White House Sees Higher US Deficit Than Expected …Updated With Video
UPDATE: This takes the cake–
Obama lecturing John McCain on deficits and spending during the campaign:
Via HotAir Pundit
Obama to McCain:
“John, its been your President that you say you say you’ve agreed with 90% of the time, that presided over this increase in spending, this orgy of spending and enormous deficits and you voted for almost all of his budgets, so to stand here after 8 years and say you’re gonna lead on controlling spending…I think is kinda hard to swallow”
The massive Obama deficit will be even worse than expected.
Barack Obama and democrats will quadruple the national deficit this year.
The massive budget deficit created by democrats this year represents a massive 12.9% of gross domestic product. President Obama expected the deficit level to be 12% of GDP this year. This puts the US above the UK deficit that runs more than 10% of GDP, and puts the US above troubled states Pakistan and Hungary.
Yahoo Finance reported, via Drudge:
The White House on Monday pushed up its forecast for the U.S. budget deficit for this year by $89 billion, reflecting the recession, a raft of new unemployment claims and corporate bailouts.
A fresh estimate of the deficit showed it coming in at $1.84 trillion — representing a massive 12.9 percent of gross domestic product — in the current 2009 fiscal year that ends on September 30. A prior White House forecast released in February projected a deficit of $1.75 trillion, or 12.3 percent of GDP.
The report may add to the political challenges facing President Barack Obama as he seeks to push through a new healthcare plan and other big domestic initiatives.
A White House official said the gloomier deficit picture reflected weaker tax receipts as the economy declined and higher costs for social safety-net programs such as unemployment insurance. Spending on the government rescues for the financial and automobile industries was also a factor in the higher deficit, said the official, who spoke to reporters on condition of anonymity.
While the Democratic-led Congress has given its approval to the broad outline of Obama’s proposed budget for the 2010 fiscal year that includes initiatives on healthcare, education and other items, some moderate Democrats and a number of Republicans have expressed wariness about the deficit outlook.
Democrats are borrowing almost 50 cents for every dollar they spend this year.
More… Apparently, we’re right where Obama’s economists said we’d be without the recovery plan.