CBO Budget Projections and the Horrors of Inflation

The pills that I thought were tranquilizers turned out to be vitamins, and although I am on the verge of some kind of mental breakdown because of the mix-up, I feel great!

Turning to the old tried and true, I soon learned that I had started too late, and I was not nearly drunk enough to have properly anesthetized my nerves when I chanced to read Agora Financial’s 5- Minute Forecast report that “The CBO’s latest numbers reveal that President Obama’s proposed fiscal 2011 budget would add $9.7 trillion to the national debt over the next 10 years.”

Ron Paul: Not Long Before the Gov’t is “Borrowing us Further Into Oblivion”

Dr. Ron Paul (R-TX) isn’t one to let his opinion go unheard… especially as Congress continues approving massive amounts of debt-financed spending.

From his recent Texas Straight Talk:

“Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend. 

CBO Debt Projections: Make Room for “Crowding Out”

The latest deficit projection from the Congressional Budget Office was conveniently revealed just prior to the close of business on Friday.

“Why so?” You ask suspiciously.

“Because,” we respond in a hushed tone.

The CBO’s latest numbers reveal that President Obama’s proposed fiscal 2011 budget would add $9.7 trillion to the national debt over the next 10 years. The White House projection is only slightly less staggering – $8.5 trillion.

Losing Control of the US Debt Machine

“The US is insolvent,” says a report from a hedge fund. As of the third quarter of last year, the federal government had assets of $2.67 trillion and total liabilities of $14.12 trillion.

That leaves a net negative position of more than $11 trillion. By the way, this is projected to get a lot worse, fast. The feds are expected to increase their debts by about $3 trillion more over the next 2 years. Federal spending is out of control…the feds have lost control of their own budget, let alone the economy.

Global Budget Deficits: A Timeless Love Story

The Greek story is a universal tale… It will soon be played by the UK…and then it will be the US.

Let us summarize: Innocent fellows are seduced by debt. They fall in love with deficits. Debt proves to be an evil temptress. Our heroes are ruined.

Isn’t the story more or less the same in Britain and America too?

Borrow and Spend Economics to Pay for Borrowing and Spending

Okay, I will admit that we had a little accidental gunfire around here recently, but nobody was hurt, and all that really happened is that I wasted a lot of very expensive ammunition and scared the hell out of a lot of people, including myself, a commotion which instantly activated my Amazing Mogambo Reflexes (AMR), making me drop the delicious Hostess Cupcake that I was noisily eating and take cover on the floor, falling, as I did, on top of the aforesaid cupcake, smashing it all over myself, and all over the floor, which made it taste terrible after that.

You Know it’s Bad When the Current System Looks Good

Government spending is out of control, and President Obama seems to at least recognize it…even if his administration is doing little to remedy it.

Instead, his efforts to rein in spending seem concentrated on health care reform, despite the fact that it’s such a convoluted and expensive proposition. Health care reform can’t help but invite the twin evils of confusion and corruption to the bargaining table.

Government Spending Induces Counterfeit “Expansion”

There’s good news and bad news…and a lot of news in between.

Consumers spent a little more than was expected of them. And manufacturing did a little better than expected too.

On the other hand, the federal government’s tax receipts plunged in the month of February…and bank lending is still contracting. Last week it shrank $33 billion – the 7th week in a row it has contracted.

Don’t Bet on a Recovery

It is astounding how many economists, government officials, and Wall Street strategists construe the current economic conditions as evidence of a bona fide recovery. It is a testament to the power of the rose-colored glasses handed out by our nation’s leading universities that such a feeling could be widely held despite the clear and present danger that compounds daily. The myopia leads us to enact policies that actually exacerbate our problems. The “remedies” are postponing, perhaps indefinitely, a true recovery.

On Display in the UK: The Failure of Keynesian Economics

The very birthplace of John Maynard Keynes, the United Kingdom, has become a petri dish in which to test his every economic prescription in a time of financial crisis. With a large and growing budget deficit, a declining pound, and accelerating inflation, the UK has been scrambling for a cure. And, for the most part, as in the US and elsewhere, the nation’s leadership has been looking to Keynes’ theories for guidance.

Government Stimulates Private Economy With Thin Air

Rep. Ron Paul is a Representative from Texas who I mistakenly called a Senator in a previous Mogambo Guru newsletter, which I understand is kind of an insult, and for which I apologize to Rep. Paul. The point being not that I am old and get confused, or that my editor is not catching those kinds of errors just because he doesn’t read it anymore because he is apparently sick and tired of reading my Stupid Mogambo Crap (SMC).

Government Growth Does Not Equal Economic Growth

A couple of years ago, we used to get such a kick out of making fun of the financial industry. Its pretensions were absurd and shocking. Its delusions were breathtaking. Its leaders were lunkheads and grifters.

But the financial industry blew itself up in 2007-2009. Now, what do we have?