpacks filled with dollars to buy gold.

Or have spent it, read any travel blog through Africa and Central Asia and you'll find Chinese workers there building infrastructure or doing some kind of construction work to get rid of those smegging dollars.

Two is plausible and happening, one is probable.

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Depends, if they've been dumping their dollars discreetly i.e. what was postulated in a video I posted up somewhere, where 'agents' have been going to the US with backpacks filled with dollars to buy gold.

Or have spent it, read any travel blog through Africa and Central Asia and you'll find Chinese workers there building infrastructure or doing some kind of construction work to get rid of those smegging dollars.

Two is plausible and happening, one is probable.

I think you would have noticed a bigger fall if they were dumping - the amount they hold? Could be the party members buying gold though.

Looks like it may not have been such a good investment for China then?

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I think you would have noticed a bigger fall if they were dumping - the amount they hold? Could be the party members buying gold though.

Looks like it may not have been such a good investment for China then?

Well thats the problem in that you can't openly dump, but you can covertly dump, much like we don't know what is inside Fort Knox, we have no idea if China really has all of those $.

They've built an enormous amount of stuff in the past couple years, construction projects have been bought forward... for example the HK/Macau/Zhuhai road bridge, it was supposed to be for 2015 but they are tendering in 2012. Or the China cash for clunkers scheme a couple years back.

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I can't wait for this speech if is going to say all this its going to be hilarious.

...Frank Spencer would sound more believable...the guy's got to be joking .....is this a lead for Eds Ned and Oddball to make cuts more slowly ....beyond the grave...?.... :rolleyes:

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http://www.zerohedge.com/article/obama-speech-details-leaked-promises-cut-4-billion-deficit-over-next-12-years-or-less

It would appear that Obama is indeed confusing debt and deficit unless he's expecting the US deficit to balloon further and is saying say a $1.5tr deficit is normal and he's going to prevent it from becoming $5.5tr?

I'd love to know if he has confused debt/deficit how he expects to reduce it if the US can still add to it by 2% YoY.

I can't wait for this speech if is going to say all this its going to be hilarious.

Is he talking about reducing the debt by 4 trillion? I didn't think that was possible, even over 12 years. Especially after saying he wants to increase it be 2 trillion? Surely he is just talking about reducing the deficit by 4 trillion over 12 years, 300 billion a year?

May is going to be an interesting month.

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Instead,we made the problem worse with trillions of dollars in unpaid-for tax cuts

Didn't Obama extend the Bush era tax cuts?

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Cliff notes:

Politician promising stuff he cannot deliver, or be held accountable for, as he will have long since left office.

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Well thats the problem in that you can't openly dump, but you can covertly dump, much like we don't know what is inside Fort Knox, we have no idea if China really has all of those $.

They've built an enormous amount of stuff in the past couple years, construction projects have been bought forward... for example the HK/Macau/Zhuhai road bridge, it was supposed to be for 2015 but they are tendering in 2012. Or the China cash for clunkers scheme a couple years back.

a trade requires two parties.

who would buy the dollar liabilities from China?

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It would appear that Obama is indeed confusing debt and deficit unless he's expecting the US deficit to balloon further and is saying say a $1.5tr deficit is normal and he's going to prevent it from becoming $5.5tr?

I suspect that the intent is to try and find a way of saying they're reducing something when in fact everything is growing. I doubt there's any confusion about debt vs. deficit - it's just an attempt at spin.

I'd translate this as "Debt is going to grow and I can't spin that. However, our current deficit is 1.3 Trillion (UK 1.3 Billion). Over 12 years, that's a total deficit of 15 Trillion. However, our plan is to ensure that over 12 years the deficit is only around 10 Trillion."

Or something... the trouble is there's no clear way to say it that doesn't make it sound a rather meagre effort. Politicians seem to rely on most not understanding the diff.

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Depends, if they've been dumping their dollars discreetly i.e. what was postulated in a video I posted up somewhere, where 'agents' have been going to the US with backpacks filled with dollars to buy gold.

Or have spent it, read any travel blog through Africa and Central Asia and you'll find Chinese workers there building infrastructure or doing some kind of construction work to get rid of those smegging dollars.

Two is plausible and happening, one is probable.

I'm afraid you cannot 'dump' US treasuries.

Sure, you can sell them to another buyer. And? that's simply a transfer from one party to another. China are up to their necks in this. At some point they have to account for their below market value exports for the last 10 years or so. It seems very unlikely they'll be able to do that without some sort of collapse and perhaps war with one of their neighbours, India, Russia or Japan etc. They're screwed.

Edit: It's fascinating that the right can keep a straight face whilst blaming Gordon in the UK but Obama in the US. I say that as an observation not a political statement. Perhaps it is simply an indication of the total ownership of all our govts. by the banksters and their billionaire chums. It's now impossible to vote out the banksters no matter which colour you subscribe to.

Edited by Red Karma

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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