Federal Deficit on Collapse Course

One would think that with all the talk over the past year about the financial messes of Greece, Iceland, Spain, Italy, etc.... that the leaders of this country would get serious about looking at our own financial mess.

But if you thought that....you would be wrong.

Now that the stock market is up...all of the financial talking heads of the world are now telling us it is "safe to go back in the pool"....but they are totally ignoring the facts PRINTED in Budget form right in front of their very eyes. It's almost like a delusion has come over them and they can't think anymore.

President Obama‘s budget, released Monday, was conceived as a blueprint for future spending, but it also paints the bleakest picture yet of the current fiscal year, which is on track for a record federal deficit and will see the government’s overall debt surpass the size of the total U.S. economy.

Mr. Obama‘s budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by Sept. 30, the end of the fiscal year. That would be 102.6 percent of GDP — the first time since World War II that dubious figure has been reached.

And the budget projects the government will run a deficit of $1.645 trillion this year, topping 2009’s previous record by more than $230 billion. By contrast, 2007’s deficit was just $160 billion altogether.

And indeed that’s what the numbers show. Nominal debt will peak in 2013 at 106 percent of the economy before dropping to 105.2 percent in 2015 and 2016, though only if the economy booms.

See it here; http://www.washingtontimes.com/news/2011/feb/14/debt-now-equals-total-us-economy/?page=1

If you start looking in detail at the assumptions that are made for the previous paragraph claiming that nominal debt will start dropping in 2015 and 2016....you would laugh out loud. IF the economy grows at 6% per year and IF we add millions of middle class jobs, and IF interest rates stay down, and IF there is never any more war, and IF the people and governments we owe $14 trillion dollars to will be so kind as to extend their loans....

Deception has started. Our leaders have now made the transition of actually managing a true balance sheet to actually managing our perception of what we believe is happening. That can only mean one thing....the smoke and mirrors are starting to vanish so they are peddling hard to try and keep them up a while longer.