Obama fesses up: Unemployment deficits far worse then projected.

[Danno 1,228]

Looks like Obama may have Pawned our economy, not only in the long-term, it's rapidly becoming a short term problem now as well.

Obama Raises 2010 Deficit Estimate to $1.5 Trillion (Update3)

By Roger Runningen and Brian Faler

http://www.bloomberg.com/apps/news?pid=206...id=aNaqecavD9ek

Aug. 25 (Bloomberg) -- U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than previous Obama administration forecasts because of a recession that was deeper and longer than expected, White House budget chief Peter Orszag said.

The Office of Management and Budget forecasts a weaker economic recovery than it saw in May as the gross domestic product shrinks 2.8 percent this year before expanding 2 percent next year, according to the administration’s mid-year economic review issued today. The Congressional Budget Office, in a separate assessment, forecast the economy will grow 2.8 percent next year. Both see the GDP expanding 3.8 percent in 2011.

“While the danger of the economy immediately falling into a deep recession has receded, the American economy is still in the midst of a serious economic downturn,” the White House report said. “The long-term deficit outlook remains daunting.”

The budget shortfall for 2010 would mark the second straight year of trillion-dollar deficits. Along with the unemployment numbers, the deficit may complicate President Barack Obama’s drive for his top domestic priority, overhauling the U.S. health care system.

“It throws a wrench in health-care reforms,” Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget, said in an interview. “No matter the specific numbers, they’re a constant reminder that we’re in bad, bad shape.”

Spending Caps

House Republican Leader John Boehner of Ohio seized on the estimates to call for the Democrat-controlled Congress to impose “strict annual caps on federal spending.”

The health-care overhaul “is just the latest in a long line of expensive Democratic experiments that will add to the deficit, raise taxes on families and small businesses and cost more American jobs,” Boehner said in a statement.

The two budget agencies say the shortfall is being driven by the recession as outlays rise for unemployment compensation, food stamps or other programs meant to stabilize the economy rise and tax receipts fall.

Administration and congressional budget officials expect the unemployment rate, which was 9.4 percent last month, to keep rising. White House officials said the rate likely will rise to 10 percent by the end of 2009, averaging 9.3 percent for the entire year. It will worsen to a 9.8 percent average in 2010 instead of the 7.9 percent estimate in May.

The CBO report also estimates the 2009 jobless rate at 9.3 percent. It puts next year’s average at 10.2 percent.

Deficit Projections

The OMB raised its deficit projection for fiscal 2010, which begins Oct. 1, from the $1.26 trillion forecast in May, reflecting slower economic growth this year and next because of “the severity of the crisis in the U.S. and in our trading partners,” said Christina Romer, White House chief economist, who along with Orszag briefed reporters on the report.

The median estimate of 31 economists in a Bloomberg News survey completed Aug. 21 was for a fiscal year 2010 deficit of $1.3 trillion.

The outlook for the 2009 fiscal year is slightly better than the previous forecast. The government’s shortfall will peak this year at $1.58 trillion before narrowing over the next decade. That is less than the $1.84 trillion projected in May because budget officials were able to delete hundreds of billions of dollars that had been set aside for bank bailouts.

Last year’s deficit was $459 billion.

The CBO estimates the budget deficit will total $1.6 trillion this year, or 11.2 percent of the GDP, and $1.4 trillion in 2010.

Bailout Money

“The Obama White House deserves some credit for managing the financial situation so that the additional bailout wasn’t necessary,” said Stan Collender, a former budget analyst for the House and Senate budget committees.

Orszag said reining in the deficit is a “top priority” of the administration. He said the budget blueprint Obama submits to Congress in February will “include proposals to put the nation back on a fiscally sustainable path.” He declined to give specifics.

The OMB added almost $2 trillion to the 10-year deficit from its May forecast, to $9.05 trillion. The nonpartisan CBO’s long-range projection was $7.14 trillion. The difference stems from the CBO’s assumption that tax cuts enacted in 2001 and 2003 will expire on schedule in 2011. Obama has promised to keep the lower tax rates for middle-income Americans.

Market Reaction

“The market will view this as a very consensus-oriented forecast” and there won’t be any significant reaction, said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania.

Zandi predicted Congress will pass a second “mini” stimulus bill next year of about $250 billion to aid jobless workers, state governments and home buyers. “The economy will be growing at an uncomfortably slow rate, not enough to bring down unemployment, and of course it’s an election year” for Congress, he said.

Orszag defended the trillion-dollar deficits during a recession and said they shouldn’t be used to block the administration’s health-care initiative. Revising the way the nation pays for medical care will help save money, he said.

“I know there are going to be some who say this report proves we can’t afford health reform,” Orszag said. “I think that has it backwards” because savings must be squeezed from the system.

Back to Growth

Even with economic conditions worse that originally forecast, Romer said “we do expect positive GDP growth by the end of this year” for the fourth quarter as the economy reaches “a turning point.”

“A return to employment growth will take longer,” Romer said, adding that the jobless rate likely will peak in the fourth quarter of this year.

Romer said the economic stimulus package probably is adding “between 2 and 3 percentage points” to economic growth in the second quarter of this year, blunting conditions that would have been worse. A report on the effect of the stimulus program is due to Congress next month, she said.

Inflation will remain subdued. Projections for the consumer price index show a contraction of 0.7 percent this year, a rise of 1.4 percent next year and 1.5 percent in 2011, Romer said.

The economic assumptions were compiled by the Council of Economic Advisers, Treasury Department and the Office of Management and Budget. The estimates reflect conditions as of early June.

[ready4ONE 5,400]

[Pinocchio Liberal 268]

ITS A CRISIS WE NEED TO ...............................................................SPEND!

[Danno 1,228]

Ya like that pic huh?

[ready4ONE 5,400]

Looks like Obama may have Pawned our economy, not only in the long-term, it's rapidly becoming a short term problem now as well.

Obama Raises 2010 Deficit Estimate to $1.5 Trillion (Update3)

By Roger Runningen and Brian Faler

http://www.bloomberg.com/apps/news?pid=206...id=aNaqecavD9ek

Aug. 25 (Bloomberg) -- U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than previous Obama administration forecasts because of a recession that was deeper and longer than expected, White House budget chief Peter Orszag said.

The Office of Management and Budget forecasts a weaker economic recovery than it saw in May as the gross domestic product shrinks 2.8 percent this year before expanding 2 percent next year, according to the administration's mid-year economic review issued today. The Congressional Budget Office, in a separate assessment, forecast the economy will grow 2.8 percent next year. Both see the GDP expanding 3.8 percent in 2011.

ECONOMIC UPSWING BY 2011? POINT FOR OBAMA

"While the danger of the economy immediately falling into a deep recession has receded, the American economy is still in the midst of a serious economic downturn," the White House report said. "The long-term deficit outlook remains daunting."

OBAMA MAKES THE POINT WE HAVE ISSUES WITH THE DEFICIT...

The budget shortfall for 2010 would mark the second straight year of trillion-dollar deficits. Along with the unemployment numbers, the deficit may complicate President Barack Obama's drive for his top domestic priority, overhauling the U.S. health care system.

"It throws a wrench in health-care reforms," Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget, said in an interview. "No matter the specific numbers, they're a constant reminder that we're in bad, bad shape."

Spending Caps

House Republican Leader John Boehner of Ohio seized on the estimates to call for the Democrat-controlled Congress to impose "strict annual caps on federal spending."

DOES HE SAY LET'S TRIM OUR MILITARY BUDGET? NO, LET'S SCREW THE WORKING POOR: HERE IS #######'S SUGGESTION-

The health-care overhaul "is just the latest in a long line of expensive Democratic experiments that will add to the deficit, raise taxes on families and small businesses and cost more American jobs," Boehner said in a statement.

The two budget agencies say the shortfall is being driven by the recession as outlays rise for unemployment compensation, food stamps or other programs meant to stabilize the economy rise and tax receipts fall.

POINT FOR OBAMA [YOU CAN PRETTY MUCH TAG UNEMPLOYMENT NUMBERS ON THE CRISIS WHICH PRECEDED OBAMA AS PRESIDENT. YOU WON'T BUT YOU SHOULD.]

Administration and congressional budget officials expect the unemployment rate, which was 9.4 percent last month, to keep rising. White House officials said the rate likely will rise to 10 percent by the end of 2009, averaging 9.3 percent for the entire year. It will worsen to a 9.8 percent average in 2010 instead of the 7.9 percent estimate in May.

The CBO report also estimates the 2009 jobless rate at 9.3 percent. It puts next year's average at 10.2 percent.

Deficit Projections

The OMB raised its deficit projection for fiscal 2010, which begins Oct. 1, from the $1.26 trillion forecast in May,

WHY? OBAMA? NO...

reflecting slower economic growth this year and next because of "the severity of the crisis in the U.S. and in our trading partners," said Christina Romer, White House chief economist, who along with Orszag briefed reporters on the report.

POINT FOR OBAMA

The median estimate of 31 economists in a Bloomberg News survey completed Aug. 21 was for a fiscal year 2010 deficit of $1.3 trillion.

The outlook for the 2009 fiscal year is slightly better than the previous forecast. The government's shortfall will peak this year at $1.58 trillion before narrowing over the next decade. That is less than the $1.84 trillion projected in May because budget officials were able to delete hundreds of billions of dollars that had been set aside for bank bailouts.

2 POINTS FOR OBAMA

Last year's deficit was $459 billion.

The CBO estimates the budget deficit will total $1.6 trillion this year, or 11.2 percent of the GDP, and $1.4 trillion in 2010.

Bailout Money

"The Obama White House deserves some credit for managing the financial situation so that the additional bailout wasn't necessary," said Stan Collender, a former budget analyst for the House and Senate budget committees.

POINT FOR OBAMA

Orszag said reining in the deficit is a "top priority" of the administration. He said the budget blueprint Obama submits to Congress in February will "include proposals to put the nation back on a fiscally sustainable path." He declined to give specifics.

The OMB added almost $2 trillion to the 10-year deficit from its May forecast, to $9.05 trillion. The nonpartisan CBO's long-range projection was $7.14 trillion. The difference stems from the CBO's assumption that tax cuts enacted in 2001 and 2003 will expire on schedule in 2011. Obama has promised to keep the lower tax rates for middle-income Americans.

Market Reaction

"The market will view this as a very consensus-oriented forecast" and there won't be any significant reaction, said Mark Zandi, chief economist at Moody's Economy.com in West Chester, Pennsylvania.

Zandi predicted Congress will pass a second "mini" stimulus bill next year of about $250 billion to aid jobless workers, state governments and home buyers. "The economy will be growing at an uncomfortably slow rate, not enough to bring down unemployment, and of course it's an election year" for Congress, he said.

POINT FOR OBAMA, KILLS DANNO'S INANE OPENING REMARKS...

Orszag defended the trillion-dollar deficits during a recession and said they shouldn't be used to block the administration's health-care initiative. Revising the way the nation pays for medical care will help save money, he said.

"I know there are going to be some who say this report proves we can't afford health reform," Orszag said. "I think that has it backwards" because savings must be squeezed from the system.

POINT FOR OBAMA

Back to Growth

Even with economic conditions worse that originally forecast, Romer said "we do expect positive GDP growth by the end of this year" for the fourth quarter as the economy reaches "a turning point."

POINT FOR OBAMA

"A return to employment growth will take longer," Romer said, adding that the jobless rate likely will peak in the fourth quarter of this year.

ECONOMIC CRISIS STARTED WITH BUSH, UNEMPLOYMENT NUMBERS ARE WHAT THEY ARE, NEUTRAL FOR OBAMA

Romer said the economic stimulus package probably is adding "between 2 and 3 percentage points" to economic growth in the second quarter of this year, blunting conditions that would have been worse. A report on the effect of the stimulus program is due to Congress next month, she said.

POINT FOR OBAMA

Inflation will remain subdued. Projections for the consumer price index show a contraction of 0.7 percent this year, a rise of 1.4 percent next year and 1.5 percent in 2011, Romer said.

POINT FOR OBAMA

The economic assumptions were compiled by the Council of Economic Advisers, Treasury Department and the Office of Management and Budget. The estimates reflect conditions as of early June.

Did you two even read the article? Let me highlight the actual points... [sEE ABOVE]

Or:

[DIARD 1]

Ya like that pic huh?

You did notice that his pic was different than yours in that it had an elephant (republican symbol) on it right? I think he pwned you there.

[ready4ONE 5,400]

Ya like that pic huh?

You did notice that his pic was different than yours in that it had an elephant (republican symbol) on it right? I think he pwned you there.

Danno isn't too observant. Hence his mangled opinion of the OP article, and not noticing the difference between our two pictures.

[Danno 1,228]

Ya like that pic huh?

You did notice that his pic was different than yours in that it had an elephant (republican symbol) on it right? I think he pwned you there.

Actually I didn't notice, clever work... however, there is only one original and to be honest.... the humor works way better for the Dimmocrat version.

But nice effort indeed.

[ready4ONE 5,400]

Since there is nothing Fascist in any spectrum of the Democratic Party, I fail to see the wisdom of your pic Danno... Disinformation and scapegoating, ala the Republicans, now that comes a wee bit closer to the point of our two pics.

[HAL 9000 96]

Actually, Dannologic's assessment isn't much valid since even according to more reputable conservative observers like mawilson, less than 20% of the ARRA Stimulus package has been spent. That's hardly 'blowing it' unless of course, the only blowing here is being performed by Dannologic.

[ready4ONE 5,400]

Actually, Dannologic's assessment isn't much valid since even according to more reputable conservative observers like mawilson, less than 20% of the ARRA Stimulus package has been spent. That's hardly 'blowing it' unless of course, the only blowing here is being performed by Dannologic.

Two thumbs up!

[HAL 9000 96]

A couple of hours and no idiotic response yet?

[/bait]

[Krikit 1,164]

Post with offensive language removed for TOS violations.

Edited December 29, 2009 by Krikit

[Gary and Alla 3,694]

Stop spreading lies, Danno. The recession is over. Obama fixed it before he went on to health care. He cares about us and will fix everything

[Hilarious Clinton 452]

ITS A CRISIS WE NEED TO ...............................................................SPEND!

PRINT MORE MONEY!