CBO forecast project federal deficit to exceed 90% of GDP by 2020............

President Obama's fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation's economic output by 2020. The numbers are beyond staggering. In a budget report filed Thursday, the Congressional Budget Office stated that the president's spending habits would generate a combined $9.75 trillion in deficits over the next decade. Unfortunatelyhose numbers, while extremely crippling, will only hold under the best case scenario. Barrack Obama's Presidency has been like watching what would happen if Paris Hilton took over her daddy’s Hilton hotels; bankrupting them in one weekend because she wanted everyone to have a free room.. He is our incompetant leader--elected in what will go down as the popluarity contest of the millenium. "Cool tall black guy vs. short old white guy with a hump on his back" - who will win the public hearts? But the election of this social worker is a different topic of discussion

The federal public debt totals $8.2 trillion as of today, and it's headed toward $20.3 trillion in 2020. That comes out to around t$72,000 per household today, and more than $170,000 per household in 2020. The figure projected by the CBO would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, the ratio for economically troubled Greece hit 115 percent last year. Economist Kenneth Rogoff made the following point:

"For countries with debt-to-GDP ratios above 90 percent, median growth rates fall by 1 percent, and average growth falls considerably more"

This statement encompasses what is most jarring about these numbers. With a shrinking production base, rising unemployment, and trillions of unfunded liabilities: these deficit predictions are likely painting a much birghter picture than reality. .Both the CBO and White House predictions depend on nearly 100% emplyment for their numbers to be close to accurate. This is not going to happen. Federal reserve chairman Ben Bernake has left interest rates unreasonably low. They are going to go up eventually, and when they do it will destroy any growth that was created in the last two years. The administration also assumes that GDP and incomes will be significantly higher than they currently are, regardless of evidence to the contary. A relatively small difference in economic assumption can add up to big differences over a 10 year budget projection.

Obama’s healthcare reform, for one, is almost garaunteed to be 2-3 times more expensive then the CBO projects. Yet the bill still fails to address any part of the actual cost of medicine. They are simply increasing consumption by subsidizing insurance. Most private sector economists are projecting the 10 year cost of healthcare at around $2.5 trillion, not $900 billion. Social Security and Medicare are even worse. Both programs are insolvent and projecting deficits as high $75 trillion.

The federal government refuses to allow any market corrections in the housing and energy markets, and instead continue to print money to cover losses. Did you wonder at all, why housing purchases fell 6% last month? Well, its because 6% of the housing market was being paid for with the homebuyers tax credit. The tax credit ran out of funds, and so the housing market begins adjusting. This is supposed to happen. When the government subsidizes something, but can’t continuethe subsidie forever, they are not doing anything but temporarily altering the market. This happens everytime the government runs out of money to subsidize any product. Demand and consumption go up with the subsidy, but after the money is gone both plummet and the problem is worse than before.

The real issue in America right now, is the loads of unfunded entitlements we have (like healthcare, wellfare, social security, and gov't pensions) with no money to pay for them down the road. We end up going into massive debt, while destroying our ability to produce. They may as well start handing out T-shirts with the slogan: "I survived the progressive destruction, and all I got was this stupid T-shirt"..

The CBO and the administration expect the deficit for fiscal 2010 to be $1.5 trillion and exceed 10 percent of GDP for the first time since World War II. America is essentially broke. None of this is news to the conservative. Only a socialist utopian, with their heads burried in the sand, could have ignored this obvious future. We were over-extended before Obama. He is just sealing the deal.