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Sunday, January 31, 2010

Born Again American


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Carville to Dems: 'Everything's at Risk'


Political strategist James Carville says Obama needs to explain his strategy.



Is Geithner guilty


The Long-Term Budget Outlook

 This I added because of the Fact Check on what was said between the President and Republican Paul Ryan.The whole report by the CBO is about the Fisical Outlook of the country over the long haul.  Unfortunetly I do not understand any of it,.  Way over my head, that's okay, just something I have to do a little studying over to make sense.
 

CBO

The Budget and Economic Outlook:
Fiscal Years 2010 to 2020




The severe economic downturn and nearly unpreceented turmoil in the financial system over the past few years—combined with federal policies implemented in response to those conditions—have caused deficits to climb dramatically. However, even after the economy has recovered and the budgetary costs of associated federal policies have waned, the budget outlook will remain daunting. If tax provisions expire as scheduled and discretionary spending grows at the rate of inflation each year (as assumed in CBO’s baseline), budget deficits averaging almost 3 percent of GDP will persist between 2013 and 2020. Federal debt held by the public will reach 67 percent of GDP by 2020, the largest share since the early 1950s. Moreover, if expiring tax provisions are extended or spending grows faster than is assumed in the baseline, those deficits—and the corresponding debt that will result—may be much larger.
Beyond the 10-year projection period, rising health care costs and the aging of the U.S. population will continue to exacerbate the fiscal challenges facing the nation. Recurring large deficits and the resulting increases in federal debt over time will reduce national saving and investment relative to what would otherwise occur, and the reduced pace of capital accumulation, in turn, will lower the long-term growth of productivity, output, wages, and income.
The single greatest threat to budget stability is the growth of federal spending on health care—pushed up both by increases in the number of beneficiaries of Medicare and Medicaid (because of the aging of the population) and by growth in spending per beneficiary that outstrips growth in per capita GDP. For the nation’s fiscal situation to be sustainable in future decades, growth in such spending will have to be reduced relative to its historical trend and to CBO’s projected path. Today, outlays for Medicaid and Medicare combined (excluding offsetting receipts) equal about 5.5 percent of GDP. Under current law, spending for those two programs is expected to keep growing faster than the economy, reaching 6.6 percent of GDP by 2020 and potentially reaching 10 percent by 2035.11 Without changes to federal fiscal policy—involving some combination of lower spending and higher revenues than the amounts projected under current law—those rising costs will rapidly drive the size of federal debt held by the public well beyond the 67 percent of GDP projected for 2020.

Obama inherited

The Truth-O-Meter Says:
Obama

Obama came into office "with a $1.3 trillion deficit before I had passed any law. ... We came in with $8 trillion worth of debt over the next decade."

Barack Obama on Friday, January 29th, 2010 in a Republican retreat in Baltimore

Obama inherited deficits from Bush administration

In a spirited and unscripted debate with the House GOP, President Barack Obama said Republicans were wrong to portray him as running up large deficits.

Speaking at a retreat for House Republicans in Baltimore on Jan. 29, 2010, Obama was particularly critical of a question from Rep. Jeb Hensarling of Texas. Hensarling asked Obama, "You are soon to submit a new budget, Mr. President. Will that new budget, like your old budget, triple the national debt and continue to take us down the path of increasing the cost of government to almost 25 percent of our economy?"

"The fact of the matter is," Obama replied, "is that when we came into office, the deficit was $1.3 trillion -- $1.3 trillion. So when you say that suddenly I've got a monthly deficit that's higher than the annual deficit left by Republicans, that's factually just not true, and you know it's not true. And what is true is that we came in already with a $1.3 trillion deficit before I had passed any law. What is true is, we came in with $8 trillion worth of debt over the next decade."

We checked Hensarling's claim in a separate item. Here, we'll look at Obama's claim that he came into office with a $1.3 trillion deficit and $8 trillion worth of debt over the next decade.

On Jan. 7, 2009, two weeks before Obama took office, the Congressional Budget Office reported that the deficit for fiscal year 2009 was projected to be $1.2 trillion. The 10-year projection was estimated to be about $3.1 trillion. So Obama's number was very close on the 2009 deficit -- he said $1.3 trillion -- but substantially different from the 10-year projection -- he said $8 trillion.

There are two reasons why he differs from the CBO. On the difference between the $1.2 trillion and the $1.3 trillion, the Obama administration credited a small portion of spending on its watch to policies of the previous administration. The reason for this is that the federal government runs on a fiscal year that starts Oct. 1, so Bush and Obama technically split responsibility for 2009 spending.

The large difference on the 10-year projection has to do with Bush administration tax cuts. The CBO creates its estimates based on current law, which means the CBO assumes that the Bush tax cuts will end in 2010 and everyone will start paying higher taxes in 2011 and going forward. The Obama administration, on the other hand, assumed in its baseline that those tax cuts would be renewed.

Economists we spoke with -- Josh Gordon, policy director for the Concord Coalition, and Brian Riedl, lead budget analyst of the conservative Heritage Foundation -- both said they believe the White House approach is more realistic because it assumes current policy will continue.

So the CBO's estimate is $5 trillion lower than the White House numbers, though economists don't quibble with the White House methodology. It does highlight, however, that when it comes to budget projections, people can have differences of opinion about what to include. In any budget projection there is room for interpretation, but it seems reasonable to assume for a baseline that the Bush tax cuts will continue. Obama's numbers are fairly solid, so we rate his statement Mostly True.

Chris and Rep Pence R. Indianan after the q&a

Drawing lessons from Obama/GOP Confrontation


rep jeb hensarling texas


rep peter roskam ill


rep; tom price Ga


rep marcia blackburn 5th


rep jason chaffitz

Visit msnbc.com for breaking news, world news, and news about the economy

Answer to Re Pence

Visit msnbc.com for breaking news, world news, and news about the economy

Rep Mike Pence Minority Leader


Special tonight Kieth, Rachal and Chris Discuss Q&A Obama/GOP

Visit msnbc.com for breaking news, world news, and news about the economy

Kieth Olbermann's second little comment as the President leaves for the Capital

I will let you know alot of what I write here is taken directly from Keith's comment.

There should be no doubt that this President is capable of that kind of leadership.
To take back the government for the people.

"Powerful influences strive today to restore that kind of government with its doctrine that that government is best which is most indifferent" spoken by Roosevelt in 1936 as he sought a second term against those who would freeze government spending, comfort the banks and let the people founder. Anything sound familiar in his words for today, ahaaaaaaaa, Republicans ....
Roosevelt went on to say "Change begins by saying aloud that which is wrong. Saying it loudly and clearly challenging those who would defend the wrong."

The rest of it is best heard by Roosevelt, only three blocks from here...

here's the rest of the story



House Republicans React to President's Address


January 30, 2010

Brian Faughnan of RedState attended the Republican retreat in Baltimore this weekend. Following President Obama's address to House Republicans yesterday, he was able to snag a couple of off the cuff interviews with Members of Congress. Here is the first video with Rep. Paul Ryan (WI):


GOP.gov

 


A Review of Presiden's State of the Union Address
- Obama on Democrat Health Care Plan:  "I want everyone to take another look at the [health care] plan...


It is rather long, and there are other blog articles to look at. I get the impression the Republicans think they are right all the time.
John Boehner (R-OH)  let people know about this web site in their remarks too the press about their retreat and the President's visit..