Obama forecasts $1.75 trillion deficit this year

[UpInArms]

Source: Reuters

WASHINGTON, Feb 26 (Reuters) - President Barack Obama will forecast the biggest U.S. deficit since World War Two in a budget that urges a costly overhaul of the healthcare system and would spend billions to arrest the economy's freefall.

An eye-popping $1.75 trillion deficit for the 2009 fiscal year is projected in Obama's first budget, according to U.S. officials who briefed reporters on the numbers.

That is equal to 12.3 percent of U.S. gross domestic product -- the largest share since 1945 when the country ran a shortfall of 21.5 percent of GDP.

Obama will unveil the budget at 11 a.m. EST (1600 GMT). It provides the broad outlines of a more detailed document to be released in April.

The soaring deficit figure sent U.S. Treasury bond prices lower and yields up to three week highs on Thursday.

Gold prices slid to their lowest level in more than a week, after testing all time highs over $1,000 an ounce earlier this month. Spot gold <XAU=> fell to $941.20 an ounce, the lowest since February 17. Stock futures rose.

The budget, for the fiscal year that begins on Oct. 1, 2009, requires passage by Congress to take effect.

Read more: http://www.reuters.com/article/bondsNews/idUSN2644850320090226?sp=true

[shraby]

1. Not one word in the article about war "supplementals"

being put on budget instead of off budget like Bush had to hide the cost.

[w4rma]

16. Yup. That part was left out of the article. The AP is going on the attack. We need to close ranks.nt

[gizmo1979]

2. That's some Pie!NT

[Pale Blue Dot]

3. This shows that they still don't get it.

Massive debt is the reason we're in this crisis. Adding more is only going to make the inevitable collapse that much more painful.

Right now Obama is either not facing the truth or he is not being honest.

[percussivemadness]

9. not being disrespectful but i think you don`t get it

had a look at the LIBOR rates lately?

[madville]

13. When you are in the hole you don't go farther in the hole to fix it

I hope china doesn't call our markers in, we would have to default. That could get ugly, I guess we could give them Alaska.

[defendandprotect]

4. But, we can still afford two wars -- !!!! Going on longer than WWII . . .!!!

:blush: :blush: :blush: :blush: :blush: :blush: :blush: :blush:

[Psephos]

6. BFD. The line item for both wars FY2009 is $75 billion. What about the other $1.6 trillion?

Do you have a sense of how explosive this deficit is compared to anything that's come before? Spending at this level will double the current national debt in five years. At that point, *interest alone* on the debt will be a trillion dollars a year.

[defendandprotect]

7. What about the two years Dems re-funded the wars . . . ???

What about the 8 years of the wars --- ????

Let's cancel the $8.5 TRILLION + another asked for $2-3 TRILLION to

bail out capitalism, again --- !!!

Also keep in mind that the Social Security SURPLUS -- which is enabled by

everyone paying more than necessary on FICA -- is used for the wars and tax

cuts for rich!!

If you want to look at the debt, remember that the Social Security SUPLUSSES

make it possible in large part!!

The "explosiveness" of this debt was set off 8 years ago when Bush was "elected"

and, in fact . . . we had a budget SURPLUS!!!

[Psephos]

8. If you're railing against massive deficits, I'm your brother-in-arms.

You're also absolutely right about the sleight-of-hand using SS funds to hide the true deficit. If the government were forced to use the same GAAP (Generally Accepted Accounting Principles) bookkeeping it forces by law on corporations, the deficit for THIS YEAR ALONE would be over $5 trillion. The total, actual debt of the US government based on existing future obligations through SS and Medicare/Medicaid is $51 trillion...and rising. That is larger than the entire GDP of Planet Earth.

PUT THE EFFIN' CRACK PIPE DOWN, CONGRESS.

We got into the current mess by abuse of credit and avoidance of hard choices. A $2 trillion deficit is certifiable insanity.

[defendandprotect]

10. Keep tellin' it . . .!!! And, I encourage everyone to keep e-mailing/calling Congress . . .

and White House!!

[endersdragon34]

11. Ummm just curious

When did we pull out of Germany or "Japan" (Japan is in quotes for a reason, I don't think we don't really have a base there but we have a base in at least 2 parts of 1945 Japan), I must have missed that one...

[Cash_thatswhatiwant]

5. wow..................

[madville]

12. Now I understand how Obama is going to cut the deficit

They are going to quadruple it first then then scale it back to only doubling it. Easy way to cut the deficit in "half".

I get the feeling our government is suffering from the same disease as a compulsive gambler. They keep throwing more and more money down the hole in an effort to get ahead.

When you are drowning in credit card debt, student loans, car payments and a mortgage you don't solve the problem by getting three more credit cards and maxing them out. Common sense says to stop spending, cut expenses and (if possible) increase income.

[WriteDown]

14. Great post....

I like your logic.

[ReliantJ]

15. Ron Paul FTW