Obama Spending Will Result In Debt Exceeding 82% Of Economy, CBO Says

When you see a car hurtling off a cliff, you can safely say the driver probably went the wrong way.

According to the CBO, we are stomping on the accelerator while headed right off a cliff.

Deficit Projected To Swell Beyond Earlier Estimates
CBO Expects Trillions More in Borrowing

By Lori Montgomery
Washington Post Staff Writer
Saturday, March 21, 2009; A01

President Obama’s ambitious plans to cut middle-class taxes, overhaul health care and expand access to college would require massive borrowing over the next decade, leaving the nation mired far deeper in debt than the White House previously estimated, congressional budget analysts said yesterday.

In the first independent analysis of Obama’s budget proposal, the nonpartisan Congressional Budget Office concluded that Obama’s policies would cause government spending to swell above historic levels even after costly programs to ease the recession and stabilize the nation’s financial system have ended.

Tax collections, meanwhile, would lag well behind spending, producing huge annual budget deficits that would force the nation to borrow nearly $9.3 trillion over the next decade — $2.3 trillion more than the president predicted when he unveiled his budget request just one month ago.

Although Obama would come close to meeting his goal of cutting in half the deficit he inherited by the end of his first term, the CBO predicts that deficits under his policies would exceed 4 percent of the overall economy over the next 10 years, a level White House budget director Peter R. Orszag yesterday acknowledged would “not be sustainable.”

The result, according to the CBO, would be an ever-expanding national debt that would exceed 82 percent of the overall economy by 2019 — double last year’s level — and threaten the nation’s financial stability.

“This clearly creates a scenario where the country’s going to go bankrupt. It’s almost that simple,” said Sen. Judd Gregg (N.H.), the senior Republican on the Senate Budget Committee, who briefly considered joining the Obama administration as commerce secretary. “One would hope these numbers would wake somebody up,” Gregg said.

Click here to read the rest of the article

“Change we can believe in” has now finally been defined: it means nearly $10 trillion in spending – with massive interest to boot – in ten years.

Michael Boskin of The Wall Street Journal pointed out that:

Mr. Obama’s $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.

The United States of America is like a big bus filled with a bunch of chattering children.  Some are laughing and shouting to one another about this or that; some are tuned in to toxic culture (and tuned out to all else) via their iPods; some are arguing over this or that event of the day.  But by and large, nobody is paying attention to the fact that the driver is heading right off a cliff to a big bang and a fiery death far below.

It is getting very important that we take a moment to LOOK at where we are headed.

The Congressional Budget Office says that debt held by the public will rise from 41 percent of GDP in 2008 to 57 percent in 2009 and then to 82 percent of GDP by 2019.  Keep in mind, that 41% figure was based on a deficit of $459 billion – the largest on record.  Obama has already smashed that tally, and promises to smash it again and again.  That’s how he manages to double the national debt as a percentage of the overall economy to a degree that is so far beyond crazy that it is simply unreal.

There won’t be enough rich people to devour to get us through this kind of debt.  Little people, your taxes are about to go sky high even as your quality of life plummets.

6 Responses to “Obama Spending Will Result In Debt Exceeding 82% Of Economy, CBO Says”

  1. Michelle Says:

    Scary. But what can we do about? All we can do is wait two years to fire all the idots in congress. But even in two years is there any hope? Too many people are blissfully along for the ride counting on Obama’s charisma to pull us through.

    What exactly are the implications of a bankrupt nation? What real effects in the world and in our personal lives can we expect?

  2. Michael Eden Says:

    Michelle,
    I think there IS something we can do in the meantime: we can make such a ruckus that Democrats understand that they do all this at their peril. We can make sure that they know we WILL vote them out unless they tow the line.

    But you’re right: people are bowing down to “smiley face fascism.”

    What are the implications of a bankrupt nation? Look at the third world: it is what is awaiting us. A world of fewer resources, people with less to eat, fewer jobs, less things to buy, etc. And given the way we are going, I would say, “Look at Venezuela under Hugo Chavez.” Take a dictator, give him near absolute power, and then watch the people have less and less (their GDP has collapsed) even as they get less and less of the truth.

  3. Stopthepresses2 Says:

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  4. esomhillgazette Says:

    Obama is on the road to destroy our economy. What a CHANGE! What HOPE he’s given us for the future! What a DUMBASS!

  5. Michael Eden Says:

    Some of the most frightening liberal ideas come from “intellectuals” with PhDs.

    I am reminded of what my drill sergeants used to say: “That idea is so stupid only an intellectual could have thought of it. You went to college, didn’t you, boy?”

    I am convinced that – more than anything else – what makes people “dumbasses” is their worldview. If you have a perverted view of the world, you cannot possibly see it or understand it clearly no matter HOW intelligent you are. And too many liberal educations today simply indoctrinate perverted worldviews.

  6. hl Says:

    There is something you can do. Attend a Tea Party on April !5, let your presence be seen and your voice heard. Spread the word to your sphere of infuence.
    Here is a map for Tea Parites in your state.
    Enough is enough!

    http://michellemalkin.com/2009/04/01/share-it-the-tea-party-google-map/?print=1

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