Deficit Projections Way Up

From Expo Business New deficit projections pose risks to Obama's agenda

The White House budget office and the Congressional Budget Office (CBO), a non-partisan arm of Congress, release updated economic forecasts and deficit estimates on Tuesday, providing further fiscal fodder to opponents of Obama's nearly $1 trillion healthcare overhaul plan.


Many of the figures are already known.


The White House has confirmed that its deficit estimate for the 2009 fiscal year, which ends September 30, will inch down to $1.58 trillion from $1.84 trillion after eliminating billions of dollars originally set aside for bank rescues.


Looking forward, an administration official told Reuters the 10-year budget deficit projection will jump by about $2 trillion to roughly $9 trillion from an original forecast of $7.1

Government Debt Up - Way Up

As previously reported the Federal Deficit is Soaring with estimates for this year being between $1.6 trillion or $1.8 trillion. Now the projected deficit for the next 10 years is up $2 trillion. There are so many disturbing elements to this ever expanding deficit, not least of which is how the U.S. economy will recover with this level government debt. As the deficit shoots upwards so does the risk of inflation, making recovery increasingly more difficult. Not to mention that China owns so much of our debt that at this point they're practically a part owner of this country. The government seriously needs to reexamine its priorities and reign in its spending or this country will find itself in a world of hurt.

Major Garrett reports New 10-year Federal Deficit: $9 Trillion, Up from $7 Trillion

The Obama Office of Management and Budget tells Fox the federal deficit over the next decade is projected to be $2 trillion higher than previous estimates.
The new 10-year aggregate federal deficit is $9 trillion.

An official said the prolonged recession and the ensuing decline in federal revenue prompted a recalibration of the deficit numbers.

The numbers also reflect a projection that post-recession economic growth may not be as robust as after previous recessions, the official said.

---

An Unsustainable Federal Deficit

Ridge and the Terror Level

If anyone is in doubt that politics is plays way to big a role in the running of the government another example comes out of the Bush White House.

Ridge: Bush officials sought to raise terror alert before ‘04 vote

Former Secretary of Homeland Security Tom Ridge says he successfully countered an effort by senior Bush administration officials to raise the nation’s terror alert level in the days before the 2004 presidential vote.
Ex-Homeland Security Chief Tom Ridge says he was pushed to raise the terror alert before the 2004 election.

Ex-Homeland Security Chief Tom Ridge says he was pushed to raise the terror alert before the 2004 election.

“An election-eve drama was being played out at the highest levels of our government” after Osama bin Laden released a pre-election message critical of President George W. Bush, writes Ridge in his new book, “The Test of Our Times.”

Attorney General John Ashcroft and Secretary of Defense Donald Rumsfeld strongly advocated raising the security threat level to “orange” — even though Ridge believed a threatening message “should not be the sole reason to elevate the threat level.”

The former Pennsylvania governor also writes that he saw no reason for the move, which he now calls a bad idea, because additional security precautions had already been taken in advance of the election.

---

Ridge On the Politics of Security