Obama to RAISE 10-year DEFICIT to $9 TRILLION

Reuters.com ^ | Fri Aug 21, 2009 | Jeff Mason

[Yosemitest]

Obama to raise 10-year deficit to $9 trillion
By Jeff Mason, WASHINGTON, Fri Aug 21, 2009 6:50pm EDT

(Reuters) - The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama's opponents, who say his spending plans are too expensive in light of budget shortfalls.

The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

"The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year," said the administration official, who is familiar with the budget mid-session review that is slated to be released next week.

"Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out."

The White House budget office will also lower its deficit forecast for this fiscal year, which ends September 30, to $1.58 trillion from $1.84 trillion next week after removing $250 billion set aside for bank bailouts.

Record-breaking deficits have raised concerns about America's ability to finance its debt and whether the United States can maintain its top-tier AAA credit rating.

Exerpt continues

[Wyatt's Torch]

The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

Couple of point:

1) CBO scored it at $9.8 Trillion deficits and that was in February. ("The cumulative deficit over the 2011–2020 period would equal $9.8 trillion"

2) The baseline has changed significantly since then. GDP forecasts have come down every month. the $9.8 Trillion from the CBO will be well over $10 Trillion now.

3) At $10 trillion does anyone (including S&P/Moody's and Fitch) think that lowering that to $7 Trillion (taking reid's plan at face value which we all know is crap) and raising our total debt to $21 trillion won't generate a downgrade?

Every single plan on the table right now falls woefully short of solving the problem and are whistling past the graveyard of insolvency.

[DH]

“based on updated economic data”

---

No........based upon data they can’t hide any longer.

If anyone believes what comes out of the Ministry of Propaganda is true, please contact me concerning some land I have for sale in Detroit.

[ripley]

Dontcha know it’s all George Bush’s fault?

/s/

IMHO

[Colorado Cowgirl]

“How long, O Lord, holy and true,” must we endure this curse named Barack Hussein Obama II?
Mr. Muslim call to prayer is “one of the prettiest sounds on Earth.” He then recited it “with a first-class [Arabic] accent.” This”3 muslim names” imposter in crimes has got to go! to jail and all his cronies with him.

[EBH]

There is no solution.

Congress & 0bama are too arrogant to come to terms with what must be done.

[BobP]

Historic!

Barry -- It's not my default!

[csmusaret]

According to Robert Reich and Paul Krugman our financial woes should be over and boom times are here again. Afterall, they both advocated borrowing a couple of trillion additional dollars to stimulate the economy. Now they have their increased debt.

[bert]

There is a solution.

First Art Laffer, for whom I have tremendous respect, on Cavuto, and then last night on the Fox panel, Charles Krauthammer laid it out. The Republicans can not prevail in the manner most (including me) desire. They lack the political power. They did what they could, they laid powerful markers.

The solution to the problem will occur in November 2012 when the Republicans have a chance at the Presidency and both arms of congress. The election is the proper place to resolve the issue (Laffer) because only power can prevail and win the issue.

The statements are realistic assessments of the struggle. The fiscal conservatives can not prevail because they lack the clout. We have seen numerous examples of legislation passed that died in the Senate.

So that being true, and it is, the struggle boils down to gaining or losing the power. That is what is underway, a struggle for the power post November 2012.

Both sides are dragging the other through the slime. Presently the President and I suppose the Democrats seem weakened in the public opinion. The continuation of that trend is the only meaningful goal and outcome.

In the short term end the can in some form will be kicked down the road. That is the only feasible outcome. Neither side has the power to prevail.

How far is now the issue under debate

[WellyP]

And, how much moe in taxes does this POS/POTUS think he can suck out of us?

[randita]

I pretty much agree with yours and Krauthammer’s assessment.

Nothing substantive can be achieved by the GOP. They do not have the power to overwhelm. They have leverage to sway the argument, but in the end they have to compromise or nothing gets passed. They can only hope to slow the bleeding, but they can’t stop it entirely.

A short term plan is the best solution at this point, IMO. BBA and CCB are dead in the water, unfortunately. Revisiting BBA next year closer to election time will force vulnerable Dems to take a stand yea or nay.

[Jack Hammer]

No one can possibly deny that he’s doing his level best to destroy the United States.

[leprechaun9]

I wholeheartedly agree.

All the big spending initiatives, since the last presidential election, were started by the Congress (both Houses) being controlled by the Democraps. The legislation that they produced represents the very essence of the Democrap Party.

NOTE: CZAR B.O. DID NOT VOTE ON ANY OF IT.

Then the legislation was placed on the desk of their spokesman to sign into law. He is only there so that the Democraps can brand any objector as a RACIST.

For example, on Meet the Depressed, Senator Bayh (D-IN) (during the push for OBAMACARE), stated that this was something that the Democraps have been incrementally trying to do for over fifty years (long before Czar B.O. appeared on the scene!).

The discussion should focus on where the problems began, in the Congress and clearly brand the Democraps as the problem for the next election. Forget the charade of the Dumbo with diversity going on TV every time he gets gets his shorts in a wad!

[sam_paine]

[Siena Dreaming]

The solution to the problem will occur in November 2012 when the Republicans have a chance at the Presidency and both arms of congress.

I agree.

Conservatives who blame the House for not doing it all are seriously misled.

What we are doing right now which is most important is trying to change the terms of the debate. That and SLOWLY turning the ship around through at least slowing growth and making some attempts at cutting.

But what is going to make the real difference is getting an increased majority in the House and capturing the Senate and WH.

[bert]

Amen

[Mr. K]

A ONE FREAKIN YEAR DEFICIT OF $9TRILLION??????

IMPEACH THIS BASS TURD NOW~!!!!!!!!!!!!!!!!!!!!!!

[cableguymn]

Or the house could sit on its hands and let the money run out. It’ll hurt, but it’ll fix it’s self.

[cableguymn]

no. ten years and 9 trillion.

however, yes, we should still impeach him.

[Mr. K]

oh- i read it wrong- but it is still a huge number....

grrrrrrrrrrrrrrrrrrrr