Monday, February 1, 2010

How Bad Is This Budget

We have been looking at the OMB Budget a bit more. The data below shows what they are projecting for the GDP.

Note the growth rate projected. It is highly unrealistic. It is another one of those Romer numbers which one can have no faith in. The Deficit we know will be met or exceeded and the Deficit will be without the benefit of the Health Care Taxes. Thus at the core is the uncertainty of the GDP. This is a very serious concern.

We now look at the Dent relative to the GDP as a %. This we show below. Note that it exceeds 100% when the health care tax is not present by 2014! We are on our way to Greece. There is not even an attempt to mitigate this problem. If this were the management of a start up the investors would have hauled them out long ago! One should look at our White Paper of last year. One cannot say we had not been warned. This was Romer back then. She has not been right once!

Finally we present the real dollars for all as shown below.

I believe that we have a great deal of manipulation with these numbers with a stress on the 2012 election but with detriment for the economy.