Obama Budget: Swimming in the Red

Total Deficit or Surplus (Percentage of GDP)

NEW YORK (CNNMoney.com) -- The U.S. budget deficit in 2009 is projected to spike to between $1.67 trillion and $1.85 trillion, according to estimates released Friday by the Congressional Budget Office.

Much will depend on the extent to which President Obama's budget proposals are enacted by Congress."CBO's estimates of the deficits under the president's budget are higher each year than those estimated by the administration -- by $93 billion for 2009 and by about $2.3 trillion for the 2010-2019 period," the report said.The main reason for those differences: CBO uses a different starting point -- or baseline -- than the White House to measure changes in revenue or spending as a result of the president's proposals.An annual deficit between $1.67 trillion and $1.85 trillion would mark a record in dollar terms and the highest as a share of gross domestic product since World War II. They represent between 11.9% and 13.1% of GDP.

How can we make this situation worse?

• Lets see, we have energy policies that increase the cost of energy.
• A lunatic budget not based real economic numbers, that wants to raise taxes on all of us.
• A stimulus bill with little pump priming but a great deal of payoff as well being indifferent to small business.
• Another spending bill larded with pork and ear marks.
• A housing bill that tells rewards the worthless and greedy.

Now the fraud that is his budget has been finally exposed:
via ha

Deteriorating economic conditions will cause the federal deficit to soar past $1.8 trillion this year and leave the nation wallowing in a sea of red ink far deeper than the White House had previously estimated, congressional budget analysts said today.

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.

Oh well so much for the new transparency.
The Full CBO Breakdown.


It appears Democrats are starting to balk at the cost.

WASHINGTON (CNN) -- Hours before President Obama was to hold a prime time news conference -- in part to boost his $3.6 trillion budget plan -- a key Democratic senator Tuesday unveiled a scaled-down budget proposal.

Sen. Kent Conrad of North Dakota said the Senate Budget Committee, which he chairs, will vote on his version Wednesday.

"We've made hundreds of billions of dollars of changes to make this work to get down to the deficit goal and at the same time maintain the president's priorities -- education and energy and health care," Conrad said as he left a closed meeting in the Capitol, where he briefed Senate Democratic colleagues on his plan.

Conrad and other centrist Democratic senators -- whose support is critical to passing the legislation -- have raised concerns about the long-term impact of the president's spending plan on the deficit.On Friday, the Congressional Budget Office estimated Obama's plan would cost more than $9 trillion over the next 10 years.