re: #95 Sharmuta

Obama Says Some TARP Money Can Be Devoted to Deficit

President Barack Obama said he is considering “selective” use of money from the Troubled Asset Relief Program to boost U.S. job growth and that some of the fund can be devoted to deficit reduction.

Obama is set to give an address tomorrow on measures to help create jobs, and momentum is building among Democrats in Congress to tap the $700 billion TARP program, which was created last year to shore up financially troubled banks. The Treasury Department expects the program to cost about $200 billion less than predicted.

“Some of that money can be devoted to deficit reduction,” Obama said in response to a question from reporters at the White House. “The question is are there selective approaches that are consistent with the original goals of TARP, for example making sure that small businesses are still getting lending, that would be appropriate in accelerating job growth.”

WAIT WAIT WAIT - TARP was funded through deficit spending. It’s based on monopoly money in the first place. You can’t reduce the deficit by paying it off with money you borrowed and ran up the deficit with in the first place. The idea of “spending” a portion of TARP to reduce the deficit is beyond voodoo economics, beyond fantasy, beyond the most extreme hallucinations of a schizophrenic crack addict on meth and peyote. It’s utterly preposterous.

The way to reduce the deficit is to NOT SPEND THAT MONEY AT ALL!!! Admit you don’t need it, and reduce the amount you borrowed to begin with. THAT will reduce the deficit. Not spending funds that don’t exist in the first place.