Diary

Presidents Obama to Freeze Spending?

OK, I’m not buying this for a second. First the Breaking News from the Washington Post

Under mounting pressure to rein in mammoth budget deficits, President Obama will propose in his State of the Union address a three-year freeze on federal spending that is not related to national security, a concession to public concern about runaway government spending that could dramatically curtail his legislative ambitions.

The freeze would take effect in October and limit spending on programs other than the military, veterans, homeland security and international programs to $447 billion a year for the remainder of Obama’s first term, senior administration officials said Monday.

While the freeze would shave no more than $15 billion off next year’s budget — barely denting a deficit projected to exceed $1 trillion for the third year in a row — White House officials described it as a critical part of a broader deficit-reduction campaign intended to restore confidence in Obama’s ability to control the excesses of Washington.

“You can’t afford to do everything that you might have always wanted to do. That’s the decision-making process that the President and the economic team went through,” said a senior administration official, speaking on condition of anonymity to describe the speech the president will deliver on Wednesday. “We’re not here to tell you that we’ve solved the deficit. But you have to take steps to control spending.”

White House officials said reducing deficits swollen by emergency spending on the economy will be an important theme of Obama’s address to Congress, along with plans for creating jobs and helping the middle class. Democrats have said repeatedly that those goals do not conflict, but the tension between them was on display Monday as Obama rolled out a list of relatively inexpensive initiatives to help middle-class families, most of which were recycled from the budget he sent to Congress last year and never enacted.

This opens up a million questions.

1. Health Care
2. Fannie and Freddie no longer have any caps on how much money they get….so?
3. Tarp was recently extended
4. Another Stimulus/Jobs bill

Or prehaps the White House and Congress just intend to pass everything prior to October?
I understand why the White House would say this, the American people are angry about spending….but do they expect the American people to just believe it?
Seriously?

crossposted to The RItz Report