Deficits not "cut in half" in 5 years.

The Congressional Budget Office's (CBO) September 2004 "The Budget and Economic Outlook: An Update" shows a baseline projection of a $422 billion deficit for 2004, and $348 billion for 2005. The 10-year baseline projections show a $2.3 trillion deficit over the next ten years; however, as the report notes, the baseline is not intended to be a good predictor of actual budgetary outcomes. A better predictor of budget deficits under "current policy" would put the deficit for 2005 at $405 billion and the 10-year deficit over $5.5 trillion.

With the increase in retirees necessitating increased Social Security and Medicare expenditures, the situation is not projected to improve after 2014 either, unless, of course, the direction of current policy is significantly changed. The CBO's report demonstrates that freezing discretionary spending will not solve the deficit problem; and that not extending the Bush tax cuts helps more, but also won't completely solve the longer term problem.

As the CBO put it "[e]ven if the economy grows more rapidly than projected, significant long-term strains on the budget will start to intensify within the next decade as the baby-boom generation begins to reach retirement age." Download full report (.pdf)

A large sign in New York City, indicating the location of a natural gas pipeline to prevent accidents, was taken down after a website posted a photograph of the sign. John Young, the owner of www.cryptome.org, posts information on his site to draw attention to places needing increased security. Although federal regulations require that the location of natural gas lines be made as obvious as possible to the public for safety reasons, the company that owns the pipeline asserted that local laws allowed the sign's removal.

Testimony from two government officials before the House Subcommittee on National Security, Emerging Threats & International Relations confirmed that federal agencies are massively abusing their classification powers. The experts estimated that half of the classified information is wrongly restricted. The same week, OpenTheGovernment.org, a diverse coalition of more than 30 organizations, released a Secrecy Report Card quantifying the expansion of secrecy as well as the growing costs to taxpayers.