White House: 10-yr deficit now $9 trillion

August 21, 2009

Some breaking news from Reuters about an updated deficit projection:

The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama’s opponents, who say his spending plans are too expensive in light of budget shortfalls.

At first glance, I’m inclined to give Obama credit for this, for updating his deficit forecasts at a politically inconvenient time. He’s pushing his health care plan pretty hard and this news gives a HUGE talking point to critics who say we just can’t afford it.

But of course there would never be a politically convenient time for this news to hit, not with the agenda to which Obama has committed himself.

And the way the news was announced is suspect. There were two deficit projections released this week. The good news — about this year’s deficit projection falling from $1.84 billion to $1.58 billion — was released mid-week.  The bad news — about the 10-yr deficit projection rising 27% — was dumped at a very convenient time: late on a Friday in August, when Congress is out of town and most folks are on vacation.

On a related note, this week the deficit passed the latest $100 billion threshold, $11.7 trillion

(Click chart to enlarge in new window)

slide15

9 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Isn’t O’bama an Honest man! I give O’bama LOTS of credit for putting the Liberal agenda on the front burner, to pretty much putting the USA into the waste can. He is just being honest, and is tempting everyone that is willing to suck the government dry.

Posted by John W. Fort Wayne, IN USA | Report as abusive

All these trillions. Does it matter? Nobody of sound mind expects it to matter because none of it will be repaid. More trillions will be created out of thin air and borrowed, to pay interests and to perpetuate the money game.

Nevertheless, one day this game will stop. Such money games have always stopped. And it won’t be pretty when it stops.

Posted by The Real Deal | Report as abusive

so what’s wrong with that ?

Posted by baris | Report as abusive

hrl72
Look around folks,Obama has lied about everything he has been connected to.He blames everybody else.He,s talking about the health care myths,according to him.his problem is he has lied so much and has not been called on it by the press,deep down he has lost crediblity with the american people,and the press can’t protect him on that.

Posted by henry leatherman | Report as abusive

Obama is just a front-man for the Bilderbergers, Trilateral Commission, Council on Foreign Relations. It’s normal that the debt keeps growing exponentially, it is the direct result of a fiat debt-based money system. One day the money game will end, the people will wake up homeless and revolution will hit the streets. That’s why the elite is building a police state in the Western world; they know this day will come during the next decade.

Posted by james | Report as abusive

Questions to the author: Why is there never talk about the Bilderbergers? Why is there never talk that the Federal Reserve is a privately controlled central bank, as well as the central banks from other countries? Why is there never talk about the logical consequences of a debt-based fiat monetary system? Why is there never talk about Bohemian Grove? Why is there no talk that on 9/11 BBC world mentioned the collapse of WTC 7 long before it had actually collapsed, which is one more proof that 9/11 is an inside job? Are you aware that the people are waking up to these facts?

It’s not as if the debt were a quadrillion dollars.

Posted by Blurtman | Report as abusive

Accounting Deficit Disorder…

Circle ’round, boys and girls, and Uncle Obama (with some help from your other uncle, Sam) will show you how to manipulate a little economic news. First, you release information in the middle of the week that says that this……

Didn’t Stiglitz and Bilmes predict this mess in the Harpers Magazine article “The Ten Trillion Dollar Hangover” a few months ago? Why are we so surprised? The cost of the Bush tax cuts + Iraq War + Medicare part D + borrowing it all from China and paying interest has landed us in this dung heap and now Obama was forced to spend even MORE money to clean it up…..

Posted by michaelowen | Report as abusive

I love how people still blame Bush for deficits…

The economy was sound after Bush inherited a recession from Clinton and kept the economy afloat after Enron and 9/11. It was only after 2006 when the Dems took over Congress that problems started to materialize.

Posted by Marko | Report as abusive

[...] the government was on track to spend $7.1 trillion more than it takes in. But now OMB thinks it’s looking more like $9 trillion. That would practically double the total U.S. debt, which stood at $11.7 trillion as of Friday (to [...]