Obama’s Big Government Agenda to Be Funded With Fudged Numbers and Hokus PokusBy
Yes, he can hide it no longer. Obama’s big government, nanny state, socialist agenda will now be officially funded with fudged numbers, hokus pokus, a dash of I hope you won’t notice, a sprinkle of forget I ever said that, and if that doesn’t work, they’ll add a dose of you’re too stupid to understand.
As Obama threatens to veto budget cuts, Treasury Secretary Tim Geithner admits that Obama’s proposed budget is unsustainable:
With the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it and reduce those deficits to 3% of GDP over the next five years, we would still be left with a very large interest burden and unsustainable obligations over time.
Watch Treasury Secretary Tim Geithner’s testimony here:
Furthermore, as Obama claims his budget “puts us on a path to pay for what we spend by the middle of the decade,” Budget Director Jack Lew admits it does no such thing. Instead, the budges is considered balanced only if we ignore interest payments on the debt.
Here’s what Lew says:
This budget would get us to the point where in the middle of the decade, we will be paying for our current expenses and we will be in what’s called ‘primary balance’. That means that the only thing that’s putting us into deficit is payments of interest on the national debt.
And the interest portion of the budget is huge. It’s the 4th largest budget item and in fiscal year 2009 amounted to $381 billion (see here). And now we’re in a time when interest rates are rock bottom. If those go up, we’ll see the interest on the national debt balloon enormously.
See Budget Director Jack Lew’s testimony here: