Ouch
The budget deficit is now another quarter trillion dollars larger, not due to any new actions out of Washington. Instead the increase is the result of the unrealistic earlier expectations of the President and Congress.
The Congressional Budget Office is expected to project a $1.8 trillion deficit for the fiscal year that ends September 30 and then forecast a drop to $1.4 trillion for fiscal 2010, a source familiar with the numbers told Reuters. . . Obama’s budget projected a $1.75 trillion deficit for fiscal 2009 and $1.17 trillion for 2010.
That’s an upward revision of $280 billion in less than two months. The final amount of the 2009/2010 budget deficits will almost certainly be higher still. It will take President Obama’s first two budgets to add more to the nation’s debt than President Bush did in all seven of his deficit-ridden budgets combined.
Even the Europeans think this is too much government spending. Ouch.
UPDATE:
It’s even worse:
President Barack Obama’s budget would generate deficits averaging almost $1 trillion a year over the next decade, according to the latest congressional estimates, significantly worse than predicted by the White House just last month. . . 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.
Hyperinflation is the predictable result.
