U.S. budget deficit of $1.2 trillion seen for fiscal 2009

U.S. budget deficit of $1.2 trillion seen for fiscal 2009

www.market watch.com

The U.S. government will run a $1.2 trillion budget deficit in fiscal 2009, the Congressional Budget Office estimated Wednesday, offering a stark assessment of the red ink facing the country and the incoming administration of President-elect Barack Obama.
The nonpartisan office said in a report that the ongoing U.S. recession will probably last "well into" 2009, and that the economy will only undergo "slow recovery" next year. The CBO pegged real gross domestic product growth at 1.5% in 2010.
The overall deficit number is a challenge to President-elect Obama, who is seeking to enact a major stimulus plan of close to $800 billion.
"Enactment of an economic stimulus plan would add to that deficit," the CBO warned Wednesday.

(visit the link for the full news article)

JUST WHEN YOU THOUGHT IT WAS SAFE TO EXPECT A STIMULUS PACKAGE!

This figure is jaw dropping. We're only 3 months into fiscal year 2009. Supposedly the $1.2 Trillion projection takes into account the TARP money as well as the bailouts of Fannie Mae & Freddie Mac.

The really frightening thing is that I honestly don't think anyone who's paid any sort of attention to this can convince themselves that this projection is anywhere near what the ultimate defecit will be at the end of fiscal 2009. Even with removing any Obama stim package from the equation, Washington will end up running this puppy up even further. You just know they will because that's what they do. I also think their 9% year end unemployment is a total pipe dream. I'll be shocked if we don't hit 9% by the end of February once all the temp employees have been shed from the various stores that beefed up staff for Christmas.

www.market watch.com
(visit the link for the full news article)

Thats "The Happy Hope Estimate"

... Wait to June, and then double that... Triple before thanks giving? I have heard much more worst expectations; minimum 2 trillion.

Just wait till hyperinflation. Until then, I'll get the popcorn ready.

I say five trillion by the time you had in everything they left out. Right before the bailout it was estimated that Obama would go in with a 500 billion dollar deficit. Add in what it takes to run the government for this year, plus the proposed stimulus, emergency money that will be needed during the year to take care of veterans, unforeseen events, and money for the war on terror.

Originally posted by Bl0rg
Just wait till hyperinflation. Until then, I'll get the popcorn ready.

You are very right, because the Federal Reserve is doing exactly the same as Zimbabwe. The US is bankrupt, let's face it.

Exactly. Printing more money is not a solution to a recession...it will only devaluate the currencty and make it worse. Counties that have a trade deficit like the US will be hit even harder.

reply to post by burdman30ott6


Unemployment will more than likely be a lot higher than they predicted. If the prediction of 20% of all retailers start filing bankruptcy this coming year then you will start to see a massive amount of layoffs. This problem that is growing every day can not be fixed with the fiat dollar.We will forever be doomed to failure. It has been done so that there is no fix for this in my opinion. Next major event will be the total destruction of the dollars value completely and we will have no choice but to beg and plead for them to cret a new currency. It is the only way of competing with the Euro.

reply to post by burdman30ott6





ran into this ~snip~

The Obama Economic Recovery Act of 2009 is a $1.2 trillion stimulus program designed to attack the recession on several fronts-



1st – Middle Class tax relief where all families or married couples earning less than $100,000 per year are given an additional $5,000 deduction for 2009. There is also an immediate rebate of $1,000 per person for everyone earning under $50,000 as a single person, $100,000 for couples to be issued on March 31st. $20,000 tax credit for all first time home buyers, deductible all at once or over 5 years; $1,000 tax credit for 2009 only for new car purchases plus interest deductions for auto loans not to exceed 60 months in length for any vehicle exceeding 25 mpg city and 30 mph highway with all purchases to be made by October 31, 2009. Suspension of capital gains taxes for all transactions in 2009 is also a possibility. [...]

this was a snip from: johngaltfla.com/blog2/2009/01/06/doomaggedon......& Steve Quayle cliff notes....

I'd rather not give the full address because i'm going to use it in a 'predictions' post reply, sometime today possibly


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When you read a basic sketch of the still undeveloped StimulusPackage, then when Congress adds-In all the pork, after deliberating into June '09,

and adding up all the Defense spending and the entitlements and worthwhile Veteran's Benefits which have been lacking during the last 8 years...

the budget deficit should be well over $1.2trillion


Why so large in addition to the $700+$180billion bailout already set aside?? well, because there's none of that easy fast flowing tax revenues rolling into the Treasury, like it once was,
because all the bubbles burst and the banker class are all so broke they need bailouts instead of having the Profits
& being rightfully in the taxpaying bracket.

This shouldn't come as any surprise, especially after Obama publicly predicted trillion dollar deficits for "years to come".

Even if the package of spending and tax cuts helps restore the nation's immediate economic health, Obama said, the government is likely to be left with "trillion-dollar deficits for years to come" unless policymakers "make a change in the way that Washington does business."

www.washingtonpost.com...

Like I've said all along - this economic mess started in the Clinton era and had 15+ years to develop. It's not going away overnight or even in a year. I'm thinking more like 7 or 8 years. More likely this economic recession and its effects will be felt for many years yet to come.