FOREVER IN YOUR DEBT
Bush Leaves $482 Billion Budget Deficit To Next President... Violated Congressional Mandate By Leaving Out War Costs... Obama Meeting With Key Economic Advisors Today... Buffett, Volcker, Former Bush Treasury Secretary O'Neill In AttendanceWASHINGTON — The next president will inherit a record budget deficit of $482 billion, according to a new Bush administration estimate released Monday.
The administration said the deficit was being driven to an all-time high by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession. But the numbers could go even higher if the economy performs worse than the White House predicts.
The budget office predicts the economy will grow at a rate of 1.6 percent this year and will rebound to a 2.2 percent growth rate next year. That's a half percentage point more than predicted by the widely cited "blue chip" consensus of leading economists. The administration also sees inflation averaging 3.8 percent this year, but easing to 2.3 percent next year _ better than the 3.0 percent seen by the blue chip panel.
"The nation's economy has continued to expand and remains fundamentally resilient," said the budget office report.
A $482 billion deficit, however, would easily surpass the record deficit of $413 billion set in 2004.
The new figure actually underestimates the deficit, since it leaves out about $80 billion in war costs. In a break from tradition _ and in violation of new mandates from Congress _ the White House did not include its full estimate of war costs.
The White House in February had forecast that next year's deficit would be $407 billion, which puts the increase in the projections at $72 billion.
Figures for the 2008 budget year ending Sept. 30 will actually drop from an earlier projection of $410 billion to $389 billion, the report said. >>>cont
The administration said the deficit was being driven to an all-time high by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession. But the numbers could go even higher if the economy performs worse than the White House predicts.
The budget office predicts the economy will grow at a rate of 1.6 percent this year and will rebound to a 2.2 percent growth rate next year. That's a half percentage point more than predicted by the widely cited "blue chip" consensus of leading economists. The administration also sees inflation averaging 3.8 percent this year, but easing to 2.3 percent next year _ better than the 3.0 percent seen by the blue chip panel.
"The nation's economy has continued to expand and remains fundamentally resilient," said the budget office report.
A $482 billion deficit, however, would easily surpass the record deficit of $413 billion set in 2004.
The new figure actually underestimates the deficit, since it leaves out about $80 billion in war costs. In a break from tradition _ and in violation of new mandates from Congress _ the White House did not include its full estimate of war costs.
The White House in February had forecast that next year's deficit would be $407 billion, which puts the increase in the projections at $72 billion.
Figures for the 2008 budget year ending Sept. 30 will actually drop from an earlier projection of $410 billion to $389 billion, the report said. >>>cont
Obama Huddling With Economic Advisers
Hotline reports that Obama is calling for bipartisan solutions to the economic crisis that he says Wall St. is partially responsible for:
"It was not an accident or history nor a normal part of the business cycle that led us to this situation," he said. "There were some irresponsible decisions that were made on Wall Street and in Washington. In the past few years, I think we learned an essential truth that in the long run we can't have a thriving Wall Street if we don't have a thriving Main Street."
He said the economic stimulus package enacted earlier this year has provided some relief, but said more action is necessary.
"I'm glad to see we have a broad representation of people here," Obama said of the group joining him, which included former Republican and Democratic administration officials and business and labor leaders. "It's a group that I will be convening periodically over the next few months because of the dynamic situation and one that the next president will need to be prepared to deal with the moment he takes office."
"It was not an accident or history nor a normal part of the business cycle that led us to this situation," he said. "There were some irresponsible decisions that were made on Wall Street and in Washington. In the past few years, I think we learned an essential truth that in the long run we can't have a thriving Wall Street if we don't have a thriving Main Street."
He said the economic stimulus package enacted earlier this year has provided some relief, but said more action is necessary.
"I'm glad to see we have a broad representation of people here," Obama said of the group joining him, which included former Republican and Democratic administration officials and business and labor leaders. "It's a group that I will be convening periodically over the next few months because of the dynamic situation and one that the next president will need to be prepared to deal with the moment he takes office."
posted by Kangaroo Brisbane Australia at 2:04 PM
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