$1 trillion deficits seen for next 10 years

[I AM NOT THAT GUY 5,715]

WASHINGTON (AP) - President Barack Obama's budget would generate deficits averaging almost $1 trillion a year over the next decade, according to the latest congressional estimates, significantly worse than predicted by the White House just last month.

The Congressional Budget Office figures, obtained by The Associated Press Friday, predict Obama's budget will produce $9.3 trillion worth of red ink over 2010-2019. That's $2.3 trillion worse than the White House predicted in its budget.

Worst of all, CBO says the deficit under Obama's policies would never go below 4 percent of the size of the economy, figures that economists agree are unsustainable. By the end of the decade, the deficit would exceed 5 percent of gross domestic product, a dangerously high level.

The latest figures, even worse than expected by top Democrats, throw a major monkey wrench into efforts to enact Obama's budget, which promises universal health care for all and higher spending for domestic programs like education and research into renewable energy.

The dismal deficit figures, if they prove to be accurate, inevitably raise the prospect that Obama and his allies controlling Congress would have to consider raising taxes after the recession ends or paring back his agenda.

But without referencing the figures, Obama insisted on Friday that his agenda is still on track.

"What we will not cut are investments that will lead to real growth and prosperity over the long term," Obama said. "That's why our budget makes a historic commitment to comprehensive health care reform. That's why it enhances America's competitiveness by reducing our dependence on foreign oil and building a clean energy economy."

Many Democrats were already uncomfortable with Obama's budget, which promises to cut the deficit to $533 billion in five years. The CBO says the red ink for that year will total $672 billion.

The worsening economy is responsible for the even deeper fiscal mess inherited by Obama. As an illustration, CBO says that the deficit for the current budget year, which began Oct. 1, will top $1.8 trillion, $93 billion more than foreseen by the White House.

The 2009 deficit, fueled by the $700 billion Wall Street bailout and diving tax revenues stemming from the worsening recession, is four times the previous $459 billion record set just last year.

The CBO's estimate for 2010 is worse as well, with a deficit of almost $1.4 trillion expected under administration policies, about $200 billion more than predicted by Obama.

By the end of the decade, the deficit under Obama's blueprint would go back up to $1.2 trillion.

Long-term deficit predictions have proven notoriously fickle—George W. Bush inherited flawed projections of a 10-year, $5.6 trillion surplus and instead produced record deficits—and if the economy outperforms CBO's expectations, the deficits could prove significantly smaller

Democrats in Congress are readying Obama's budget for preliminary votes next week, and they promise to cut the deficit in half within five years.

Democrats are likely to curb somewhat Obama's request for a 9 percent increase in non-defense agency budgets.

Obama's $3.6 trillion budget for the 2010 fiscal year beginning Oct. 1 contains ambitious programs to overhaul the U.S. health care system and initiate new "cap-and-trade" rules to combat global warming.

Both initiatives involve raising federal revenues sharply higher, but those dollars wouldn't be used to defray the burgeoning deficit.

Republicans say Obama's budget plan taxes, spends and borrows too much, and they've been sharply critical of his $787 billion economic stimulus measure and a just-passed $410 billion omnibus spending bill that awarded big increases to domestic agency budgets.

The administration says it inherited deficits totaling $9 trillion over the next decade and that its budget plan cuts $2 trillion from those deficits. But most of those spending reductions come from reducing costs for the war in Iraq.

http://www.breitbart.com/article.php?id=D9...;show_article=1

[Peikko 1,575]

I'm beyond caring. The government doesn't care about the deficit, hasn't cared for years, so why should I worry about it? The fact of the matter is, it's never going to be repaid, never, ever unless the government wins some intergalactic lottery

[one...two...tree 2,762]

I'm beyond caring. The government doesn't care about the deficit, hasn't cared for years, so why should I worry about it? The fact of the matter is, it's never going to be repaid, never, ever unless the government wins some intergalactic lottery

That's not true.

[Peikko 1,575]

When was the last time the government wasn't running a deficit? What's the lowest level it has been in the last 50 years? Has it steadily increased or decreased? When do you think it's likely to be paid off?

Most importantly of all, in who's interest is it to pay it off?

[Hilarious Clinton 452]

It's all cool. We have plenty of paper.

[Ban Hammer 13,619]

i hope this will change

[Peikko 1,575]

Why? When did you become an advocate of reducing government debt? Was this an issue for you when the previous government were in power? Personally, I am going to embrace the deficit, and enjoy it.

[one...two...tree 2,762]

When was the last time the government wasn't running a deficit? What's the lowest level it has been in the last 50 years? Has it steadily increased or decreased? When do you think it's likely to be paid off?

Most importantly of all, in who's interest is it to pay it off?

Did Bush "cut the deficit in half"? President Bush claims that "we have now achieved our goal of cutting the budget deficit in half." Source Is this true?

First, be careful, the deficit is annual additions to national debt. So all he's saying is that the national debt is not going up as fast as it had been. It's certainly not going down (as it did in between 1995 and 2001 — see graph). So in terms of the accumulated national debt, we haven't cut anything except its rate of increase (that's better, but the debt is still headed the wrong way).

Second, he's not talking about the annual gross (total) budget deficit, but only a part of it. As this chart shows, the total deficit has hardly decreased at all.

.........

You can read it more detail...

http://zfacts.com/metaPage/lib/zFacts-Nati...eficit-Lite.gif

Edited March 20, 2009 by Mister Fancypants

[Peikko 1,575]

Anyone can google Steven, I can do it too.

[one...two...tree 2,762]

Anyone can google Steven, I can do it too.

...and your point? You made a false statement and I'm using reference data to prove that it's false. It's called debating. Steven = 1, MC = 0

[Peikko 1,575]

I don't believe you have addressed my questions at all, you have simply shown that using a specific set of criteria, the budget deficit appears to have reduced for a very short period of time. That is using data to try to smother the questions. Not working Steven.

[one...two...tree 2,762]

I don't believe you have addressed my questions at all, you have simply shown that using a specific set of criteria, the budget deficit appears to have reduced for a very short period of time. That is using data to try to smother the questions. Not working Steven.

What? Are you serious? Oh my...

[Peikko 1,575]

Oh, and for the record, giving yourself a score is meaningless, however, congratulations you know, to show there are no hard feelings.

I don't believe you have addressed my questions at all, you have simply shown that using a specific set of criteria, the budget deficit appears to have reduced for a very short period of time. That is using data to try to smother the questions. Not working Steven.

What? Are you serious? Oh my...

Yes, I am serious. Well, as serious as I ever get. I asked, when was the last time the government did not run a deficit, and you gave me that graph as your answer? If I was a teacher, that answer would get a fail for irrelevance alone.

[I AM NOT THAT GUY 5,715]

I wish I could stay and put up my own charts, but I need to go to another Fil-Am wedding. The wife is now a successful matchmaker.

You will still be here when I get back, won't you?

[Peikko 1,575]

Ooh, good news Mr Bill. Have fun.