Monday, January 25, 2010

Obama to propose spending freeze!

Obama Spending Freeze: The President Will Propose Discretionary Three-Year Freeze

I told you it was coming. Here it comes!! We will definitely have a double dip recession and the second leg down could be far more severe than the first with unemployment rising to 15%. Watch stocks get crushed now...absolutely crushed.


googleheim said...

Democrats must be really mad at him to do this !

Ditto for republicans!


Matt Franko said...

I'm tracking the following 5 areas of spending for YoY increases from FY09 to this year FY10:

Social Security

So far (75 Statement-Days) they are on track for only a 1.36% combinded increase as a percent of $14T GDP. Last year they combined for a 3+% of GDP increase. The large NON-discretionary items (social security and medicare/caid) have a zero and near-zero COLA for this year.

I was hoping for some lift in the discretionary areas to pick up the pace of fiscal due to the zero COLAs in the non-discretionary, now they come up with this...

It is amazing that we have been at zero with Monetary Policy for well over a year now with no inflation, and bank credit, utilization and employment all in the toilet, and these idiots cant put 2+2 together and see that Monetary at zero is having NO effect.

What world are they living in?

googleheim said...

cnn reports that obama is excluding defense and security.

that means we are going on a frugal spending freeze not unlike a penny pinching extraordinaire
for the sake of the military.

sounds like we have to go without so the military can go with

mike norman said...

Yes, goog, the old "guns and butter" tradeoff. That's what our policymakers believe in and that's why so many of our young people are joining the military. It is our biggest social services agency.

mike norman said...

Matt, they are living in a world of myth and superstition.

googleheim said...

I wonder if enlistment feeds are getting low in the Armed Forces ?

Remember I am always harking about the Clash's song "THE CLAMP DOWN" ...

Could there be a lull in walk-ups and there is a need for them for the next "surge" in Afghanistan ?

i.e. make a recession and create the precession to the recruiters ?