Obama's Budget is a Fantastic Comedy

http://www.chrismartenson.com/blog/analysis-obamas-budget-fantastic-comedy/52899

Congress fails to pass a 2010 budget

In an unprecedented move, Congress will fail to pass a budget for 2010. House Republican Paul Ryan (WI) and House Republican John Boehner (OH) sound off:

http://www.washingtonexaminer.com/opinion/columns/We-need-to-cut-spending-now-96923989.html

With each passing week, fresh warning signs from the markets, government reports, or events overseas underscore the need to tackle our dire fiscal and economic picture. Yet Congress stubbornly refuses to acknowledge this reality, as each week results in a fight over how much further we should expand the deficit and how much deeper should we fall into debt.

The starting point for tackling this challenge is the federal budget. For families, organizations, and businesses alike, a budget sets priorities and forces tough decisions.

Governments are not exempt from the need to budget. Yet, in a stunning abdication of responsibility, leaders in the House of Representatives have failed to even propose a budget -- a feat never before "achieved" since the enactment of the 1974 Budget Act and unacceptable in the face of a looming debt crisis.

The Democrats' budget collapse further erodes confidence in Washington's intent to get federal spending and debt under control -- and creates even greater concern about impending tax increases that will further hinder the private-sector job creation Americans desperately need. Washington's failure to control spending undermines sustainable economic growth and job creation.

Democratic leaders have made the political calculation that it is a better to take a pass than to pass a budget. The president's "new era of responsibility" has hit a new low.

http://gopleader.gov/News/DocumentSingle.aspx?DocumentID=191653

Redoing the kitchen while the house burns down

http://dollarcollapse.com/articles/redoing-the-kitchen-while-the-house-burns-down/

No one really understands the U.S. balance sheet, of course, and because we own a printing press, the growing imbalances have yet to bite. Which is why the struggles of Greece are so enlightening. As part of the euro zone it doesn’t own the printing press that makes its currency. And now that it can’t borrow to fund its deficits, it has to decide — very publicly — how to live within its means.

As numerous analysts have concluded, that can only be achieved by cutting every citizen’s income by a painful amount. But the resulting drop in consumer spending will push the government budget even further into the red, requiring more cuts, which will lower spending even more, and so on. You see the problem: Without a printing press a bloated public sector can’t function.

Good News, Bad News...

Here in California, we got some good news.

The good news: the State Legislature passed a budget bill, resolving the $42 billion budget deficit.

The bad news: our personal income, sales, and vehicle license fee taxes will go up.

Obviously, services will be cut, but hey, at least they rejected the gasoline tax increase.

Countdown to Armageddon in California

Unlike the Federal government, California cannot print its own currency. The trouble starts next month.

Faced with a mounting budget gap and failed negotiations toward a solution, California may have to send out promissory notes to taxpayers owed refunds and local governments, the Los Angeles Times reports. Talks between Gov. Arnold Schwarzenegger and the Democratic legislature foundered yesterday; lawmakers sent the governor a disputed package of tax hikes and service cuts, which he promptly vetoed.

With the deficit forecast at $41.6 billion by next year, California could next month begin mailing IOUs, which look like checks but are not cashable due to “want of funds.” The bill Schwarzenegger vetoed includes many measures agreed upon previously, but the sides could not reach consensus. “The governor cannot ward off Armageddon if he keeps moving the goal posts,” one lawmaker said.

SOURCE: Los Angeles Times