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The Obama deficit is growing; what is coming?

 
 
Reply Fri 20 Mar, 2009 09:23 pm
Hyperinflation, anyone? The Fed is printing more money than any other time in history. This is not going to end pretty.

Obama's deficit is now expected to grow four times larger than Bushes. And that's including the Iraq War.

Moderate dems are beginning to question the direction of the Obama admin.

An article from Reuters:

Quote:

US Congress budget office sees $1.8 trln deficit


By Jeremy Pelofsky

WASHINGTON, March 20 (Reuters) - U.S. congressional budget experts on Friday offered a darker economic and budget outlook, projecting a breathtaking $1.8 trillion deficit this year, which could complicate President Barack Obama's efforts to win passage of his $3.55 trillion budget for 2010.

The Congressional Budget Office's projected deficit for the 2009 fiscal year ending on Sept. 30 would amount to 13.1 percent of expected gross domestic product -- a level not seen since World War Two. In January, the budget office had forecast a $1.2 trillion deficit for fiscal 2009.

The CBO also forecast a deeper economic downturn this year, projecting a contraction of 3 percent in 2009 before the economy begins to recover in next year.

The budget experts at CBO forecast the deficit would ease to almost $1.4 trillion in fiscal 2010 -- or 9.6 percent of forecast GDP.

Since Obama took office in January, his administration has been shoveling out billions of dollars in a bid to reverse a steep downward spiral in the U.S. economy and prop up the struggling financial system.

"Although the economy is likely to continue to deteriorate for some time," the CBO said, the government's $787 billion economic stimulus package "and very aggressive actions by the Federal Reserve and the Treasury are projected to help end the recession in the fall of 2009."

The CBO projected that following its forecast steep economic contraction this year, the economy will grow 2.9 percent next year and 4 percent in 2011.

In January, CBO had forecast the economy to shrink 2.2 percent this year before growing 1.5 percent in 2010 and 4.2 percent in 2011.

The massive deficit forecasts come after Obama submitted in February his $3.55 trillion budget plan for fiscal 2010, which includes huge new programs to address health care and curb greenhouse gas emissions.

The White House predicted Obama's budget priorities would not be affected by the forecasts of bigger deficits.

"Even with those numbers, the four key principles of the Obama budget will be met," said White House budget director Peter Orszag, referring to investments in health care, education and clean energy as well as cutting the deficit in half by the end of Obama's first term.

CBO also revised its forecast for accumulating deficits over the next decade, saying they would total $9.3 trillion from 2010 to 2019. That drew immediate fire from Republicans who have criticized Obama's budget for its massive new spending plans and tax increases on the wealthy.

"It's as if you were on an airplane and the fuel light came on ... and the pilots kept flying on as if there's fuel for another hour," said Senator Judd Gregg, the top Republican on the Senate Budget Committee. "They're taking spending up so high ... you can't close the gap. It's a spending problem."

Obama's budget outline to Congress last month included a forecast of almost $7 trillion in deficits through 2019 -- or $2.3 trillion less than CBO's projection.

Democrats cautioned that Congress and the White House could not reverse the deficits quickly and that the forecasts were subject to wide swings because of the constantly shifting economy.

"Deficits of this enormity cannot be reversed in one or two budgets," said House Budget Committee Chairman John Spratt, who noted that huge tax cuts and enormous spending under the past Bush administration would "overhang the budget for years to come."

The CBO's forecast in January of almost $1.2 trillion in red ink for fiscal 2009 and $703 billion for fiscal 2010 came before Congress passed the economic stimulus package in February.

Obama's budget projected a $1.75 trillion deficit for fiscal 2009 and $1.17 trillion for 2010. The House and Senate Budget Committees were awaiting the latest CBO estimates before they would begin to craft their budget legislation next week.

The Democratic-controlled panels will face a delicate balancing act, trying to include as many of Obama's priorities as possible but at the same time not scaring off moderate or conservative Democrats who are crucial to passing the budget.

Already a group of fiscal conservative Democrats known as the Blue Dogs have demanded capping non-defense discretionary spending at inflation and that the health-care plan be deficit neutral, among other things.

"It is critically important, now more than ever, that the Congress and the administration develop a realistic plan for putting our country back on a path to fiscal responsibility," said Representative Charlie Melancon, a Blue Dog co-chair. (Additional reporting by Richard Cowan; editing by Leslie Adler)

http://www.reuters.com/article/bondsNews/idUSN2049806720090320
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Type: Discussion • Score: 3 • Views: 1,425 • Replies: 19
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A Lone Voice
 
  1  
Reply Sat 21 Mar, 2009 11:30 am
I notice the lefties here are refusing to address this thread...

Here is more on the Obama deficit...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNdu22y30zwc&refer=worldwide
djjd62
 
  1  
Reply Sat 21 Mar, 2009 11:34 am
The Obama deficit is growing; what is coming?

death, destruction and really bad times

with any luck
0 Replies
 
BigTexN
 
  1  
Reply Sat 21 Mar, 2009 12:17 pm
@A Lone Voice,
The Obama deficit is growing; what is coming?

Answer: The end of the Democratic Party.
0 Replies
 
ebrown p
 
  1  
Reply Sat 21 Mar, 2009 12:27 pm


Quote:
That's great, it starts with an earthquake, birds and snakes, an aeroplane -
Lenny Bruce is not afraid. Eye of a hurricane, listen to yourself churn -
world serves its own needs, regardless of your own needs. Feed it up a knock,
speed, grunt no, strength no. Ladder structure clatter with fear of height,
down height. Wire in a fire, represent the seven games in a government for
hire and a combat site. Left her, wasn't coming in a hurry with the furies
breathing down your neck. Team by team reporters baffled, trump, tethered
crop. Look at that low plane! Fine then. Uh oh, overflow, population,
common group, but it'll do. Save yourself, serve yourself. World serves its
own needs, listen to your heart bleed. Tell me with the rapture and the
reverent in the right - right. You vitriolic, patriotic, slam, fight, bright
light, feeling pretty psyched.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.

Six o'clock - TV hour. Don't get caught in foreign tower. Slash and burn,
return, listen to yourself churn. Lock him in uniform and book burning,
blood letting. Every motive escalate. Automotive incinerate. Light a candle,
light a motive. Step down, step down. Watch a heel crush, crush. Uh oh,
this means no fear - cavalier. Renegade and steer clear! A tournament,
a tournament, a tournament of lies. Offer me solutions, offer me alternatives
and I decline.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.

The other night I tripped a nice continental drift divide. Mount St. Edelite.
Leonard Bernstein. Leonid Breshnev, Lenny Bruce and Lester Bangs.
Birthday party, cheesecake, jelly bean, boom! You symbiotic, patriotic,
slam, but neck, right? Right.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine...fine...

A Lone Voice
 
  1  
Reply Sat 21 Mar, 2009 01:08 pm
@ebrown p,
R.E.M. is the best.

Worst cover of this song, ever?

Annie Regen Tighe...
0 Replies
 
H2O MAN
 
  1  
Reply Sat 21 Mar, 2009 01:20 pm


Hyper Inflation is what's coming.
0 Replies
 
H2O MAN
 
  1  
Reply Sat 21 Mar, 2009 01:21 pm
@A Lone Voice,
A Lone Voice wrote:

I notice the lefties here are refusing to address this thread...


You can just feel the shame...
0 Replies
 
A Lone Voice
 
  1  
Reply Sun 22 Mar, 2009 01:25 pm
And this, from Obama's pick for Commerce Sec (who backed out before confirmation).


Quote:

WASHINGTON " The top Republican on the Senate Budget Committee says the Obama administration is on the right course to save the nation's financial system.

But Sen. Judd Gregg of New Hampshire also says President Barack Obama's massive budget proposal will bankrupt the country.

Gregg says he has no regrets in withdrawing his nomination to become commerce secretary. He pulled out after deciding he could not fully back the administration's economic policies.

The senator said Obama's spending plan in the midst of a prolonged recession would leave the next generation with a country too expensive to live in.

Gregg appeared Sunday on CNN's "State of the Union."

Link: http://news.yahoo.com/s/ap/20090322/ap_on_go_co/gregg_budget
0 Replies
 
Foofie
 
  1  
Reply Sun 22 Mar, 2009 02:57 pm
A lot of free government cheese is coming, in my opinion. Maybe even free bread and milk?

The Romans had bread and circuses. We will at least will have cheese.
parados
 
  2  
Reply Sun 22 Mar, 2009 03:47 pm
@Foofie,
Cheese and NASCAR?
A Lone Voice
 
  1  
Reply Sun 22 Mar, 2009 06:00 pm
@parados,
Quote:

Cheese and NASCAR?



NASCAR? I believe you’ve made a mistake in your demographics, parados.

Actually, most NASCAR fans, generally speaking, might not be the best example, as they might not be the most faithful of the Obamabots.

Try cheese and NPR?
parados
 
  1  
Reply Sun 22 Mar, 2009 06:02 pm
@A Lone Voice,
I think you mistake the reason for the circuses and why they were popular.

NASCAR fans are closer to those that attended the circuses than NPR listeners are.
A Lone Voice
 
  1  
Reply Sun 22 Mar, 2009 06:24 pm
@parados,
Quote:

I think you mistake the reason for the circuses and why they were popular.

NASCAR fans are closer to those that attended the circuses than NPR listeners are.


Really?

Do tell...
0 Replies
 
boomerang
 
  1  
Reply Sun 22 Mar, 2009 06:41 pm
@A Lone Voice,
This sounds truthful:

Quote:
"Deficits of this enormity cannot be reversed in one or two budgets," said House Budget Committee Chairman John Spratt, who noted that huge tax cuts and enormous spending under the past Bush administration would "overhang the budget for years to come."


What do you think McCain would have done if left with the mess Bush left behind? Do you think it would be "fixed" by now?
A Lone Voice
 
  1  
Reply Sun 22 Mar, 2009 07:00 pm
@boomerang,
Quote:

What do you think McCain would have done if left with the mess Bush left behind? Do you think it would be "fixed" by now?


I've always felt the county does best when the US is split by both parties. (I think it would do even better with a viable third party).

If you look at Reagan and Clinton, who probably oversaw the best economies of recent times, the majority of both of their time in office was spent with the opposition in control of at least one house of congress.

Which has prevented the extremism we saw recently and are seeing now.

Would McCain had fixed anything by now? Nope. But the left wing of the dems would not have unbridled power. Reasonable people would have come to the forefront to work out solutions, including a combination of measured responses that would not threaten the actual economic future of the US. As is currently occurring.

Reasonable people. Much like I'm hearing about moderates in Obama's party now trying to do so.
talk72000
 
  1  
Reply Sun 22 Mar, 2009 07:20 pm
@A Lone Voice,
A great sickness requires strong medicine. Medicine is a poison if taken in large doses and not targetted for the illness. The financial meltdown is from the Republican Congressional deregulation and theft by Republican financial managers of corporations who wanted a free hand from government oversight and regulations. Temporaty inflation and stimulus will get us out of the financial mess.
A Lone Voice
 
  1  
Reply Sun 22 Mar, 2009 08:14 pm
@talk72000,
Quote:

A great sickness requires strong medicine. Medicine is a poison if taken in large doses and not targetted for the illness. The financial meltdown is from the Republican Congressional deregulation and theft by Republican financial managers of corporations who wanted a free hand from government oversight and regulations. Temporaty inflation and stimulus will get us out of the financial mess.


Yep, this is the excuse they are certainly using, isn't it?

Republican financial managers? Show me. You are aware that most of the campaign contributions from these "Republican financial managers" at these companies went to Dems?

Fannie May, Freddie Mac? You are aware of who was running those organizations?

All that aside, what makes you believe we will only face 'temporaty' inflation?

You are aware of the size of the Obama deficit?
0 Replies
 
H2O MAN
 
  1  
Reply Sun 22 Mar, 2009 08:46 pm
@talk72000,
talk72000 wrote:

Temporaty inflation and stimulus will get us out of the financial mess.


Not bloody likely.

0 Replies
 
Foofie
 
  1  
Reply Mon 23 Mar, 2009 08:33 am
@talk72000,
talk72000 wrote:

Temporaty inflation and stimulus will get us out of the financial mess.


Temporary inflation is a snowball rolling downhill. Add a stimulus, and that additional money, acts as someone behind the enlarging snowball, giving it a continual push.

In the end, there just might be more people working in the public sector, or quasi-public sector (bail-out recipient companies).

If Holland can survive the tulip crash in the 1600's, then we too can learn to walk around in silly clogs.
0 Replies
 
 

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