Custom Search

Saturday, August 22, 2009

New White House Projection Raises Deficit By Two More Trillion

Jazz Shaw from Moderate Voice reminds everyone of Obama's promise in February to cut the deficit in half by the end of his term of presidency.

Another promise bites the dust as news hits the stands that the new projections under Obama will actualy raise the deficit beyond the originally projected $7.108 trillion to an approximate $9 trillion.

The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama's opponents, who say his spending plans are too expensive in light of budget shortfalls.

The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

"The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year," said the administration official, who is familiar with the budget mid-session review that is slated to be released next week.

"Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out."

The White House budget office will also lower its deficit forecast for this fiscal year, which ends September 30, to $1.58 trillion from $1.84 trillion next week after removing $250 billion set aside for bank bailouts.

Record-breaking deficits have raised concerns about America's ability to finance its debt and whether the United States can maintain its top-tier AAA credit rating.

Funny how Democrats and the White House claimed the Congressional Budget Office was overstating the chance of the deficit actually costing $9 trillion and accused them of understating the potential savings from plans not passed yet, and now they come out and confirm the CBO's prediction.

Remember, now they want to add another trillion plus to this number with Obamacare!

Hot Air reminds us of previous estimates that ended up being false.

How many economic projections has Team Barry utterly cocked up so far? Is anyone keeping a list? Off the top of my head, there’s this one, the infamous guesstimate that the stimulus would keep unemployment under eight percent, and the Cash for Clunkers funding that was supposed to last three months and ran out in a week. In these capable hands does the financial viability of universal health care rest. Exit question: Is this the stake in the heart of ObamaCare? One of the main reasons The One’s polling is deteriorating is public skittishness about deficits. Suddenly, in one fell swoop, the problem’s fully 30% worse than the White House thought, which all but destroys the credibility of their health-care projections going forward. (Not that they had much credibility to begin with.) It’s time to walk away, Blue Dogs.

Nice little weekend gift to drop on the country as Obama and his family go on vacation.