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White House Projects ‘Lower Deficit’

From deficit hawks at the Associated Press:

A US twenty dollar bill matched up with the north side of the White House in Washington, DC. The White House will next week cut the estimated 2009 US budget deficit to 1.58 trillion dollars, around 262 billion dollars lower than forecast, an Obama administration official said.

AP source: White House projects lower deficit

By Jim Kuhnhenn And Philip Elliott, Associated Press Writers

WASHINGTON – The federal budget picture will look slightly better next week. Relatively speaking.

The White House plans to announce the federal deficit will still be a record breaker, at $1.58 trillion, for the current 2009 fiscal year. But the amount is about $262 billion less than officials predicted earlier this year.

That’s mostly because the administration erased a $250 billion contingency fund it had penciled into the budget in case Wall Street needed more government help in getting out of the financial crisis.

While the numbers still represent a tremendous amount of red ink, they would give the administration the opportunity to say its policies have prevented a more extreme financial crisis and eliminated the need for further bank infusions.

Nonetheless, the deficit amount is a huge obstacle for an administration trying to undertake massive policy overhauls in health care and the environment. And the true impact of deficits lies in the coming years.

A slow recovery from the recession, as many economists predict, could test Obama’s goal of cutting the deficit to $512 billion in 2013 and pressure him to call for deep spending cuts or increases in revenue through tax hikes.

Even at $1.58 trillion, the deficit this year would be three times larger than last year. A White House official, speaking on the condition of anonymity to discuss the report before its release Tuesday, said the report for the budget year that ends Sept. 30 also will predict Washington will spend $3.653 trillion this year. Revenue, however, would reach only $2.074 trillion

The report comes during a rough patch for Obama’s presidency: the rancor surrounding the Democrats’ proposed health care overhaul.

The administration earlier this year predicted that unemployment would peak at about 9 percent without a big stimulus package and 8 percent with one. Congress passed a $787 billion, two-year stimulus measure, yet unemployment soared to 9.4 percent in July and appears headed for double digits. Most of that stimulus will occur in the coming 2010 fiscal year.

The nation’s debt now stands at $11.7 trillion. In the scheme of things, that’s more important than talking about the "deficit," which only looks at a one-year slice of bookkeeping and ignores previous debt that is still outstanding.

Economists predict that an improved economic climate could help reduce the deficit in the 2010 fiscal year to $1.3 trillion, though White House economists had forecast a slightly smaller figure of $1.26 trillion. Obama’s promise to reduce the budget deficit to $512 billion in the 2013 fiscal year was based partly on an optimistic economic recovery forecast and by anticipating less spending on Iraq and Afghanistan…

Our watchdog media are amazing.

They manage to use the word “lower” in the headline and lede for a story about how the deficit will be three times larger than last year,

A slow recovery from the recession, as many economists predict, could test Obama’s goal of cutting the deficit to $512 billion in 2013 and pressure him to call for deep spending cuts or increases in revenue through tax hikes.

Gosh. We wonder which it will be?

This article was posted by Steve on Thursday, August 20th, 2009. Comments are currently closed.

9 Responses to “White House Projects ‘Lower Deficit’”

  1. proreason says:

    “The federal budget picture will look slightly better next week. Relatively speaking. ”

    It’s all relative isn’t it?

    Even when the plan to force 99% of the country into serfdom is complete, we will still be better off than 99% of human beings who have ever lived, relatively speaking.

    Black Death, for example, is now under control. So we don’t have to worry about that any more.

    Unless we act up again.

  2. BannedbytheTaliban says:

    “That’s mostly because the administration erased a $250 billion contingency fund it had penciled into the budget”…to help cook the books if need be.

    How convenient. I find it highly dubious that even that amount will help lower the budget numbers considering the loss in tax revenue due to all these “unexpected” increases in unemployment claims; less tax money coming in, more unemployment going out. In other news the ministry of production is pleased to announce an increase in production from last month’s record of 45,000 units to a new record high of 20,000 units this month.

  3. Rusty Shackleford says:

    I’m going to drive my old truck off a cliff, burn my house down and tell my boss he’s a flaming a-hole because I’m “projecting” that I will win 200 million dollars in the Powerball Lottery by Saturday. Think that’s a bad idea?

    Honestly, this government is priceless.

  4. VMAN says:

    I’m sure it will be unexpectedly higher just like unemployment claims were unexpectedly higher just like everything with this bunch of tools in unexpected or Bushes fault.

  5. “Good news, folks! The Titanic ain’t sinking as fast as we once thought. But there’s still no life boats. That is all.”

  6. bill says:

    Bailing out our selves with our TARP funds. Cute.

  7. MinnesotaRush says:

    “WASHINGTON – The federal budget picture will look slightly better next week. Relatively speaking.”

    And will the seas return to their proper level, and blah, blah, blah, blah, blah, blah …

    Relatively speaking ya’ know.

  8. Reality Bytes says:

    ROTFLMAO!!! Roger Clinton must have 1600 Penn Ave back on his weed run. Either that or Obama found a bag left by Clinton with “Prez Pot” on the label. Sadly, they believe this crap too.

    If Bush was bad for over spending by $458 billion, then at 1.58 TRILLION DOLLARS, OBAMA IS 3 1/2 TIMES WORSE!!!

    Hey, that could be T Shirt

    Typical…..

    Communist

  9. Liberals Demise says:

    Hey, when you’re in charge of the lies and lies have to be told……..might as well infuse some humor to go with it.

    Because this shiite is hilarious!!


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