CBO: Annual deficits will be much worse than Obama thinks

posted at 3:15 pm on March 20, 2009 by Allahpundit

Good news and bad news. The good news is, the GOP’s chances of a comeback are looking brighter than ever. The bad news is, I’m not sure what’ll be left for them to come back to.

To put these numbers in context, bear in mind that last year’s deficit of $459 billion was the largest on record.

In a new report that provides the first independent analysis of President Obama’s budget request, the nonpartisan Congressional Budget Office predicted that the administration’s agenda would generate deficits averaging nearly $1 trillion a year over the next decade — $2.3 trillion more than the president predicted when he unveiled his spending plan just one month ago.

And while Obama would come close to meeting his goal of cutting the deficit in half by the end of his first term, the CBO predicts that the nation’s annual operating deficit would never drop below 4 percent of the overall economy over the next decade, a level administration officials have said is unsustainable because the national debt would grow too rapidly.

By the CBO’s estimate, for example, the nation’s debt would grow to 82 percent of the overall economy by 2019 under Obama’s policies, compared with a pre-recession average of 40 percent…

Senate Budget Committee Chairman Kent Conrad (N-N.D.) has said the gloomier CBO forecast would require “adjustments” to Obama’s budget, though he declined to specify what changes would be necessary.

Adjustments in numbers or adjustments to the whole grand Great Society II scheme? Only the former, promises Obama budget guru Peter Orszag, vowing not to sacrifice The One’s health care/energy/climate change/education agenda. To which I say, we’ll see about that. Robert Reich lays it out plainly: “The Wall Street bailout is starting to look like the most expensive tax-supported fiasco in history… The president cannot afford to lose the public’s confidence that his administration is a careful steward of the public’s money. The public was willing to go along with a large stimulus package. But it won’t go along with a second stimulus, and certainly not another TARP. And until the public feels confident that its money isn’t being thrown down a rat hole, it may balk at other ambitious undertakings such as healthcare or education or the environment.” Indeed, which means all that stands between Obama and a congressional revolt is the bank-healin’ mojo of … Tim Geithner. Good luck, Barry. Exit question: Why do I have a sudden irresistible urge to start watching Glenn Beck?

Update: The GOP goes appropriately nuclear.


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” The president cannot afford to lose the public’s confidence that his administration is a careful steward of the public’s money. ”

huh

HUH

notagool on March 20, 2009 at 5:06 PM

Ha! read the comments on the MSNBC page. Oh my gosh…

It’s classic deflection…

…they continually refuse to see what their party is doing RIGHT UNDER OUR NOSES…and remind us what Booooosh did. I mean, sure…true conservatives were mad then, too. Remember the outrageous outrage? I do…I called my reps. But, nothing NOTHING NOTHING compares to what is happening right freaking now. They act so disgusted with the spending that Bush did while belying their own partisan hackery. It is an utter dissonant nightmare with these people…hate billion dollar deficits during Bush, love TRILLION DOLLAR DEFICITS under Obama.

Mommypundit on March 20, 2009 at 5:26 PM

Mommypundit on March 20, 2009 at 5:26 PM

Exactly the point I was trying to make. Obamabots come into any argument with the preconception that their guy can’t do anything wrong. Hell the deficit practically triped between FY 2006 and FY2007 from like $160 billion to $459 billion before any of the fiscal crisis really hit and gee guess what changed in between those 2 years? oh that’s right Pelosi, Reid and the other geniuses took control of congress.

gsherin on March 20, 2009 at 5:39 PM

The larger problem is the nearly $10 trillion in debt that Obama inherited. If Bush had done nothing more than stayed Clinton’s course on taxes and spending, then Obama would have inherited a number closer to $4 trillion in outstanding debt. Under those circumstances, the current deficit spending wouldn’t be such a threat to our long-term liquidity and to the dollar’s value. But add trillions in new spending to Bush’s $10 trillion gift, and you have a major problem. And there’s not much that we can do about it. Cheney said early on that ‘deficits dont matter’ and that became the nation’s policy for 8 years. What a failure.

bayam on March 20, 2009 at 4:29 PM

Sigh, bayrum, you’re just as clueless here as you were at Captain’s Quarters.

Bush inherited a few things from Clinton, too, you know. He inherited a recession, inherited a corrupt Fannie Mae and Freddie Mac stuffed like fruitcakes with Clinton moles, and also inherited an Islamic terror threat which Clinton had brushed off as a “law enforcement problem”, not a “national security problem”. We all know how that last one worked out.

Likewise Bush inherited from Clinton an increasingly dangerous Iraq, a country that Clinton himself had advocated regime change in.

When Bush tried to reform Fannie and Freddie, the Democrats in Congress refused to let his proposals even get out of the committees they chaired. And these were Democrats getting serious pocket change from Fannie and Freddie and other fat cats.

Bush’s Presidency was transformed before it even began by events he could not control. Look elsewhere for someone to blame.

Del Dolemonte on March 20, 2009 at 5:48 PM

CBO: Annual deficits will be much worse than Obama thinks

More accurately,

Annual deficits will be much worse than Obama pretends

JudetheFossil on March 20, 2009 at 6:13 PM

bayrum,

Clinton’s was a Ponzi Presidency. You’re lucky that Bush was a naive, willing sucker and scapegoat for it.

econavenger on March 20, 2009 at 6:13 PM

The larger problem is the nearly $10 trillion in debt that Obama inherited. If Bush had done nothing more than stayed Clinton’s course on taxes and spending, then Obama would have inherited a number closer to $4 trillion in outstanding debt. Under those circumstances, the current deficit spending wouldn’t be such a threat to our long-term liquidity and to the dollar’s value. But add trillions in new spending to Bush’s $10 trillion gift, and you have a major problem. And there’s not much that we can do about it. Cheney said early on that ‘deficits dont matter’ and that became the nation’s policy for 8 years. What a failure.

bayam on March 20, 2009 at 4:29 PM

What an absolute crock of sh!t. You people are delusional.

Chuck Schick on March 20, 2009 at 6:22 PM

Clinton was the recipient of other people’s work. He was president during one of the easiest times in history. The fact that he ignored the gathering threat from terrorist attacks overseas not withstanding and the what the next logical target could be.

No cold war to spend tons of money and political capital on. Economy had been recovering for 2 years prior to him taking office, unemployment was heading down, low inflation, and interest rates, etc.

And he was there right when the internet became all the rage even though it turned into another huge bubble and also the Y2K scare that created tons of temp jobs for that.

His last 6 years with a GOP house were nowhere near the same as his first 2 years. He signed Welfare reform, capital gains tax cuts, telecom dereg, tighter budget controls, etc. none of which would ever pass under a Dem congress.

gsherin on March 20, 2009 at 6:23 PM

If we keep on having more of these facepalm moments I’m going to have a permanent dent in my forehead.

Yakko77 on March 20, 2009 at 6:24 PM

Looks like Barry will be the first sitting president on a U.S. coin….the Zero Cent.

Limerick on March 20, 2009 at 3:55 PM

I read a comment from Tombstone, AZ that a local gas station had a zero dollar bill taped to the register. It had Obama’s face on it and said, “Me the People.”

chunderroad on March 20, 2009 at 6:40 PM

He’s holding our banking crisis hostage while he tries to kill our society and economy. Do you understand that?

progressoverpeace on March 20, 2009 at 4:42 PM

Well put.

econavenger on March 20, 2009 at 6:42 PM

If we keep on having more of these facepalm moments I’m going to have a permanent dent in my forehead.

Yakko77 on March 20, 2009 at 6:24 PM

i doubt we’ll get any more serious facepalm moments…at least not after that DVD business…id never truly appreciated the moment of utter facepalm till that happened.

ernesto on March 20, 2009 at 6:50 PM

Exit question: Why do I have a sudden irresistible urge to start watching Glenn Beck?

Let it all out, AP. Remember, weeping lets the boo-hoos out. You’ll feel better in the morning.

tom on March 20, 2009 at 7:13 PM

bayam:

Oh for heavens sake, what decade are you in?

Bush inherited national debt. The socalled surplus was gone before he laid his hand on that bible and the truth is the deficit was about $153 billion when Pelosi and Reid took over in 2006. Two years later, look where it was.

I know that people like yourself want all the power and none of the responsibility, but if Clinton had dealt with Osama, resolved the stand off with Saddam and avoided created that Ponzi scheme over at Fannie Mae, Bush might have inherited a very different economy himself.

Terrye on March 20, 2009 at 7:56 PM

Today an Obama fan told me that she was not worried about the future debt…after all thanks to global warming and the in general sorry state of the world we would probably all be dead in the not too distant future.

Hope and Change!

Terrye on March 20, 2009 at 7:58 PM

Something to ruin your day:

I checked the price of gold this morning. It was $951.80 per troy ounce.

You know those gold bricks you see in the movies? They’re called “London” bricks and they’re 200mm long, 90mm wide and 45mm tall and consist of 400 troy ounces of Gold.

Then I checked the national debt.

At 07:17:00 this morning (pacific time) the national debt was $11,040,559,441,396.49

So…

With the amount of gold it would take to pay off the national debt today you could:

A. Lay “London” gold bricks end-to-end from Dover, Delaware to London, England or…
B. Stack gold bricks one on top of another 810 miles straight up. Note that the shuttle mission which placed the Hubble Space Telescope into orbit reached an altitude of 385 miles. This was the STS-31R mission, launched on April 24, 1990. This mission apparently holds the record for the highest altitude for a space shuttle. Which means this stack of gold bricks would be over twice as high as the highest space shuttle orbit in history!

Browncoatone on March 20, 2009 at 8:03 PM

BEST READ EVER!!!

The Big Takeover in the Rolling Stone.

We all need to understand what the finance world and government is doing to us. So read this and become INFORMED. Most don’t get it; we’re considered Stupid, so we deserve getting screwed. So read this and learn, and get Very Angry.

Btw, if you’ve read this article… where do you think Obama fits within all this?? I can’t conceive of him being smart enough to have a clue… (i.e, he’s off in his narcissistic socialist fog)

Geofizz on March 20, 2009 at 8:08 PM

The CBO obviously believes they are dealing with a rational human being. You think the mullahs in Iran are immovable. Barry is going to go down his own road, HANG THE COST.

GarandFan on March 20, 2009 at 8:37 PM

HEY! THE MAN RAN A WINNING CAMPAIGN AND ORGANIZED…uh…STUFF! LAY OFF!!!!

Dr. ZhivBlago on March 20, 2009 at 8:53 PM

Bush inherited a few things from Clinton, too, you know. He inherited a recession, inherited a corrupt Fannie Mae and Freddie Mac stuffed like fruitcakes with Clinton moles, and also inherited an Islamic terror threat which Clinton had brushed off as a “law enforcement problem”, not a “national security problem”. We all know how that last one worked out.

Don’t forget Enron/Worldcom, the tech bubble, and an aggressive China.

Bush’s first few years he had to clean up Clinton’s messes AND deal with the rising Islamist threat.

It is interesting to speculate what the last eight years would have been like if Clinton had taken Osama any one of the times the Sudanese offered him to us, and made a serious effort to reform entitlements.

18-1 on March 20, 2009 at 8:55 PM

Will he dare have a champagne and caviar party in the WH this week? Does he have the guts?

sherry on March 20, 2009 at 3:51 PM

Yes he can!

18-1 on March 20, 2009 at 9:04 PM

Today an Obama fan told me that she was not worried about the future debt…after all thanks to global warming and the in general sorry state of the world we would probably all be dead in the not too distant future.

Hope and Change!

Terrye on March 20, 2009 at 7:58 PM

I remember lefties arguing that Bush wasn’t destroying our economy to stop Global Warming because he believe that the Rapture was coming anyway.

It would appear yet another example of leftist projectionism…

The reminds me – shouldn’t we all be dead due to global warming by now? 100 feet under sea level or frozen in ice, or whatever it was Global Warming was going to do to us?

18-1 on March 20, 2009 at 9:06 PM

CRIPPLE-IN-CHIEF

RealDemocrat on March 20, 2009 at 9:17 PM

if Clinton had dealt with Osama, resolved the stand off with Saddam and avoided created that Ponzi scheme over at Fannie Mae, Bush might have inherited a very different economy himself.

Terrye on March 20, 2009 at 7:56 PM

Hey, we do have to give Arkansas Slick a little credit. Even an admitted Clinton-hater like myself admits that he did some good things.

1. Re. Osama bin Laden, Clinton correctly concluded that he was in cahoots with Iraq. His Justice Department indicted Ozzie on that very charge, as a matter of fact.

2. As for Saddam, Mr. Bill also correctly concluded that he had WMDs and wanted to make more.

3. He also advocated removal of Saddam. He just never got around to actually doing it, as he was busy at the time making Yasser Arafat cool his heels in the Rose Garden while he shared cigars with a female workplace subordinate in the Oral Office.

Del Dolemonte on March 20, 2009 at 9:26 PM

The next time we see Obama selling his agenda on TV may be on a show as ridiculous as the predicted deficit; the Jerry Springer Show.

Pardonme on March 20, 2009 at 10:16 PM

Good news and bad news. The good news is, the GOP’s chances of a comeback are looking brighter than ever. The bad news is, I’m not sure what’ll be left for them to come back to.

Uh, then why are you always ripping on Glenn Beck and the rest of us “alarmists”?

RightWinged on March 20, 2009 at 10:22 PM

A majority of Americans will still believe the Teleprompter President, who has never run a business in his life, over the non-partisan CBO. God Help America.

Birdseye on March 20, 2009 at 10:25 PM

DO NOT PANIC!!!

getalife will be along shortly to explain how 0bama will crap a rainbow and make it all better!

Hope(TM) is on the way!

SuperCool on March 20, 2009 at 11:40 PM

SuperCool on March 20, 2009 at 11:40 PM

for sure

Jamson64 on March 21, 2009 at 12:20 AM

DO NOT PANIC!!!

getalife will be along shortly to explain how 0bama will crap a rainbow and make it all better!

Hope(TM) is on the way!

SuperCool on March 20, 2009 at 11:40 PM

Getalife has a bus to catch.

Doctor Zero on March 21, 2009 at 12:42 AM

I came to this thread twice but I can’t post anything.

I am too upset. Too scared.

TN Mom on March 21, 2009 at 1:04 AM

I don’t think Obama is turning out to be a very good president.

Jim Treacher on March 21, 2009 at 1:13 AM

What is wrong with you people? Since Obama was elected I have unicorns shitting rainbow colored cotton candy and ice cream in my front yard! Little blue birds come to sing at my window in the morning to wake me so I can go to that job I no longer have.

I have to disagree with Michelle though…for the first time in my life I’m ashamed of my country. I know there are a lot of people out there who didn’t, but to think a large portion of our citizens(and likely a good number who weren’t citizens, Thanks ACORN) voted this American Idol reject into office makes my head hurt. I’ve come to the conclusion that a large portion of Americans deserve exactly what they are going to get.

BadMojo on March 21, 2009 at 1:28 AM

The CBO obviously believes they are dealing with a rational human being. You think the mullahs in Iran are immovable. Barry is going to go down his own road, HANG THE COST.

GarandFan on March 20, 2009 at 8:37 PM

Damn the torpedoes, full speed ahead

Johan Klaus on March 21, 2009 at 2:43 AM

I don’t think Obama is turning out to be a very good president.

Jim ‘Captain Obvious’ Treacher on March 21, 2009 at 1:13 AM

Mr Purple on March 21, 2009 at 4:32 AM

Mr. Treacher
That depends on your perspective. If you are a tyrant in Iran or Thug like Chavez he is a very good president. One should always find the silver lining in things.

rob verdi on March 21, 2009 at 4:59 AM

Obama is good for Iran, Chavez and other thugs around the world. Obama is bad for working Americans.

bej on March 21, 2009 at 7:43 AM

Lets call them the 85 Weimar Republicans

http://michellemalkin.com/2009/03/19/roll-call-vote-breakdown-the-85-house-republicans-who-supported-rangels-90-percent-bonus-tax/

Just because spending never led to prosperity, why not try monetizing our debt.

It turned out so well for Germany.

Paging, Ms. Merkel.

Angry Dumbo on March 21, 2009 at 10:09 AM

http://www.americanpatrol.com/RECONQUISTA/NUNEZ-FABIAN/UnionCdGreenCd000800Nunez.html

RoastBeefers??? ha ha ha

RealDemocrat on March 21, 2009 at 10:57 AM

Re shocks to the economy, here’s a comment by a Canadian doctor, speaking about Natasha Richardson’s treatment, about socialized health care:

“It’s impossible for me to comment specifically about her case, but what I could say is … driving to Mont Tremblant from the city (Montreal) is a 2 1/2-hour trip, and the closest trauma center is in the city. Our system isn’t set up for traumas and doesn’t match what’s available in other Canadian cities, let alone in the States,” said Tarek Razek, director of trauma services for the McGill University Health Centre, which represents six of Montreal’s hospitals.”

So are we willing to sacrifice helicopters for universal care? We can’t have everything, so I hope the Obamabots are ready for this.

PattyJ on March 21, 2009 at 12:31 PM

Helicopters and Carbon Footprints?

RealDemocrat on March 21, 2009 at 12:45 PM

How about this…all of us that voted for Bush split the cost of “his” deficit and all those that voted for Obama split the costs associated with HIS deficit. How many new registered republicans do you think that would net?

mctowler on March 21, 2009 at 7:20 PM

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031904008.html

Another Windex-wielding worker from Wal-Mart eh? Please don’t seperate him from his family, that would be un-American….ha ha ha ha

RealDemocrat on March 22, 2009 at 12:56 AM

Giving money to Democrats is about as responsible as giving booze and car keys to a teenager.

Maxx on March 22, 2009 at 1:41 AM

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