Bush Whitehouse still vows to cut deficit in half.
"In a briefing for reporters on Tuesday, senior administration officials insisted they were still on track to fulfill Mr. Bush's campaign promise of reducing the federal budget deficit by half by 2009. But Mr. Bush is already well behind in reaching his goal...The biggest fiscal problem confronting Mr. Bush is that more than 80 percent of the $2.3 trillion federal budget is currently off-limits for cutting. More than two-thirds of the annual budget goes to mandatory entitlement programs, mainly Social Security, Medicaid and Medicare."
Read also an article in the Washington Post.
Read also an articel in the Los Angeles Times.
Is there anyone who still believes in their right mind that tax cuts are still a good idea? How can Bush cut the deficit without increasing revenues? Perhaps I’m missing something here, but I think it comes down to simple old-fashioned math. How much longer can we as a nation continue to pile on debt before the world tires of financing it? I wonder if the Americans are aware that two banks; The Central Bank of Japan, and The Chinese Central Bank hold most of our Treasury notes. Do we really want to give any two entities that much control over our future? The dollar is already taking a pounding because of our mounting debt and trade imbalance (The Weak Dollar: Protect Yourself). How much longer will it be before the dollar in no longer the preferred currency of International business, and is replaced by the (gasp) Euro?