[pana_burda]

Venezuela:

The president of the Finance Committee, Venezuelan National Assembly, Ricardo Sanguino, said to state-run news agency Agencia Bolivariana de Noticias (ABN) that the Venezuelan oil price is expected to average USD 60, while 30 percent of the budgeted funds would be earmarked for social expenses.

First little difference from that other thread. This one says only 30% for "social expenses"

$60 oil average for next year ..... and its priced already under that estimate. (Ven=OPEC basket-10bucks)

3.5 Million barrels/day ..... we can BARELY make around 2 millions yet a little over 1.2 million generates our income.

Inflation 15 % and, ...... jezzzz, this year alone, food has reached almost 100% mark. Economic "growth" of only 6% ........ with no devaluation and not new taxes. I wonder if it would be "legal" to freely talk about the REAL exchange rate ruling over our economy, though.

And lets not forget the usual bolibarbarian contradictions:

Although the estimated expenses represent a 23 percent increase over 2008 budget (USD 63.95 billion), figures suggest that financial authorities are estimating lower public spending in 2009

.
...... anyways, this one article, is in English , for those interested.

[bratticus]

Just a quick news round-up about this issue.

Workers pay frozen in PA

... Pennsylvania is withholding pay for 69,000 state employees for time worked after July 1st.

California's budget agreement is an ugly mess

... Even though the state faces at least a $26.3 billion deficit, the budget deal calls for just $15.5 billion in program cuts. The remaining $10.8 billion shortfall would be erased by borrowing from local governments by $4.4 billion, delaying state employees' checks from the last month of fiscal 2009-2010 to the first month of the next year, speeding up state tax withholding and other such gimmickry. ... In other words, when California faces its next budget crisis, which will be less than a year from now, it will have to deal with more than $14 billion in commitments to local governments and schools and will not be able to repeat one-time accounting legerdemain.

Cash-poor Connecticut may sell land, buildings

... "We must consider parting with those parcels or buildings that we would not have considered in the 'ordinary' course of business or that we would like to hold onto because of stunning natural settings, such as the Seaside property in Waterford," she said.

[Illinois'] Financial woes go much deeper than this budget

... Comptroller Dan Hynes recently reported that the state ended the fiscal year with an "unprecedented" backlog of bills - $2.785 billion. That compares to a backlog of $208 million a year ago.

[New Jersey] short $8 billion, report says

... The shortfall was detailed by the Office of Legislative Services, the Legislature's nonpartisan research arm. It was requested by Senate Minority Leader Tom Kean Jr. (R-Union), who called the potential deficit "the largest in history."

[Wisconsin] Post-budget sticker shock

... The next budget already has a huge gaping hole. The Legislative Fiscal Bureau projects the as yet to be addressed 2011-2013 state budget has a structural deficit of over $2 billion. In other words, projected revenues will not be anywhere near enough to cover committed costs in the next state budget.

[Maryland] faces budget gap of $700 million

... Warren G. Deschenaux, the General Assembly's chief fiscal analyst, said in a letter to legislative leaders that funds carried over from last fiscal year that were supposed to help balance this year's budget are essentially wiped out. That plus another $400 million decline due to deteriorating tax receipts could total about $700 million, or 5 percent of the budget.

Anchorage has [17 + ] 9 [= 26] million dollar shortfall, Sullivan says more cuts

... "I knew that it might have been a little bit more than 17 million but I am surprised it's 9 million, it's unfortunate," said Elvi Gray-Jackson, an assembly member.

Gwinnett County [Georgia's] budget shortfall affecting many areas

... This county government is having to make many tough choices because of its $20 million dollar shortfall.

Wyandotte County [Kansas] faces $15 million shortfall in 2009

... During the public hearing, five of the seven residents who spoke urged the Board of Commissioners to keep as many firefighters and police on the streets as possible.

Despite cuts, Bexar [County Texas] running millions in red

... At its current spending rate, the county likely will end this fiscal year about $4 million in the hole — even after Bexar County Commissioners Court approved budget cuts totaling $20 million less than four months ago. ... The Sheriff's Office is facing a $4.5 million shortfall, with $2.3 million of that attributed to the more than 300 people housed in surrounding county jails because of overcrowding at the Bexar County Jail.

[New Hampshire] District scrambles after uncovering $3.3m shortfall

... To put that figure into context, the overexpenditure represents 3.7 percent of the district’s $88.5 million budget for the 2009 fiscal year, which ended June 30, and covered the 2008-09 school year.

[Florida] Mosquitoes may get a break thanks to budget shortfall

... "This is the first year in my 14 where it doesn't look like our approved budget is going to be enough to make it through the year," Roberts said.

[IgnoranceIsBliss]

It's going to get a lot worse than this. We're getting a taste of what it's like to make cuts.

Here in Georgia, the budget is a mess, so the governor just told all state departments to cut another 5%. Education and Medicaid will only cut 3%. Mental Health cannot be cut because GA's programs are under a mandate from the feds right now.

Also, all state workers now have to take 5 furlough days by Dec. 31. Teachers have to take 3.

So now my husband (our sole income) will take a 2.8% pay cut (local district) and 3 furlough days.

We are told that the stimulus money saved 75 teaching jobs here (but they still cut 100!) so I guess we will kiss those goodbye in the next 2 years if that money runs out. Georgia state revenues continue to drop. We are in for a really long and rough ride.

[Don35]

Coming to a state near you! And next year will likely be worst.

[vision-master]

It's going to get a lot worse than this. We're getting a taste of what it's like to make cuts.

Here in Georgia, the budget is a mess, so the governor just told all state departments to cut another 5%. Education and Medicaid will only cut 3%. Mental Health cannot be cut because GA's programs are under a mandate from the feds right now.

Also, all state workers now have to take 5 furlough days by Dec. 31. Teachers have to take 3.

So now my husband (our sole income) will take a 2.8% pay cut (local district) and 3 furlough days.

We are told that the stimulus money saved 75 teaching jobs here (but they still cut 100!) so I guess we will kiss those goodbye in the next 2 years if that money runs out. Georgia state revenues continue to drop. We are in for a really long and rough ride.

More free time!

[Prince]

This coming from the White House... budget deficit projects will grow from $7 trillion (predicted earlier this year) to now over $9 trillion over the next 10 years. And of course, we know that the government never meets or beats expectations, so I expect this to go well over $10 trillion.

In blatant terms that means we'll have, on average, a trillion-dollar per-year deficit every year for the next 10 years. Even Bush, as much of an f-up as he was, never even came close to that.

I wonder what this will do to the Fed's funny money debt sales. W.H. hikes deficit estimate by $2 trillion

[smallpoxgirl]

Let's no forget they're about to take responsibility for another $2 trillion/year in healthcare expenses.

[3aidlillahi]

Let's no forget they're about to take responsibility for another $2 trillion/year in healthcare expenses.

$2 trillion/year? The US government already pays about $1 trillion and total health costs are around $2.5 trillion or so. So I don't see how it would be possible for us to take on another $2 trillion/year even if we were to nationalize healthcare, which stands an extremely low chance of happening.

[smallpoxgirl]

$2 trillion/year? The US government already pays about $1 trillion and total health costs are around $2.5 trillion or so. So I don't see how it would be possible for us to take on another $2 trillion/year even if we were to nationalize healthcare, which stands an extremely low chance of happening.

Sorry. You are correct. I didn't deduct out the $1 trillion we're already spending.

[Buggy]

Smallpox,

Nice to see you posting. Here's the thing about the trillions of dollars. And this is kind of my new mantra. It could be nine hundred ninety nine trillion dollars. It no longer matters. We have now embarked on the new frontier of infinite debt creation. With our future obligations, we are on the hook for 50 trillion dollars! We have no intentions of ever paying that money back, nor do we have the ability to. Hello infinite debt. This can only end one of two ways.

1. We collapse like the Soviet Union
2. We go to war (the really big, millions dying kind of war)

[smallpoxgirl]

Nice to see you posting. Here's the thing about the trillions of dollars. And this is kind of my new mantra. It could be nine hundred ninety nine trillion dollars. It no longer matters.

I basically agree. It just pisses me off that people I thought were fairly politically astute are all queing up to sit on Obama-clause lap and tell him what they want for Christmas. "I'd like a free CAT scan, and $4500 for a new car, and maybe if you could knock a little off my mortgage payment, that'd be great."

[BigTex]

With deficits that large we may have to do another tax cut, since tax cuts result in increases in tax revenue.

If it gets really bad, we may have to make it up in volume.

[patience]

Anybody want to guess How far we get into that 10 years before it all goes POOF? No way is it going to last 10 years doing this.

[vision-master]

since tax cuts result in increases in tax revenue.

Help me with this?

Trickle down economics?

[Buggy]

Nice to see you posting. Here's the thing about the trillions of dollars. And this is kind of my new mantra. It could be nine hundred ninety nine trillion dollars. It no longer matters.

I basically agree. It just pisses me off that people I thought were fairly politically astute are all queing up to sit on Obama-clause lap and tell him what they want for Christmas. "I'd like a free CAT scan, and $4500 for a new car, and maybe if you could knock a little off my mortgage payment, that'd be great."

You should read Meltdown by Thomas E. Woods off the Best Sellers list. Here is a great quote:

Problems caused by excessive spending and indebtedness cannot be cured by more spending and indebtedness, any more than the cure for excessive lending is more excessive lending.

Here is a video clip of a lecture he gave.

http://www.youtube.com/watch?v=BkXCXQwq ... r_embedded

[gandolf]

The real question is who is going to buy the 9 trillion debt.

Seems to me that even China may not want that much US$

They are after all buying anything in the world not tied down... Refer Gas Australia , Farm land Africa etc

They seem to be moving into real things as opposed to US debt

[BigTex]

since tax cuts result in increases in tax revenue.

Help me with this?

Trickle down economics?

More capitalist mythology.

The court jester that brought us that one was Art Laffer (great last name for a jester, eh?)

Last I heard, he's calling for a depression.

[mattduke]

The problem with citizens is, if you increase their taxes, they leave.

[BigTex]

The problem with citizens is, if you increase their taxes, they leave.

That's why the U.S. taxes worldwide income of all U.S. citizens.

[Tyler_JC]

It's called the Laffer CURVE, not the Laffer straight line. Unfortunately, many Republicans have completely ignored the whole "curve" concept and think that every tax cut will pay for itself. This is simply not true.

We are currently on the left of the curve. You could easily raise the top marginal tax rate from 35% to 40% without decreasing economic growth prospects in any meaningful way. The increase from 40% to 80% might run into some problems...

The Laffer curve also differs for every income bracket. Tax rates affect the behavior of different socio-economic groups differently, obviously. As for the current deficit projections, they are actually WORSE than they seem. They aren't predicting a balanced budget for year 11, are they?

Moreover, a year-to-year on budget deficit doesn't tell you how much the national debt is increasing.

In the 2007 fiscal year (September to September), the budget deficit was reported at around $160 billion. Unfortunately, that number included funds that went into the Social Security and Medicare trust funds. The value of those "trust fund" dollars? $180 billion.

Considering that those trust fund dollars were spent, we should probably add them back to the deficit. If I pay my electric bill with my credit card, I can't exactly call myself even, right? I still owe MasterCard a couple bucks, no?

It gets worse... The 2007 fiscal year increase in national debt wasn't $160 billion (the official reported deficit). It wasn't $340 billion (the real deficit if you take out that "trust fund" money).

Nope, the year over year increase in national debt was a whopping $500 billion.

The next year (FY 2008) we had a reported deficit of around $460 billion, a "record". But the total increase in the national debt was One Trillion Dollars, more than twice the reported deficit figure.

What does it all mean?

That $9 trillion deficit projected over the next decade will mean an increase in the national debt of perhaps as much as 15 or even 20 trillion. That is, assuming we can continue the optimistic assumption of infinite demand for US paper.

God help us.

Budget Deficit Data
Debt Data