WHAT ?? White House Considers Using TARP Funds to Cut Deficit

[PocketProtector]

You gotta be kidding !!! Borrow money to pay off debt ?? sheesh...Obamanomics 101

http://www.foxnews.com/politics/2009...p-cut-deficit/

White House Considers Using TARP Funds to Cut Deficit

by

WSJ

Obama administration is debating whether to set a chunk of the $700 billion financial rescue aside for debt reduction.



WASHINGTON - The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.

The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August.

The idea is still a matter of debate within the administration and it is unclear how much impact it would have on the nation's mounting deficit levels. Still, the potential move illustrates how the Obama administration is trying to find any way it can to bring down the deficit, which is turning into a political as well as an economic liability.

The White House is in the early stages of considering what bigger moves it might make for next year's budget. The Office of Management and Budget has asked all cabinet agencies, except defense and veterans affairs, to prepare two budget proposals for fiscal 2011, which begins Oct 1, 2010. One would freeze spending at current levels. The other would cut spending by 5 percent.

OMB is also reviewing a host of tax changes. The President's Economic Recovery Advisory Board will submit tax-policy options by Dec. 5, including simplifying the tax code and revamping the corporate tax code.

Continue reading at the Wall Street Journal

[ehidle]

WTF????

That TARP money is already borrowed? So how can you use money that you borrowed to pay down debt, and call it an actual deficit reduction??!!?

This administration never ceases to amaze me.

[ChamberedRound]

WTF????

That TARP money is already borrowed? So how can you use money that you borrowed to pay down debt, and call it an actual deficit reduction??!!?

This administration never ceases to amaze me.

Agreed. The ignorance is unbelievable. I think reading that made me more stupid.

[Azzy]

You mean if if I write myself a $1,000,000 check it wont make me a millionaire?!

[cigarmanpa]

awesome I'm calling AES tomorrow and telling them to use some of the money I borrowed for school to pay off the money I borrowed.

[ehidle]

You mean if if I write myself a $1,000,000 check it wont make me a millionaire?!

Only until it clears!

[adymond]

Agreed. The ignorance is unbelievable. I think reading that made me more stupid.

I think it's arrogance on the part of the administration and ignorance on the part of the People. Either way it is still disgusting and makes you dumber for having had to contemplate the stupidity of using borrowed money to pay down debt.

That is unless they are talking about the money that had been repaid into the tarp funds which were held there instead of going to reduce the deficit as we were told. I forget how many billion were paid back, but then added into the fund to be respent.

[ehidle]

I think anything the government does from now on needs to be prefaced with:

"DO NOT TRY THIS AT HOME."

Because if any of us tried to do our accounting the way the government does it, we'd be in prison.

[2dogs]

That is great news! I am going to get a home equity loan to pay off my house. I will use the extra money to buy a car! In fact, everyone gets a car! I love this country!

[LittleRedToyota]

Borrow money to pay off debt ??

that has pretty much been the government's strategy for a long time...as crazy as it is.

"we got a bunch of treasury bond coupons coming due....better issue some treasury bonds to raise the money to make the coupon payments."

the Obama administration is trying to find any way it can to bring down the deficit,

well, trying any way except ceasing to spend ludicrous amounts of money, that is.