Scary Numbers - CBO New Estimates - Deficits Exceed 4% of GDP for Next Decade, Over $1 Trillion Each Year

From the CBO blog:

Total Deficit or Surplus (Percentage of GDP)

CBO budget deficit as % of GDP projection under Obama


As estimated by CBO and the Joint Committee on Taxation, the President’s proposals would add $4.8 trillion to the baseline deficits over the 2010–2019 period. CBO projects that if those proposals were enacted, the deficit would total $1.8 trillion (13 percent of GDP) in 2009 and $1.4 trillion (10 percent of GDP) in 2010. It would decline to about 4 percent of GDP by 2012 and remain between 4 percent and 6 percent of GDP through 2019.

The cumulative deficit from 2010 to 2019 under the President’s proposals would total $9.3 trillion, compared with a cumulative deficit of $4.4 trillion projected under the current-law assumptions embodied in CBO’s baseline. Debt held by the public would rise, from 41 percent of GDP in 2008 to 57 percent in 2009 and then to 82 percent of GDP by 2019 (compared with 56 percent of GDP in that year under baseline assumptions).

Sound the alarm bells, I'm sorry the public debt will reach 82% of GDP by 2019???? Holy default batman!

The Associated Press has obtained new Congressional Budget Office estimates:

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.

The Congressional Budget Office figures, obtained by The Associated Press 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. By the end of the decade, the deficit would exceed 5 percent of gross domestic product, a dangerously high level.

5% of GDP. This is astounding! Even worse, we have the never ending Zombie Bank sucking of U.S. taxpayer money, Democrats are insisting on not enforcing immigration law and their plans will cost the United States billions, jobs are being offshore outsourced, guest workers brought into displace U.S. citizen workers and we see no real action on trade deficits.

In other words, by refusing to address the real issues affecting the middle class, expect even more spending with more hemorrhaging of the United States economy.

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