Obama's Budget - Breathtaking scope - How much of it will pass?

[belgarion]

Obama's budget: huge ambitions, huge obstacles (http://biz.yahoo.com/ap/090228/obama_budget.html) ... < summary

GAO Budget of the United States Government: Main Page (http://www.gpoaccess.gov/usbudget/)

A taster of the fun and games that lie ahead in the murky world of US politics. The budget is truely breathtaking in its scope and would result in a serious change to how america behaves. If Obama can get the majority of it through I'd guess he'll be remembered like the great presidents are. The tax adjustments that favour the US 'middle class', read 95 percent of americans, alone will transform the US economy.

Truely a revolution! ... But even democrats will baulk. With many democrats congressmen and senators amoung the top 5 percent this will be a titanic scrap.

Edited. Just finished reading the 146 page PDF of the 2010 budget. The Yahoo link above just doesn't do it justice. This is going to be an absolute war between conservatives who want to maintain the status quo for their benefit and progressives who want to change things for the benefit of all americans. A fascinatingly good read that will send the conservatives into various (hopefully fatal) states of apoplexy! There's something for everyone here. Wonderful stuff!

[trendy]

Budget = spend and tax,....wash and repeat.....

I'm loving the USD.NZD at the moment and moving $$ back. May end up back there when the **** really hits the fan here :)

I use to joke about living here was like the last days of the roman empire. I just didn't think it would happen so soon :) ...over extended military, corruption, excessive government expenditures.....

[belgarion]

I use to joke about living here was like the last days of the roman empire. I just didn't think it would happen so soon :) ...over extended military, corruption, excessive government expenditures.....

All of these Obama is addressing. And not before time.

With the huge over capacity in the various global businesses (cars being the best example - capacity for 90 mill units but sales of only 60 mill) Obama's plan of robbing from the rich and giving to the poor will help enormously in bringing that supply capacity back on stream. Result: end of recession in US probably by year end. Ditto for NZ. I'm guessing both US markets and NZ/Oz will cotton on in about a month or so.

What Im saying in the paragraph above is that this is not the time for "trickle down" economics - rather "trickle up". Trickle down works best when capacities are getting near their limits and large sums are required to invest in new plant and machinery. The reverse is true at present - we need consumers to start buying and getting things moving again and getting that spare capacity utilised - and the money flowing through the banking system.

And not just the banking system - government revenues will increase too - effectively slowing the growth in deficits - The trick here will be to ensure each country's exchange rate adjusts to ensure more balanced trade deficits/surplusses.

The trick will be to slow things down again once 95% supply utilisation is achieved to prevent hyper inflation and/or another bubble forming. US governments and fed and treasury have been nearly useless in doing this for as long as I can remember. Once again, Obama seems to have a plan but not a very clear one at this stage. Still - he's got probably 3-5 years to formulate one.

All good - still picking a double bottom at these levels (SPX currently 701)

[fungus pudding]

What Im saying in the paragraph above is that this is not the time for "trickle down" economics - rather "trickle up".



It sure as hell won't 'trickle up' unless it trickles down first'