Thursday, January 27, 2011

CBO Predicts: 2011 Budget Deficit to Hit Record $1.5 Trillion

New budget estimates released Wednesday predict the government’s deficit will hit almost $1.5 trillion this year, a new record.The CBO analysis predicts the economy will grow by 3.1 percent this year, but that joblessness will remain above 9 percent this year. Dauntingly for President Obama, the nonpartisan agency estimates a nationwide unemployment rate of 8.2 percent on Election Day in 2012. The deficit is on track to beat the record of $1.4 trillion set in 2009. That figure reflected huge outlays from the Wall St. bailout. The nonpartisan budget agency predicts the deficit will drop to $1.1 trillion next year. It dwarfs the debt run up by Bush. Budget Committee Chairman Kent Conrad, D-ND said, “The fiscal challenge confronting us is enormous. To solve this problem, it will require real compromise and a great deal of political will,” . “We need to have both sides, Democrats and Republicans, willing to move off their fixed positions and find common ground.” Now if someone would tell the President that "freezing" spending isn't fixing anything. In fact it's just adding to the deficit. Rep. Ryan has put forth a plan to cut $100 billion from our budget and Rep. Rand Paul has tripled it to $300 billion. Even that is just a pittance compared to the massive budget. These cuts must be done. The MSM has already railed against any cuts in the budget. In fact they want to do what the President wants and double down with even more spending under the guise of "investing". The things that Obama wants to "invest" in, are the same things he said would improve our economy under the failed Stimulus Bill. He told us that the Stimulus bill would cover inferstucture. This is the most inept thing Obama could do. We can not spend our way out of this. That theory has been proven wrong already by the Stimulus bill. The Democrats had total control of our government and haven't fixed anything. Our house values keep going down and our national debt is going through the roof and then some. They told us that their actions would fix the housing crisis, keep unemployment under 8% and start paying down our debt. The facts are unemployment is still over 9% ++, our debt is going up faster then ever in history and rising by over $1 trillion a year. I ask you, what have the Democrats and President made better since they took over? Do you feel like the Democrats gave our kids their monies worth with all the debt? Does the world seem like it's in chaos or in better order now? When Obama took over he made a lot of promises of what his policies would do. Have they worked the way he said? With so many failed Progressive theories, can we afford to trust anything else these guys want to do to us? So far the conservatives have told us what would happen if we did what the Democrats wanted and they have been spot on every time so far. We have to make cuts now. That is the only way we can get out of this mess. It's our mess to clean up. For a group that is so concerned with the theory of "social justice", they sure don't care about enslaving our children with our debts. Is that "social justice"? Will be be the first generation to leave the next generation worse then we got it? At least we are giving them the best education they can get.


  1. The number of people applying for unemployment benefits rose sharply last week as snowstorms in some parts of the country forced companies to lay off workers.

    Applications surged by a seasonally adjusted 51,000 to 454,000, the highest level since late October.

    Senate Majority Leader Harry Reid told ABC News that earmarks will return to Capitol Hill despite President Obama's vow in last night's State of the Union to veto any spending bill that includes them.

    In an interview with ABC's Jonathan Karl, Reid launched a vigorous defense of pork, the pet projects that members of Congress insert into bills to benefit their home states.

    "I think it's taking power away from the legislative branch of government and giving it to the executive branch of government," Reid said of the president's plan. "The executive branch of government is powerful enough and I think that I know more about what Nevada needs than some bureaucrat down on K Street."

    Obama can win for losing.

  2. Two of the central promises of President Barack Obama's health care overhaul law are unlikely to be fulfilled, Medicare's independent economic expert told Congress on Wednesday.

    The landmark legislation probably won't hold costs down, and it won't let everybody keep their current health insurance if they like it, Chief Actuary Richard Foster told the House Budget Committee. His office is responsible for independent long-range cost estimates.

    Foster's assessment came a day after Obama in his State of the Union message told lawmakers that he's open to improvements in the law, but unwilling to rehash the health care debate of the past two years. Republicans want to repeal the landmark legislation that provides coverage to more than 30 million people now uninsured, but lack the votes.

    Foster was asked by Rep. Tom McClintock, R-Calif., for a simple true or false response on two of the main assertions made by supporters of the law: that it will bring down unsustainable medical costs and will let people keep their current health insurance if they like it.

    On the costs issue, "I would say false, more so than true," Foster responded.

  3. Look at Europe as example of trying to SPEND way out of DEBT! Greece Spain Italy Portgal all tried Big Government Solutions and all they Created were MORE problems. Hell look at Russia and see what happened with Government Controlling Economy. We are on that road and new "Investments" will not cut it.

    The Citizens only HOPE is Free Market and Private Sector and unless Government gets out of its way LOOK to Europe next stop Here. We cannot SUBSTAIN our DEBT just cannot! All Politicans had better find Solutions not Rhetoric ,Nation and Citizens can NO longer Afford Ideaology driven SOLUTIONS that dont WORK and we cannot PAY for!

  4. No president before Barack Obama has been so right and so wrong.

    When in his State of the Union speech Mr. Obama said, "This is our generation's Sputnik moment," citing the emergence of global competition from the likes of China and India, he was right.

    Minutes later he proposed to cover the country with high-speed rail and companies making solar shingles.

    High-speed rail and solar shingles? If that's the president's idea of meeting our Sputnik moment, then Houston, we have a problem.

  5. Great point Mel: also that high speed rail maybe we can let the same ones run that, that have made AMTRAK such a financial SUCCESS!


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