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.
Blowback
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And they can’t figure out why the payment has doubled on the mortgage loan they secured from that nice lending officer at that shopping center loan office that’s now empty. But that’s okay, because they voted for the guy who’s going to solve that problem for them.
BuckeyeSam on March 20, 2009 at 3:45 PM
NOBODY. ENTER. JOHNSON’S. BOMB. SHELTER. ;)
Kent18 on March 20, 2009 at 3:45 PM
As Caesar cross the Rubicon the Senate fled Rome and every single swinging Richard forgot to empty the treasury.
Limerick on March 20, 2009 at 3:46 PM
its amazing he’s doing this at 5pm vs. Oreily at 8pm and 11pm
jp on March 20, 2009 at 3:46 PM
WHEEEEEEE!
chunderroad on March 20, 2009 at 3:46 PM
Obama Administration, Beta
faraway on March 20, 2009 at 3:46 PM
Yeah, she might have insulted a close ally like Britain, or started a trade spat with Mexico.
rbj on March 20, 2009 at 3:46 PM
If Newt still has any brains and backbone, he would run for the Senate in 2010.
America needs another contract!!!
DannoJyd on March 20, 2009 at 3:46 PM
That’s a great point. I follow this stuff every day and I’m starting to get confused by all the chaos coming from Presidnet Obama’s administration. It’s almost better to believe it’s incompetance rather than an intentional effort designed to accomplish something else all together.
BadgerHawk on March 20, 2009 at 3:46 PM
I wish I could be so optimistic. The Precedent will kill us with his foreign policy and insane domestic enforcement regimes, regardless of the Congress. Like I said, it’s either him or us. The SCOTUS needs to do their job and throw him out, already. That might be the only Constitutional chance we have. Otherwise … all bets are off.
progressoverpeace on March 20, 2009 at 3:46 PM
he’s eyeing a POTUS run, if it gets bad enough
jp on March 20, 2009 at 3:47 PM
What do people expect when they continually elected “leaders” who have run nothing in their lives other than their mouths?
We have an unqualified incompetent in the White House and the majorities in Congress are headed by and compiled of unqualified incompetents.
No Democrat with any influence, possesses the knowledge, skills or abilities to get us out of this mess.
Their resumes are painfully thin. We need more than self-promoters, gaming commission heads, event planners and community organizers.
The American people are to blame for electing unqualified people to office, that’s the bottom line.
NoDonkey on March 20, 2009 at 3:47 PM
Oh the good old days when people just claimed that Bush spent the surplus on those silly tax cuts.
myrenovations on March 20, 2009 at 3:48 PM
This time Caesar’s already in Rome and the Senate is at his beck and call.
Kelligan on March 20, 2009 at 3:48 PM
we survived Carter…surely we can survive 4yrs of TOTUS
jp on March 20, 2009 at 3:48 PM
I remember a couple of years ago when Bush was pushing for Social Security reform. The dems went wild about it and how it would kill the economy to implement his plan.
Hell, with the money wasted over the last 6 months we could all have retired with a 5 figure monthly check if it all had been allocated to SS.
BacaDog on March 20, 2009 at 3:48 PM
Funny, no mention of the 1.4 trillion debt, two wars and an economic disaster he inherited.
Yeah, just ignore that part.
Or the 8 billion donated to our corrupt politicians by these bailed out institutions over the last 10 years to deregulate so they could get rich then crash the economy again.
At some point, Americans will have to fix this corrupt system because politicians will not do it.
getalife on March 20, 2009 at 3:48 PM
Omega.
progressoverpeace on March 20, 2009 at 3:48 PM
Well, rabble rousing communist tool, but, close enough.
Count to 10 on March 20, 2009 at 3:49 PM
Park a unicorn in your southernmost stall.
Kent18 on March 20, 2009 at 3:49 PM
I visited the comrade’s site and sent him his own quote (for the record, he also demanded in May 2007 that ALL troops be withdrawn from Iraq in 90 days)… his site required my full name, address and phone number. I’m sure I’ll be wire-tapped now and put on some enemies list somewhere.
mankai on March 20, 2009 at 3:49 PM
Even if he taxed the top 50% of wage earners at 100% he still wouldn’t be able to pay for his massive deficits. And nobody who works for their money – not even The Failed One’s puppetmaster, George Soros – will tolerate that kind of nonsense.
Wingo on March 20, 2009 at 3:50 PM
getalife on March 20, 2009 at 3:48 PM
You really are a silly girl.
myrenovations on March 20, 2009 at 3:50 PM
we better hope our Enemies(IRan, Russia, maybe China) are in worse shape than us and aren’t in any type of position to do anything crazy.
jp on March 20, 2009 at 3:50 PM
We have a ‘subprime’ Congress, a ‘subprime’ Treasury, and a ‘subprime’ President….and worst of all we now have a ‘junk bond king’ named Bernake.
All are running around like immature and reckless credit card holders. Charge everything and no credit limit. If the country does not get an adult in the room the next statement is going to be a mess.
Starlink on March 20, 2009 at 3:50 PM
This is going to be, one very,
expensive,Temple!!!!!!!!!!!!!!
And the Pillars,will cost extra!!!!
canopfor on March 20, 2009 at 3:50 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
Cant wait for the Omega of the Obama Era
faraway on March 20, 2009 at 3:51 PM
You’re joining the Tea Party? I’m stunned.
Limerick on March 20, 2009 at 3:51 PM
Congress is in charge of budgets and spending.
Democrat run since January 2007 when you guys inherited a $160 billion deficit.
Chuck Schick on March 20, 2009 at 3:51 PM
On top of it all, regarding AIG, Congress is worried about the deck chairs on the Titanic.
Starlink on March 20, 2009 at 3:51 PM
Just back from the late afternoon class.
BuckeyeSam on March 20, 2009 at 3:52 PM
We’ll be dreaming of such a small number soon… as we purchase a donut for 1.4 trillion.
mankai on March 20, 2009 at 3:52 PM
getalife on March 20, 2009 at 3:48 PM
And what makes your girlishness worse is that you don’t even thank Bush for all that he did last fall to get Obama elected.
myrenovations on March 20, 2009 at 3:52 PM
Funny, no mention of how Dem protection of Fannie, Freddie and the CRA almost solely let us to this point in time.
BacaDog on March 20, 2009 at 3:52 PM
Also getalife- there’s a difference between debt and deficit.
Look them up and come back, lest you want to make the normal idiot of yourself.
Chuck Schick on March 20, 2009 at 3:52 PM
At least when the hyper-inflation hits I can skip a meal and pay off that last $70k on my mortgage.
Kelligan on March 20, 2009 at 3:53 PM
Seriously, you can do better than that.
BadgerHawk on March 20, 2009 at 3:54 PM
mmmmmmmm…Donuts….
Johnson on March 20, 2009 at 3:55 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
Me too. And I hope that in 2012 we can regain enough control of Congress to stop the destruction. But lately I’m wondering if we can last that long.
Is this being covered in MSM? Streets ablaze as 2 million French strike on economy
petefrt on March 20, 2009 at 3:55 PM
Unreal!
And the Dems used to love complaining about $200 billion deficits under Reagan and Bush saying our children were drowning in red ink. I can’t believe America handed these assclowns so much power.
gsherin on March 20, 2009 at 3:55 PM
On the other hand, your annual property tax will be $70,000,000,000.
progressoverpeace on March 20, 2009 at 3:55 PM
Too little too late. We need a change NOW!
DannoJyd on March 20, 2009 at 3:57 PM
Workers demanding the ritual sacrifice of their own economy.
Count to 10 on March 20, 2009 at 3:57 PM
Well the good news is a trillion dollars won’t be considered that much money once hyperinflation kicks in.
Doughboy on March 20, 2009 at 3:58 PM
DarkCurrent on March 20, 2009 at 3:58 PM
Actually, I don’t think I am going to spend too much time worrying about this until I start hearing the word “gazillion” and every sentence is punctuated with “zoinks”.
myrenovations on March 20, 2009 at 3:59 PM
mankai on March 20, 2009 at 4:00 PM
You are absolutely right. Democrat terrorist A bomb, ugh! DOES make Bush look good!
DannoJyd on March 20, 2009 at 4:00 PM
Should be awkward going through the drive thru at McDonalds.
a capella on March 20, 2009 at 4:01 PM
Let’s see. Should I buy Baht or Rubles as a hedge?
BacaDog on March 20, 2009 at 4:01 PM
Carter is starting to look pretty good.
I didn’t think that was possible.
mankai on March 20, 2009 at 4:01 PM
Funny…
getalife on Mar 20,2009 at 3:48PM.
getalife:
Well,the 2 war talking points!!!!!!!!!!!!!!!!!
I predicted a week ago,after the Rush Limbaugh operation
winded down,
that, the next Distraction,that the economy,
is the fault of the war!
You Liberals are sneaky!!!!!!!!!!
—————————-
Hot Air Crew,be advised thats going to be the next OUTRAGE,
that the Liberals will frame the two wars as a drain on the treasury and therefore the economy!!!!!!!!!!!!!!
It’ll give the Ant-War Moonbats a direction to re-sh#t
distrub!!!!!!!!!!!!
canopfor on March 20, 2009 at 4:03 PM
I was in Zimbabwe last year and the guy who paid for dinner had a briefcase full of money for a $25 tab.
BacaDog on March 20, 2009 at 4:03 PM
Exactly right! And it isn’t a small majority that did so. 1/2 of Americans didn’t even vote. Of the half that did vote, a little better than half voted for that scum sucking shit bag Oslime-a. That works out to 75% of Americans didn’t vote or voted for Oslime-a. It’s no wonder Oslime-a is pushing his socialist agenda like there’s no tomorrow. 75% of Americans are idiots!
csdeven on March 20, 2009 at 4:04 PM
That’s what happens when you cut and paste the comments from the MSNBC link.
KelliD on March 20, 2009 at 4:04 PM
Like I’ve been telling people under Bush were on a freight train heading the wrong direction, but under Obama we may as well be on a Concorde or even the Starship Enterprise headed the wrong direction.
gsherin on March 20, 2009 at 4:04 PM
Be sure to get ‘Heirloom’ seeds. They will produce fruits and vegetables whose seeds will grow the next crop.
thomasaur on March 20, 2009 at 4:05 PM
I am not sure I would say classify this a bad news. The GOP will inherit a basketcase economy for sure. But unlike the Democrats, the GOP’s success is not dependent on wealth transfers to various criminal interest groups.
Drastic budget cuts will necessary. It could be the opportunity of a lifetime to shine and show the world what real fiscal conservatism is all about. Provided of couse, that we get the RINOs out the party.
Norwegian on March 20, 2009 at 4:06 PM
getalife, you need to look up the whitewashed history of Teflon Bob Rubin and how this all began when the Clinton Admin was used to begin the Ponzi scheme. It was entirely predictable that it would crash on Bush’s head and bring in the current Clinton Admin II to “clean up.” Geithner is a Rubin protege.
The problem here is that you’re exactly right and the leftists in charge now know it too. That’s why they know we have to collapse ASAP so it can be blamed on Bush. Geithner has no one on staff so he and Obama can just do whatever they want for a short while as a binary brain trust. There actually is a method to the madness, believe it or not. Along with the Dems in Congress, the goal is to redirect rage and use the crisis to loot the $$$ out of the system to allies (Bernie Madoff style) before the SHTF.
econavenger on March 20, 2009 at 4:07 PM
Yeah during Karter I was stoned most of the time that I wasn’t at work.
thomasaur on March 20, 2009 at 4:07 PM
Can I make a simple request…Please…Don’t send him back to Chicago!
ChicagoBlues on March 20, 2009 at 4:07 PM
After reading the GOP nuclear response…I read a couple of comments. The usual, ‘where were these guys when Bush was spending money like no tomorrow’. Bush may be been a spendy little guy, but Obama makes Bush look like a miser.
BTW, we need more of our new, fresher faces out there giving said ‘nuclear response’. Maybe a future GOP presidential candidate that we can meet now, in front of this debacle, and take the baton for 2010 and 2012.
HornetSting on March 20, 2009 at 4:09 PM
Gibbs is spluttering and blubbering incoherently, re: Ed’s Geithner revelation earlier today. ;)
Kent18 on March 20, 2009 at 4:09 PM
Uh, they are trying to return Gitmo terrorists to their respective countries of origin…sorry, Chicago, he’s all yours!
HornetSting on March 20, 2009 at 4:09 PM
Nah, the world is not laughing at us.
Top 10 gaffes by Barack Obama and Joe Biden.
carbon_footprint on March 20, 2009 at 4:09 PM
haha
carbon_footprint on March 20, 2009 at 4:10 PM
I wonder how many teleprompters you can buy for a Trillion dollars……………?
Seven Percent Solution on March 20, 2009 at 4:11 PM
Hey, aren’t you supposed to be keeping us updated on how well the Dow is doing? Oh, that’s right, it tanked again today.
And did you hear today’s news from O’bama’s “home state”? They had 15 mass layoffs in February. After Barry took office.
BTW, you seem to forget that B. Hussein didn’t “inherit” anything. He willingly took responsibility for it when he ran for President.
Del Dolemonte on March 20, 2009 at 4:11 PM
459 Billion a year. If you want to add in TARP, that was called for, encouraged, and designed by Paulson and Bernanke, both lifelong Democrats, you can get to 1.4. A good portion of that was also a Democrat driven stimulus check package that just caused me to owe money to my state instead of getting a refund. What caused them to make it anemergency? A 550 Billion dollar run on Money Markets. Still haven’t found out who coordinated the run.
Number one AIG donation recipient: Chris Dodd. Number 2: Barack Obama. Number One Freddie/Fannie: Chris Dodd. Number 2: Barack Obama. If you would actually go look what state these people come from (liberal New York), you’d find that the money was going primarily to: Democrats.
Ah, you used it. Yes, Republicans had a big part to do with it, but considering two wars, 9/11 and inheriting a recession, Bush did good until 2008, when he lost his mind. He should not have backed the stimulus or TARP, but he had lost all political capital by that point thanks to the MSM. He did warn 23 times, beginning in 2001, during his administration that the housing bubble would come and destroy the economy if the Democrat protected, CRA-driven subprime mortgage crisis wasn’t stopped.
However, your points are silly because to say “Oh, look at how bad the deficit was under Bush,” knowing that you defend Obama and he is quadrupling down! He’s trying to socialize this country in his first 100 days, even if it causes trillion dollar deficits.
PastorJon on March 20, 2009 at 4:12 PM
I can see property taxes being a flash point for some major unrest, especially in California.
As taxpayers and businesses flee and further reduce revenues to the state, some idiot in Sacramento will suggest repealing Prop. 13, not because it overburdens new buyers and forces prospective buyers out of the market, but because homeowners who have been in their homes, have been paying their mortgage faithfully for years, or own their home free and clear, are not paying “their fair share”.
This will have the effect of forcing people out of their homes who owe little to nothing on their property, or forcing people to take out loans to pay for the taxes. Somewhat similar to estate taxes where heirs are forced to sell assets to pay the government.
Helps to illustrate my point that property taxes are the most immoral and repugnant type of tax ever levied upon people, because it prevents property owners of ever being truly secure on their own land. Even if you own your home free and clear you still are at risk of seizure if a spend-happy legislature decides it doesn’t have enough of your money.
TheMightyMonarch on March 20, 2009 at 4:12 PM
That’s more appropriate … unfortunately.
progressoverpeace on March 20, 2009 at 4:14 PM
Funny, no mention of the 1.4 trillion debt, two wars and an economic disaster he inherited.
I realize you’re parroting the current Loony Left talking points, but that meme won’t fly here. Former ACORN lawyer/racist shake-down artist and the Senate’s “most liberal” member Obama played a large role in creating the current economic disaster. He was no innocent bystander.
Or the 8 billion donated to our corrupt politicians by these bailed out institutions over the last 10 years to deregulate so they could get rich then crash the economy again.
And just which corrupt politicians were at the top of the campaign donation list for those bailed-out institutions? That would be Obama, Dodd, Franks, etc.
At some point, Americans will have to fix this corrupt system because politicians will not do it.
The one correct point you made. And the very first item on our to-do list will be to get rid of the corrupt and incompetent Commie-in-Chief Obama.
getalife on March 20, 2009 at 3:48 PM
AZCoyote on March 20, 2009 at 4:14 PM
HornetSting on March 20, 2009 at 4:09 PM
It’s hard to expect well-thought out and rational arguments from people that watch MSLSD.
gsherin on March 20, 2009 at 4:15 PM
According to the GAO…. 1.5
Limerick on March 20, 2009 at 4:15 PM
It’s just money I’m sure they can get more of that from the printing presses. BO might just be one of those faces on the dollar bill.
Brat4life on March 20, 2009 at 4:16 PM
ROFLMAO…
Thank you Mr. President /snark
ChicagoBlues on March 20, 2009 at 4:19 PM
Funny, no mention of the $50 trillion in unfunded liabilities to Social Security and Medicare, both signed into law by Democrats?
Imagine applying for a new credit card to pay off your maxed out one. Now imagine you’ve been doing this for seventy-five years.
TheMightyMonarch on March 20, 2009 at 4:21 PM
No doubt about it. As inflation moves up, real estate appraisals will have to be redone more frequently, giving the state more oportunities to meddle in the property taxes, not coicidentally, while the governments (fed/state/local) all having growing deficits and unservicable debts. It’s ugly, and everyone will be trapped in it.
Worse than the inheritance taxes, since the property taxes are continual. At least inheritance taxes only happen every few decades on a piece of property.
That’s exactly correct, MM. It is the chasm the really lies beneath our concept of private property. In bad hyperinflation, the governments will end up owning just about everything, via the property taxes. First the local governments will start accumulating some property, then the states will move in, and finally the federal government will try to catch the wave. It is a tale of ugliness and chaos.
progressoverpeace on March 20, 2009 at 4:24 PM
By the time B.O. leaves office, there won’t be any one dollar bills.
He’ll probably be the face on the first trillion-dollar bill. But the joke’s on him, ’cause that will only be in circulation for about a year before it’s not worth printing anymore.
Ha ha. Take that, Barry!
logis on March 20, 2009 at 4:27 PM
Indeed.
HornetSting on March 20, 2009 at 4:27 PM
Oh.
My.
God.
An anti-Obama article…at THE HUFFINGTON POST!
;)
Kent18 on March 20, 2009 at 4:28 PM
Spending to avoid a complete economic collapse doesn’t indicate a love of deficits. It’s more about surviving and avoiding a major downward spiral into depression. Obama has a strong team of economists behind his policy- and you may disagree with the outcome- but there’s a strong consensus behind massive federal support of large financial institutions like AIG and failed banks. Personally, the AIG situation makes me sick, esp. given the outflow of AIG payments to foreign banks.
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
…..And in other news, the rivers have run red with blood….
HornetSting on March 20, 2009 at 4:29 PM
getalife on March 20, 2009 at 3:48 PMSo I guess you’ll finally be voting Republican next time. Good to hear.
PappaMac on March 20, 2009 at 4:30 PM
Dude, it is about 12 days until April 1st. This has to be a Rick Roll.
carbon_footprint on March 20, 2009 at 4:30 PM
Well it was snowing in New York today.
PappaMac on March 20, 2009 at 4:32 PM
If so, it’d almost (almost) be worth it, as the single greatest Rick Roll of all known, recorded time and space! ;)
Kent18 on March 20, 2009 at 4:33 PM
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
And Ogabe decides to arrest that “failure” by heaping on the spending proposals which are never ending.
Spin away, top.
Bishop on March 20, 2009 at 4:35 PM
I took a look at it.
Heh.
progressoverpeace on March 20, 2009 at 4:38 PM
Wow, as much as I dislike the man, what an incredibly poor job Obama is doing. It’s a function of his immaturity, naivete arrogance and the fact that he thinks he is much smarter than he is…and those are the reasons why it will not get better.
He is by all fair assessments, an incredibly poor president.
AmericanUnderground on March 20, 2009 at 4:39 PM
Yep. Same defense by the libs, every single time. But so-n-so did. They haven’t any idea that now that someone else is in charge of current events….them. Same old finger pointing.
As Johnny lays on the ground with a ice pick through his temple they shout…
“Mommy! Johnny hit me first!”
Limerick on March 20, 2009 at 4:40 PM
You skipped the whole part where the banking crisis hasn’t been handled, while over a trillion and a half of WASTE has been forced on us (along with other legislative goodies in the idiotic legislation, like the bonus amendment) with the banking crisis being HELD HOSTAGE to get it all through. And “held hostage” is exactly what The Precedent is doing to the banking crisis to get more of his revenge on the US.
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
Teleprompter
bijou on March 20, 2009 at 4:46 PM
I hope the GOP realizes that only a complete rollback of these foolhardy porkulus bills is acceptable.
Not trimming the margins.
COMPLETE ROLLBACK.
PattyJ on March 20, 2009 at 4:59 PM
But add trillions in new spending to
Bush’sRoosevelt’s, Johnson’s, Carter’s, and sixty plus years of Congressional Democrat rule’s $10 trillion gift.Fixed (albeit with some likely major grammatical errors).
TheMightyMonarch on March 20, 2009 at 5:02 PM
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