Snow steps up warning over US budget deficit

[ze_dscherman]

John Snow, the US Treasury secretary, on Wednesday issued his strongest warning yet about the ballooning budget deficit, saying that it could threaten to crowd out private investment.

Speaking in London, Mr Snow described the deficit, forecast by the White House to hit $455bn this year - as "worrisome".

"The deficit is too large and it needs to come down and will come down," he said. The rise in the deficit, he said, "underscores the need for tight control of spending."

SNIP

Economists said there was little chance of fiscal restraint ahead of next year's presidential election in November. So far this fiscal year, total government spending is up 6.4 per cent on last year while revenues are down by 4.8 per cent , including a 26.7 per cent fall in corporate taxes.

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1057562467197&p=1012571727092

[I AM SPARTACUS]

1. "revenues are down...including a 26.7 per cent fall in corporate taxes"

hmmm...why would THAT be...???

[xxqqqzme]

2. Wonder if he'll deliver that

message in DC? Betcha he won't! Rove won't let him!

[Ponderer]

3. Just "worrisome"

Hmmm

[punpirate]

4. And that "tight control of spending" would be...

... in the areas of defense spending and war-making and open-ended contracts to cronies???

Nah, easier to bludgeon Social Security and Medicare and Head Start (hell, they can't vote, they're only three-year-olds, right?).

[Dirty Hippie]

5. I hope his resume is in order.

He is gonna be looking for a job.

[NYC]

6. Greenspan said something similar.

Isn't it a little late to be warning about deficits?

Old and in the Way sent me a video clip of Bill Clinton, referring to Bush, saying "deficits as far as the eye can see". I think the deficits will go farther than that -- over the horizon.

Edit: The video was from a few months ago.

[Dirty Hippie]

7. Ok... economics ain't my thang

Why would the ballooning budget deficit crowd out private investment?

[sandnsea]

8. Welfare, education, medicaid, what'll they kill first?

Here we go, time to start cutting programs. Will it be the children or the old people who get the whack first?

[ze_dscherman]

9. Health spending

From the same article:

"Mr Snow cited health care costs as one area that had to be curbed, as they were "growing at a rate that's not sustainable."He said the support for prescription drugs expenditure backed by President Bush would help limit spending."

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The doubling of costs just for Iraq and a record "defense" budget (coincidentally about as big as this years debt), probably have no relation at all to that deficit.