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View Full Version : Obama White House to paint grim fiscal picture: source


petegz28
02-01-2010, 08:15 AM
WASHINGTON (Reuters) - The White House will predict a record budget deficit in the current fiscal year and more big shortfalls for the next decade in its upcoming budget proposal, a congressional source told Reuters on Sunday.

In its budget proposal to be released on Monday, the White House predicts a record $1.6 trillion budget deficit for the fiscal year that ends September 30, the Capitol Hill source said.

According to the estimate, deficits will narrow to $700 billion by fiscal 2013 before gradually rising back to $1.0 trillion by the end of the decade, the source said.

President Barack Obama will seek to strike a balance between reducing the deficit over the long term and stimulating the economy in the short term to ease the pain of double-digit unemployment.

Criticized by Republicans as a big spender, Obama used his State of the Union address last week to tell Americans he would dig the country out of a "massive fiscal hole."

That hole is even deeper than previously believed, according to the estimate by the White House's Office of Management and Budget.

The estimate for the current fiscal year is significantly higher than the $1.35 trillion figure forecast by the nonpartisan Congressional Budget Office last week.

Despite the difference, both estimates indicate that the deficit will continue to hover at a level not seen since World War Two, when measured as a percentage of the economy. Last year the government posted a $1.4 trillion deficit.

THREE-YEAR FREEZE WON'T BE ENOUGH

In his budget, Obama will propose a three-year freeze on some domestic programs to save $20 billion next year and $250 billion over the coming decade.

But that will not be enough to get deficits down permanently to the 3 percent of gross domestic product that most economists consider sustainable.

Deficits are projected to fall as the economy recovers, but they will still average roughly 4.5 percent of GDP over the coming decade, according to the estimate.

Deficits are expected to rise again toward the end of the decade due to the increasing cost of retirement and healthcare programs as the "baby boom" generation retires.

Obama has warned that the burgeoning U.S. debt could unnerve U.S. financial markets, driving up borrowing costs and putting future economic growth at risk.

China, the biggest foreign holder of U.S. Treasuries, has urged the United States to get its fiscal house in order.

The grim forecast could help build support for a bipartisan commission proposed by the White House that would recommend ways to address long-term budget problems.

Obama and his fellow Democrats face a growing voter backlash for the aggressive spending measures they have taken to stimulate the economy.

But Democrats point out that most of the fiscal mess has been inherited from the previous administration of Republican George W. Bush, who cut taxes and created an expensive prescription drug-benefit while pursuing wars in Iraq and Afghanistan.

The recession, which began in December 2007 and ended last year, also worsened the fiscal picture by depressing government revenues while forcing up spending on unemployment benefits and other safety-net programs.

http://www.reuters.com/article/idUSTRE60U1PZ20100131

petegz28
02-01-2010, 08:18 AM
I love this repeating of how Bush spent so now we have to spend 4x more.

LMAO!

And I thought the Dems were all in favor of the Fed Drug program???

The Mad Crapper
02-01-2010, 08:42 AM
I love this repeating of how Bush spent so now we have to spend 4x more.

LMAO!

And I thought the Dems were all in favor of the Fed Drug program???

Of course they did, if Bush vetoed it that would have been the one issue that would have put Kerry over the top in '04.

BucEyedPea
02-01-2010, 09:05 AM
I love this repeating of how Bush spent so now we have to spend 4x more.

LMAO!

And I thought the Dems were all in favor of the Fed Drug program???

That's such a contradiction and cognitive dissonance. I mean if they are saying Bush is at fault doesn't that mean what Bush did ( spend) was wrong? Do they really think we're that stupid? This is how you build socialism folks.

petegz28
02-01-2010, 09:08 AM
That's such a contradiction and cognitive dissonance. I mean if they are saying Bush is at fault doesn't that mean what Bush did ( spend) was wrong? Do they really think we're that stupid? This is how you build socialism folks.

That's my point. How do you justify spending 4 times more than Bush in 1/8 - 1/4 of the time by saying it's Bush's fault?

patteeu
02-01-2010, 09:33 AM
And I thought the Dems were all in favor of the Fed Drug program???

Correction: Some dems supported it. The rest wanted an EVEN BIGGER program. They and their supporters, including many on this messageboard, are all hypocrites on deficit spending to the highest degree.

petegz28
02-01-2010, 09:35 AM
Correction: Some dems supported it. The rest wanted an EVEN BIGGER program. They and their supporters, including many on this messageboard, are all hypocrites on deficit spending to the highest degree.

My bad! ROFL

petegz28
02-01-2010, 09:41 AM
Out of the gate this morning, Obama goes with the blame Bush tactic. LMAO

The Mad Crapper
02-02-2010, 07:08 AM
I love this repeating of how Bush spent so now we have to spend 4x more.

LMAO!

And I thought the Dems were all in favor of the Fed Drug program???

I’ve had occasion many times over the years to mention that when Reynolds decides to turn on the snark machine, hold onto your hats, because he’s as good as anybody at it, and better than most; he just keeps it a little more in check than some of us more, umm, fiery types do. But there’s no denying that when he does decide to unload on somebody, it’s always a joy to behold.

So some mouthbreathing Ozombie flings this garbage at him, which we’ve all seen plenty of: “And how many times did you take to the streets to protest the deficit during the Bush presidency? I’m guessing zero.” Glenn’s response is just another perfect example of his ability to float like a butterfly and sting like a big fuckin’ hammer upside an empty block head (Jenson and Banyon):

http://coldfury.com/images/deficit_graph.jpg

Notice anything? Like maybe how Bush’s deficits are dwarfed by Obama’s? And maybe how the deficit was falling throughout Bush’s second term? Until the very end, when TARP — hardly popular with the Tea Party crowd — rolled out. The “Bush was as big a spender as Obama” line is just a flat-out lie, which the apologists for the powers that be hope you’ll buy because…well, because a lie is pretty much all they’ve got at this point.

It’s all they ever had. It’s all they ever will have, given the monumental failure of their socialist ideas every single time they’ve been tried.

Beautiful pwnage, Glenn. The only way they get by with their lying bullshit is if we let them, by failing to call them out on it.



http://coldfury.com/?p=21985