Saturday, February 11, 2012

Obama Puts a Stranglehood on Budget Deficit

'Budget deficit drops to $27 billion in January
The budget deficit fell sharply in January compared to a year earlier, as an improving economy lifted income tax revenue.
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 Wow, Obama must be really making some headway?  Not exactly.  The drop was attributed mostly to two accounting gimmicks and the deficit is still expected to top 1 trillion dollars for FY 2012.  It will be the fourth year in a row of $1 trillion + deficits.  Also remember that this is just the official deficit.  Add in unfunded liabilities such as Soc Security and Medicare and the annual deficit is more like $5 Trillion using GAAP.  After Greece and Italy fails and the Fed bails out all of Europe, the real deficit will likely be over $7 Trillion. 
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