The “bad news on Friday afternoon” rule strikes again. Late this afternoon, the Obama administration announced that it is raising its 10-year budget deficit projection from $7.1 to $9 Trillion. This increase puts the White House in line with the Congressional Budget Office Projection(CBO) of $9.3 trillion.
You may remember, during the budget debate the CBO projected that the Obama administration lowballed its stimulus-enhanced deficit by $482 billion over the next four years and $2.3 trillion over the next 10. The President,and his team bashed the CBO for being too conservative. Based on that same Congressional Budget office report next year two thirds of the output of the United States will be National Debt, and in 2015 it will be over 80%. Which at the very least will crowd private industry out of the market for capital.
This change in deficit projection adds fuel to the Anti-Obamacare fire. Right now the “low-ball projections for Obamacare (with the public option) say the health care program could add up to $1 trillion to the deficit over 10 years.
No wonder why most polls show the number one priority for Americans is cutting the budget.
Blue-dogs and Republicans better heed the public, stick to their guns and fight for budget control, before, as Obama supporter Warren Buffet said, the United States becomes a Banana Republic.