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August 25th, 2009
12:45 PM ET

White House: $9 trillion in deficits

The White House now expects the 10-year budget deficit to reach $9.05 trillion.

The White House now expects the 10-year budget deficit to reach $9.05 trillion.

Jeanne Sahadi
CNNMoney.com senior writer

The White House now expects the 10-year budget deficit to reach $9.05 trillion, roughly $2 trillion more than it estimated earlier in the year, according to a report released Tuesday by the Office of Management and Budget.

Budget office director Peter Orszag pointed to a number of measures put in place to stem the pain of the economic downturn.

"As a result of a deeper-than-expected recession, certain spending programs (such as unemployment insurance and food stamps) are projected to automatically increase and revenues are projected to automatically decline, compared to our previous projection," Orszag said in a statement.

A 10-year deficit of $9 trillion means the debt held by the public - the accumulation of all annual deficits over the decades - would reach 82% of gross domestic product. That's double the 41% recorded in 2008.

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Filed under: Economy
soundoff (16 Responses)
  1. Craig Kemnitz

    Unfortunately, deficits DO MATTER, despite the Keynesian myth. Stating the increasing the numbers (by a factor of five) on top of what already had been spent on IOUs does not excuse it. One can only blame Bush for so long, the worry is the CURRENT deficit NOW.

    This country must prioriitize its issues and spending. More social spending now is not only imprudent, it is status quo post ante, 1979.
    The problem is that when we issue IOUs, somebody has to buy them -
    (and that is throught the process of government securities auctions).

    If nobody steps up to the plate and picks them up, higher interest rates to attract buyers must follow. Or the marginal value of the currency uinit must drop (higher yen, Euros, Reals, etc.). And what follows is inflation.

    Our higher equity market already reflects this expectation. Share prices rise to reflect the greater number of dollars necessary to buy equivalent share value - in the future.

    With nearly 10% unemployment, we can't afford higher interest rates.
    The US dollare has already created a double top, and will go lower, given the administration's penchant for "buy now, worry later" bent.

    August 26, 2009 at 10:47 am |
  2. jp

    I don't know which is more insane. People who still back the President on this spending or the spending itself. These are #'s that will enslave my children. my childrens children etc.
    Yes it started with Bush I don't like him either, but Obama hasn't delivered on the change. He's expanded Bush's policies, expanded the wars. Where's all the anti war people now? I truly hope this craziness stops.
    If these people who are making the laws and spending our tax $ really cared for our Country they wouldn't of given themselves a $93,000 a yr raise point blank. They are only in it for themselves

    August 26, 2009 at 2:20 am |
  3. Shadow Fierromax

    I still think those GM, and major bank bailouts were totally uncalled for. Those companies failed for a reason: inefficiency. We're just prolonging their death, caused by unethical and totally irresponsible business planning.
    If they collapse, guess what? There are plenty of smaller, more efficient companies that will take over.
    Just stop with the wall street welfare bullsh-t

    August 25, 2009 at 8:12 pm |
  4. Annie Kate

    That is a staggering amount of debt. Just the interest alone is going to create a tremendous drag on the economy. I feel for the current administration – just look at how many number 1 priorities they have – Afghanistan, the economy, climate change, health insurance, education, infrastructure updates and replacements, etc etc. The list is very long and the money is very tight or quite simply not there. With all the unemployed our social services are going to cost us more and our tax revenue is going to fall. I think Obama and Congress need to get together and come up with a plan to not only pare down the deficit so we will have the money for other projects and to prioritize what initiatives are first, etc. Paying back the principal is going to be hard enough – every day we wait the interest mounts up and it will be just as hard to pay off. We all need to decide what we can live without.

    August 25, 2009 at 6:42 pm |
  5. Shelley

    What's wrong with people today? Where is the common sense? Pres. Obama was handed a bowl of crap and everyone thinks he should make a bowl of cherry's out of it by now. If you owe trillions of dollars, common sense you have to raise taxes and it does not matter what president. There is waste in Federal government but I have also seen so much waste in State government. What business out there have you not seen waste? Does it bug you when you see a street sweeper cleaning a road that does not need cleaned. The City is over budget but they clean roads. Common sense. Stop complaining until you have something to complain about. I just got turned down for health insurance because I have high cholesterol. Let's help the President fix the problem. I am sure he is open for suggestions from we the people. I for one still have faith in him.

    August 25, 2009 at 4:24 pm |
  6. lampe

    Why should HRC, go out and hold TownHall Meetings, that is not her job? Obama has CZARS, let them get out there and do that kind of thing. Where is Biden, after all he is the #2 man, he is the one that should be out there selling their program. No one wanted HRC 7 or 8 months ago, now everybody wants her out there doing Obama and Biden's Work.

    August 25, 2009 at 4:08 pm |
  7. Totto

    America, you are in deep stuff... The deficit will only rise when the baby-boomers retire, and you are so scared of taxes that you will never get the money to take care of them. High taxes do not take away your Freedom, your dependens on other countrys dose

    August 25, 2009 at 4:08 pm |
  8. KIm

    If McCain can do a townhall then Hillary Clinton can too ! They wear many hats on the democratic team for deficits ! Voices Across America and a townhall ! The noise of democracy ! "Fire it up and let's go", Clinton for Universial Health Care townhall ! Yes we can !

    August 25, 2009 at 3:04 pm |
  9. JJS

    So, President Obama has been in office what..7-8months?... But I am sure somehow , someway, this will all be SPINNED on some network and the blame game will begin. Get ready, this whole deficit ordeal is Obamas fault...wait and see how the SPIN DOESNT stop here. 😉

    *ahhhh a nice sandy beach and an ocean view would be great right now...someone pass the Mohito.

    August 25, 2009 at 3:01 pm |
  10. Stacy

    It makes sense when you look at it through the prism that Obama's goal is NOT to recover from this. His goal is total and complete economic collapse, and he is busy with his Czars getting a form of government in place where the Executive Branch has all the power, which will be ready to govern when he SUCCESSFULLY brings about the fall of the current form of government through crisis after crisis. Overload the system. Cause a collapse. Usher in Socialism, or worse. No President in the history of this country has grabbed for so much power so soon in his administration. Mark me. That's his roadmap. Look into the background, the writings, the associations, of all of his "Czars". They are fully on board with this.

    August 25, 2009 at 2:47 pm |
  11. KIm

    How much of that for health care is accountable ? McCain is holding a townhall on healthcare making sense for debate and solutions ! No one is screaming at him ! Good job McCain and now we gotta find Clinton and she should do a townhall on Universial Health care too ! Lots of ideas to craft this bill and keep your eye on 676 of which replaces division A ? Where is Clinton and Obama is on vacation !

    August 25, 2009 at 2:35 pm |
  12. dale

    Deficit later? What are people smoking. After welfare healthcare it'll be 10B. Over 10mil lost jobs and lowered tax base, sovereign debt repayment and more cdo debt turning toxic and insurance against them imploding how the heck do you think it'll get repaid? Further, do you run your personal debt at a 4/5:1 debt to equity ratio with losing your home, car, credit...thus BR? All of these folks should be called back home and lose their job. Let's see how they'd fair in the economy they've sat in watch over. We have centuries of macro/micro economic data. Tax and spend has NEVER pulled economies out of recession...NEVER...

    August 25, 2009 at 2:18 pm |
  13. John D. Vickers

    I expect the Chinese are counting. And with that in mind the US Government always has a convenient out ... quit and let the Chinese can be the new rulers of the USA.

    August 25, 2009 at 2:01 pm |
  14. nea

    Before anyone start blaming this adminstation only It just didnt start with them remember the 700 baliouts the taxcut for the rich and yes we are still paying for 2 wars. And when the Obama admistration went in the country was in poor shape, thats a reson why a lot of people voted for him which was for the wrong reason because now they expect him to cater to their needs only and be perfect about it. then we had the stimulus package which maybe he shouldnt have pass because people are complaing about it, then i wonder what would they have said then if it had not been passed.

    August 25, 2009 at 1:56 pm |
  15. kahlman

    9 trillion, 7 trillion...who's counting?

    August 25, 2009 at 1:50 pm |
  16. Audrey H. Smith

    In my opinion, I don't think the deficit should be the main concern at this point. In my opinion, the deficit will work itself out in due time with the expenditures that the American people spend into the economy every day. Shoppers are still shopping which speaks for itself, but in a different way. When you go into the shopping malls just look around. People are still shopping even in the automotive industry. However, healthcare reform should be the major concern for not only the poor, but the rich as well.

    In according to History, starting with the late President George Washington and Abraham Lincoln illnesses the medical technology wasn’t as advanced as it is today. However, in comparison to the advanced technology available today some people expire because their insurance will not cover certain cost for health recovery. I lost a sister to cancer in year 2007 in which I believe if she had a better insurance and a supplemental insurance she may have still been here today.

    We all know after a certain time the insurance companies will advice doctors and family member to make a decision to pull the plug when health insurance will no longer cover the person medical need. Therefore, the doctor cannot continue to work on the patient without the funds. This is my opinion in which I fill and believe the healthcare reform bill need to be passed along with assurance on what imitations in clarity will be involved if not any on the behalf of the patients.

    PS: President Barack Obama is on vacation with his family. Will everyone let him have this time with his family just we need with President Bush. No one without the former Presidents permission interfered with their vacation time. President Barack have others members within his cabinet to assist him at this time. We the people of the United States are observing the different treatment that President Obama is getting.

    I think anyone who does not want to support their president whether they voted for him or not is proven division in the United States. Together we stand and divided we fall, so let’s stand together as proud Americans, please! The United States of American is the melting pot. Whether people want to accept it or not America is a socialization factor. Therefore, I feel and believe President Barack Obama is doing a wonderful job in upstanding and supporting the American core purpose. In my opinion, if we can go and rebuild other countries we can definitely rebuild the economy and healthcare reform in America. May God continue to bless United States of American!

    Sincerely,

    Audrey H. Smith

    August 25, 2009 at 1:45 pm |