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OMB Predicts Record $1.47 Trillion Deficit

From an unfazed Associated Press:

White House predicts record $1.47 trillion deficit

By Andrew Taylor, Associated Press Writer Fri Jul 23, 2010

WASHINGTON – New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.

That’s actually a little better than the administration predicted in February.

The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.

Which is far rosier than most estimates.

The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012 — a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don’t think the unemployment rate will drop to those levels until well into this decade.

"The U.S. economy still faces strong headwinds," the OMB report said. They include tight credit markets, a high inventory of unsold housing and retrenchment by state governments bound by balanced budget mandates. The European debt crisis has also had an impact.

"Despite these headwinds, the administration expects economic growth and job creation to continue for the rest of 2010 and to rise in 2011 and beyond," the report said.

“The administration expects economic growth and job creation to continue”?

The gaping deficits are of increasing concern to voters. But Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they await possible recommendations from Obama’s deficit commission.

What a laugh. This Congress is not even willing to pass a budget.

While there’s a slight improvement in the deficit for the current year compared to the administration’s February forecast, next year’s predicted $1.42 trillion worth , next year’s predicted $1.42 trillion worth of red ink — that’s 37 cents of borrowing for every dollar spent — is looking worse. It’s about $150 billion more than previously predicted, because of still-slumping tax revenues.

The current record holder is the $1.41 trillion deficit for 2009.

Which also came courtesy of Mr. Obama and his lickspittle minions in the Democrat controlled Congress.

Economists agree that the most important measure of the deficit is against the size of the economy. Opinions vary, but many economists say a deficit of 3 percent of gross domestic product is sustainable since it would stabilize the overall debt when measured relative to the economy.

The report put the deficit at 10 percent of GDP this year and 9.2 percent of GDP next year. It would never reach the 3 percent figure under Obama’s predictions — which underestimate war costs and depend on assumptions of tax hikes that may not materialize.

OMB Director Peter Orszag said the numbers represent a "fiscal situation that requires attention."

What genius!

It’s clear we have nothing to worry about with such brilliant men in charge of our economy.

This article was posted by Steve on Saturday, July 24th, 2010. Comments are currently closed.

6 Responses to “OMB Predicts Record $1.47 Trillion Deficit”

  1. Liberals Demise says:

    If we ran our personal budgets as this gubbamint does, we’d be locked up.
    Where are the responsible adults?
    My bad…….it is not their money so spend it like you own it!!

  2. proreason says:

    The very first action of El Presidente was to insist on passage of a bill that would a) plunge every American deeper into debt, and b) set the tone for even more massive spending to come.

    The very first action.

    Subsequently, every action has piled debt on debt.

    Could it be any more clear that his purpose is to bankrupt the country?

  3. tranquil.night says:

    Now if they’d just have the intestines to campaign on all the benefit it’s had!


    • tranquil.night says:

      Well, maybe not!

      AP/Huffington Post: Obama Urges N(u)troots Nation To ‘Keep Up The Fight’ In Surprise Appearance

      Obama urged the crowd to “consider what we’ve accomplished,” then rolled a clip of Rachel Maddow laying out some of the administration’s legislative victories.

      Edit: The video would run great on its own as any Republican campaign add for ’10.

      Edit #2: Breitbart and bloggers that do commentary on LSM need to be shut down or sued but these farckles are supposedly grassroots that get a patronizing video address from the Moron?

  4. Mae says:

    Unbelievable! Uh, no, check that…totally believable for the first Administration to truly hate Americans, the Republic, capitalism and freedom.

  5. eaglewingz08 says:

    Isn’t Orzag a Journolista? Why haven’t his contributions to Journolist been published and scrutinized? Could you imagine if a republican/conservative had been the member of a secret cabal aimed at changing public policy through manipulation of the media, how long his emails would have remained ‘private’? Like ten seconds.
    As for the kind of attention this Administration would give to the deficit, be very very afraid. No spending cuts except on national security and defense. A value added tax in addition to all other taxes, and hikes in taxes of all kinds (some of which will be labeled ‘fees’ and ‘licenses’.

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