President Barack Obama wants to slash the ballooning deficit in half by 2013, U.S. officials said on Saturday, after massively increasing public spending to stem the worst economic crisis in decades.

Obama will outline his ambitious goal when he hosts a summit at the White House on Monday on fiscal responsibility and later in the week when his administration presents a summary of its first budget, for the 2010 fiscal year.

With tens of thousands of Americans losing their jobs in the midst of a global economic meltdown, Obama has said fixing the U.S. economy is his top priority. He has acknowledged that his success or failure in that will define his presidency.

“We cant generate sustained growth without getting our deficits under control,” Obama said in his weekly radio address in which he also announced immediate implementation of tax cuts for 95 percent of Americans as part of the effort to stimulate the economy.

An administration official said Obama was proposing to cut the deficit, which private economists project will rise to $1.5 trillion this year, through a mixture of tax increases on wealthier Americans and spending cuts.

“The deficit this administration inherited was $1.3 trillion or 9.2 percent of GDP. By 2013, the end of the presidents first term, the budget cuts the deficit to $533 billion or 3.0 percent of GDP,” the official told Reuters on condition of anonymity.

“Most of the savings will come from winding down the war in Iraq, increased tax revenue from those making more than $250,000 a year, and savings from making government work more efficiently and eliminating programs that do not work,” the official said.

via Obama aims to cut deficit in half by 2013 | U.S. | Reuters .

 

zyakaira note: The bottomless pit, as Soros himself admits it to be, must be fed. We need to find an end to this funding blitz, and we need to keep the social reform / restructuring on track as well. Reagan did it in time by listening to the old style economic deficit restriction and i believe that is a good way out! However, shutting down the war itself will bring down the deficit, an illusory comeback as the planning horizon is too wide and retractions promised in 16 months must come a mite earlier but will take their 30 months.

Obama must find a funding option that keeps the deficit in check and Institute for Policy Innovation has all of Reagan’s ideas there whenever we want them. which are good Adam Smith Ideas that can stand  any mutilation of hand outs, dole outs, donkey kickbacks and anti-american business policy stances, both knowing ones from the GOP and the unknowing ones from the Democrats.

I was just wondering in the mean time, who has this cash that teh Economic Stimulus has approved and I can’t see from recovery.gov where it is actually being channeled. That as already pointed out, is the biggest weakness.

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