Robert Reich's blog: Obama's Goal: Halving the Budget Deficit by 2012. Really?

[pampango]

http://tpmcafe.talkingpointsmemo.com/talk/blogs/robert_reich/2009/02/obamas-goal-halving-the-budget.php

"The President's message on fiscal responsibility -- that he'll cut the current one by half by the end of his first term -- is smart politics right now, but it may be dumb politics by November of 2012, and doesn't make much economic sense regardless."

"In fact, if the slump gets worse -- and I have every reason to fear it will because that's the direction we're heading in as fast as you can imagine -- we'll probably have to have a second stimulus. And if the second isn't enough, a third. And so on."

"The Chinese and Japanese are not going to yank their money out of Treasury bills because the slump is worldwide and T-bills are about the best and safest place to park savings. Besides, the Chinese don't want the dollar to plunge. They'd be stuck with a lot of paper worth far less than they got it for, and their exports would be in even worse shape than now."

"But what happens when and if it's 2012 and the economy continues to need boosting? That promise could be a huge liability."

Sounds like Reich believes that the current stimulus will be inadequate and the economy will need more of them. If true, the economy will still in early recovery phase, at best, in 2012 and hardly in the kind of shape to endure a deficit reduction campaign. Perhaps Obama believes in the deficit reduction goal enough that he is willing to take the chance that his statement might be used against him in 2012.

[Fovea]

1. I see his point.

The number I heard early on was a possible 54T dollar crash if the whole mortgage system went down.

That is one hellava sword of Damocles.

We have to build and create our way out of this one.
I advocate starting by asking, in a spirit of bi parisanship, the Republicans and Blue Dogs to kindly sit down and shut the fuck up.

[Winterblues]

2. It is still very nice to establish definite goals.

Due to circumstances not all goals are obtainable but that doesn't mean they should not be put forward. I doubt that this will hinder Obama, as long as the people continue to see a dedicated effort.