Obama Increases 2010 Deficit Forecast 19% to $1.50 Trillion

U.S. unemployment will surge to 10 percent this year and the budget deficit will widen to $1.5 trillion next year, reflecting a “deeper recession” than previously expected, White House budget chief Peter Orszag said.

The Office of Management and Budget also forecasts that the U.S. economy will shrink 2.8 percent this year, worse than the 1.2 percent contraction the OMB projected in May. For next year, the budget office said the gross domestic product will grow 2.0 percent, less than the 3.2 percent expected in May. By 2011, the economy would be well on its way to recovery, growing at a 3.8 percent annual rate, according to the administration’s mid-year economic review, released this morning.

The budget shortfall for 2010 will mark the second straight year of trillion-dollar deficits. The projected deficit for the fiscal year that begins Oct. 1 is higher than the $1.26 trillion forecast in May and reflects expectations economic growth will be slower this year and next because of “the severity of the crisis in the U.S. and in our trading partners,” said Christina Romer, White House chief economist, who along with Orszag briefed reporters on the report.

The deficit and unemployment numbers may weigh down President Barack Obama’s drive for his top domestic priority, overhauling the U.S. health care system.

‘Bad, Bad Shape’

“It throws a wrench in health-care reforms,”....

www.bloomberg.com...

I think a wrench in the health-care reforms is understating it just slightly.
More like a black hole.

And you have to ask yourself why where they trying to quickly usher in the health bill? It's the same thing they did with the bailouts and we all know how well those went and who they helped don't we?

Is why there are saying inflation is on the negative side?
Are we all paying for Obama's huge mess?
By the way there is no increase for social secruity for 2010,

[edit on 25-8-2009 by dreamseeker]

reply to post by dreamseeker


Not only no increase for Social Security but check this out.
Social Security
2009
$31,820,000,000.
Fiscal year 2010:
(A) New budget authority, $20,255,000,000.
(B) Outlays, $20,378,000,000.
- $11,442,000,000

As you can see the Budget for 2010 is 11B les than this year.

I heard about this last night on Fox, but all the other MSM is saying that the numbers are smaller then expected and that it is good news. So, what is the truth?

Well, as Obama said a few months ago, we all have to give up some skin in this. Pissing off senior citizens and disabled citizens though? Hmmm..........he might have to give up some skin in 2012. I guarantee you, my elderly mom won't be happy with this. She will see her monthly SS deposit in her bank account drop next January, and she won't forget it. Her deposit will drop because she has the drug plan through SS and though the SS remains the same as this year, her contribution to the drug plan will increase.

I read an article linked to MSN the other day that this freeze might be for two years, not just one year. If inflation becomes a factor, I wonder if there will be a review of the policy before the two years pass.

SS increases in the recent past, have been the same, percentage wise, as the raises in military pay. I haven't heard anything about a freeze in military raises, yet. If a freeze on military raises were considered and enacted, that would be a big uh-oh moment for the current administration and congresscritters.

Originally posted by SailorinAZ
I heard about this last night on Fox, but all the other MSM is saying that the numbers are smaller then expected and that it is good news. So, what is the truth?

If I expect everyone to die and only half the world dies, is that good news?

Only if you are a spin doctor, and its your job to keep people stupid.