Obama Seeks Freeze on Many Domestic Programs

[jk]

January 26, 2010
Obama Seeks Freeze on Many Domestic Programs

By JACKIE CALMES
WASHINGTON—President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.
The officials said the proposal would be a major component both of Mr. Obama’s State of the Union speech on Wednesday and the budget that he will send to Congress next Monday for the fiscal year 2011 that begins in October.
It would cover the agencies and programs for which Congress allocates specific budgets each year, from air traffic control and farm subsidies to education, nutrition and national parks.
But it would exempt the Pentagon, foreign aid, the Veterans Administration and homeland security budgets, as well as the entitlement programs that make up the biggest and fastest-growing part of the federal budget, Medicare, Medicaid and Social Security.
The payoff in budget savings would be small relative to the deficit: The estimated $250 billion in savings over 10 years is less than 5 percent of the $9 trillion to $10 trillion in additional debt the government is expected to accumulate over that time.
etc
http://www.nytimes.com/2010/01/26/us...budget.html?hp


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so much for fiscal policy. ready to phase out q.e.?

[jtabeb]

Re: Obama Seeks Freeze on Many Domestic Programs

January 26, 2010
Obama Seeks Freeze on Many Domestic Programs

By JACKIE CALMES
WASHINGTON—President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.
The officials said the proposal would be a major component both of Mr. Obama’s State of the Union speech on Wednesday and the budget that he will send to Congress next Monday for the fiscal year 2011 that begins in October.
It would cover the agencies and programs for which Congress allocates specific budgets each year, from air traffic control and farm subsidies to education, nutrition and national parks.
But it would exempt the Pentagon, foreign aid, the Veterans Administration and homeland security budgets, as well as the entitlement programs that make up the biggest and fastest-growing part of the federal budget, Medicare, Medicaid and Social Security.
The payoff in budget savings would be small relative to the deficit: The estimated $250 billion in savings over 10 years is less than 5 percent of the $9 trillion to $10 trillion in additional debt the government is expected to accumulate over that time.
etc
http://www.nytimes.com/2010/01/26/us...budget.html?hp


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so much for fiscal policy. ready to phase out q.e.?

So they are going to also scale back The $23 trillion in financial stabilization programs too, and get back all the $700 billion in tarp and the like too, right?:rolleyes::mad:

[GRG55]

Re: Obama Seeks Freeze on Many Domestic Programs

so much for fiscal policy. ready to phase out q.e.?

'Tis but thy name that is my enemy;
Thou art thyself, though not Friedman's k-percent rule.
What's QE? It is nor TARP, nor TALF,
Nor HAMP, nor HOPE, nor any other part
Belonging to Fed Policy. O, be some other name!
What's in a name? that which we call a rose
By any other name would smell as sweet;
So QE would, were it not QE call'd,
Retain that dear perfection which it owes
Without that title. QE, doff thy name,
And for that name which is no part of thee
Take all our money...

[jk]

Re: Obama Seeks Freeze on Many Domestic Programs

'Tis but thy name that is my enemy;
Thou art thyself, though not Friedman's k-percent rule.
What's Monetarism? It is nor hand, nor foot,
Nor arm, nor face, nor any other part
Belonging to Fed Policy. O, be some other name!
What's in a name? that which we call a rose
By any other name would smell as sweet;
So QE would, were he not QE call'd,
Retain that dear perfection which he owes
Without that title. QE, doff thy name,
And for that name which is no part of thee
Take all my money...

a shepherd by any other name
would smell of sheep,
and economic policy
of other barnyard matter

[audrey_girl]

Re: Obama Seeks Freeze on Many Domestic Programs

freeze????

freeze what? freeze the current status quo?

freeze the budget with a 1.5 trillion dollar deficit?

ohhhh - thats progress

[ThePythonicCow]

Re: Obama Seeks Freeze on Many Domestic Programs

freeze????

freeze what? freeze the current status quo?

freeze the budget with a 1.5 trillion dollar deficit?

ohhhh - thats progress

Well, freeze except for the biggest and fastest growing expenses (Pentagon, Medicare, Medicaid, Social Security) and except for the fastest declining income (taxes.)

What a joke. Why am I not laughing?

[c1ue]

Re: Obama Seeks Freeze on Many Domestic Programs

In case anyone, anywhere has any doubt anymore that Obama is just pandering to the masses a la Clinton (i.e. polling housewives in Iowa to see if the US should intervene in Kosovo):

http://finance.yahoo.com/tech-ticker/damn-the-deficit-now-is-%22not-the-time-to-tighten-the-belt%22-austan-goolsbee-says-412375.html?tickers=IXJ,XLV,%5Edji,%5Egspc,SPY,DIA ,GLD&sec=topStories&pos=9&asset=&ccode=

Speaking to Tech Ticker on Monday, White House economic adviser Austan Goolsbee was asked about Gates' comments. While agreeing the deficit is a concern, Goolsbee didn't express any sense of urgency in dealing with it.
"I'm not saying 'don't worry about the deficit,'" he tells Aaron and Henry in the accompanying clip. "I'm saying don't start your exit strategy until it's clear you're out of the woods," i.e. until jobs return and GDP growth returns to pre-recession levels.
Until then, the Obama administration doesn't want to focus on exit strategies or balancing the budget. This is "not the time to tighten the belt," he says. (Editor's note: The accompanying video was taped prior to reports late Monday that President Obama will propose a three-year freeze in discretionary, "non-security" spending as part of his fiscal 2011 budget, expected to be unveiled next week.)

[Slimprofits]

Re: Obama Seeks Freeze on Many Domestic Programs

Who is he pandering too - the Undecided mass?

If you're part of the Republican mass, you immediately dismissed this move as disingenuous and worthless, even though you claim want to cut spending.

If you're part of the Democrat mass, you're against all spending cuts to begin with.

[BigBagel]

Re: Obama Seeks Freeze on Many Domestic Programs

The areas being frozen reportedly represents 1/8th of the total budget.

[we_are_toast]

Re: Obama Seeks Freeze on Many Domestic Programs

Who is he pandering too - the Undecided mass?

If you're part of the Republican mass, you immediately dismissed this move as disingenuous and worthless, even though you claim want to cut spending.

If you're part of the Democrat mass, you're against all spending cuts to begin with.

Yes, the Unaffiliateds. This will play well with them. They were beginning to buy into the constant rant of we can cut the deficit by not growing the government and getting rid of waste, fraud and abuse. This has nothing to do with economics and everything to do with politics. Real deficit reduction will come after another round of stimulus, and it has to be done by an outside committee. This will be well forgotten in a week or two.

[Slimprofits]

Re: Obama Seeks Freeze on Many Domestic Programs

I remember the good old days of 2008 when Candidate McCain proposed the same thing.

[Jay]

Re: Obama Seeks Freeze on Many Domestic Programs

Real deficit reduction will come after another round of stimulus,

Then another, then another....

[MulaMan]

Well it is a start but some president needs to grow the balls to cut military spending, pentagon "security" by 80%.

security in America means bankrupt the country so Americans die due to lack of public services and health care...great idea...Bin Laden must be just laughing as Americans kill themselves....lets spend another $ trillion chasing down a few thousand clowns spread around the world, how retarded can you get.

As soon as anyone even thinks about cutting military the CIA will announce a code red, release a fake Bin Laden tape, or release some un-poven analysis of how "terrorists" are about to attack America.

[skyson]

Re: Obama Seeks Freeze on Many Domestic Programs

security in America means bankrupt the country so Americans die due to lack of public services and health care...great idea...Bin Laden must be just laughing as Americans kill themselves....lets spend another $ trillion chasing down a few thousand clowns spread around the world, how retarded can you get.

no, a few among you people are not retarded at all. those money do go somewhere.;);)

As soon as anyone even thinks about cutting military the CIA will announce a code red, release a fake Bin Laden tape, or release some un-poven analysis of how "terrorists" are about to attack America.

according to the main stream media and some members of this forum, you are clearly a "conspiracy nutcase".

[flintlock]

Re: Obama Seeks Freeze on Many Domestic Programs

America is bankrupt at all levels. My local school system is considering going to half days next year for all kids in order to save money. They claim they can make it up via an online "virtual" class. This would have a major impact on working parents. They'd lose that free daycare aspect of school.;)

Obama's "freeze" is nothing more than a soundbite for the middle of the road folks. Sounds good but there's no guts to it.