China, Don't Believe Turbo Tax Tim

by: Karl Denninger

Oh do come on:

The U.S. goal is a deficit of “roughly 3 percent” of gross domestic product from a projected 12.9 percent this year, Geithner reaffirmed today in a speech in Beijing.

My goal is to sleep with Paris Hilton tonight. However, my goal and a realistic assessment of meeting it may be two different things. In fact, I suspect it would be hard to argue that they're NOT two different things in this regard.

“We are going to have to bring our fiscal deficit down to a level that is sustainable over the medium term,” Geithner said. “This will mean bringing the imbalance between our fiscal resources and our expenditures down to the point -- roughly 3 percent of GDP -- where the overall level of public debt to GDP is definitely on a downward path.”

The U.S. will need to phase out the tax cuts and bank rescue programs set up to help the economy recover from a deep recession, Geithner said. Spending cuts also will be needed, along with health care reform and new budget constraints like pay-as-you-go rules.

What does the non-partisan CBO say?

Let me see... the CBO shows the President's budget decreasing tax receipts from baseline assumptions while outlays grow from baseline assumptions.

Hmmmm... this is a non-partisan analysis, and it seems to say that the odds of the deficit being shrunk as per Geithner's "goal" has approximately the same odds of being a reasonable guess at reality as does my "goal" of bedding Paris Hilton this evening.

Oh, and the CBO tends to be overly-optimistic in its view of the economy and thus tax receipts.

Mr. Funk-Wu might want to rather carefully analyze the odds of Turbo Tax Timmy's "goals" being anything more than a pure political propaganda speech - that is, a lie.