“Obama Inherited Debt!” White House Budget Director Says, As U.S. Now Borrows 50 Cents of Every Dollar

Almost halfway through May 2009, this “inherited” line is getting a little stale, especially given the stimulus spending, omnibus and the budget.  Obama hasn’t even yet fixed health care, education and the environment and he’s borrowing 50 cents of every dollar spent…

U.S. Government Borrowing 50 Cents on Every Dollar Spent; Interest Likely To Rise

On his blog, CBO director Douglas Elmendorf blames “enactment of recent legislation” for some of the huge differences between predictions and the reality.

Makes one ask: if the January and February government economic predictions on debt and deficit are $600 billion too low by May 11: what else is wrong and how bad can it get?


From Jake Tapper, ABC News

The director of the Congressional Budget Office today updated his projections for the budget and economic outlook and is now anticipating a $1.8 trillion deficit this year, and $1.4 trillion in 2010.

This is up from CBO director Douglas W. Elmendorf’s January 2009 projection of a $1.2 trillion deficit this year. In short, the US government is borrowing 50 cents for every dollar it spends.

The new projected deficit is four times the 2008 deficit, which was a record high for its time.

Read it all:


Reuters — High U.S. budget deficits are being driven by an economic crisis that President Barack Obama inherited, White House Budget Director Peter Orszag said on Monday.

Orszag, writing in a blog posting, also said that the administration’s latest budget deficit estimates — which were revised upward by $89 billion and $87 billion for this year and next, respectively — reflect the latest data on tax receipts, federal bailouts and other government costs.



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