Tag Archives: Congressional Budget Office
“I would argue that the most serious threat to the United States is not someone hiding in a cave in Afghanistan or Pakistan, but our own fiscal irresponsibility.”
— David M. Walker, former Comptroller General of the United States
America’s national debt is a record-breaking $11 trillion, and expected to nearly double in the next ten years.
We need to take action now to Defeat the Debt — before it’s too late.
The White House is being forced to acknowledge the wide gap between its ridiculous predictions about the economy and today’s bleak landscape.
The administration’s annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in Obama’s budget in February and update in May, and that could complicate his efforts to get his socialized health care and global-warming tax through Congress.
The release of the update – usually scheduled for mid-July – has been put off until the middle of next month. The White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.
The administration is pressing for votes before then on its $1 trillion socialized health care initiative. Runaway costs are jeopardizing Senate passage.
“Let’s be honest about what this is: an attempt to hide a record-breaking deficit as Democratic leaders break arms to rush through a government takeover of healthcare,” said John Boehner of Ohio, the top Republican in the House of Representatives.
“By burying this budget update until after Congress leaves town next month, the administration is not willing to own up to the consequences of this dangerous fiscal agenda,” he said.
“This routine report could be a nightmare,” Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. “There are some things that can’t be escaped.”
The Obama administration earlier this year tried to frighten the public by saying that unemployment would peak at about 9 percent without a big stimulus package and 8 percent with one. Congress did pass a $787 billion two-year stimulus measure, yet unemployment hit a 26-year high to 9.5 percent in June and appears headed for double digits.
Obama’s unrealistic current forecast anticipates 3.2 percent growth next year, then 4 percent or higher growth from 2011 to 2013. Private forecasts are contradicting those numbers.
Why is the Obama administration lying to us? Because any downward revision in growth or revenue projections would mean that budget deficits would be far higher than the administration is trying to sell us on.
Setting the stage for bleaker projections, Biden recently conceded, “We misread how bad the economy was” in January.
The new budget update comes as the public and members of Congress are becoming increasingly frightened over Obama’s economic policies.
A Washington Post-ABC News survey released Monday shows approval of Obama’s handling of health-care reform slipping below 50 percent for the first time. The poll also found support eroding on how Obama is dealing with other issues that are important to Americans right now – the economy, unemployment and the swelling budget deficit. The people are beginning to wake up the reality of socialism.
The Democratic-controlled Congress is reeling from last week’s testimony by the head of the nonpartisan Congressional Budget Office, Douglas Elmendorf, that the main health care proposals Congress is considering would not reduce costs – as Obama has insisted – but “significantly expand” the federal financial responsibility for health care.
The Obama administration has unrealistically projected that the annual deficit for the current budget year will hit $1.84 trillion, four times the size of last year’s deficit of $455 billion. Private forecasters suggest that shortfall may actually top $2 trillion.
The Treasury Department said Friday that the budget deficit soared to $192.3 billion in March and is nearing $1 trillion just halfway through the budget year.
Last month’s deficit, a record for March, was significantly higher than the $150 billion that economists expected.
The deficit already totals $956.8 billion for the first six months of the budget year, also a record for that period. The Obama administration projects the deficit for the entire year will hit $1.75 trillion.
A deficit at that level would nearly quadruple the previous yearly record of $454.8 billion set last year. The March deficit was four times the size of the imbalance in the same month last year.
The Treasury report said that through the end of March, $293.4 billion had been provided to companies through the $700 billion bailout provided primarily to banks, American International Group, General Motors and Chrysler.
Besides the bailout, Fannie Mae and Freddie Mac, received $46 billion last month, bringing the total help to them to $59.8 billion since October.
Government outlays totaled $1.95 trillion through March, 33.4% higher than the year-ago period.
The Congressional Budget Office estimated last month that Obama’s budget proposals would produce $9.3 trillion in deficits over the next decade, which is $2.3 trillion higher than estimates made in February in the administration’s first budget proposal.
The CBO review projected Obama’s budget would generate deficits averaging almost $1 trillion annually over the decade ending in 2019.
Economists have expressed misgivings that the massive deficits being forecasted will push interest rates up sharply.