Federal 2010 Budget Deficit is Milktoast

Senator Dick Army, from Texas, is reporting that the Federal Budget deficit for the year 2010 was only $1.3 trillion dollars, down from the projected $14 trillion dollar budget that Obama was predicting last year. In fact, the 2010 Federal Budget deficit is the lowest that it has been in the last 5 years. Senator Army is talking about cutting the military budget by a few billion dollars, but I say, so what, who cares? First of all, assuming that we are still in a recession, experienced economists all say that the Federal Government should run a moderate deficit during a recession. Also, the last time I looked, the cost of a Stealth B-1 Bomber was about $4.5 trillion dollars. So, if Mr. Army wants to cut the defense budget, all we have to do is cancel the order for one new B-1 bomber, and we are in great shape. Also, as I have said before, America could use, off budget, non tax money, from the Federal Reserve Economic Development Fund, which is relatively free money, to cut the deficit and to shore up the Social Security Old Age and Disability Funds, and it could also be used to fund low cost Student Loans and Grants for college and graduate students, across the board, without regard to race or income. The only serious negative consequence of such funding and spending is the possibility of high inflation. However, the only serious inflation that the United States has ever experienced was that which resulted from the illegal, monopolistic, OPEC Oil embargo, during the 1970's, which should have been stopped by the CIA suing covert means. You see, if price fixing is an illegal violation of the Sherman Anti-trust Act here at home, then we really can't allow it abroad either. Additionally, currency artibrage can also be used to stabilize the American Dollar and reduce inflation if it appears. However, given the fact that local banks are only paying 1/2% interest on savings accounts, the odds of seeing any double digit inflation appear to be very unlikely. Once again, only illegal price fixing is going to cause retail prices to go up. For example, two recent new stories on the internet stated that major US banks had illegally agreed to raise checking account fees in violaton of the Sherman Anti-trust Act and the FDIC and Federal Reserve Acts. These corrupt bankers must eliminate these illegal checking account fees or go to jail for long term Federal Prison Sentences.

(C)Copyright 2010 by Anthony J. Fejfar