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Report: U.S. deficit to hit $2.29 trillion
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| Congress' deficit forecast worsens Analysts say deficit will hit $2.29 trillion in 10 years; earlier forecast was $2.01 trillion. September 7, 2004: 12:25 PM EDT WASHINGTON (Reuters) - The U.S. budget deficit will balloon to $2.29 trillion over the next decade, congressional analysts said Tuesday. This represents a worse outlook than previously forecast and one likely to stir election-year debate about President Bush's economic policies. The forecast from the nonpartisan Congressional Budget Office compares to its March outlook for a cumulative deficit of $2.01 trillion for the 2005-2014 period, if current economic policies stay the same. "The outlook in terms of the deficits in 2004 and 2005 has improved, but the projection of the cumulative deficit over the 2005-2014 period has worsened," the CBO said in a summer update of its budget outlook. The CBO confirmed a preliminary forecast made in August for a record deficit of $422 billion for the 2004 fiscal year. That number compares to the White House's latest deficit outlook of $445 billion for this year and was better than earlier estimates. The White House no longer provides a 10-year deficit forecast. CBO is expecting the deficit to decline to $348 billion in 2005, if current laws and policies do not change. "This report underscores that our policies are working to create a stronger economy, more jobs and a lower deficit," said House of Representatives Budget Committee Chairman Jim Nussle, an Iowa Republican. The economy, particularly the deficit, has become a key theme between the two presidential candidates. Bush blames the 2001 recession, the costs of the aftermath of the Sept. 11 attacks and the war on terror for the growing budget shortfall. Democrats say Bush's tax cuts are responsible for turning the surplus he inherited into a record deficit, which they say threatens the future of Social Security and the Medicare health-care program for the elderly. "Only George W. Bush could celebrate over a record budget deficit of $422 billion," Democratic presidential candidate John Kerry said in a statement Tuesday. Kerry said he has a plan to restore fiscal discipline, rein in "out of control" spending and cut the deficit in half in four years. CBO warned that even if the economy grows more rapidly than projected, "significant long-term strains" on the budget will get worse within the next decade as the baby-boomers begin to retire. The report projects economic growth of 4.5 percent in 2004 and a slightly slower 4.1 percent next year. CBO also forecasts that the federal government will reach its $7.384 trillion debt limit in October. The U.S. Treasury has asked Congress to raise the borrowing ceiling for the third time in three years, a sensitive vote Republicans would like to avoid ahead of the election. Top of page Copyright 2004 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. |
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| Record $422 billion deficit predicted WASHINGTON (AP) -- The Congressional Budget Office is projecting that this election-year's federal deficit will reach $422 billion, congressional aides said Tuesday, the highest ever, yet a smaller shortfall than analysts predicted earlier this year. The figure, provided by aides who spoke on condition of anonymity, is sure to provide political fodder for both parties during the remaining two months of the presidential and congressional campaigns. "This is by far the biggest deficit in American history," said Thomas Kahn, Democratic staff director of the House Budget Committee. "There is no credible way Republicans can portray the record deficits they have created as good news." "Deficits are going down, jobs are going up, the economy continues to improve," said Sean Spicer, Republican spokesman for the House Budget panel. "I don't see how you can't be happy with that news." The number was being released later Tuesday in the annual summertime forecast issued by the nonpartisan Congressional Budget Office. The projection by Congress' nonpartisan budget analysts would surpass last year's $375 billion shortfall, the current record. The CBO report also said next year's deficit would shrink to $348 billion, which would be the third largest ever in dollar terms. That would be $15 billion less than it projected last March, but $17 billion higher than the White House estimated in July. When adjusted to erase the effects of inflation, the projected $422 billion deficit projected for 2004 would exceed the value of every annual shortfall since World War II. Tuesday's CBO estimate should prove fairly accurate because the federal budget year, which runs through Sept. 30, has less than one month to go. But it does not include the $2 billion in aid for repairing hurricane damage in Florida that President Bush requested Monday. The government is expected to spend about $2.3 trillion this year, which means it will be borrowing about one of every five dollars it spends. The $422 billion projection for 2004 echoed a preliminary estimate the budget office made last month. It was an improvement from its $477 billion forecast in January, a revision the office attributed mostly to stronger than anticipated revenue collections. Just last month, the White House forecast a $445 billion deficit for this year, though administration officials acknowledged the figure could be too high because of overestimates for spending. After a fleeting four-year return to annual budget surpluses under President Clinton, deficits have returned with a vengeance under Bush. Republicans who spent the 1980s and 1990s railing against budget shortfalls have argued that fighting wars in Iraq and Afghanistan, battling terrorism and righting the economy are higher priorities. They also argue that today's deficits are no reason for panic because as a percentage of the overall economy, they are smaller than the largest shortfalls under President Reagan. Many economists consider that ratio the most significant measure of the harm deficits can cause. Democrats say the shortfalls are forcing policy-makers to restrain spending for schools, domestic security and other priorities, while driving up the government's borrowing costs. And they say deficits have worsened because of the price tag of the tax cuts that Bush and his GOP allies have pushed through Congress. Whatever the short-term deficits, most analysts agree the budget picture will worsen considerably within the coming decade. That is when the huge baby boom generation will begin relying increasingly on Social Security and Medicare, driving those programs' costs upward. Copyright 2004 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Find this article at: http://www.cnn.com/2004/ALLPOLITICS/09/07/budget.deficit.ap/index.html |
But we're still living the high life in the States... on money printed by and then borrowed from the Federal Reserve.
Basically, we are indebted to a conglomerate of international bankers (or as some might say, "economic conquistadors.")
I'm sure they don't steer our foreign policy in any way - in return for not bankrupting our overly-mortgaged country.
Why do you think that J.F.K. passed Executive Order 11110?
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| Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and he people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it. - Louis T. McFadden, Chairman of the House Banking Committee June 10th, 1932 |
The thing is if there is a deficit then who is it owed to? Who are the people that we are in debt to?
That was a rhetorical question, you need not answer that I have heard it all before. Anybody that does try to explain it to me might as well turn blue in the face explaining why candidate XY Z would be able to fix the economy.
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| Originally posted by Trancer-X But we're still living the high life in the States... on money printed by and then borrowed from the Federal Reserve. Basically, we are indebted to a conglomerate of international bankers (or as some might say, "economic conquistadors.") I'm sure they don't steer our foreign policy in any way - in return for not bankrupting our over-mortgaged country. Why do you think that J.F.K. passed Executive Order 11110? |
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| Originally posted by Executive Order 11110 ...issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury... |
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| Originally posted by ogvh5150 The cash cartel has existed as far back as anyone has put a pen to paper. |
Matthew 21:12 And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves,
13: And said unto them, It is written, My house shall be called the house of prayer; but ye have made it a den of thieves.
The moneychangers had a hold on the market when it came to sacrifices. A special coin was used only in the temple to pay the temple tax. Thing is no one could afford the tax except for the rich.
Heaven would have to wait for you since you had to take a loan out.
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| CBO is expecting the deficit to decline to $348 billion in 2005, if current laws and policies do not change. |
time to fire up the ol' inkjet printer 
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| Originally posted by ogvh5150 The Federal Reserve is not a federal agency nor does it have any reserves. Do you believe Federal Express is a government agency? |
where, oh where could we find such info?
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| Originally posted by Yoepus Hmm lets see: http://www.federalreserve.gov/ or http://www.fedex.com/ I wonder which one of those are a govenment agency, with baord members appointed by the President of the United States and approved by Congress? If only a domain name could point me in the right direction! If only there was some way to find out more about the Federal Reserve, and learn how it was created by the government of the United States, is accountable to the people of the United States. Oh world full of oh so little information (:rolleyes where, oh where could we find such info?http://www.federalreserve.gov/pubs/frseries/frseri.htm ... Occrider HELP! They've gone mad! |
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The Board of Governors of the Federal Reserve System�the national supervisory agency�is composed of seven members appointed for 14-year terms by the President. Its offices are in Washington, D.C. The Federal Open Market Committee, created later (1923) than the system�s other divisions, comprises the seven members of the Board of Governors and five representatives of the Federal Reserve banks; it directs the purchases and sales by the reserve banks of federal government securities and other obligations in the open market. The Federal Advisory Council consists of 12 members, one appointed annually by the board of directors of each reserve bank; it confers from time to time with the Board of Governors on general business conditions and makes recommendations with respect to Federal Reserve affairs. In 1976, the Consumer Advisory Council was created; consisting of both consumer and creditor representatives, it advises the Board of Governors on consumer-related matters. |
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| Lewis v. United States, 680 F.2d 1239 (1982) John L. Lewis, Plaintiff/Appellant, v. United States of America, Defendant/Appellee. No. 80-5905 United States Court of Appeals, Ninth Circuit. Submitted March 2, 1982. Decided April 19, 1982. As Amended June 24, 1982. |
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| "Federal agency" is defined as: the executive departments, the military departments, independent establishments of the United States, and corporations acting primarily as instrumentalities of the United States, but does not include any contractors with the United States. |
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| Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purpose of the FTCA, but are independent, privately owned and locally controlled corporations. Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is exercised by its board of directors. 12 U.S.C. Sect. 301. The directors enact by-laws regulating the manner of conducting general Bank business, 12 U.S.C. Sect. 341, and appoint officers to implement and supervise daily Bank activities. These activites include collecting and clearing checks, making advances to private and commercial entities, holding reserves for member banks, discounting the notes of member banks, and buying and selling securities on the open market. See 12 U.S.C. Sub-Sect. 341-361. Each Bank is statutorily empowered to conduct these activites without day to day direction from the federal government. Thus, for example, the interest rates on advances to member banks, individuals, partnerships, and corporations are set by each Reserve Bank and their decisions regarding the purchase and sale of securities are likewise independently made. |
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| Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as "wholly owned" government corporations nor as "mixed ownership" corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. |
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| SC PRIVATE LETTER RULING #90-1 TO:
Columbia Office Columbia, S.C. 29210 SUBJECT:
(Sales and Use) REFERENCE:
S.C. Code Ann. Section 12-35-810 (1976) S.C. Code Ann. Section 12-35-550(1) (1976) S.C. Code Ann. Section 12-35-550(42) (1976) AUTHORITY: S.C. Code Section 12-3-170 (1976) SCOPE:
issued to a taxpayer, upon request, and it applies only to the specific facts or circumstances related in the request. Private Letter Rulings have no precedential value and are not intended for general distribution. Question: Are sales to, or purchases by, the Columbia Office of the Federal Reserve Bank of Richmond exempt from sales and use tax, pursuant to Code Sections 12-35-550(1) and 12-35-550(42)? Facts: The Federal Reserve Bank and its district banks were created under 12 U.S.C.A. Section 226. The district banks in turn established satellite offices, one of which is located in Columbia. Section 531 of Title 12 of the United States Code reads: Federal reserve banks, including the capital stock and surplus therein and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate. http://www.sctax.org/Tax+Policy/Pri...ng/plr90-1.html |
I've posted this before
Deficits Eroding Our World Standing
by Congressman John Tanner, Guest Columnist
The (Memphis) Commercial Appeal
October 18, 2003
Some Republicans have long tempted to characterize Democrats as fiscally irresponsible big spenders � at times with merit. However, the Republicans� budget plan now endangers our economy and our security.
Over the past 2 � years, the Bush administration and the Republican Congress have pursued fiscal policies that have resulted in a colossal increase in the federal debt. Increased interest payments mean higher taxes on Americans next year and every year thereafter.
This reckless increase in federal debt has exposed another troubling aspect of the administration�s budget plan, passed by a Republican House and Senate: Asian countries are purchasing our debt in record amounts, and China has registered the most rapid increase. These developments not only adversely affect our economy, they also leave our country susceptible to a potential national security threat.
According to the Treasury Department, major foreign holdings of U.S. Treasury securities total $1.35 trillion. Over the first seven months of 2003, mainland China and Hong Kong accumulated $177 billion of U.S. debt.
Currently, China is the world�s second-largest buyer of our debt, exceeded only by Japan. Furthermore, China�s purchases of U.S. government securities rose 20 percent over the first half of this year and have more than doubled since 2001.
It is a dangerous situation when the administration funds the federal government in part by selling our debt to the Chinese. The Congressional Budget Office (CBO) has estimated that the federal government accumulated a $374 billion deficit in fiscal 2003, not including the President�s $87 billion request for Iraq.
Foreign investment in the United States is financing the U.S. budget deficit and the war in Iraq. We need to borrow approximately $1.5 billion a day from foreign investors to meet these deficits. Increasingly, foreign investors, not U.S. residents, will be beneficiaries of the interest paid by us, our children, and our grandchildren.
The high level of foreign holdings of U.S. securities could have a debilitating impact on our economy and foreign policy. How would our economy respond if China threatened to sell large volumes of U.S. Treasury securities? This action could easily fuel higher inflation and put pressure on the Federal Reserve to increase interest rates, putting our economy at risk of a large-scale recession.
The United States does not always see eye to eye with Beijing on foreign affairs. The mere threat by China to sell U.S. debt could reduce our negotiating position on long-standing issues of disagreement such as national security and trade. The United States should not be put on the defensive when conflicts arise with China simply because the Chinese government can hold the U.S. dollar hostage.
Chinese officials are purchasing U.S. Treasury securities in an attempt to keep the value of their currency, the yuan, artificially low. The yuan has been pegged to the U.S. dollar for almost 10 years, despite record growth in the Chinese economy. Such growth should have increased the value of the yuan if it were a free-floating currency.
Economists estimate China is undervaluing its currency by as much as 40 percent. By purchasing U.S. debt, China can manufacture products that cost 40 percent less to make than they do in the United States. This currency manipulation has contributed to the loss of millions of manufacturing jobs in the United States.
The Republican borrowing program, unless it is quickly reversed, will devastate our economy and diminish our role in the world. We cannot be the world�s leading economic and military power if our government�s financing depends on money from foreign countries, many of which oppose our policies.
A former official of China�s central bank, now a private economist, recently told The Washington Post: �The U.S. dollar is now at the mercy of Asian governments.� The only way to get this problem under control is to stop deficit spending.
Interest payments on the national debt will soon surpass all domestic discretionary spending, including defense, health care, education and infrastructure. Unlike those expenditures, interest is a tax on the American people that cannot be repealed.
The �Blue Dog� Democrats proposed a plan that would have reversed this catastrophic borrowing but it was defeated on a largely party-line vote. We will continue this fight, but to succeed we will need the help of citizens outside Congress.
http://www.house.gov/tanner/press108-oped101803.htm
I believe you are confusig the "Federal Reserve Bank" with
"Federal Reserve Banks"
i hate these long articles.
can someone put this in simple words?
does it matter that the US have a deficit of 2.29 trillion? it seems it's not.
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| Originally posted by Massive84 i hate these long articles. can someone put this in simple words? does it matter that the US have a deficit of 2.29 trillion? it seems it's not. |
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| Originally posted by Yoepus Ya, I'll sum it up for you (mind you I haven't read the long articles - what? do I look crazy to you??!! I have better things to do with my time, or at least I like to think so): No it doesn't matter. The government can always print more money anyway, so who cares?! The Federal Reserve is an evil-capitalistic cartel bent on world-domination and must be destroyed. There you have it, this thread in 50 words or less. |
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| Originally posted by Massive84 but then comes the question. why doesn't africa do this? or holland? or any other country? |
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| Originally posted by occrider Every country does do this. What do you call the Eurobank and the ECB? They perform the same function of affecting the m1 money supply and conducting monetary policy. These institutions will never be abolished because they perform critical functions that ensure stability in economies. Abolish the fed and its monetary controls and you expose the public directly to market interest rate shocks. Yup, the fed would be abolished right until the point when you looked at the adjustable rate mortgage on your house or credit card bills. |
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| Originally posted by Yoepus The Federal Reserve is an evil-capitalistic cartel bent on world-domination and must be destroyed. |
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| Originally posted by malek you forgot to add zionist The Federal Reserve is an evil-capitalistic zionist cartel bent on world-domination and must be destroyed. |
Great response but fix your links:
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| Originally posted by federalreserve.gov FEDERAL RESERVE ACT SECTION 13�Powers of Federal Reserve Banks 1. Receipt of Deposits and Collections Any Federal reserve bank may receive from any of its member banks, or other depository institutions, and from the United States, |
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| Originally posted by ogvh5150 If they ARE a government agency then WHY do they speak as if they are a THIRD party? |
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| The Board of Governors of the Federal Reserve System was estab-lished as a federal government agency. It is made up of seven members appointed by the President of the United States and con-firmed by the U.S. Senate. The full term of a Board member is four-teen years; the appointments are staggered so that one term ex-pires on January 31 of each even-numbered year. After serving a full term, a Board member may not be reappointed. If a member leaves the Board before his or her term expires, however, the per-son appointed and confirmed to serve the remainder of the term may later be reappointed to a full term. |
Whaa? Of course the federal reserve is a federal agency. What you would have Bank of America or Citigroup conduct monetary policy? 
The reason why any of the fed banks accept receipts and what not from the United States is because the Federal Reserve is a distinct and seperate entity from the Treasury Department. The Treasury Department ultimately is under the Executive Branch. While the treasury department can issue debt to private markets to raise money for federal spending, the federal reserve can engage in open market operations by buying or selling US treasuries in an effort to influence the economy in either direction. The whole purpose of creating this division between the Fed and the Treasury Department is so the President can't unduly influence the Fed to say, keep interest rates low during a President's entire term while being negligent of inflation. Anyway here's a basic history:
http://www.auburn.edu/~johnspm/glos...rve_system.html
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| Originally posted by Yoepus If its not a federal agency then how come you can submit a FOIA (Freedom Of Information Act) request to the Federal Reserve? Hmm.. that must mean they're a federal agency, no? http://www.federalreserve.gov/gener...oia/default.cfm cough, cough: http://www.federalreserve.gov/pf/pdf/frspf1.pdf |
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| Originally posted by The Freedom of Information Act 5 U.S.C. � 552 (f) For purposes of this section, the term-- (1) "agency" as defined in section 551(1) of this title includes any executive department, military department, Government corporation, Government controlled corporation, or other establishment in the executive branch of the Government (including the Executive Office of the President), or any independent regulatory agency; and... |
reposted for your viewing pleasure ;)
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| Lewis v. United States, 680 F.2d 1239 (1982) John L. Lewis, Plaintiff/Appellant, v. United States of America, Defendant/Appellee. No. 80-5905 United States Court of Appeals, Ninth Circuit. Submitted March 2, 1982. Decided April 19, 1982. As Amended June 24, 1982. Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purpose of the FTCA, but are independent, privately owned and locally controlled corporations. Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is exercised by its board of directors. 12 U.S.C. Sect. 301. The directors enact by-laws regulating the manner of conducting general Bank business, 12 U.S.C. Sect. 341, and appoint officers to implement and supervise daily Bank activities. These activites include collecting and clearing checks, making advances to private and commercial entities, holding reserves for member banks, discounting the notes of member banks, and buying and selling securities on the open market. See 12 U.S.C. Sub-Sect. 341-361. Each Bank is statutorily empowered to conduct these activites without day to day direction from the federal government. Thus, for example, the interest rates on advances to member banks, individuals, partnerships, and corporations are set by each Reserve Bank and their decisions regarding the purchase and sale of securities are likewise independently made |
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