Oops! Office of Mngm & Budget ups deficit projection from $7Trill to $9Trill

[blue fluff]

Good news: Obama hikes 10-year deficit projection from $7 trillion to $9 trillion
posted at 6:23 pm on August 21, 2009 by Allahpundit

"A late Friday afternoon candygram from the White House to help you get the weekend started right. And to think, China’s starting to doubt that American debt is a smart investment.

It’s a good thing our massive new health-care bureaucracy’s going to be deficit-neutral. Imagine how much higher this number would be if it wasn’t.

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

“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 official, who is familiar with the plans.

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

The CBO said in June that deficits between 2010 and 2019 would total $9.1 trillion.

This would be the same CBO that’s been warning us for months that ObamaCare will be a massive boondoggle. (And even CBO might be lowballing it.) I wonder: 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.

Update: Sounds like he dumped this almost literally as he walking out the door for his 10-day summer vacation. Unbelievable."

http://hotair.com/archives/2009/08/...cit-projection-from-7-trillion-to-9-trillion/

 

[blue fluff]

FOR IMMEDIATE RELEASE
8.24.2009

$9 Trillion: A Deficit of Responsibility

Washington, Aug 24 - Republican Study Committee Chairman Tom Price (R-GA) issued the following statement regarding the Obama administration’s forecast that their spending plans will result in a $9 trillion deficit over the next ten years. This projection is nearly $2 trillion more than the White House’s previous forecast.

“Once again, the Obama administration’s projections have proven to be way off base,” said Chairman Price. “The White House’s new figure is over twenty-five percent higher than their last prediction, yet they wonder why Americans don’t believe their claims that a government takeover of health care will be deficit neutral. Instead of making the tough budgeting decisions confronted by households across the country, free-spending Washington Democrats are recklessly pursuing an ‘all-of-the-above’ spending strategy that requires a blind-eye but no accountability. It’s time to embrace the responsible budget proposal introduced by the Republican Study Committee, which would respect the wishes of American taxpayers by achieving a balanced budget by 2019.”

NOTE: The Republican Study Committee proposed a balanced budget that would have provided $1.2 trillion in tax relief. It also included provisions to end bailouts, reduce non-defense discretionary spending, and tackle health entitlements. A full summary can be found here.

http://rsc.tomprice.house.gov/UploadedFiles/RSC_FY10_Budget_Summary.pdf

The Republican Study Committee is made up of House Conservatives. This budget summary makes a LOT of sense to me and I can't for the life of me figure why the Dems won't use it.

If you ever hear the GOP is the "party of no" and has no solutions, show them this.

These are just the first seven:
Improves the budget outlook in every single year
Balances the budget by FY 2019
Cuts the national debt by more than $6 trillion compared to the President’s budget
Provides an extension of the 2001 and 2003 tax cuts, the AMT “patch,” and a two-year suspension of the
capital gains tax—with reconciliation instructions
Makes NO changes to Social Security
Allows Medicare spending to increase at the rate of average, projected economic growth (4.2%)—a similar
proposal was included in the 1995 Contract with America budget
Allows Medicaid spending to increase at the rate of average, projected inflation

Page 2 is examples of where money would be saved or brought in and waste is dealt with. First on the list is leasing ANWR.

 

[Ollie]

Dems are starting to run for cover.
They are getting the chit beat out of them at their town hall meetings and bo goes on vacation. This is pizzing off the dems BIGTIME.

The field is being set that would allow the dems to kill obamacare and cap/trade and blame it on the republicans.
Count how many times you hear the term "the party of "NO"" over the next couple weeks. YOu will be hearing it more and more.

Reid got his new polling numbers and he is trailing his republican rival by 14 points. So what you say, his republican rival only came out and announced he was running 17 DAYS AGO.

oh heres a good one.
On Hannity they just said that the New York state Dem is blaming THE MEDIA for the problems they are having on obamacare.
I don't think the media is going to like that very much.

 

[MPS]

If I haven't been talking as much lately it is because I am getting ready.


.

 

[Yamahamod]

Here is some perspective on TRILLION:

Trillion = 1,000,000,000,000.
The country has not existed for a trillion seconds.
Western civilization has not been around a trillion seconds.
One trillion seconds ago – 31,688 years

9 Trillion seconds ago - 285,192 years

Ok, I'm going on vacation. Later
Off to Martha's house

 

[MPS]

Anyone who thinks we are going to recover from this is a fool! We are on borrowed time! Do as H2Snow's signature says!


.

 

[Ollie]

Anyone who thinks we are going to recover from this is a fool! We are on borrowed time! Do as H2Snow's signature says!


.

Actually we can.
All we have to do is tank the US dollar to the point where inflation goes so high our foreign bonds become worthless. At that point we can pay a bunch of stuff off.

Of cource it will cost you 200 dollars for a loaf of bread, but hey, you can't have everything.

 

[Gainster]

Actually we can.
All we have to do is tank the US dollar to the point where inflation goes so high our foreign bonds become worthless. At that point we can pay a bunch of stuff off.

Of cource it will cost you 200 dollars for a loaf of bread, but hey, you can't have everything.

The sad thing is the tanking dollar is coming fast & people dont get it

 

[maluchm]

Actually we can.
All we have to do is tank the US dollar to the point where inflation goes so high our foreign bonds become worthless. At that point we can pay a bunch of stuff off.

Of cource it will cost you 200 dollars for a loaf of bread, but hey, you can't have everything.

How much does the US pay China on interest daily?

 

[blue fluff]

Funny you'd ask, I was just posting this. This morning Stu Varney of Fox Business Network said that we are paying China (not all the other countries we owe) 800 MILLION a WEEK in INTEREST alone. Every Trillion we add to the deficit equals $50 Billion a year in interest alone (52 weeks in a year - do the math).

This morning they announced that the CBO actually predicted 7 Trillion so the WH overestimated the prediction. I think that was carefully crafted AND to me the CBO numbers are tainted after BO's little unethical "talk" with the CBO a month or two ago after they kept turning out numbers that made the admin look bad.

July 22 from Fox:
"In an act that officials from previous administrations call "highly unusual", President Obama met with the head of the Congressional Budget Office (CBO) Douglas Elmendorf and others for about an hour in the Oval Office on Monday.Douglas Holtz-Eakin, CBO Director during President George W. Bush's administration, tells Fox he never met with Mr. Bush to discuss any CBO policies or estimates. Holtz-Eakin says the Obama White House didn't consider the ramifications of the meeting, "They didn't think about the position they're putting the CBO in, and as a result, they ended up with a little bit of a snafu in the public relations and that's not helpful in an already contentious process."...

House Minority Leader John Boehner didn't fault Elmendorf for attending the meeting, but did say, "I do wonder why the President invited him to the White House. He has a big job. He is the non-partisan director of the Congressional Budget Office charged with providing fair and neutral analysis of what legislation would cost and what impact it would have."...

Although Elmendorf is a Democratic appointee, some say he has done extensive political damage to President Obama and Congressional Democrats leading the charge on health care reform. It was Elmendorf who wrote that one House proposal does little to cut health care costs and it will have a negative $239 billion impact on the federal deficit."


http://whitehouse.blogs.foxnews.com/2009/07/22/wh-pushes-back-against-cbo-meeting-criticism/

 

[Ollie]

Lets not forget the other thing that was put out VERY quietly.
Unemployment over 10% by the end of december with the numbers not dropping below 8% till the middle of 2011.

 

[woodzy]

Being non-partisan and all, he SHOULD be giving us a non-partisan report of the happenings......

 

[blue fluff]

Why 9 Trillion is optimistic

Stu Varney from Fox Biz Network this a.m. summarized this Wall Street Journal article that shows three reasons these CBO projections are laughably implausible.

1. They assume that the gvt rate of spending will increase in line with inflation.
2. They assume there are going to be huge cuts in Head Start, Food Stamps, child nutrition programs. (Do you really expect this gvt to cut those by 1/3?)
3. 28 Million Americans are supposed to go and pay the alternative minimum tax (that's what these trillion dollar numbers are based on - all the extra revenue from AMT). Also, not going to happen. The Dems say they won't allow it to happen. That's a tax on the middle class.

Add it all up and the assumptions do not work out and the 7 or 9 Trillion dollar numbers are as the Journal says "laughably low."

From the Wall Street Journal article:

"Another doozy is that Nancy Pelosi and friends are going to allow a one-third or more reduction in liberal priorities like Head Start, food stamps and child nutrition after 2011 when the stimulus expires. CBO actually has overall spending falling between 2009 and 2012, which is less likely than an asteroid hitting the Earth.

Federal revenues, which will hit a 40-year low of 14.9% of GDP this year, are expected to rise to 19.6% of GDP by 2014 and then 20.2% by 2019—which the CBO concedes is "high by historical standards." This implies some enormous tax increases.

CBO assumes that some 28 million middle-class tax filers will get hit by the alternative minimum tax, something Democrats say they won't let happen. CBO also assumes that all the Bush tax cuts disappear—not merely those for the rich, but those for lower and middle income families as well. So either the deficit is going to be about $1.3 trillion higher than Washington thinks, or out goes Mr. Obama's campaign promise of not taxing those who make less than $250,000."

http://online.wsj.com/article/SB10001424052970203946904574301043095303118.html

 

[Gainster]

Blue have you seen this?

http://www.americanthinker.com/2009/08/its_official_obamanomics_has_f.html

Last spring Obama implored other countries to implement their own budget-busting, Obamanomics-style stimulus packages -- a would-be Europorkulus, if you will.


Fortunately for them, these countries didn't listen.


Despite being harder hit, Europe has shown signs of already coming out of the global recession, revising their economic numbers upward, while Team Obama marks U.S. figures downward.


France and Germany actually exited the recession last quarter. The leaders of both nations specifically and publicly rejected Obama's cries for Europorkulus. "It would be irresponsible to chose another policy, which would increase our country's indebtedness without having more infrastructure and increased competitiveness in the end," French Prime Minister Francois Fillon said at the time.


Yes, even the French have been more fiscally responsible in dealing with the recession than the Obama administration and the Democrat directorate in Congress.


And even though "Germany, with its heavy exports dependence, has been particularly badly hit by the global recession," its economy, too has turned the corner. Citizens of Germany should be glad that Chancellor Merkel didn't heed the call to resort to Obamanomics.

 

[maluchm]

Funny you'd ask, I was just posting this. This morning Stu Varney of Fox Business Network said that we are paying China (not all the other countries we owe) 800 MILLION a WEEK in INTEREST alone. Every Trillion we add to the deficit equals $50 Billion a year in interest alone (52 weeks in a year - do the math).

I think we should tell China we're going chapter 7/11. 800 Million a week?

 

[Gainster]

I think we should tell China we're going chapter 7/11. 800 Million a week?

Man, How many Chia Pets would that be

 

[woodzy]

and I thought my debt payments were bad!

 

[blue fluff]

Despite being harder hit, Europe has shown signs of already coming out of the global recession, revising their economic numbers upward, while Team Obama marks U.S. figures downward.

No! I hadn't seen that. I was in town running errands and hadn't looked at AT yet. Wow, I posted that to my Facebook page!