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Monday, May 11, 2009

Obama Will Quadruple Deficit Over Next Year

The subheader on the Yahoo Finance piece is far more revealing than the header.

Subheader "White House: Budget deficit to top $1.8 trillion, 4 times 2008's record" with the title being "White House: Budget deficit to top $1.8 trillion."

Spending like American tax payers are nothing more than a mountain of money and the president feels entitled to reach in and take any amount he wants from them, but even then, there isn't enough so according to the reports, the White House projections have them borrowing "almost 50 cents for every dollar it spends this year."

With the economy performing worse than hoped, revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year.

The deficit for the current budget year will rise by $89 billion to above $1.8 trillion -- about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama's economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.

As the economy performs worse than expected, the deficit for the 2010 budget year beginning in October will worsen by $87 billion to $1.3 trillion, the White House says. The deterioration reflects lower tax revenues and higher costs for bank failures, unemployment benefits and food stamps.

The original White House forecast projected a deficit of $1.75 trillion, or 12.3 percent of GDP and now they say it is going to be $1.84 trillion.

What is another trillion or NINE here and there huh?