Posted by: tristar3research | May 11, 2009

$3.8T Budget w/Supplementals- $1.8T Deficit = Prudent?

White House: Budget deficit to top $1.84 trillion, 4 times 2008’s record is the hot news. But, get this, their forecast is: a $7.1 trillion deficit over 2010-2019″. Yeah, but the Congressional Budget Office ALREADY predicted this deficit in March, and a worse 10 year compound deficit!

Faux Trillion: The Congressional Budget Office figures, released Friday, predict Obama’s budget will produce $9.3 trillion worth of red ink over 2010-2019. That’s $2.3 trillion worse than the White House predicted in its budget. Worst of all, CBO says the deficit under Obama’s policies would never go below 4 percent of the size of the economy, figures that economists agree are unsustainable.The CBO’s estimate for 2010 is worse as well, with a deficit of almost $1.4 trillion expected under administration policies, about $200 billion more than predicted by Obama.

Excuuuuse me, but we already have a $13T debt without the Medicare and Social Security ummm “shortfall”- and so this means we propose to go from a $35-55T debt now to $60Tplus by the end of the next decade. This is Weimar money if you believe these pronouncements.

The S&P Outlook is Worse Than Hoped

The S&P Outlook is "Worse Than Hoped"

Reuters spams: With the economy performing worse than “hoped”, revised White House figures point to deepening budget deficits, with the government borrowing almost 50 cents for every dollar it spends this year. The deficit for the current budget year will rise by $89 billion to above $1.8 trillion — about four times the record set just last year. The unprecedented red ink flows from the deep recession, the Wall Street bailout, the cost of President Barack Obama’s economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in. ~snip (The deficits will) total $7.1 trillion over 2010-2019.

The Middle Class investors commisserate

The Middle Class investors commisserate

Treasury 10-year yields have risen for seven consecutive weeks, the longest advance in five years, as President Obama borrows record amounts to stimulate the economy and service a widening budget deficit. The government will sell $3.25 trillion of debt in the fiscal year ending Sept. 30, according to Goldman Sachs Group Inc., one of 16 primary dealers required to bid at Treasury auctions, Bloomberg spoofs as it is the only one that matters.

Senator Kent Conrad (D-ND)
Senator Kent Conrad (D-ND) – “I just don’t get it-any of it!”

And proof of alien life on earth: Sen. Kent Conrad, D-N.D., chairman of the Budget Committee, said the estimates are “further evidence of the mess that has been handed the Obama administration.” “The reality is we are going to have to make adjustments to the president’s budget if we want to keep the deficit on a downward trajectory,” he said in a statement, adding that lawmakers would still adopt a budget resolution that reflected the key priorities of the president’s agenda.

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