How to make several billion dollars vanish
Bush Budget is "a multi-trillion dollar decade long scam"
by Noriel Roubini
Associate Professor Economics, NYU
02/09/05 -- The dishonesty of the administration about budget deficits has reached levels unheard of. These folks have absolutely no shame. Bush presented a budget that claims that he will achieve his goal of reducing the deficit by half by 2008 (from a false
2004 baseline of $521 billion rather than the actual 2004 deficit of $412b) and will achieve a deficit of "only" $233b by 2009. Even better news, the administration claims: the "halving" of the deficit will be reached by 2008, a year earlier than original 2009 target for it.
Who are these accounting scam artists trying to deceive? Do they think everyone in America and around the world is a mathematically challenged total idiot or an accounting moron?
The reality is, that based on realistic scenarios outlined last week by the non-partisan Congressional Budget Office, the deficit by 2009 will be close to $600b (or 4.0% of GDP) rather than falling to $233b; and the deficit will reach over $1,100b (or 5.5% of GDP) by 2015.
How do they create the false $233b deficit by 2009?