President Barack Obama admitted today that his estimate of the budget deficit was off a little, by a mere $2 trillion. According to the Obama administration, the U.S. will run a $9 trillion deficit over the next 10 years — $2 trillion more than it forecasted earlier this year.
Add that to the national debt which is already $11 trillion, and you get a $20 trillion debt by 2019. How much of that will be in the form of government bonds that will be issued to China? Who knows. But, for sure, our grandchildren will be paying for our mistakes.
In its mid-year budget review, the administration admitted that the economy is much worse at this point than it had originally anticipated. Unemployment is way higher than Obama thought it would be, and the economy is still shrinking (though not as badly as it was earlier this year). Because the economy will be bad for years to come, federal tax revenue will be far lower than anticipated. Thus, the deficit will be much greater than Obama originally thought.
From this estimate, it looks like the stimulus package didn’t do a whole lot except make Wall Street bonuses bigger this year.
Obama’s estimates may have to be revised again, as the current estimate expects a quick return to growth in 2010. If we have a double-dip recession or growth is less than expected, the deficit estimates may grow again. Obama was wrong the first time around, so perhaps he will be wrong again.
What does this mean for you? Be prepared for a lost decade.
August 25th, 2009 at 1:08 pm
Wow, I’m soooo excited over the new upgrade Snow Leopard for Mac. I’ve been using Mac for work for many years now and this new surprise arrival is very much accepted and long awaited. Thanks MAC. The prices I think are pretty reasonable. What do other people think of this? I would love to get some feedback. Thank you and have a great day and enjoy your new Snow Leopard upgrade.
August 25th, 2009 at 1:26 pm
What? A spammer got through?
August 25th, 2009 at 1:43 pm
This is great just great, because it’s great that we’re stealing our children’s future.
August 25th, 2009 at 3:20 pm
We’re all screwed. That’s all I have to say, we’re all screwed, and not in a good way.
August 25th, 2009 at 5:50 pm
Here’s some interesting news today
WASHINGTON (Reuters) Aug. 23, 2009
“- The $787 billion stimulus package passed in February will fuel a recovery in the moribund U.S. economy this year, Congress’ non-partisan budget watchdog said on Tuesday.”
“Economic activity will begin to rebound in the second half of 2009, largely the result of fiscal stimulus,” the Congressional Budget Office said in its assessment of the federal budget and U.S. economy.
August 25th, 2009 at 6:18 pm
What will it take for the American people to wake-up and see what the hell they voted for? By the time 2012 rolls around we may be too far gone.
August 25th, 2009 at 6:40 pm
Hyper inflation, here we come! Spend your dollars before it is worth less than toilet paper.
August 25th, 2009 at 7:30 pm
Well if you ask me how to cut the Federal deficit this is how, because if we don’t were dead as that dead raccoon laying on the highway right now.
1. We need to work out away mainly through people investing in renewable energy like Nuclear and Geothermal and they’ll receive the revenues from there investment to purchase health insurance and this could work to get rid of Social Security and medicare. Also from your investment if your out of work you can receive money to purchase healthcare so yes this would get rid of medicaid.
2. Get rid of the Department of Agriculture,education,transportation, labor, energy,labor, and get rid of a serious of other departments that are useless to me.
3. Cut everything back to what they were under Bush.
4. Cut all the minor Federal departments that you keep by at least 10%.
5. Privatize all of our prisons and you can do that by bring back those old english work houses. Now I’m not talking about anything like slave labor, because I’m talking about something like 40 hour work weeks and they produce something simple like cotton or anything we can’t have in the US do to cost.
6. Limit welfare to two years and turn it into a loan. Also do my privatization idea and give that a try.
7. Earmark mainly do to that being a no brainer.
8. We should cut Nasa we don’t need to go to Mars by the year 2020, because we can wait till 2030.
9. Get the government out of paying for abortions, because I’m not even a very religious person yet I it’s wrong to fund murder.
10. The current interest on the debt is what somewhere in the realm of 500 billion dollars. So the best possible way to get rid of spending is by eliminating are national debt. Now I support a 30% tariff to replace the income tax and all the other current taxes. Yet I also support a state import tariff which I feel would be good to pay off our debt. Now the only way I would support this is if we were to make 5% to 10% and all revenues of it go to fund paying off our national debt. And we add an amendment to this bill saying that this would be stopped once are debt is below 2 trillion dollars.
Now I highly doubt anyone would ever support my ideas except for maybe Ron Paul, but the chance of him getting elected is a million to one. Are only way to fix America is true cutting taxes and cutting spending, but the most important thing we should have as a nation is to recover from our debt. Also I’m not an anti-government weirdo, but I’m about the only honest man left. Just think about it get rid the income tax and still balance the budget, because this is what it takes.
August 25th, 2009 at 7:31 pm
[...] Obama Budget Deficit Estimate Revised; Federal Budget Deficit To Double In Decade (rightpundits.com) [...]
August 25th, 2009 at 9:04 pm
Gee. From what I understand, things are starting to pick up a little. Home sales are up. Consumer confidence is up. The market is up. Employment still sucks, but it always trails in a recovery.
Oh, let’s not let things get better! If things get better, then you are screwed. Clinton’s big ace in the hole was, it was really, really good times economically for America. We don’t want that to happen! Then we be stuck with Obama for eight years, and your little conservative fantasy land that’s taken over control of the media and the country might be threatened.
You make me sick. I got a family to feed. I hope we take off big time. Screw you and your doom and gloom.
I got no problem with conservatism. There is a place for conservatism. I think that DDE was the God damndest President we ever had. But what gripes me is, you want us all the go down the tubes, for political reasons. We need to all get behind our President. We need to succeed. We need for America to succeed. Screwe you and Rush Limbaugh and the whole kitt and kaboodle.
August 25th, 2009 at 10:15 pm
Klo-
the last thing I want is for us to go down the tubes, but that us exactly where we are headed with this administration. When is the Pres going to realize that it is not the government that drives the economy? People with jobs who but products are what is going to get us out of this, not more government.
August 25th, 2009 at 10:29 pm
Actually if you cowed to the fear invoking press you would not have invested in stocks or bonds in march, and would not be up 50 percent(on stocks) and 15-20% ib bonds now. So, while a wise person will diversify into a mixed basket of currencies, including the dollar, and precious metals, and buy inflation plus protected assets(stocks poised for growth, inflation protected bonds), its likely when the U.S. recovers the tax revenues will be hugemongous. Why, because earning sre going to go way up in our lean mean cost cutting companites when the juice turns back on. I wouldn’t count the dollar out, and in fact, predict the dollar will stregthen in such an environment. There is a huge amount of pent up demand peaking thru the latest consumer spending numbers. Its likely more and more money market monies will jump ship into equities, bonds, real estate, gold, whatever for a number of reasons. There will always be corrections on the way, dips, bear markets, etc, but over all the trend is up, up, up. Doubt me, then bet against everything I am saying. Till then. You forget the country you champion has the most unique wealth creation machine this world has ever seen due to innovation, flexibility, hard work, vision, and perseverance, and a penchant for the next best thing.
August 26th, 2009 at 12:24 am
teddy is dead
August 26th, 2009 at 1:52 am
[...] Details about this technology news can be found here @ http://www.rightpundits.com/?p=4658 [...]
August 26th, 2009 at 3:09 am
Doesn’t this mean Obama should spend more???
August 26th, 2009 at 5:23 am
Ted Kennedy is died
August 26th, 2009 at 5:23 am
Ted Kennedy has died today.
Sorry about the last statement.
August 26th, 2009 at 6:37 am
cancer is s terrible disease. support more research if you can.
August 26th, 2009 at 8:07 am
Klo;
“Gee. From what I understand, things are starting to pick up a little. Home sales are up.”
BS, Foreclosures are at an all time high.
“Consumer confidence is up.”
Not at all, you’re lying or very uninformed.
” The market is up.”
For now, the volleys are more predictable than anything.
” Employment still sucks, but it always trails in a recovery.”
Still, its projected to go to over 10%
“Oh, let’s not let things get better! If things get better, then you are screwed.”
In order for people to recognize failure they have to see it. The more Obama fails the quicker we can get back to some sort of centrism. I want things to fail big time, almost catastrophic. Thats way hopefully it’ll be a long time before we go down this road again.
I’m willing to pay that price of roughing it out like never before just to make sure this sh*t never happens again.
Yes, I want failure of biblical proportions.
“Clinton’s big ace in the hole was, it was really, really good times economically for America.”
What most people like you dont know is that it was Bush seniors policies that gave him that surplus.
“conservative fantasy land that’s taken over control of the media and the country might be threatened.”
Now I know you’re high. Just how f*ckin stupid can one person be ?
You make me sick. I got a family to feed. I hope we take off big time. Screw you and your doom and gloom.”
Yes, and its your resposibilty, no one elses.
I got no problem with conservatism. There is a place for conservatism. I think that DDE was the God damndest President we ever had. But what gripes me is, you want us all the go down the tubes, for political reasons.”
No, we want Americans to do what they do best without having huge government do it for us.
I guess not having someone feed your kids for you is considered “down the tubes ” ?
” We need to all get behind our President.”
That option is being considered less and less by people on your side of the aisle, the honeymoon is over. If he needs us behind him its so we can push him in the direction of submitting his resignation.
” We need to succeed. We need for America to succeed. Screwe you and Rush Limbaugh and the whole kitt and kaboodle.”
“America” meaning us the people
Or your huge federal nanny ?
——————————————
What really sucks is that first, it aint over yet. Hes not done piling it on. Thers plenty more legislation and policies in his chest waiting to be worked on that will cost us more money we dont have, and second, tradition almost gurantees these deficits and debts will be triple, at least double, what they are always projected to be
August 26th, 2009 at 10:16 am
@Brian: I’m going to agree with you for once. Nobody deserves that disease.
@Micky: Couldn’t have said it better myself.
August 26th, 2009 at 4:11 pm
This is just a reminder.
In the eight years that Reagan was the President, the National Debt grew from ~$907 Billion to ~$2.602 Trillion. During that eight-year period, the National Debt grew at an average rate of 14% per annum.
The projected deficit of ~$9.33 Trillion over the next ten years would mean that the National Debt would increase by ~$11.5 Trillion over that period. The difference between the $9.33 Trillion and the $11.5 Trillion is represented by the additional T-Bills that will be held by the Social Security Administration.
The debt on October 1, 2008 was $10.124 Trillion, so the projected debt on October 1, 2018 will be ~$21.624 Trillion. That makes the projected average rate of increase for that 10-year period equal to 7.88% per annum.
That is just over half the average rate of increase for the National Debt under Reagan’s two terms.
.
.
.
By the way, Bush Sr. took the National Debt from ~$2.602 Trillion to ~$4.064 Trillion in four years. The rate of increase in the National Debt during his four years was an average of 11.79% per annum.
During Clinton’s two terms, the National Debt increased to ~$5.674 Trillion. The average rate of increase in the National Debt during his eight years was 4.25% per annum.
Then Dubya increased the debt ~$10.626 Trillion in his eight years. The average rate of increase in the National Debt during his two terms was 8.15% per annum.
Of course, in Dubya’s last year the rate was a little higher. The National Debt went from ~$9.188 Trillion to ~$10.626 Trillion during that last year, which was a rate of 15.65% per annum.
It got even worse in Dubya’s last six months of office. During that last six months, the National Debt increased from ~$9.518 Trillion to ~10.626 Trillion, which was a rate of 24.63% per annum.
Obama’s first 6 months saw the debt increase to ~$11.601 Trillion, which is an annual rate of 19.19%. Considering what Obama inherited, things are improving. Of course, we won’t really know for sure for a couple of years.
August 28th, 2009 at 4:24 pm
By the way….
Taking the figures from the above post.
The National Debt stood at $907 Billion on 9/30/1980. It reached $11.601 Trillion on 7/30/2009.
Over that 28 years and 10 month period, the average rate of increase in the National Debt was 9.241% per annum.
READ THAT AGAIN
9.241% per annum for a period of twenty-eight years and ten months.
The projected increase in the National Debt for the next ten years is projected to be how much???? ~7.88% per annum.
HELL….if the rate of increase in the National Debt continued at the same average rate for the next ten years as it has grown for the last ~29 years, the National Debt on 7/30/2019 would be $28.07 Trillion.
If it continues at an average rate of 7.88% for the next ten years, the National Debt on 7/30/2019 would be $24.768 Trillion.
The projected increase in the debt is 12% less than what would be expected for the National Debt if the trend of the last three decades were to continue unabated.