Comments on: What is the goal of the President’s Fiscal Commission? http://keithhennessey.com/2010/02/03/fiscal-commission-goal/ Your guide to American economic policy Tue, 27 Jul 2010 13:47:00 +0000 hourly 1 http://wordpress.org/?v=abc By: Bitch-slapped after hours! | What the $%@&* Trading! http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15299 Bitch-slapped after hours! | What the $%@&* Trading! Fri, 19 Feb 2010 01:35:02 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15299 [...] What is the goal of the President’s Fiscal Commission? [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15299','Bitch-slapped after hours! | What the $%@&* Trading!'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15299','Bitch-slapped after hours! | What the $%@&* Trading!','[...] What is the goal of the President’s Fiscal Commission? [...]'); return false;">Quote</a></div> [...] What is the goal of the President’s Fiscal Commission? [...]
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]]> By: With A Bipartisan Commission At His Side, President Obama Will Avoid Seriously Addressing/strike> Solve the Nation's Deficit Problem - Hit & Run : Reason Magazine http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15098 With A Bipartisan Commission At His Side, President Obama Will Avoid Seriously Addressing/strike> Solve the Nation's Deficit Problem - Hit & Run : Reason Magazine Fri, 05 Feb 2010 15:49:22 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15098 [...] as Hennessey notes in a separate post, "the President does not commit himself to proposing the policies recommended by the Commission.  [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15098','With A Bipartisan Commission At His Side, President Obama Will Avoid Seriously Addressing\/strike> Solve the Nation\'s Deficit Problem - Hit & Run : Reason Magazine'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15098','With A Bipartisan Commission At His Side, President Obama Will Avoid Seriously Addressing\/strike> Solve the Nation\'s Deficit Problem - Hit & Run : Reason Magazine','[...] as Hennessey notes in a separate post, "the President does not commit himself to proposing the policies recommended by the Commission.  [...]'); return false;">Quote</a></div> [...] as Hennessey notes in a separate post, "the President does not commit himself to proposing the policies recommended by the Commission.  [...]
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]]> By: SteveinCH http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15059 SteveinCH Thu, 04 Feb 2010 18:25:31 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15059 Douglas, In some cases you are right but in this case, you are not. The President and the Congress passed an omnibus discretionary spending bill that raised discretionary spending (ex-stimulus) by double digits after he took office. That bill was left over because Bush and Congress could not agree on it before the end of Bush's term. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15059','SteveinCH'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15059','SteveinCH','Douglas, \n \nIn some cases you are right but in this case, you are not. The President and the Congress passed an omnibus discretionary spending bill that raised discretionary spending (ex-stimulus) by double digits after he took office. That bill was left over because Bush and Congress could not agree on it before the end of Bush's term. '); return false;">Quote</a></div> Douglas,

In some cases you are right but in this case, you are not. The President and the Congress passed an omnibus discretionary spending bill that raised discretionary spending (ex-stimulus) by double digits after he took office. That bill was left over because Bush and Congress could not agree on it before the end of Bush's term.

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]]> By: Steven Hales http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15048 Steven Hales Thu, 04 Feb 2010 13:01:26 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15048 The problem here is that we need a 50% reduction in federal discretionary spending to bring the budget into balance, i.e., primary and debt service. The problem is very large. Even letting the tax cuts expire does not close the gap. If there is a disconnect between what the people expect from their government and what they are willing to pay in taxes then the problem can't be solved. And this is just the primary budget and debt service it doesn't address the question of how the balance of the primary budget will be pressured when the trust funds begin to be drawn down after 2020. After 2020 payroll taxes will be insufficient to cover social insurance costs and the trust fund bonds will be redeemed with non-payroll tax receipts. If we don't solve the problem of discretionary spending and debt service costs before 2020 mandatory spending will force hard and immediate cuts sending aggregate demand into a tailspin because the private economy won't be able to grow fast enough to keep up with the shrinkage of discretionary spending. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15048','Steven Hales'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15048','Steven Hales','The problem here is that we need a 50% reduction in federal discretionary spending to bring the budget into balance, i.e., primary and debt service. The problem is very large. Even letting the tax cuts expire does not close the gap. If there is a disconnect between what the people expect from their government and what they are willing to pay in taxes then the problem can't be solved. And this is just the primary budget and debt service it doesn't address the question of how the balance of the primary budget will be pressured when the trust funds begin to be drawn down after 2020. After 2020 payroll taxes will be insufficient to cover social insurance costs and the trust fund bonds will be redeemed with non-payroll tax receipts. If we don't solve the problem of discretionary spending and debt service costs before 2020 mandatory spending will force hard and immediate cuts sending aggregate demand into a tailspin because the private economy won't be able to grow fast enough to keep up with the shrinkage of discretionary spending. '); return false;">Quote</a></div> The problem here is that we need a 50% reduction in federal discretionary spending to bring the budget into balance, i.e., primary and debt service. The problem is very large. Even letting the tax cuts expire does not close the gap. If there is a disconnect between what the people expect from their government and what they are willing to pay in taxes then the problem can't be solved. And this is just the primary budget and debt service it doesn't address the question of how the balance of the primary budget will be pressured when the trust funds begin to be drawn down after 2020. After 2020 payroll taxes will be insufficient to cover social insurance costs and the trust fund bonds will be redeemed with non-payroll tax receipts. If we don't solve the problem of discretionary spending and debt service costs before 2020 mandatory spending will force hard and immediate cuts sending aggregate demand into a tailspin because the private economy won't be able to grow fast enough to keep up with the shrinkage of discretionary spending.
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]]> By: Douglas Lee http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15045 Douglas Lee Thu, 04 Feb 2010 01:34:31 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15045 Every president takes office in January and presents a budget a few weeks later. This budget is not really his proposal. It is one mostly left behind by his predecessor which has been tweaked a little. Calling the 2010 budget Obama's is really an exaggeration. The 2011budget is the one he owns and the one that is properly interpreted as representing the goals and policies of this administration. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15045','Douglas Lee'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15045','Douglas Lee','Every president takes office in January and presents a budget a few weeks later. This budget is not really his proposal. It is one mostly left behind by his predecessor which has been tweaked a little. Calling the 2010 budget Obama's is really an exaggeration. The 2011budget is the one he owns and the one that is properly interpreted as representing the goals and policies of this administration. '); return false;">Quote</a></div> Every president takes office in January and presents a budget a few weeks later. This budget is not really his proposal. It is one mostly left behind by his predecessor which has been tweaked a little. Calling the 2010 budget Obama's is really an exaggeration. The 2011budget is the one he owns and the one that is properly interpreted as representing the goals and policies of this administration.
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]]> By: Robert Schwartz http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15032 Robert Schwartz Wed, 03 Feb 2010 19:16:47 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15032 There is a lurking issue here. GSE obligations (the debts of Fannie Mae and Freddie Mac) have been excluded from the Federal budget because they were privately owned corporations, despite the "implicit" Federal guarantee of their debts. The implicit guarantees are now explicit, the non-governmental shareholders have been wiped out, and the GSEs are controlled by the Federal Government. The GSE's debts should be on budget. Therefor, the debt to GDP ratio should be revised. I think that the outstanding debt is about 7T$, the GSE debts are ~5T$ and the GDP is ~14T$. The debt to GDP ratio is therefor, ~86%. I hpe I am wrong avbout this or we are in deeper kimchi than I thought we were in. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15032','Robert Schwartz'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15032','Robert Schwartz','There is a lurking issue here. GSE obligations (the debts of Fannie Mae and Freddie Mac) have been excluded from the Federal budget because they were privately owned corporations, despite the "implicit" Federal guarantee of their debts. \n \nThe implicit guarantees are now explicit, the non-governmental shareholders have been wiped out, and the GSEs are controlled by the Federal Government. The GSE's debts should be on budget. Therefor, the debt to GDP ratio should be revised. \n \nI think that the outstanding debt is about 7T$, the GSE debts are ~5T$ and the GDP is ~14T$. The debt to GDP ratio is therefor, ~86%. \n \nI hpe I am wrong avbout this or we are in deeper kimchi than I thought we were in. '); return false;">Quote</a></div> There is a lurking issue here. GSE obligations (the debts of Fannie Mae and Freddie Mac) have been excluded from the Federal budget because they were privately owned corporations, despite the "implicit" Federal guarantee of their debts.

The implicit guarantees are now explicit, the non-governmental shareholders have been wiped out, and the GSEs are controlled by the Federal Government. The GSE's debts should be on budget. Therefor, the debt to GDP ratio should be revised.

I think that the outstanding debt is about 7T$, the GSE debts are ~5T$ and the GDP is ~14T$. The debt to GDP ratio is therefor, ~86%.

I hpe I am wrong avbout this or we are in deeper kimchi than I thought we were in.

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]]> By: The Goal Of Obama’s Fiscal Commission Is NOT! To Balance The Budget | Eye on Freedom http://keithhennessey.com/2010/02/03/fiscal-commission-goal/comment-page-1/#comment-15030 The Goal Of Obama’s Fiscal Commission Is NOT! To Balance The Budget | Eye on Freedom Wed, 03 Feb 2010 18:43:54 +0000 http://keithhennessey.com/2010/02/03/fiscal-commission-goal/#comment-15030 [...] Read more….. [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('15030','The Goal Of Obama’s Fiscal Commission Is NOT! To Balance The Budget | Eye on Freedom'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('15030','The Goal Of Obama’s Fiscal Commission Is NOT! To Balance The Budget | Eye on Freedom','[...] Read more….. [...]'); return false;">Quote</a></div> [...] Read more….. [...]
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