
Will the Obama administration ask for a domestic spending freeze or reduction in the 2011 budget?
China, the largest foreign holder of U.S. Treasury securities, has expressed concern about the size of U.S. deficits. U.S. policymakers worry that alarm over deficits could push foreigners into cutting back on their purchases of Treasury debt. President Barack Obama will visit China as part of his current tour of Asia.
http://www.google.com/hostednews/ap/article/ALeqM5g2RBEQAPpNMNour8nrK0y8IEYmeQD9BURIEO0
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In the 2011 Obama administration budget request to congress will there be a request for a domestic spending freeze or cut? Specific program freeze or cuts aren't enough, it must be touted/presented as an across the board freeze or cut (even if there's exceptions in the fine print).
This market will settle on the 2011 budget request from the White House, not what Congress actually passes or proposes themselves.
Settlement details:As reported by a major mainstream news source.
| No domestic spending freeze proposed |
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| Domestic freeze proposed |
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| Domestic spending cut proposed |
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| Other/no 2011 budget proposed by 9/30/10 |
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- Activity: H$21,133 |
- Predictions: 43 |
Comments: 6
Suspend date: Thu 30th Sep 3:59pm PST (28 weeks to go)
Settlement date: Fri 29th Jan 4:21am PST
Prediction cut-off: Predictions on this question after Wed 27th Jan 2:59pm PST have been voided because they were made after the question could be settled
Initial likelihoods: No domestic spending freeze proposed: 30%, Domestic freeze proposed: 30%, Domestic spending cut proposed: 30%, Other/no 2011 budget proposed by 9/30/10: 10%
Action history:
Suspend date: Thu 30th Sep 3:59pm PST (28 weeks to go)
Settlement date: Fri 29th Jan 4:21am PST
Prediction cut-off: Predictions on this question after Wed 27th Jan 2:59pm PST have been voided because they were made after the question could be settled details
Predictions (43)
Comments (6)
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The Wall Street Journal - JANUARY 26, 2010, 11:18 A.M. ET
'Budget Freeze Is Proposed '
"...To attack the $1.4 trillion deficit, the White House will propose limits on discretionary spending unrelated to the military, veterans, homeland security and international affairs, according to senior administration officials. Also untouched are big entitlement programs such as Social Security and Medicare.
The freeze would affect $447 billion in spending, or 17% of the total federal budget, and would likely be overtaken by growth in the untouched areas of discretionary spending....
The administration officials said the cap won't be imposed across the board. Some areas would see cuts while others, including education and investments related to job creation, would realize increases...."
http://online.wsj.com/article/SB10001424052748704094304575028930349664448.html?mod=googlenews_wsj
The spending freeze will not affect agencies that deal with national security, such as the Department of Homeland Security, nor will it apply to entitlement programs.
http://www.federalnewsradio.com/?nid=35&sid=1875397
In fact, today's Washington Post reports that the proposal will be Monday.
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/29/AR2010012901796.html
Further, what was mentioned in the State of the Union Address does not meet the criteria stated in the background.
Specificly, "Specific program freeze or cuts aren't enough, it must be touted/presented as an across the board freeze or cut (even if there's exceptions in the fine print)."
"President Barack Obama's budget proposal will include $7 billion to maintain the U.S. nuclear weapons stockpile, which would be $600 million more than Congress approved last year."
http://www.reuters.com/article/idUSN2824607620100129
"Mr. Obama’s request, which will be announced on Monday, would add $6 billion over five years to the National Aeronautics and Space Administration’s budget compared with projections last year. With the increase, NASA would receive $100 billion over the 2011 through 2015 fiscal years."
http://www.nytimes.com/2010/01/29/science/space/29nasa.html
"[T]he White House announced its plan yesterday to freeze non-military, discretionary spending for the next three years. The proposal -- which would exempt some of the largest parts of the federal budget such as defense and entitlement programs...
The proposal is not an across-the-board freeze.
The bottom line would stay flat, but the White House intends to increase some programs and decrease others, according to Rob Nabors, deputy director of the Office of Management and Budget."
http://www.nytimes.com/gwire/2010/01/27/27greenwire-climate-energy-programs-could-see-boosts-despit-7681.html
Funding for Medicaid, Medicare, Social Security, veterans programs and national security would all be exempt ..."
http://www.politico.com/news/stories/0110/32259.html
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