Opinion> Dick Morris> Behind Obama S Phony Deficit Numbers

	26 Jan 2016 Mrs. Gingrich's Revenge Dick Morris, one of the nation's most prominent political consultants, is almost universally credited with … Read More.
	15 Feb 2012 Obama's Phony Recovery Stats Dick Morris, one of the nation's most prominent political consultants, is almost universally credited … Read More.
	8 Feb 2012 Obama's Assault on America Dick Morris, one of the nation's most prominent political consultants, is almost universally credited … Read More.

Behind Obama's Phony Deficit Numbers

President Obama was disingenuous when he said that the budget deficit he faced "when I walked in the door" of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.

As Joe Wilson said, "You lie."

Here are the facts:

In 2008, George W. Bush ran a deficit of $485 billion. By the time the fiscal year started on Oct.1, 2008, it had gone up by another $100 billion due to increased recession-related spending and depressed revenues. So it was $600 billion. That was the real Bush deficit.

But when the fiscal crisis hit, Bush had to pass TARP in the final months of his presidency, which cost $700 billion. Under the federal budget rules, a loan and a grant are treated the same. So the $700 billion pushed the deficit — officially — up to $1.3 trillion. But not really. The $700 billion was a short-term loan, and $500 billion of it has already been repaid.

So what was the real deficit Obama inherited? The $600 billion deficit Bush was running plus the $200 billion of TARP money that probably won't be repaid (mainly AIG and Fannie Mae and Freddie Mac).

That totals $800 billion. That was the real deficit Obama inherited.

Then ... he added $300 billion in his stimulus package, bringing the deficit to $1.1 trillion. And falling revenues and other increased welfare spending pushed it up to $1.4 trillion.

So, effectively, Obama came close to doubling the deficit.

His program of fiscal austerity in this new budget is a joke. If he wanted to lower the deficit, here's what he could do:

— Cancel the remaining $500 billion of stimulus spending.

— Cancel the $300 billion of spending in stimulus II.

Presto! The deficit is cut in half.

Those are the real numbers.

To find out more about Dick Morris and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.

DISTRIBUTED BY CREATORS.COM