White House: 10-year deficit up $2 trillion to $9 trillion

August 21, 2009

My Reuters colleagues break the news that the White House is revising upward its ten-year budget forecast to $9 trillion from $7 trillion:

“The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year,” said the official, who is familiar with the plans.

“Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out.”

The CBO said in June that deficits between 2010 and 2019 would total $9.1 trillion. The official said the 2010-2019 cumulative deficit projection replaces the administration’s previous estimate of $7.108 trillion.

Me: Expect the CBO to also crank up its forecast, which will be higher than the administration’s. Also, this is further evidence that the common wisdom that people don’t care about budget deficits (no matter what the polls say) is wrong. C’mon,  leaking such news on a late Friday afternoon?

7 comments

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The current president has spent more money in the past few months than several of the recent past presidents combined. I hope the “change” that the American people voted for last November is what they still want. The deficit is just a number. It’s not a debt, and we haven’t mortgaged our children’s futures as so many believe. We don’t have to pay anything back. All the increasing deficit does is devalue the dollar a little.

Posted by Frank | Report as abusive

[...] saw fit late Friday afternoon to release the news that the projected deficit was going up over the next ten years from 7 trillion to 9 trillion.  No doubt the Congressional Budget Office will have even more dire numbers, as the administration [...]

[...] which means that if it passes, it’ll tack on a minimum of another $400 million to that total. James Pethokoukis is guessing that the CBO’s estimate will raise that number even [...]

CHANGE BACK, CHANGE BACK! OH NO is there a Control Z in the voting booth!

Posted by Ray O | Report as abusive

[...] James Pethokoukis » Blog Archive » White House: 10-year deficit up … By James Pethokoukis My Reuters colleagues break the news that the White House is revising upward its ten-year budget forecast to $9 trillion from $7 trillion: “The new forecasts are based on new data that reflect how severe the economic downturn was in the … James Pethokoukis – http://blogs.reuters.com/james-pethokouk is/ [...]

Banks were so much better at hiding these ridiculous numbers that it actually took to ‘power’ the economy… I think the public should look at it with that prespective and then balance out gov’t spending vs. standard of living. Most of that ridiculous deficit you’re facing is probably the only thing (whether only by boosting sentiment or actual effect) that saved America – and the world by extension – from a horrendous depression that could’ve led to God knows what.

My thoughts for solutions: STOP GOING TO WAR! – costing America somewhere in the neighbourhood of $600b. or 1/3 of the current deficit; SIMPLIFY TAX CODE – three rates, under $20k, $20k-$80k, $80k+. No loopholes, no deductions, no BS… straight low rates, I’m thinking 15%:25%:35% with no state add-ons… state VATs at their own discretion; END TOO BIG TOO FAIL – if a company has been deemed TBTF, blow it up into a million pieces. I guess a lot of the problem with this aspect is determining how big is too big. This eliminates the destruction of ‘little guys’ by super-mega-corps that can and do violate anti-trust and crush competition with a vengeance. More little guys, I feel, means more innovation and more competition (and more jobs quite frankly!) and few could argue that’s bad for an economy.

Posted by the Shah | Report as abusive

[...] the 10 year deficit is up another 2 trillion to 9 trillion. Jokes on you. James Pethokoukis

[...] the 10 year deficit is up another 2 trillion; it now stands at 9 trillion. Jokes on you. James Pethokoukis

Step by step, the unravelling of the dollar is happening. I am certain most of us do not even have an inkling of the monstrosity of these numbers. By the time we realise what is happening, it will be too late to take any kind of evasive action.

Posted by K S Shankar | Report as abusive

[...] James Pethokoukis thinks this is a prelude to CBO kicking their estimate up a notch: Expect the CBO to also crank up [...]

What this tells me is that we can expect inflation in a big way. Good grief. Can you even imagine a number like 9 Trillion and the taxes that will be levied to meet it. Not only that but the government never gets their numbers right. I’m looking to secure what money I have in things that will hold value. This morning I’m looking at gold and silver spot prices with the widget http://www.learcapital.com/exactprice and thinking that I might very well see a buying opportunity shortly.

The fact that our government continues to refuse to give numbers and access to those numbers by it’s citizens ( http://gata.org/node/7707 ) on the gold reserves our nation holds is my opinion is telling me we may see the precious metals move in a big way in the coming year.

Posted by Hal | Report as abusive

FRANK is a moron! Devalued the dollar a little?

Posted by chili | Report as abusive

FRANK is a moron! Devalued the dollar a little. What planet are you from?

[...] It is estimated that within the next 12 months there will be a major collapse of our present economy. The National Information Assn. states that if all Americans were to pay 100% of their earnings toward paying of the national debt it would not be enough to cover our current debt. http://blogs.reuters.com/james-pethokouk is… [...]