A tidal wave of red ink

It’s make or break time for the Keynesians… again:

The Obama administration today unveiled program details of a $3.4 trillion federal budget for the fiscal year beginning in October.

Assuming that the economy will shrink six percent in 2009, this means that federal spending will account for more than a quarter of the national GDP. That’s in excess of the 1942 wartime figure of 21 percent. Of course, when it doesn’t work, Obama or his successor will need their own war to get the economy out of the depression by blowing the hell out of some future markets.