Bush Says '06 deficit Was $248B -- But National Debt Grew $574B (Chirolas)

[Tace]

William Chirolas -- World News Trust

Oct. 31, 2006 -- Does anyone care that the real 06 Federal deficit -- the increase in the National Debt -- was $574 billion, and not Bush's claimed $248 billion?

When will the media learn that The Bush Whitehouse "deficit" is very different from realty, and that reality is the increase in the National Debt from year to year?

The Bush folks tell us -- and the media repeats without comment or analysis, that the Bush cut the deficit for last year down to $248 billion -- but they never mention that the Bush announced number is after a con job of accounting games.

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=504

[tblue]

1. I guarantee you if you asked him what's the diff between the deficit & the debt

he would have no idea.

[Tace]

2. It's Just Somebody Else's Problem

[MiniMe]

3. There is interest on that debt

It adds up big time.

[Selatius]

4. Doesn't the "national debt" also include private/consumer debt?

Would that explain the discrepancy? Not all debt incurred in one year is incurred by the government?

[papau]

7. No - Nat'l debt is just debt of Federal Gov - there is no private/consumer

debt in that number.

The difference between the two is the fact that Bush uses the Social Security Surplus as a reduction to his deficit (about 180B - other trust funds buy about $100B
Medicare does not have a surplus, there is $2 B surplus from the post office, and then there seems to be a bit of "off budget" items like student loans. http://www.cbo.gov/budget/budproj.pdf)

The use of the SS surplus in this way (called a "unified Budget presentation" and begun around the time of Saint Reagan) makes a little bit of sense since removing SS surplus gives a resulting number that is the amount for which he has to go to the private capital markets to borrow the funds (sell bonds) - so this is the amount of "crowding out" the funding of our government through debt is causing folks that want to borrow from the capital markets have to put up with.

[dtotire]

5. Bush Says '06 deficit Was $248B -- But National Debt Grew $574B

The reason for the discrepancy is the amount that was funded by the trust funds--like Social Security, Medicare, and other trust funds.

[papau]

8. Mostly trust funds - SS Surplus is under 180B - other trust funds buy about $100B

Medicare does not have a surplus, there is $2 B surplus from the post office, and then there seems to be a bit of "off budget" items like student loans.

http://www.cbo.gov/budget/budproj.pdf

[Jeffersons Ghost]

6. K&R. this was moving off the board too fast. good OP