Thread: Bad fiscal forecast dumped late on Friday

Bad fiscal forecast dumped late on Friday

July 26, 2010 8:19 AM

You know the rule of thumb. If it's bad news dump it late on Friday and hope nobody notices. That's exactly what the Obama White House did with their prediction that the deficit will reach a new high of $1.47 trillion of your dollars.

The government is borrowing 41 cents of every dollar it spends and unemployment is expected to remain above 9% under Obama's fiscal policies.

White House budget director Peter Orszag said the numbers represented a "fiscal situation that requires attention."

Republicans saw it differently.

"Our way of life is being threatened by an economy with too much debt because of a government that spends too much and taxes too much," Rep. Eric Cantor of Virginia, the House Republican whip, said in a statement. "Republicans are ready to govern and put a check on the Obama administration's unprecedented spending binge so that Americans can get back to work and our children have more opportunity, not a bigger bill because our generation failed to lead responsibly."

No real change is forecast in the next decade. Not only will this hurt congressional Democrats in this fall's election but if this prediction is correct and there is little to no improvement, Obama will be a one term president.

White House Confirms Continued Trillion-Dollar Budget Deficits at the Heritage Foundation. http://blog.heritage.org/2010/07/23/whi ... ing%2BBell

http://www.gopusa.com/fresh-ink/2010/07 ... friday.php

Federal deficit expected to reach record high

Posted on Fri, Jul. 23, 2010 11:16 PM

WASHINGTON | New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year.

As bad as that seems, it’s a little better than the administration predicted in February. It’s next year’s estimate that’s worse.

The new numbers point to significant political and economic headaches for President Barack Obama.

Republicans seized the Office of Management and Budget report as a fresh opportunity to criticize the president’s policies — including the stimulus package and other government spending, which many blame for the ballooning deficit — ahead of November’s midterm elections.

And the projections 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. And in 2012 it would average 8.1 percent, still well above the normal 5.5 percent to 6 percent.

Those would be ominous numbers for Obama should he seek re-election in 2012.

Private economists doubt the jobless rate will drop to normal levels until well into this decade.

“The economy is still struggling,â€