The economy was failing and thankfully the Obama administration intervened. Now economists are saying that the economy is coming out of recession.

Yup bobby is smoking that wacky weed again.

WASHINGTON - The federal deficit surged higher into
record territory in August, hitting $1.38 trillion with one month left
in the budget year.

The
soaring deficits have raised worries about the willingness of
foreigners to keep purchasing Treasury debt. The Chinese, now the
largest foreign owners of U.S. Treasury securities, have expressed
concerns about runaway deficits. Treasury Secretary Timothy Geithner
and other administration officials have sought to address th...

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The economy was failing and thankfully the Obama administration intervened. Now economists are saying that the economy is coming out of recession.

Yup bobby is smoking that wacky weed again.

WASHINGTON - The federal deficit surged higher into
record territory in August, hitting $1.38 trillion with one month left
in the budget year.

The
soaring deficits have raised worries about the willingness of
foreigners to keep purchasing Treasury debt. The Chinese, now the
largest foreign owners of U.S. Treasury securities, have expressed
concerns about runaway deficits. Treasury Secretary Timothy Geithner
and other administration officials have sought to address those
concerns by insisting that once the recession is over and the financial
system is stabilized, the administration will move forcefully to get
the deficits under control.

The administration's revised budget forecasts issued last month also
underscored how much the government's fiscal picture has deteriorated.
It is now projecting the deficit over the next decade will total $9
trillion, $2 trillion more than its estimates from a few months ago.

The
deterioration partly reflects the country's deep recession, the worst
since the 1930s. That downturn has cut into government receipts and
pushed up spending in such areas as unemployment benefits and food
stamps, along with the cost of fighting wars in Iraq and Afghanistan.

For the first 11 months of the budget year, spending totals $3.26
trillion, up 18.7 percent from a year ago, while tax receipts fell 16.1
percent to $1.89 trillion.

and this was quoted from the RIGHT WING NUTJOBS at AP news. http://www.onenewsnow.com/Headlines/Default.aspx?id=679440

If record high unemployment and record high deficits along with record high revenue shortfalls equals coming out of recession I sure has heckfire would hate

Spending cuts do not aid recessionary recovery.

Anybody who has studied for the CPA exam has studied the multiplier effect of government spending. A dollar goes out and is earned by someone. That individual has a marginal propensity to save. The amount they recirculate into the economy is the multiplier effect.

The formula is 1 / 1 - X where X is the percentage or propensity to spend. If you spend 80 cents of every dollar you earn the multiplier effect is 5. So for every dollar of government spending 5 dollars of economic activity is created.

In congressional testimony given in July 2008, Mark Zandi, chief economist for Moody's Economy.com, provided estimates of the one year multipli...

Spending cuts do not aid recessionary recovery.

Anybody who has studied for the CPA exam has studied the multiplier effect of government spending. A dollar goes out and is earned by someone. That individual has a marginal propensity to save. The amount they recirculate into the economy is the multiplier effect.

The formula is 1 / 1 - X where X is the percentage or propensity to spend. If you spend 80 cents of every dollar you earn the multiplier effect is 5. So for every dollar of government spending 5 dollars of economic activity is created.

In congressional testimony given in July 2008, Mark Zandi, chief economist for Moody's Economy.com, provided estimates of the one year multiplier effect for several fiscal policy options. The multipliers showed that increased government spending would have more of a multiplier effect than tax cuts. The most effective policy, a temporary increase in food stamps, had an estimated multiplier of 1.73. Making the Bush tax cuts permanent, had the second lowest multiplier, 0.23. A payroll tax holiday had the largest multiplier for tax cuts, 1.29. Refundable lump-sum tax rebates, the policy used in the Economic Stimulus Act of 2008, had the second largest multiplier for a tax cut, 1.26.

The multipliers showed that increased government spending would have more of a multiplier effect than tax cuts.

What was that multiplier effect?

A payroll tax holiday had the largest multiplier for tax cuts, 1.29.

This seems to contradict your above statement. If giving MORE PEOPLE MORE OF THEIR OWN MONEY BACK produces a 1.29 multiplier than why not give them their money back? It baffles me how people can think that TAKING MONEY FROM ME and then giving it to someone else somehow makes the economy better. It may make it better for the one you gets my money but it sure has hell does not make mine better.

But if EVERYONE gets to keep MORE of their OWN MONEY would...

The multipliers showed that increased government spending would have more of a multiplier effect than tax cuts.

What was that multiplier effect?

A payroll tax holiday had the largest multiplier for tax cuts, 1.29.

This seems to contradict your above statement. If giving MORE PEOPLE MORE OF THEIR OWN MONEY BACK produces a 1.29 multiplier than why not give them their money back? It baffles me how people can think that TAKING MONEY FROM ME and then giving it to someone else somehow makes the economy better. It may make it better for the one you gets my money but it sure has hell does not make mine better.

But if EVERYONE gets to keep MORE of their OWN MONEY wouldn't that make life better for all? Except the government that is.

It's multiplier effect was 1.73. Higher than anything else. That's because these people have an actual need and will spend the money, thus creating economic activity.

I got that. And what I said still hold true. A food stamp recepient did not earn the food stamp. They produced nothing to get it. They did no work to earn it. They contributed nothing to gain it. They were given it. Therefore because THEY did not earn it they do not see the value of an EARNED INCOME and they spend it. IT may or may not be based on need but is surely is based on DIMINISHED VALUE. That diminished value is the value they place on BORROWED MONEY or HAND outs to use street vernacular.

That money had ...

It's multiplier effect was 1.73. Higher than anything else. That's because these people have an actual need and will spend the money, thus creating economic activity.

I got that. And what I said still hold true. A food stamp recepient did not earn the food stamp. They produced nothing to get it. They did no work to earn it. They contributed nothing to gain it. They were given it. Therefore because THEY did not earn it they do not see the value of an EARNED INCOME and they spend it. IT may or may not be based on need but is surely is based on DIMINISHED VALUE. That diminished value is the value they place on BORROWED MONEY or HAND outs to use street vernacular.

That money had to be TAKEN from someone who actually PRODUCED it or earned it in order to PROVIDE it to the FOOD STAMP recipient. So therefore it is borrowed money BORROWED from ME the producer and loaned to "given without need for payback" to the food stamp user.

There is only one way a $1 can morph into $1.79 is by using government math. Anywhere else on the planet a $1 buys $1 worth of goods or services. What is it about government money that seems to have this MULTIPLIER effect and my money never seems to MULTIPLY. My dollars are only worth a dollar while government money seems to be worth more than a dollar.

So if it is true as you say that for every government dollar spent they actually create 2 then why does the federal deficit continue to grow right along with the government spending. One would think that the more money the government spent the MORE they would take back in. WELL factoid for ya. Obama has already spent more money than all other Presidents COMBINED and the federal receipts are hitting an all time low. WHAT has happened to your 2 for 1 deal these snake oil salesmen are selling? OH I forgot that HAVE NOT SPENT enough money yet. Okay I guess we need to wait for them to spend another Trillion dollars before we sees the economy turn around.

It's a simple process Eaglewings. Money that is spent does not stop at the person who receives the payment for a product or service. The person who received the dollar for a product or service turns around and restocks their shelves or produces another product to sell. That is economic activity. That chain of transactions, the economic activity, is the multiplier effect. You can go argue with Nobel Prize winning economists.

Not all government expenditure goes to food stamps. Some of it goes to buying army tanks and jet airplanes which is government spending that conservatives approve of wholeheartedly.

There was an interesting article that President Obama's stimulus package was a boon to ...

It's a simple process Eaglewings. Money that is spent does not stop at the person who receives the payment for a product or service. The person who received the dollar for a product or service turns around and restocks their shelves or produces another product to sell. That is economic activity. That chain of transactions, the economic activity, is the multiplier effect. You can go argue with Nobel Prize winning economists.

Not all government expenditure goes to food stamps. Some of it goes to buying army tanks and jet airplanes which is government spending that conservatives approve of wholeheartedly.

There was an interesting article that President Obama's stimulus package was a boon to firearm producers because Police departments are using their stimulus money to renew and upgrade the weapons of their policemen. This is also government spending just like the food stamp project. I have no doubt that conservatives are not going rabid over U.S. gun manufacturers prospering due to the stimulus package.

The other things is that tax cuts are slow. If your recession began in January and you are going to attack it by tax cuts you are waiting a whole 12 months until anything happens. Increased government spending is almost immediate. It takes place right now, attacks the problem right now!

But in all your commentary you have never disproved that tax cuts and government spending are expansionary monetary policy. That's because they are both expansionary monetary policy. I am still correct, and they both still produce debt, and they are both still used by Democrats and Republicans.

Actually there is some legitimacy to the things you are saying.

If you are in the lower tax brackets you should have your taxes cut, just like President Obama wants. To often tax cuts by Republicans go to the highest income brackets in our society. Those individuals in the highest tax brackets already can buy whatever they want and need and thus don't spend the extra money they get back in the tax refund.

However individuals in the lower tax brackets do have needs that they usually are waiting to save up money for to address the need. As soon as you get your tax refund you spend most of it.

This is why President Obama want's the lower income brackets to receive a tax break while returnin...

Actually there is some legitimacy to the things you are saying.

If you are in the lower tax brackets you should have your taxes cut, just like President Obama wants. To often tax cuts by Republicans go to the highest income brackets in our society. Those individuals in the highest tax brackets already can buy whatever they want and need and thus don't spend the extra money they get back in the tax refund.

However individuals in the lower tax brackets do have needs that they usually are waiting to save up money for to address the need. As soon as you get your tax refund you spend most of it.

This is why President Obama want's the lower income brackets to receive a tax break while returning the highest tax brackets to the level of income tax they paid during the Clinton administration.

This is why President Obama want's the lower income brackets to receive a tax break while returning the highest tax brackets to the level of income tax they paid during the Clinton administration.

See here is where we differ. I believe EVERYONE should get a tax break after all it is OUR MONEY and not THEIRS. Besides almost 50% of the population do not currently pay income tax and therefore cutting their taxes makes no sense.

On the other hand I Do not need a PRESIDENT or anyone else telling me WHAT I SHOULD DO WITH MY MONEY. I earned it I worked hard for it I therefore should be the one who decides what I do with it. I am deeply offended that those who GOVERN by our will are...

This is why President Obama want's the lower income brackets to receive a tax break while returning the highest tax brackets to the level of income tax they paid during the Clinton administration.

See here is where we differ. I believe EVERYONE should get a tax break after all it is OUR MONEY and not THEIRS. Besides almost 50% of the population do not currently pay income tax and therefore cutting their taxes makes no sense.

On the other hand I Do not need a PRESIDENT or anyone else telling me WHAT I SHOULD DO WITH MY MONEY. I earned it I worked hard for it I therefore should be the one who decides what I do with it. I am deeply offended that those who GOVERN by our will are trying to tell us WHAT WE SHOULD DO WITH OUR MONEY. And then they turn around and spend OUR MONEY on pork projects and political pandering to benefit themselves.

I think the INCOME TAX should be done away with because it is being used as a PENAL system and it has now become disingenuous and regressive. ALL SHOULD PAY TAXES or NONE SHOULD PAY. THIS US AGAINST THEM Is not what made America GREAT and it is not what is going to keep this country great.

And finally as far as what OBAMA says. HE is a liar and can not be trusted. The rate he is spending money there is only one option available to him he is going to have to RAISE everyones TAXES. EVERYONE except those who do not pay taxes now. And come up with even more things to tax like the air we breath.

Not all government expenditure goes to food stamps.

True and not all GOVERNMENT Expenditures are STIMULATING either. Now if money is given to those who actually PRODUCE a product or produce jobs or actually have proven track records of producing capital or jobs then I can see how this would grow an economy and thus stimulate it. However giving money to a bum on the street will not stimulate the economy because he is not going to PRODUCE a positive return. YES he will spend money but that only produces a short term effect and not a long term growth. No poor person has ever produced a job. Therefore in order to reward a non producer you have to punish a producer and that puni...

Not all government expenditure goes to food stamps.

True and not all GOVERNMENT Expenditures are STIMULATING either. Now if money is given to those who actually PRODUCE a product or produce jobs or actually have proven track records of producing capital or jobs then I can see how this would grow an economy and thus stimulate it. However giving money to a bum on the street will not stimulate the economy because he is not going to PRODUCE a positive return. YES he will spend money but that only produces a short term effect and not a long term growth. No poor person has ever produced a job. Therefore in order to reward a non producer you have to punish a producer and that punishing of the producer will cause the producer to not be so willing to continue to produce. This will have a LONG TERM DOWNWARD effect on the economy.

The other things is that tax cuts are slow. If your recession began in January and you are going to attack it by tax cuts you are waiting a whole 12 months until anything happens. Increased government spending is almost immediate. It takes place right now, attacks the problem right now!

Bull shit. If I receive a tax cut TODAY my pay check will be effected TODAY. My income will increase immediately thus I will have more money to spend or invest TODAY not tomorrow not next week but IMMEDIATELY.

Government spending on the other hand is what is slow take for example OBAMA's stimulus package which has to date only spent 10% of the funds that had to be RUSHED THROUGH CONGRESS OR F...

The other things is that tax cuts are slow. If your recession began in January and you are going to attack it by tax cuts you are waiting a whole 12 months until anything happens. Increased government spending is almost immediate. It takes place right now, attacks the problem right now!

Bull shit. If I receive a tax cut TODAY my pay check will be effected TODAY. My income will increase immediately thus I will have more money to spend or invest TODAY not tomorrow not next week but IMMEDIATELY.

Government spending on the other hand is what is slow take for example OBAMA's stimulus package which has to date only spent 10% of the funds that had to be RUSHED THROUGH CONGRESS OR FACE AN ECONOMIC CALAMITY like that of the 1930's. WELL the legislation was RUSHED THROUGH and we are facing and economic calamity much like the 1930's.

The rest of the stimulus money is scheduled to be spent around the time of REELECTION and some not before 2013.

NOW THAT SOUNDS like a LONG TIME TO WAIT for an IMMEDIATE need.

HOW ABOUT they just GIVE ME the money I will spend it immediately. And if food stamp recipients get 1.79 for each dollar HELL I can singlehandedly jump start the economy by spending a billion dollars all by myself.

And as far as award winning economists are concerned I said it once and I will say it again. NO wonder this country is in so much trouble because these economists seem to think that you get out of debt by going further into debt.

The truth is they do not really care about the national debt they are only concerned with the expanse or contraction of the economy. They are only concerned with the GDP. Everything else is predicated on the GDP.

But since OBAMA has taken office the GDP has been going down and the economy is shrinking which means all other factors are escalating faster and having more adverse effects then they wish to acknowledge.

So I say I would like to keep my money thank you very much. FIND some other fool to take money from