Report: U.S. $1.2 Trillion In The Hole

Congressional Estimators Project Unparalleled Budget Deficit For 2009; Obama Balancing Debt and Stimulus

(CBS/AP)  The U.S. federal budget deficit will hit an unparalleled $1.2 trillion for the 2009 budget year, according to a Capitol Hill aide briefed on new Congressional Budget Office figures.

The aide says the CBO also sees a $703 billion deficit for 2010.

The dismal figures come a day after President-elect Barack Obama warned of "trillion-dollar deficits for years to come."

CBO's figures don't account for the huge economic stimulus bill that Mr. Obama is expected to propose soon to try to jolt the economy. At the same time, they do not reflect the immediate cost of the Wall St. bailout.

The shrinking economy has led to a sharp drop in tax revenues, which is largely responsible for the deficit, along with about $350 billion in spending so far for the Wall St. bailout.

Mr. Obama announced Wednesday the appointment of Nancy Killefer as White House chief performance officer, a new post created to increase government efficiency - one of Mr. Obama's campaign pledges.

Obama said that concerns about rising deficits prompted him to turn down advice from some economists who called for spending $1 trillion or more to jump-start the economy. Obama's proposal is expected to cost nearly $800 billion over two years.

"We have an economic situation that is dire, and we're going to have to jump start this economy with my economic recovery plan, creating 3 million jobs," he said. "That's going to cost some money. And in the short term, we will actually see, potentially, additions to the deficit."

There are also signs that the stimulus bill could become a magnet for good old fashioned pork-barrel spending, reports CBS News correspondent Chip Reid. Mr. Obama has banned congressional pet projects, so the lobbying has shifted to the states and cities.

A wish list from the U.S. Conference of Mayors includes three aquatic centers in Miami for $30 million, a polar bear exhibit in Rhode Island for nearly $5 million, and a museum on the mafia in Las Vegas for $55 million, Reid reports, which are the kinds of projects that could jeopardize Republican support.

Mr. Obama also said that by February he expects to have a plan on how to deal with big ticket spending such as Social Security and Medicare, waste in government and other factors, as well as some "specific outlines" on how to control the deficit.

"We're going to be inheriting a $1 trillion-plus deficit. And if we do nothing, then we will continue to see red ink as far as the eye can see," Obama said after introducing Killefer, who will become the White House's point-person to work with federal agencies to set performance standards and hold agency managers accountable for progress.

Obama called Killefer, who will work out of the White House Office of Management and Budget, "an expert in streamlining policies and wringing out inefficiences."

Mr. Obama and Congress are also promising quick enactment of the economic recovery plan, which will blend up to $300 billion in tax cuts with big new spending programs and could cost up to $775 billion over the next few years.

The flood of red ink probably won't affect that measure but could crimp other items on Mr. Obama's agenda.

The $1.19 trillion 2009 figure shatters the previous record of $455 billion, set only last year. It also represents about 8 percent of the size of the economy, which is higher than the deficits of the 1980s. The 2009 budget year began last Oct. 1.

CBO predicts the deficit will come under control within a few years, but such predictions depend on the expiration of President George W. Bush's tax cuts at the end of next year and repayments from financial institutions that received bailout funds.

While expected, the deficit numbers will give lawmakers second thoughts about creating new spending programs without finding ways to pay for them. And it is likely to prompt a debate about whether tax increases are necessary after the economy recovers from the current recession.

On Tuesday, Mr. Obama issued his most serious remarks yet about the danger of big budget deficits and promised his administration will take steps to bring the tide of red ink under control.

"I'm going to be willing to make some very difficult choices in how we get a handle on this deficit," Obama said Tuesday.

Economists warn that large and sustained budget deficits put upward pressure on interest rates. In the short term, however, efforts to restrain the deficit could have a contracting effect on the economy.

[antoniof123]

The end of an empire brought to you but the family value party of god the GOP = Greed Over Principle.

Never again they need to remain in the wilderness for an eternity.

[vsg4]

With 11 trillion internal debt(of which China owns 2 trillion in US treasury notes), 6 trillion trade deficit and never ending Iraq war, economy in doll drums, tax revenues falling, 1 trillion is only tip of the iceberg.

In contrast big 4 oil as well as defense suppliers raked 600 billions each group in profits. Gone are the days of 145 billions budget surplus and $15 per barrel crude oil when Bush came in. Where did money go , 1 trillion in tax cuts to rich and 2 trillions to you know who. Very great Bush legacy, we will remember it and it''s damages next decades to come if not life times.

[renonv5]

Bush/Cheney must be so proud.

[vsg4]

don''''t just thank G.W. and Cheney, thank our entire congress!!

Posted by kevinkkloste at 11:03 AM : Jan 07, 2009

Why congress as a whole? GOP has majority first 6 years of Bush/Cheney.

[matrixrx2003]

Well we can blame a 50% increase on the Bush Administration.

Thanks George W. Bush for being such a spend thrift and jacking up TWO WARS.

[vsg4]

"What on earth does anything Richard Cheney do have to do with the U.S. federal budget deficit???
Are you a crackpot all the time, or only when you try and express an idea?

Posted by DaVicar3 at 11:05 AM : Jan 07, 2009"

No VP is on. Who doctored the intelligence, came as VP with Iraq invasion pre decided. Made secret surveillance on US citizens look legal, torture look legal. Everybody knows about Halliburton''s no bid contracts in Iraq.

[rewind25]

I''m not the most religious person in the world, BUT....Has anyone else noticed how Obama has been treated not only by the majority of U.S. Citizens as "The New Messiah", but by most people around the world and, that the nickname for his new Cadillac is "The Beast"? Think about it.

[biblethumpar]

What a Legacy our Shoe dodger in chief has left us.

[jackp32]

Obama is about to preside over the financial collapse of the US and it will be his fault.

[smurfcrusher]

"Obama is about to preside over the financial collapse of the US and it will be his fault."

Posted by JackP32


Obama didn''t want or ask to inherit this disaster from Bush.

[renonv5]

DaVicar3

Was he or was he not, part of this administration???
Do you really think Bush was calling all the shots?
If so, I have to believe you are the crackpot.

[jerr11]

$1.2 Trillion in the Hole.

What''s worse than Tax and Spend Democrats?

BORROW AND SPEND REPUBLICANS!!!

[jerr11]

What a legacy for George W Bush!

935 Lies.

$3 trillion squandered because of those lies.

4200 Dead Americans because of those lies.

As Reverend Harry Powell said, "A Liar is an abomination to the Lord!"

George W Bush - Liar-in-Chief.

Butcher of Crawford.

Son of Satan!

[stinginrich]

State Unemployment Websites crashing under the load of new claim filings, increasing forclosures swamping overwhelmed Bank and Mortgage Co''s, Gas Tax shortfalls due to continued drop in consumption,....
We''re in a tail-spin from altitude and gaining speed with every passing day. Face it, no one is capable of pulling this abused and neglected economic plane out of it''s dive and we''re going to eventually crash with a giant thud. Only by reaching the ground can the wreckage be inspected and the construction begin on the new improved model.
And in the future if anyone says that we don''t really have to worry about regular inspections and maintenance, just hit them in the head with a baseball bat and make an object lesson that even a Dullard can understand........

[cariboubarbi]

DaVicar3


It took over 200 years to bring the deficit to 5 trillion dollars. It only took Bush 8 years to double that. When he leaves office, it will be at least 11 trillion.

[zzy-izzy]

I HOPE GEORGE BUSH ENDS UP IN THE "PITS OF HELL" FOR WHAT HE HAS DONE.

What on earth does anything Richard Cheney do have to do with the U.S. federal budget deficit???
Are you a crackpot all the time, or only when you try and express an idea?


--------------------------------------------------------------------------------

Posted by DaVicar3 at 11:05 AM : Jan 07, 2009

Why? Lets see, Cheney''s "advice" to the dumb *** that calls himself president and the cabinet that serves. Cheney has been pulling the strings for 8 years.

That''s why--------- Really vicar, you need to get a clue.

[jn122736]

It took over 200 years to bring the deficit to 5 trillion dollars. It only took Bush 8 years to double that. When he leaves office, it will be at least 11 trillion.
Posted by CaribouBarbi at 12:04 PM : Jan 07, 2009
~~~~~~~~~~~~~~~

CaribouBarbi;

It is a bit more dramatic than that.

4 and 1/2 years after our 200th birthday the national debt was LESS than I trillion dollars.

Republican oresident, Reagan Reagan, initiated the republican%u2019%u2019s infamous trickle-down-borrow-and-spend policy, and in less than 30 years the debt has increased 1100%.

What is even worse is that by the time the democrats can slow the landslide to a halt (if it is not already too late) the debt may reach 15 trillion or more.

[edward1975-2009]

That is just the tip of the iceberg if we continue with these failed bailout programs.

[vsg4]

"the debt may reach 15 trillion or more.

Posted by jn122736 at 12:36 PM : Jan 07, 2009"

Shall we call this GOPs fiscally conservative policy ? Or barrow(particularly from China) and spend policy. This is only president that went to war by reducing taxes(on rich) so that our grand & great grand children will repay.

[lochlan-2009]

The largest heist in history, and not one person in the Bush administration is going to jail. No accomplices at WH propaganda Fox News, or republicans, and Democrats(Joe Lieberman) charged and convicted. Bankers and Fed chairmans walk free.

"with Liberty and Justice for all."

America is such a lie.

[misssuzq]

Why can''t we get countries to payback the gazillions that we have given them?

Why is it that we take care of people who hate us and not our OWN American CITIZENS - our own country?

These are things that the government did without our approval - we only get a choice of elected officials but never get to voice our opinion and they make dumba$$ decisions!

$15 BILLION dollars - you could give each American CITIZEN a couple of million so that we could afford to make purchases to keep things afloat!

Rebuild devastated areas from floods, hurricanes and tornados. Money for NATURAL disasters, not man made ones.

No one is saving American CITIZENS and we are not being asked via a vote as to what we would like or not like to be done, so money is being given away like Monopoly money.

[Marie Zarankevich]

After the past four years, don''t you think it''s about time we got wise to what is going on here??? -- Our government keeps handing over billions of dollars to "mysterious strangers", who the are to do something that will help us out??? -- How is this helping us??? -- Where has all this money gone??? -- Why do we keep thinking that this time they will do the right thing with it??? -- I''m all for telling our own government to "get its teeth out of my neck, you dirty old vampires". -- Because that is what this has become, a simple bloodletting. -- It is a planned rap e of the American people, of the American way of life. -- That''s all it is.

[credibility2]

Many of these so-called mysterious strangers are undocumented illegals; the practice has been going on for decades, and not just in the past eight years. Undocumented illegals benefiting from programs that should only go to citizens or documented immigrants is what is pulling down the system. It''s not just the wars or Wall Street and parts of Main Street.

[windmaster12]

Bush Sept. 08
"The fundamentals of our economy are sound"

He must have meant for the upper3%

I think we need to go to a flat income tax of 12%
A capital gains tax of 15%
An import duty of 8% on all imported goods
And a National sales tax of 5% on all products

Simplify the stupid Tax system
Get rid of all the loopholes

A 15% capital gains would spur business --
Increasing domestic spending and Manufacturing

An Import duty would bring in Trillions
To a Gov''t that''s cash starved --

And in the end changing the tax structure would
even the playing field.

We need something new that''s for sure
Steve Forbes has it right.

[rbburnerjr]

During the Bush regime time in power 2 million high paying industrial jobs were sent to China and replaced with Walmart minimium wage jobs. All the tax revenue from these jobs and the purchasing power of these jobs is lost. When you can''t afford housing, medical care, new clothes, electronics and cars because all you have is your part time minimium wage jobs what happens. Now Congress want the people that are left with good paying jobs and health benefits to take a cut in wages and benefits. It is time to make congress a minimium wage job. Untill high paying jobs return to America all we have left is deficit spending.

[yam250]

I agree, want to bring back america to greatness-
FIX that stupid tax system.

[spinproof]

Pres. Bush has been U.S. President for 8 long years and his Mideast Peace Plans and Policies or lack thereof shares most of the blame here! As far as U.S. Leadership goes, the U.S. Mideast Peace failures during the Bush Presidency ranks right up there with the other notable G.W. Bush failure and that is getting a handle on government spending and U.S. Debt! Pres. George Bush came to power with a U.S. Deficit just under $6 Trillion and has expanded the U.S. Debt to just over $11 Trillion with out of control spending. To date Pres. George Bush has created more red ink, more U.S. Debt than all the other U.S. Presidents combined! Pres. Bush stands alone, King of Deficits both in Peace and Financially.

[inventagod2]

Just wished to thank the Republican''ts and Bu$hCo.

[remrafbn]

"The U.S. federal budget deficit will hit an unparalleled $1.2 trillion for the 2009 budget year"

I wonder how that happened. Clinton left a huge surplus and Bush turned it into a huge deficit. If you ever saw the movie "Problem Child" at the beginning of it the sisters appear to be sad because the boy has been adopted but as soon as he leaves the convent with his new parents the confetti starts coming down and the sisters open bottles of champagne and party on. That is what we have to do on January 20. When our Problem Child leaves the White House lets party on like nuns in a convent!~

[mediawatch50]

Heckuva job, Bushie!!

And to the xenophobe trolls who think illegals are sucking us dry: The feds could pay for every illegal in the country for nearly 100 years, using the same amount of money we just blindly handed over to the banks.

One of these is a bigger problem than the other. Figure it out.

[walt1944-2009]

And to think that when the Great Emperor Bush II was appointed by the neocon Supreme Court in 2000, there was a SURPLUS!!!!!

So much for neocon Fascist Nazi Republican "FINANCIAL RESPONSIBILITY"!!!!

SIG HEIL, WHAT''S A SURPLUS????, BUSH!!!

[remrafbn]

txgrouch said "The FIX is NO INCOME TAX AT ALL!!!"

txgrouch says a lot of stupid things. We had the fix already on November 4, 2008. We kicked some republican butt. Did you see the data I posted about interns in Texas? Just 6.1%. That is still above the NCLB requirements but WAY BELOW your LIE of 80 to 90%!~ "LOL" And all new teachers are required to be "highly qualified" FAKE TEACHER!~

[remrafbn]

txgrouch said "The Democrat-controlled Congress just took office YESTERDAY.

TODAY, the price of gasoline is going up. On Saturday - JUST FOUR DAYS AGO - I paid $1.57/gal for plus. TODAY plus is up to $1.75!!!

THANKS, DEMOCRATS!!!!

IT HAPPENED ON YOUR WATCH!!!!!"

I went to several discussions here and I found so many people who agree with me that you are dumb and a liar that I bought a fine bottle of wine. "LOL"

[remrafbn]

txgrouch said "Between 1790 and 1913, the main source of revenue for the federal government came from TARIFFS. During that time, our nation grew from a wilderness colony to an industrial superpower. In spite of stiff competition from cheaper foreign goods.

TARIFFS made our country prosperous in a time of foreign competition. TARIFFS are the path to prosperity.

Tariffs fell by the wayside in the 1900''''''''s, when we became an exporter nation and we didn''''t need tariff protection anymore."

I wonder why no one elses thought about that before. None of our greatest economic minds thought of TARIFFS as the solution. I vote to have txgrouch run our economy. All those in favor in his mental hospital say "I". You too Napoleon!~ "LOL"

[culturechang]

CNN had an article Monday where the FBI was going to hire 800 new agents? I can see them for terrorism or kidnapping or major crimes, in my town, 175 FBI agents were involved in string of massage parlor busts. They said agents had been dumpster diving for condom wrappers for 18 months prior to the bust. Seems like we have too many agents on the payroll already. The operators have been in jail for 18 months without trial or bond....meanwhile Wall Street bandits run free on thier tax-funded bonuses.

[remrafbn]

txgrouch said "Oh, look. The psycho teacher is stalking me."

I am not a psyco teacher teacher. But I am a teacher. Not in public school but still an educator.

Then he said "Nice to know our kids are being taught by someone like you."

I don''t teach kids. I teach adults but I am also a consultant for a District in my state during the day and I teach two courses at night. But i do not teach kids.

Then he said "STOP STALKING ME. STOP OFF-TOPIC POSTING."

Close to half of that post was on topic LOSER!~ Still that 6.1% was the last nail in the coffin of your LIE!~ "LOL"

Then he said "I AM SERIOUS. I HAVE ALREADY TURNED YOU IN TO CBS."

I told you you are not a man!~ "LOL"

Then he looked at a mirror and said "YOU HAVE A SERIOUS MENTAL PROBLEM."

"LOL"

[remrafbn]

txgrouch said "STOP STALKING ME. I HAVE ALREADY TURNED YOU IN TO CBS."

Do you mean I can''t comment on anything you say? This is a blog. That''s what people do in a blog. BITE ME!~ "LOL"

[irmcvet971]

When you look at the depth and size of the massive problem we are about to hand this Young Leader it makes you head spin!! Never, since FDR has ANY President taken over this nation in WORSE shape! Never since Hoover and the Republican''s of the 30''s has any group did a worse job of running our nation. NEVER!! Now when you compare that to the situation George Bush took over in 2000 it really gives one the full impact of just HOW bad he and the Republican Party have been. AWESOME is about the best way to describe it!

[lovegetpeace]

Great Job Republican President Bush! Unfortunately, the great Americans cannot Re-Elect you for a 3rd Term in office.

[biblethumpar]

an Epic Historic Failure is what Mr Obama is inheriting from the republicans and from
the Decider.
8 years of utter, utter Failure.

[worstever2]

Beyond believeable.

Absolutely the worst president in our countries history.

I''m 53 years old, and I can only hope to live long enough to see MY COUNTRY regain its economic footing and regain a decent standing the eyes of the world.

I was against Bush from the start, and even I could not have imagined in my worst nightmares, how badly one president could have damaged my country.

Anyone that voted for Bush once should be ashamed.

Anyone that vote for him twice is just simply stupid.

I hope to hell you are happy. A small portion of responsibility rests right on your shoulders.

A small portion also rests on my shoulders. We should have impeached Bush the day it became clear no WMDS would ever be found.

All of us are have a small part in sharing the blame for allowing the GOP and Bush to destroy our country. May they rot in hell.

[lovegetpeace]

Posted by remrafbn at 03:41 PM : Jan 07, 2009

Before, WWII, America was nobody and cheap. Tariffs paid part of the bills.

After WWII, America was alone as a World Economic Monopoly. The economies of all other developed nations were in Ruined and Destroyed. Consequently, all other nations had to buy from America at our High Monopoly Price which raised our Standard of Living thru the Roof and made us a Rich Empire.

Today, America got no World Economic Monopoly. American must lower their Standard of Living just to have a choice to compete with other Developed Nations. This Poor Empire is waiting for the China Empire to take over.

I do not Blame or Credit Capitalism and Democracy.

Today, any nation can protect themselves by raising tariff if America raises it own tariff. So, tariff is useless as a weapon and to pay bills.

[johnstossel]

Thank you, president bush. WE will be paying for the priviledge of having you as president for many years.

[davewrite1]

It''s instructive to remember that Carter bequeated to history and to Ronald Reagan a national debt (accumulated over national history)a debt just under one trillion dollars. Then came the neocons and supply-side, trickle-down Reaganomics -- which swiftly quadrupled the debt and pauperized all but the top -- the beloved Madoffs of the world.

[johnstossel]

In response to lovegetpeace: We could have had 4 more years of bush if we elected McSame. Fortunately our country has woken up and realized that something ain''t right!!!

[nanc12]

Yes, the safety you are enjoying because the Terrorists have been smashed around the globe, should be enjoyed for years to come.....you''''re welcome
Posted by Joe-NY

Terrorists have been smashed around the globe? Then why is bin Laden and al Queda still alive and well? Bush ignored intelligence that could have prevented 9/11. Our invasion of Iraq was the biggest recruiting boon terrorists ever had.

Perhaps with Bush out of there, the terrorists will have a harder time getting new blood.

[credibility2]

How much money for various programs is continuing to be spent on non-citizens? Surely these amounts are contributing to the deficit, since it''s wasted and misappropriated spending.

[lili5044]

Hey ole Arnold in the golden state has an answer for all this deficit problems. His newest brainstormer is to allow ILLEGAL ALIENS to open checking and savings accounts with some dipstick consul card he is willingly ready to dispurse. Good thinking Arnie!!DAHHHHHHH

[hackerpc]

WE''RE FFFRIGGINN DOOMED!! UTTERLY,UTTERLY DOOMED!!