Squashing Concerns about the Deficit
By Ron DeLegge, Editor
January 27, 2011
SAN DIEGO (ETFguide.com) – Over the past several months the public has been showered with feel good stories about how the economy is improving and that the worst is over. And then the Wall Street Journal has to blow it. Its top headline “Deficit Outlook Darkens” appeared on the front page of its January 27, 2011 edition.
Without getting into too many gory details, the federal deficit will reach a record $1.5 trillion in 2011. That’s around 9.8% of national GDP for those of us that keep track. Surprisingly, there were no references to the word “Wow” in the Congressional Budget Office’s latest report – not even once.
Meanwhile, credit rating agencies like Fitch Ratings, Standard & Poor’s and Moody’s continue to provide regular updates of the dire situation, none of which includes an immediate downgrade to the U.S. government’s credit score. That will probably come later – much later.
According to the Congressional Budget Office (CBO) its purpose is the following:
“Objective, nonpartisan, and timely analyses to aid in economic and budgetary decisions on the wide array of programs covered by the federal budget and to provide the information and estimates required for the Congressional budget process.”
It’s just a thought, but might it be time to rename the Congressional Budget Office? It seems like all they’ve been doing is reporting the news. Does the word “budget” really describe their daily activities? Perhaps something more apropos like “Congressional News Office” might be more fitting.
On another note, you’ll be pleased to know the CBO projects a dip in the unemployment rate this year from 9.4% to 9.2%. And while reporting the jobless figures is the responsibility of the U.S. Bureau of Labor Statistics, the CBO figured it would add its two-cents for good measure.
Finally, for critics that say nothing is made or manufactured in the U.S. any more, not only is that a malicious lie but it’s also untrue. America still produces debt – lots of it.
Feel free to contact the Congressional Budget Office with any ideas about how to reduce the Federal Deficit. At this point, no ideas are too crazy, except the ones about Congressional members forfeiting their generous government retirement plans for something less certain like a 401(k).
Anyway, the CBO’s contact information is listed below. Reach out and touch someone.