Obama's Administration says it will "reduce" the deficit (from $1.3-1.5 trillion!) to "only" $533 billion by 2013.
Where have we heard this before?
Oh, I remember! It was when George W. Bush took office! Why he was going to "reduce the deficit" by 2/3rds by the time he left office too, wasn't he?
Did he do it? Noooooo!
And while he can claim that war got in the way, what also got in the way was massive fraud and games in the financial system, which, due to how he handled them (that is, bailing people out instead of forcing the imprudent and fraudulent to go broke) led to the $1.3 trillion dollar deficit we have now.
President Obama intends to "address" this issue by raising taxes on hedge funds managers, putting their incomes at ordinary income rates instead of capital gains, along with expiring the Bush tax cuts.
The latter were expected. The former is arguably just, but it will certainly stoke plenty of debate (and bribes, er, lobbying and "contributions") in Congress.
Oh, how much tax do you pay on losses? That would be zero, right? And how have these so-called "hedge funds" done in the last year? With few exceptions they have lost massive amounts of money!
One thing is certain - Obama's so-called "fiscal responsibility summit" on February 23d won't eliminate even one cabinet office, one government department, and it will not actually result in a meaningful reduction in government spending anywhere.
Neither Democrat or Republican has actually shrunk the size of government in fifty years; there is no reason to believe that President Obama will do so either, and as a consequence, his claims of "budget deficit reduction" should be considered as honest as were George W. Bush's.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
Market Ticker content may be reproduced or excerpted online provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media.
Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.
Leads on stories of current economic and political interest are always welcome. Our fax tip line is 850-897-9364; please include contact information with your transmission.