Obama's Budget is Impossible to Finance and Congress Will be Forced to Reject it By: Curtis Ophoven 2/4/2010 - 4 Comments Obama's budget is impossible to finance because our bankers will not give us the requested line of credit. Your Ad Here China, India and Japan don’t have the money to lend us.  They cann't give us the money to borrow and spend if they wanted to. That means the Treasury will have to print the $1.4T difference. But the Treasury cannot print money any faster than they are already without the world discovering how much money they have been printing for years, which could create a panic sell off.  If Obama’s budget were to pass the Senate, global investors will sell the dollar and lead to a sinking dollar followed by massive inflation.  Obama's budget is impossible.  Congress has no choice but to reject it.  Perhaps that was the plan.  If Congress rejects the budget, they will be forced to negotiate the spending cuts and Obama can say, ‘I did all I could, it’s not my fault’, when the economy completely tanks. The revenue increases in the Obama budget like the tax increases for international business will also never pass the Senate and the high unemployment rate will reduce the projected tax revenues, resulting in a much higher difference between income and expences. It’s not going to happen.  2010 is going to be a year of difficult decisions and the begining of massive government spending cuts.    Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. Related Articles 100 Stimulus Packages Couldn’t Restore the Economy My Response to Obama’s State of the Union Speech: Government is the Problem not the Solution Investment Outlook for 2010, a Year of Difficult Decisions The Fed’s Recovery Plan Is Based on Fooling Everyone Holding Dollars Government Intervention Is a Lose-Lose Situation For the Poor << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 steve Says: on Wednesday, February 10, 2010 5:58:50 PM More empires have fallen because of reckless finances than invasion. The latest example was the Soviet Union, which spent itself into ruin by buying tanks. Washington’s deficit (the difference between spending and income from taxes) will reach a vertiginous $1.6 trillion US this year. The huge sum will be borrowed, mostly from China and Japan, to which the U.S. already owes $1.5 trillion. Debt service will cost $250 billion. To spend $1 trillion, one would have had to start spending $1 million daily soon after Rome was founded and continue for 2,738 years until today. Obama’s total military budget is nearly $1 trillion. This includes Pentagon spending of $880 billion. Add secret black programs (about $70 billion); military aid to foreign nations like Egypt, Israel and Pakistan; 225,000 military “contractors” (mercenaries and workers); and veterans’ costs. Add $75 billion (nearly four times Canada’s total defence budget) for 16 intelligence agencies with 200,000 employees. The Afghanistan and Iraq wars ($1 trillion so far), will cost $200-250 billion more this year, including hidden and indirect expenses. Obama’s Afghan “surge” of 30,000 new troops will cost an additional $33 billion — more than Germany’s total defence budget. http://www.torontosun.com/comment/columnists/eric_margolis/2010/02/05/12758511-qmi.html Comment 2 fan of the ACLU Says: on Wednesday, February 10, 2010 6:57:45 PM They renewed the Patriot act in the new jobs bill - had they voted on it straight up or down it probably would not have passed - those cowards. SEC. 645. EXTENSION OF INTELLIGENCE AUTHORITY SUNSETS. (a) USA PATRIOT IMPROVEMENT AND REAUTHORIZATION ACT OF 2005.—Section 102(b)(1) of the USA PATRIOT Improvement and Reauthorization Act of 2005 (Public Law 109–177; 50 U.S.C. 1805 note, 50 U.S.C. 1861 note, and 50 U.S.C. 1862 note) is amended by striking ‘‘February 28, 2010’’ and inserting ‘‘December 31, 2010’’. (b) INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004.—Section 6001(b)(1) of the Intel ligence Reform and Terrorism Prevention Act of 2004 (Public Law 108–458; 118 Stat. 3742; 50 U.S.C. 1801 note) is amended by striking ‘‘February 28, 2010’’ and inserting ‘‘December 31, 2010’’. Comment 3 Tom Says: on Wednesday, February 17, 2010 8:48:46 AM Feb. 16 (Bloomberg) -- Federal Reserve Bank of Kansas City President Thomas Hoenig said the U.S. must take “difficult” steps to reduce spending and increase revenue so the central bank isn’t pressured to fund the “unsustainable” federal debt. “It is a fact that the current outlook for fiscal policy poses a threat to the Federal Reserve’s ability to achieve its dual objectives of price stability and maximum sustainable long- term growth, and therefore is a threat to its independence as well,” Hoenig said today in a speech in Washington. The Obama administration estimates budget deficits will total $4.3 trillion during the next five years and hit a record $1.6 trillion in the year ending Sept. 30. The U.S. must be “willing to disappoint a host of special interests” and tackle the debt, or it risks “its own next crisis,” Hoenig said. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKphOytGoQG4 Comment 4 JIm Says: on Tuesday, February 23, 2010 11:32:55 AM "Rogoff: Wave Of Sovereign Debt Defaults Coming" http://moneynews.com/Headline/Kenneth-Rogoff-sovereign-debt/2010/02/23/id/350664 "Kenneth Rogoff, Harvard professor and former IMF chief economist, sees a series of sovereign debt defaults coming. Ballooning public debt is likely to force several countries to default and the United States to slash spending as a result, Rogoff says. " Write a Comment Please keep comments civil and on-topic. 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