CBO projects $1.08 trillion deficit, 8.9 percent jobless rate in 2012

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    Feb 01, 2012 6:17 AM GMT
    My guess is that both the deficit and the jobless numbers will be higher than estimated here.

    http://thehill.com/blogs/on-the-money/budget/207603-cbo-budget-economy-worse-than-estimated

    A rising deficit and unemployment rate would hamper President Obama's reelection effort, which in recent weeks has seemed to be on stronger footing.
    If the CBO estimate is correct, it would mean that the United States recorded a deficit of more than $1 trillion for every year of Obama’s first term.

    CBO Director Doug Elmendorf told reporters that Congress will have to make important choices this year regarding the supercommittee trigger and tax policy that will have huge effects on the deficit.

    While unable to recommend choices, Elmendorf said that addressing the deficit sooner rather than later is easier.

    The deficit was $1.4 trillion in 2009, $1.3 trillion in 2010 and $1.3 trillion in 2011. The largest deficit recorded before that was $458 billion in 2008.

    CBO had forecast an 8.5 percent unemployment rate for the end of 2012 in its August report. It now expects the jobless rate to be higher and to still be at 7 percent in 2015.

    The higher unemployment numbers are due to lower economic growth than previously estimated. Gross domestic product for 2011 is now estimated to have grown 1.6 percent in 2011, down from the 2.3 percent forecast in August. CBO a year ago had predicted 3.1 percent growth for 2011.

    The outlook for 2012 has also worsened. GDP is forecast to grow only 2 percent this year, compared to a previous estimate of 2.7 percent.

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    Feb 01, 2012 4:49 PM GMT
    it appears that the only way 2 rein in deficits is 2 do as the CBO suggests:

    "The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 -- and renewed in 2010 through the end of this year -- were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017."

    it remains 2 be seen whether the President and Congress have the balls 2 do what is necessary.

    http://nbcpolitics.msnbc.msn.com/_news/2012/01/31/10279530-report-us-deficit-falls-slightly-to-11-trillion
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    Feb 01, 2012 6:42 PM GMT
    tailgater_3 saidit appears that the only way 2 rein in deficits is 2 do as the CBO suggests:

    "The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 -- and renewed in 2010 through the end of this year -- were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017."

    it remains 2 be seen whether the President and Congress have the balls 2 do what is necessary.

    http://nbcpolitics.msnbc.msn.com/_news/2012/01/31/10279530-report-us-deficit-falls-slightly-to-11-trillion


    Or dramatically reduce spending to historical levels.
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    Feb 01, 2012 7:35 PM GMT
    tailgater_3 saidit appears that the only way 2 rein in deficits is 2 do as the CBO suggests:

    "The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 -- and renewed in 2010 through the end of this year -- were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017."

    it remains 2 be seen whether the President and Congress have the balls 2 do what is necessary.

    http://nbcpolitics.msnbc.msn.com/_news/2012/01/31/10279530-report-us-deficit-falls-slightly-to-11-trillion



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    Good question !!! Once the election is over Obama might find the spine to go against his funders, I would certainly hope so.


    Just think if these same public officials would develop enough spine to drop the damn war in Afghanistan, and drop the war sabre rattling over the Neo Con's wet dream of war with Iran and cut 500 billion from the Military. What a dent in the debt these actions would make.

    But hell !!! this is washington we're talking about, since when did common sense lead their actions. Their actions are led by such priorities as the Corps. Lobby's and Military Complex whose backs when scratched, scratch back for their next election.
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    Feb 01, 2012 11:00 PM GMT
    realifedad said
    tailgater_3 saidit appears that the only way 2 rein in deficits is 2 do as the CBO suggests:

    "The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 -- and renewed in 2010 through the end of this year -- were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017."

    it remains 2 be seen whether the President and Congress have the balls 2 do what is necessary.

    http://nbcpolitics.msnbc.msn.com/_news/2012/01/31/10279530-report-us-deficit-falls-slightly-to-11-trillion



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


    Good question !!! Once the election is over Obama might find the spine to go against his funders, I would certainly hope so.


    Just think if these same public officials would develop enough spine to drop the damn war in Afghanistan, and drop the war sabre rattling over the Neo Con's wet dream of war with Iran and cut 500 billion from the Military. What a dent in the debt these actions would make.

    But hell !!! this is washington we're talking about, since when did common sense lead their actions. Their actions are led by such priorities as the Corps. Lobby's and Military Complex whose backs when scratched, scratch back for their next election.


    Again - if you take into account the additional war spending, military spending is still below historical averages. This is not to say I disagree that a lot of the military spending is wasteful but that this is not the root problem of the existing deficits.