Capital Commerce

Obama's Rosy Scenario

March 8, 2009 RSS Feed Print

Here Is Barack Obama's budget guru Peter Orszag on CNN today:

I don't think we should be chasing our tail, constantly revising assumptions," Orszag said. "Let's see what happens, let it work. We'll have a mid-session review later in the year. We'll have an opportunity to revise the assumptions at that point.

Me: Ah, yes, the assumptions. Team Obama has forecasted the economy will grow 1.2 percent this year. If you assume the economy fall 5.5 percent this quarter, as JPMorgan does, then 'the growth rate in each of the remaining three quarters of the year would need to be a positive 3.5% in order to get to OMB’s -1.2% year on year forecast. Beyond 2009, the OMB growth forecast remains significantly higher than most forecasters anticipate." If the economy is on the verge of that kind of turnaround, the Obama's stock market bullishness is probably warranted.

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Step 1 - abolish the tax code and the IRS as we know it
Step 2 - establish a federal sales tax.
Step 3 - pass a law that any increase to the federal sales tax must be approved by a super majority of congress.
Step 4 - Pass the balanced budget amendment
All Constitutional requirements must be paid for first. Any projects or spending outside those requirements will only be funded if there are funds available. No funds - no project.
If all the pet projects are really important Washington will make sure the economy is moving so they get the tax money they "want".
Plus "EVERYONE" will pay their fair share of taxes no matter the income level.

Larry of CA 9:57AM March 09, 2009

The fiscal 2009 budget beings October 1. So, last quarter's -6.8 GDP number has to be factored into their assumption that GDP will grow 1.2% this budget year. Add in the projected -5.5% from JPM and you're looking at a virtually impossible scenario.
What does that mean? The projected $1.75T deficit is laughable. It will easily surpass $2T with the continued decline of tax revenues throughout the rest of the year.

jaydee of GA 9:52PM March 08, 2009

when is Washington going to get serious about the economy and revival- here we have a bill drafted which is sure to pass and then our beloved congressmen load it with unecessary pork-I guess 10.7 trillion debt and interest payments yearly of 555 billion isn't anything serious????

don lutz of PA 9:08PM March 08, 2009

Obama's Rosy Scenario

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