April 1, 2010
Obama Fiscal Policy: Financial Armageddon
Posted by The MaryHunter at April 1, 2010 12:00 PM
While you struggle to keep your financial house in order, while you work paycheck to paycheck and try to curtail spending as your income flattens or even dips in these troubled times, President Obama and his Democrat collaborators are spending free and loose with tax dollars that your grandchildren haven't even payed yet.
President Obama's fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation's economic output by 2020, the Congressional Budget Office reported Thursday.
In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president's budget would generate a combined $9.75 trillion in deficits over the next decade.
The upshot of this is very un-good, and that's no April Fool's joke.
The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.
That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America's debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.
Were this a Republican administration, the Democrats would be apoplectic and the MSM would be calling for their heads. When the Democrats are in power and it suits their statist goals to crater our economy through reckless spending, then mum's the word.
Hat tip: Gateway Pundit.