Diary

The Obama deficit news is getting closer to the truth now

The WH lets bad news get leaked out as the Prez is on his way out the door at the end of the day Friday for vacation. Nice coincidence. Now they release the report today and it seems that the news is far worse than they had let on to.

This is the part that we heard about late last week. Everyone except the WH had been saying $9T for ages while the WH kept saying $7T. So to put it the way lefties love to put it, he is creating a deficit nearly equal to the deficit of the entire first 236 years of our country.

Figures released by the White House budget office foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May. Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.

But here is where it seems like the news gets much worse. So much for the stimulus and its millions of created/saved jobs keeping the unemployment rate at 8% or lower. If it will “reach” 10% later this year and “average” just under 10% next year, that means one of two things: either it’s going to go well above 10% before coming down, or else it’s going to reach 10% and stay pretty much flat all next year. That strikes me as a terrible admission of how much they’ve lied so far. And the second paragraph is laughable – they are still trying to blame Bush. Let’s hope they keep that up for the 2010 elections – the voters will fall for that … NOT!

Obama economic adviser Christina Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year. Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

“This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter,” Romer said.

And of course the $9T doesn’t even include the $1T he’s trying to add with ObamaCare plus whatever else he’s got lined up. Wait, how can next year be a referendum on Obama when Bush is the culprit?

The deeper red ink and the gloomy unemployment forecast present President Barack Obama with an enormous challenge. The new numbers come as he prods Congress to enact a major overhaul of the health care system — one that could cost $1 trillion or more over 10 years. Obama has said he doesn’t want the measure to add to the deficit, but lawmakers have been unable to agree on revenues that cover the cost.

What’s more, the high unemployment could last well into the congressional election campaign next year, turning the contests into a referendum on Obama’s economic policies.

Here we go again with more of the usual BS. Every time they put out numbers, they’re admitting that everything they said earlier was wrong – and amazingly enough it always happened to be wrong on the “too rosy” side. But not to worry, we’re supposed to trust them and not think these numbers will be too rosy. And if the economy is still contracting, how can they say we’re out of the recession? Ah but we’re supposed to be happy, because it would have been even worse had they not gotten the bailout.

The revised estimates project that the economy will contract by 2.8 percent this year, more than twice what the White House predicted earlier this year. Romer projected that the economy would expand in 2010, but by 2 percent instead of the 3.2 percent growth the White House predicted in May. By 2011, Romer estimated, the economy would be humming at 3.6 percent growth.

Both Romer and budget director Peter Orszag said this year’s contraction would have been far worse without money from the $787 billion economic stimulus package that Obama pushed through Congress as one of his first major acts as president.

You know how bad of a stretch it is to put a positive spin on things when this little tidbit seems to be the only good news out of the whole report.

The Obama administration did tout one number in its budget review: The 2009 deficit was expected to be $1.58 trillion, $263 billion less than projected in May. That’s largely because the White House removed a $250 billion item that it had inserted as a “place holder” in case banks needed another bailout.

Orzag returns to the crack pipe again to close out the article. I’ll let this part speak for itself.

Orszag, anticipating backlash over the deficit numbers, conceded that the long-term deficits are “higher than desirable.” The annual negative balances amount to about 4 percent of the gross domestic product, a number that many economists say is unsustainable.

But Orszag also argued that overhauling the health system would reduce health care costs and address the biggest contributor to higher deficits.

“I know there are going to be some who say that this report proves that we can’t afford health reform,” he said. “I think that has it backwards.”