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For a guy running a $2 trillion budget deficit, this is pretty audacious:

 President Barack Obama convenes his first formal Cabinet meeting Monday and will ask department and agency chiefs to look for ways over the next 90 days to cut $100 million out of the federal budget, a senior administration official said.

I guess you could argue … “baby steps.” Hah. If he convenes twenty-thousand such meetings and actually finds $100 million at each and every one of them, then the budget will be balanced.

I think the more laughable point is that even if this balances the budget … the federal government spends about $3 trillion per year when it is NOT bailing out the entire Western World. I don’t want to see a balanced budget, I want to see a smaller budget. Take your pick of the following two choices:

  1. Federal government runs an annual deficit of $500 billion AND spends a total of $1.5 trillion per year
  2. Federal government runs no annual deficit AND spends a total of $3.5 trillion per year

My belief is that when the Messiah manages to pull off (2), he will proclaim being fiscally responsible. If you take a view of the world that there is nothing inherently bad about debt financing, it would be hard to consider (2) seriously, particularly in a low-interest rate environment.

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