Obama’s $2 Trillion Friday Night Dump

Gee, is it any wonder that Obama decided to unload this little gem late on a Friday, just as he slips out of town on vacation, not to be disturbed?

White House Adds $2 Trillion to Deficit Forecasts

The nation would be forced to borrow more than $9 trillion over the next decade under President Obama’s policies, the White House acknowledged late Friday, bringing their long-term budget forecast in line with independent estimates.

The new projections add approximately $2 trillion to budget deficits through 2019. Earlier this year, the administration had predicted that Obama’s policies would require the government to spend $7.108 trillion more than it collects in tax revenue over the next decade.

An administration official, speaking on the condition of anonymity because the report will not be formally released until Tuesday, said the change is due primarily to updated projections of economic growth that are far less rosy than data used when the White House released its first long-term budget outlook in February. At that time, the White House predicted the economy would shrink by 1.2 percent this year; in fact, the economy shrank at an annualized rate of 6.4 percent in the first quarter, the sharpest drop since 1980.

Critics called the administration overly optimistic, charging that Obama’s figures masked the depth of the nation’s fiscal crisis and falsely suggested that his policies would stabilize the nation’s growing debt to China and other foreign creditors.

The nonpartisan Congressional Budget Office has predicted that Obama’s policies would force the nation to borrow $9.1 trillion between 2010 and 2019. Like the White House, the CBO is scheduled to release an updated forecast on Tuesday.

US deficit poses potential systemic risk: Taylor

The U.S. budget deficit poses more of a potential risk to the financial system than the collapse in commercial real estate prices, an influential economist said on Friday.

“We have a huge deficit. … The stimulus package is generating a lot more debt, and there are systemic issues there,” Stanford University economics professor John Taylor told Reuters Television on the sidelines of the Federal Reserve’s annual Jackson Hole conference.

The Obama administration expects the deficit to hit a record $1.58 trillion this year, and sees a cumulative $9 trillion of additional red ink in 2010-1019.

“If that gets out of control, if interest rates start to rise because people are reluctant to buy all that debt then that can slow the economy down. So, that’s the more systemic concern I have,” Taylor said.

See also:
White House to Boost 10-Year Deficit Forecast to $9 Trillion
New 10-year Federal Deficit: $9 Trillion, Up from $7 Trillion
W.H. hikes deficit estimate by $2 trillion
Obama raises 10-year deficit to $9 trillion
$9 Trillion in Deficits for 2010–2019
Obama to raise 10-year deficit to $9 trillion
US to hike 10-year deficit forecast to nine trillion dollars
Warren Buffett warns budget deficit may harm dollar
New deficit projections pose risks to Obama’s agenda
9 Trillion Reasons Health Care May Be Dead

$9 TRILLION DOLLARS? Add another $2.5+ trillion for health care “reform” and cap & trade and Obama’s on track to double our national debt in the next decade! Can’t they see how reckless their policies are, are they on drugs? Unless we turn this borrow and spend trend around quickly, it’s only a matter of time before the U.S. loses its AAA credit rating, defaults on its debt, and spirals into economic collapse.