Will government use creative accounting to purport a reduction of deficits by spending more?
*Wall Street Journal, by Naftali Bendavid & Greg Hitt, April 30, 2009:
"Congress passed a $3.5 trillion budget outline for 2010, handing
President Barack Obama a victory on the 100th day of his presidency and
helping set the stage for a significant shift in national priorities.
The new budget, which aims to reverse the Bush administration approach
of limited government, would set up special funds to pay for sweeping
changes in health care, energy and education. Democrats said the plan
would cut the federal deficit-which is projected to total $1.2 trillion
in fiscal year 2010 beginning Oct. 1 -- by more than half in five
years. Republicans disputed the assertion.
House Majority Leader Steny Hoyer, left, talks with House Speaker Nancy
Pelosi as they leave a news conference Wednesday at the Capitol.
In voting Wednesday, the House approved the budget outline by a 233-193
vote, with no Republicans voting for it and 17 Democrats voting against
it. The Senate vote was 53-43 with four Democratic defections,
including Pennsylvania Sen. Arlen Specter, who announced Tuesday he was
switching from the Republican to the Democratic Party.
The vote marked a key step in the launching of a new Democratic era in
which government would take a more activist role.
The budget outline includes $530 billion in basic spending for domestic
programs, from support for farmers to the space program. Mr. Obama will
release a more-detailed budget plan next week, building on Congress's
action on Wednesday.
Debate in both chambers was heated. House Minority Leader John Boehner
(R., Ohio) said the budget was 'nothing short of the most audacious
move to a big socialist government in Washington, D.C., than anything I
could have ever dreamed about before I ran for Congress, or for that
matter, anytime in the last 18 years that I've been here.'
Decrying the debt that he said Democrats were piling on future
generations, Mr. Boehner brandished a plastic card that House members
use to cast their votes. 'Right here is the most expensive credit card
in American history.' "
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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