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SSC


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White House Predicts Record $1.47 Trillion Deficit

Published July 23, 2010
| Associated Press
http://www.foxnews.com/politics/2010/07/23/white-house-predicts-record-trillion-deficit/

New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends.

That's actually a little better than the administration predicted in February.

The new estimates paint a grim unemployment picture as the economy experiences a relatively jobless recovery. The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates.

The Office of Management and Budget report has ominous news for President Obama should he seek re-election in 2012 -- a still-high unemployment rate of 8.1 percent. That would be well above normal, which is closer to a rate of 5.5 percent to 6 percent. Private economists don't think the unemployment rate will drop to those levels until well into this decade.

"The U.S. economy still faces strong headwinds," the OMB report said. They include tight credit markets, a high inventory of unsold housing and retrenchment by state governments bound by balanced budget mandates. The European debt crisis has also had an impact.

"Despite these headwinds, the administration expects economic growth and job creation to continue for the rest of 2010 and to rise in 2011 and beyond," the report said.

The gaping deficits are of increasing concern to voters. But Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they await possible recommendations from Obama's deficit commission.

While there's a slight improvement in the deficit for the current year, next year's predicted $1.42 trillion worth of red ink -- that's 37 cents of borrowing for every dollar spent -- is looking worse. It's about $150 billion more than previously predicted, because of still-slumping tax revenues.

OMB Director Peter Orszag said the numbers represent a "fiscal situation that requires attention."

Obama "has done little to confront this domestic enemy," said Rep. Mike Pence, R-Ind. "Washington desperately needs real leadership. We cannot continue to postpone the hard choices and sacrifices that are necessary to stop this fiscal train wreck."

Deficits have skyrocketed since the recession took hold in 2008 and Congress responded with a massive bailout of the financial system and last year's $862 billion stimulus measure.

"What we should be doing now is putting in place deficit reduction policies that will kick in after the economy has more fully recovered," said Senate Budget Committee Chairman Kent Conrad of North Dakota. "It is an unsustainable long-term course."

rosco 357


Veteran
i had read this article but it was not fox.com, but originated there, where i read news gets stories from alot of sources,but the title u click it goes to where the story url is, anyway that was one there i read,,, take care

SSC


Admin
I have noticed that too, many Fox articles come from AOLnews, and the Associated Press .

rosco 357


Veteran
i dont use aol news to much, but some, i mainly use a sight that probably is the one of the oldest on the web that post news when it breaks, some article titles say " developing," and do nothing when clicked, but later will go to that article,

gypsy


Moderator
I like aol as my news source and msn~ yahoo is ok~ i just kind of click through them all.

rosco 357


Veteran
stay away from huffington , thats a bunch of crap,

gypsy


Moderator
My favorite is politico, Msn, ,with Rachel maddow, and olberman,after huffington post~ heeheee much better than Fake news! LOL

SSC


Admin
rosco 357 wrote:stay away from huffington , thats a bunch of crap,

You are so right about huffington, that is one of the biggest so called reporting jokes there is.

rosco 357


Veteran
idont like olberman he is to liberals what beck is to conservative,

gypsy


Moderator
Except Beck doesn't give both sides/Keith does/the dreaded word F/does not give both sides.it is a one way street.

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