WASHINGTON TIMES: “Smack in the middle of the debt-ceiling crisis comes word that the economic situation is worse than everyone thought. New Commerce Department figures show the gross domestic product (GDP) growing at an anemic 1.3 percent rate in the second quarter of 2011. Even more alarming, the initial first-quarter 1.9 percent figure was sharply downgraded to a scant 0.4 percent. If the second-quarter rate is later reduced that much, it would signal that the country is in a recession. Most Americans suffering during this historic downturn wouldn’t be surprised.
The weak GDP numbers raise serious questions about the economic assumptions on which the various budget projections and debt-ceiling plans are based. Revenue projections assume an unrealistic growth rate of nearly 3 percent through 2020. The claimed savings in the plans – whether they are from the House, the Senate or the purported “secret” White House plan – are only cuts against projected spending. They are the equivalent of someone claiming to be frugal for not going on a planned unsustainable spending binge but instead just splurging on a moderately pricey shopping spree.”
[Read more of “Obama’s economic collapse: Rosy scenarios defeated by grim reality” at the Washington Times]