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:

New Jersey cannot solve this problem by raising taxes. “[W]e have revenue going down, not up even though we’ve raised taxes every year,” says NJ Gov. Chris Christie.

A major contributor to New Jersey’s bloated budged is state worker benefits. A state worker could retire after 25 years at age 49, contribute $124,000 toward retirement, and get back $3.8 million in pension and health benefits over the rest of his lifetime.

The money to finance this excessive retirement plan isn’t exactly money that’s going to save the poor from the evils of capitalism. Then why is a liberal state such as NJ spending it? Could this be because of socialist greed? Or perhaps it’s because once a state acquires money in the name of the poor it just spends it which ever way…

Watch the interview with Gov. Christie here:

This is a parody of the Master Card commercials dealing with the federal government’s wasteful spending habits. These are actual federal expenditures for the years 2008-2009. Film director Ray Griggs is currently in production on a documentary film dealing with the perils of Big Government. Coming to theaters in late summer of 2010.

Video by IWantYourMoney.net.