The Obama 2014 budget

I was surprised to find that President Obama has presented a $3.77 trillion Fiscal Year (FY) 2014 budget and is promoting it as a balanced deficit buster.

This “deficit busting budget” is actually a budget that spends more and increases the deficit with no end in sight. In Washington, what’s down is up, in is out, spend less means spend more and being “accountable” for grievous misconduct means nothing at all. Whatever the president says, the truth is probably the opposite.

The FY 2012 “budget” was $3.54 trillion, with only $2.45 trillion of revenue, creating over a  trillion dollar deficit. The 2013 numbers were $3.8 trillion and $2.8 trillion, another trillion dollars of deficits. This is trillions and trillions of borrowed money.

A trillion dollars is one million million. It used to be that a billion (one thousand million) was a lot of money. It’s now chump change.

If you look at the tables from the White House itself you’ll see that we will be spending more and more and more, and realistically not paying one penny on our national debt.

You’ll also see that the White House predicts that over the twelve years tabulated that our GDP will increase at about 5% a year. Historically its been about 3%. See the trend line for our GDP below. The White House also calculates about a 7% annual increase in revenue to make the numbers look good. Historically it’s been about a 2.5-3%.

The tables are a fabrication to make the numbers look good. That’s all. Politics as usual.

This entire spending charade is called living on government credit cards or live now, pay later. The president continues to spend far in excess of Treasury revenue, and borrows the rest. It’s like living on credit cards. Eventually the credit card companies will cut you off. International lenders are getting tired of our borrow and spend way of life, and may cut us off. If they, or rather when they do, we’re in real trouble.

Although the president talks about deficit reduction, the truth is that those alleged reductions are always years in the future. As with the horizon when you’re driving; you never get there.

Look closely at the charts. Without some firm plans to increase employment, really increase our GDP ahead of inflation, and not just on paper our children are doomed to a unhappy future.

We must vote out the spendthrift 2014 budget Democrats and elect conservative Republicans, the ones who know how to say no to free money for all.