The US Cash Deficit for 3/8/2013 was $3.0B, bringing the March Deficit through 8 days to $69B.
It seems that the Republicans have just come out with a great new plan to balance the budget in 10 years…. That’s great…I mean, why hasn’t anybody thought of this before…am I right? You can find it here. I haven’t read it all, and don’t plan too, but I did take a look at the CBO summary table, and compared it to the CBO’s own forecast released a few weeks ago, and my own forecast, which I have been working on , but not released…yet.
First, I need to provide some background about the poor bastards at the CBO (Congressional Budget Office). You might think that the CBO’s job is to create realistic models that forecast future revenues and outlay’s… you would be wrong…at least on the realistic part. You see, congress comes to them, and says…build a model…but use this list of ridiculous assumptions guaranteed to get to the numbers I want. The truth is any jackass can plug some numbers into a spreadsheet and squeeze the assumptions to force fit whatever output he wants, but that’s not called forecasting, it’s just called fiction.
The first thing that jumps out of both the CBO’s forecast, and the “Path to Prosperity” forecast is that the revenue numbers are completely bogus. For some reference, let’s take a trip down memory lane to 2003. If I know that 2002 had $1.89T of revenues….what would have I forecasted revenues 10 years out to be in 2012? To nail it, I would have needed to forecast revenue growth just a little bit under 4% per year, ending 2012 at $2.755T $865B higher. From 2002 to 2012, revenues grew by about 46%
Now, sitting in 2013, what do you think would be a good estimate for 2022 revenues knowing that 2012 was $2.755T? Paul Ryan’s plan predicts 88% growth…the CBO’s baseline forecast has it at over 93%. For some reason, they think that government revenues will grow at over twice the rate in the next 10 years as they did in the last 10? Are they optimists? Or are they just full of it? My own analysis…and realize this is one guy with a few hours a week, an ornery computer, and a ruler…I put it at 53%, and that rather than the budget being balanced in 10 years, will be pushing close to a $2T annual deficit.
On the cost side, from 2002 to 2012, outlays grew 75%. Per the Ryan plan…2012 to 2022 will only grow by 35%…despite what are sure to be massive increases in entitlements. I put it at 59%. The Ryan plan has federal outlays in 2022 at $4.888T. The CBO baseline has it $800B higher at $5.691T. I have it at $6.115T. So I guess this is a step in the right direction…but I don’t see it happening. The sequester was an $85B reduction in spending, and people had fits. The only way $1.2T of annual cuts happens is when the money runs out, which is almost certain to happen before 2022 anyway.
Look, I like Paul Ryan because he seems to be the only guy trying, and the only guy who has tried at all in the last 15 years to address this issue. But coming up with a grand plan…and using a ton of bogus, or at least unlikely assumptions to hit your number…that’s the game that got us here in the first place.
As for results…We all know that little to nothing will come of this. You can’t start negotiations with the President by presenting a budget where the first assumption is to repeal Obamacare…tomorrow… Really?? That’s even more asinine than the revenue growth assumptions Regardless of what you think about Obamacare, the truth is, it’s going to be here until at least 2016, and probably a lot longer than that. If my math is correct, by 11/2016, debt is at $21T, and the deficit is starting to accelerate. I’m not sure we make it that far anyway, but anything is possible…well..except this budget proposal ever becoming relevant.
Note to Paul Ryan…or President Obama for that matter…if you want/need a competent excel jockey…fire your guy and give me a call….but I’m going to need to work from home 🙂
The US Cash Deficit for 3/7/2013 was $5.4B bringing the monthly total to $66B through 7 days, pretty much in line with last March. Things should start to get a bit more interesting next week as we have Social Security payments, Corporate income taxes, and of course…Spring Break!!…which means traffic for those us us who have to work (or are fortunate enough to have work) is going to be great!! Also, I’m sure there will be a lot of news stories about stupid college kids doing stupid things, so if you get tired of reading about the deficit and the sequester, you’ll probably have some options 🙂
The US Cash Deficit for 3/6/2013 was $3.8B, bringing the six day total to $60B. Timing is still an issue, but through 4 business days, revenues are definitely running higher than 3/2012…I will be keeping an eye on them throughout the month…especially the corporate tax payments that should hit 3/15.
It’s been a few months now, and I’ve adapted fairly well to my Windows 8 machine. It works, but I can’t say that it is an improvement over Windows 7 in any way shape or form. There are two things that I think are worth noting. First is the return of the “Blue Screen of Death”…which I had just about forgotten about. It has now happened to me six times, including once this morning. It happens kind of randomly, but I think it always happens when I am using Internet Explorer or Google Chrome web browsers. Out of nowhere, I get a message that says “system_service_exception”…it takes about 20 seconds to log it, then it shuts down and restarts. Curiously…after the restart, it can’t find the wireless network, but another restart fixes that.
Thankfully…Windows 8 boots up pretty quickly, but all in, aside from the annoyance, count on losing about 5 minutes of your life. As I noted in my first review, I don’t really demand a lot from my PC, but I do usually have a browser open with 10+ tabs. I realize this can use a lot of memory…but crashing the system? Really!! I think I have crashed my windows7 7 machine once since upgrading to the 64bit version of excel…and I routinely have absolutely enormous excel files and massive database linked pivot tables open all day every day. Even when I bog it down…all I have to do is take a coffee break, and when I come back…the ol’ girl has righted herself…I can save, close a few things, and move on. This is quite frankly unacceptable, my problem is…at this time, suffering through hours of hold and attempting to translate gibberish speaking help desk folks….would be worse than just losing 5 minutes of my life once a week….I’ll keep you posted if the math on that changes. I will note that to date, I have not lost any excel files…yet
The second issue could very well be related…maybe 4GB just isn’t enough for windows 8? I haven’t done any scientific comparisons, but it just seems like 4GB isn’t enough, where as on my other machine…4GB is more than enough to handle everything I do….with the exception of some very large access/excel processes. These still work….they are just slow. On this machine, I don’t really handle access/excel files of that size, so that has never been an issue. But all I have to do is open a browser with a handful of open tabs, and memory usage seems to jump up to 60-70%+ and stay there.
I may just get additional memory and see if that fixes all of my problems…