UNSUSTAINABLE

Karl Denninger http://market-ticker.org/ with a chart of doom and some harsh words for David Walker and every President since Ronald Reagan. An unsustainable trend will not be sustained. Obama presented his budget today. His forecast is for the deficit to be $1.33 trillion this year. He plans on spending $3.8 trillion next year, while touting $4 trillion of cuts over 10 years. That’s funny. $4 trillion comes to $400 billion per year. He is spending $3.8 trillion this year and $3.8 trillion next year. Where is the $400 billion of “cuts”? See, you need to think like a government drone. The cuts will all come between year 6 and 10. Plus, they won’t actually cut spending. In government speak, spending $4 trillion less than your predicted spending increase counts as a cut in spending. Get it?

David Walker was on CNBC this morning again claiming that we “lost our way” over the last ten years. He’s lying. What we have here is a geometric series in two dimensions (both slope and time) and I’m going to prove it.

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