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Federal Deficit Official Projection: $1.3 Trillion in 2013

Written by Gary North on February 14, 2012

The Obama Administration has submitted its budget for Fiscal 2013. The total spending will be over $3.8 trillion. The deficit will be over $1.3 trillion.

We see that there will be no cut in overall spending or the deficit. The promise of a balanced budget is once again exposed as a con job. The public does not want budget cuts. The public wants more goodies from Uncle Sam. The Obama Administration will give the public what it wants.

This is clearly an election-year budget. The Obama Administration thinks that this budget will fly politically. If the Republican House starts cutting anything, Obama will go to the voters and ask for them to vote for Democrats.

We have been told by Congress that there will be automatic cuts, beginning in January 2013, if the government cannot make cuts in order to balance the budget. There is no indication in this budget proposal for any reduction in the deficit. Therefore, as far as Obama is concerned, it’s “bring ’em on.”

Any hope that Tea Party voters might have had concerning the 2013 deficit are now n the hands of the House of Representatives. We will see what House Republicans will do to cut the spending. My guess: they will huff and puff, but they will not blow down Obama’s projected budget. They will have all year to do so.

This is the watershed year. If the House does not submit a proposed budget for Obama to veto, leaving the government officially bankrupt, beginning on October 1, 2012, then we will know that there will be no fiscal deliverance.

My prediction: there will be no deliverance.

If you want a detailed critique of the budget’s smoke and mirrors, Read the Wall Street Journal‘s analysis. (Problem: the article overlays two charts on top of the text. Result: you cannot real all of the analysis. This is a classic case of failing to proofread the article in all four major browsers. In both IE 9 and Firefox, the overlay occurs.)

Continue Reading on www.washingtonpost.com

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2 thoughts on “Federal Deficit Official Projection: $1.3 Trillion in 2013

  1. Obama will not have to veto the House budget because Reid in the Senate won't even schedule a vote on it, let alone propose a budget from the Senate's point of view.

  2. SILUS DOOGOOD says:

    If he does it – it will all come tubling down.