CBO: Fourth Straight Year of Trillion-Dollar Deficits, Unemployment Will Stay Above 8 Percent for Remainder of 2012
- Posted on August 22, 2012 at 12:51pm by
Becket Adams
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For “fiscal year 2012 (which ends on September 30), the federal budget deficit will total $1.1 trillion,” The Congressional Budget Office said in a statement on Wednesday.
You know what this means, right? This means this will be the fourth year in a row the feds have posted a trillion-dollar deficit, as The Washington Times notes.
“The key issue facing policy makers is not whether to reduce budget deficits,” said CBO director Douglas W. Elmendorf. “The question is when. The question is how.”
But wait! There’s more: The CBO also predicts unemployment will stay above eight percent for the remainder of 2012. Wait — really? That’s odd. We seem to remember someone telling us back in 2009 that the stimulus bill would have unemployment at six percent by 2012. Huh.
Anyway, there are two slightly positive pieces of news in the report. First, the CBO expects that the economy will grow a little:
CBO expects the economic recovery to continue at a modest pace for the remainder of calendar year 2012, with real (inflation-adjusted) GDP growing at an annual rate of about 2¼ percent in the second half of the year, compared with a rate of about 1¾ percent in the first half.
Second, that $1.1 trillion forecast is actually lower than the original estimate. The new number is “down slightly from the $1.2 trillion deficit that CBO projected in March,” according to the report.
So, yeah: Basically the “good news” is “Hey! It could’ve been worse,” which, the more we think about it, makes us feel worse.
The CBO also notes that if Congress doesn’t figure out a way to address the impending “fiscal cliff” (budget cuts and the expiration of the Bush-era tax cuts), the U.S. will enter a double-dip recession and unemployment will jump to nine percent.
However, “if Congress were to extend the tax cuts and cancel spending cuts, CBO projects the economy will only grow at 1.7 percent in 2013, and unemployment will still hit 8.7 percent at some point, and average 8 percent for the year,” The Washington Times reports, adding that if Congress allows the tax cuts to expire and spending cuts to take effect, “the debt will have dropped to 59 percent of GDP in a decade.”
“But if Congress continues to push off that pain, it would mean an additional $8 trillion in debt over the next 10 years, reaching 89 percent of GDP in 2022,” the report adds.
Follow Becket Adams (@BecketAdams) on Twitter
Front page photo source courtesy the AP.
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universalphilos
Posted on August 24, 2012 at 9:11pmA prophecy, June 28, 1975: “We say unto you, if in truth you stand in truth for freedom and liberty unto all, then God shall stand with you. But if in truth these are not your principles, then you shall not stand with the Lord, but with yourself, and your self-made ideas. If you should pray unto the Lord, speak as you would speak unto yourself, and therefore, the Lord should hear. But pray not for the death of your brother, for how can the Lord look upon His children and give death unto one and life unto another? But we say unto you, the Lord is a jealous God. Place no other god before Him, or you shall feel the wrath, therefore, within the same….
Report Post »New eruptions shall occur on your Western coastline. And tornado and hurricane shall smitten the earth. Upon the Eastern shoreline great storms and earthquakes shall occur. The island of Cuba shall be ripped and torn until the warheads within her lay dormant and rust away. The industrial nation of Japan shall waste under her own water and her own pollution. The isles of Britain shall be linked unto the continent of Europe. The northern proportion of Europe shall be smitten as though it was struck by a sword. The Dragon, as you would call it, the land of China, shall be plagued by both disease and famine. The Bear, that of the Russian nation and the Russian countries, therefore, within the same, your Common Market, shall fall beneath itself. (Continued)
universalphilos
Posted on August 24, 2012 at 9:12pm“Yet, this nation may stand, if it should grow strong within itself and strong before its God. But should this nation continue to draw its wings back and not coveth and protect the land of Israel, then the Lord shall not protect this nation.
Report Post »Glory be the name of the Lord.”
davetrav
Posted on August 22, 2012 at 8:21pmThe Democrats and Obama have spent over 5 trillion dollars is office , thats more monies than our entire history from George Washington to George Bush, plus all the wars. Obama still blames Bush–
Report Post »shows how stupid he really is, 8% STILL OUT OF WORK. The piped piper says we are doing better,
( RIGHT )— 18 lavish vacations, over 100 golf outings, on the reelection road 1 full year in advance,
gives tens of millions to those that hate us, WLL NOT drill for oil, gas, or dig for coal, slams small business, etc, etc.—DO YOU REALLY WANT HIM BACK FOR 4 MORE YEARS. Our service personal
are laughed at—( NAVY SEALS )—lies after lies, bypass the constitution and congress—on and on.
Enough is Enough—VOTE OBAMA ANG FRIENDS OUT—SAVE AMERICA.
tothepoint
Posted on August 22, 2012 at 7:39pmObama is damaging our country economically and in foreign policy.
Report Post »This warmonger Obama started a war with Libya without Congressional approval and sent troops to Africa in two places to fight wars. Obama tried to keep our troops in Iraq after the 2011 Bush negotiated date and the Iraqis threw him out. He continues to keep our soldiers in Afghanistan.
Obama is the laughing stock of the world and those who support him are, too.
It will take many years to clean up the mess he has made.
Yet, his cult followers still prop and preen him.
He laughs at all of you.
EqualJustice
Posted on August 22, 2012 at 6:32pmAnd yet OBAMA has the NERVE to say he is GIVING away 15 BILLION more in grants? Here’s a good one and PLEASE, feel free to “browse the federal grants while you’re there. SICKENING. http://www.federalgrantswire.com/affordable-care-act-aca-state-health-care-workforce-development-grants.html Looks like we are paying for the AFFORDABLE HEALTH CARE ACT every time we turn around. Were ALL the costs calculated? I DOUBT it.
Report Post »girlnurse
Posted on August 22, 2012 at 5:23pmThings must be fine. I have a car in the driveway, a bigscreen tv, cable with over 400 channels, and Im getting ready to go on vacation……sigh
Report Post »countryfirst
Posted on August 22, 2012 at 4:53pmDidn’t Uncle Joe, say “ we need to spend money in order to stop the from going bankrupt”. I didn’t go the collage so I don’t understand that form of economics
Report Post »mash4077
Posted on August 22, 2012 at 4:26pmkeep voting democrat american sheeple,keep voting democrat!
Report Post »The_Jerk
Posted on August 22, 2012 at 4:42pmIt’s not that simple. Bush spent more than his predecessors.
Report Post »lukerw
Posted on August 22, 2012 at 2:39pmIN THIS HORROR MOVIE: White Parents adopt a little Black Boy… and he Bleeds them to death… while they are half awake… but the parents keep on smiling, because he is so cute!
Report Post »progoyim
Posted on August 22, 2012 at 2:32pmI know how to cut BILLONS and it wont cut our military of social programs .stop giving money to Israel and the rest of the sand pit people
Report Post »lylejk
Posted on August 22, 2012 at 2:01pmJust another excuse for the FEDs to begin EQ3. Those who have gold, silver, or other non-cash assets better be glad. Idiots like me will hopfully be able to solicit for alms since any money we have in the banks will be all but worthless. :)
Report Post »The_Jerk
Posted on August 22, 2012 at 2:12pmLook, the Central banking system requires perpetual debt. Why fools haven’t seen this for decades is beyond me?
Report Post »These private citizens are bleeding us dry, for profit. Why America pays interest to a private bank is beyond commonsense, which is why one must look at the wizard behind the curtain. What are the chances that the Chair of the Federal Reserve has been Jewish during my entire lifetime?
It’s impossible by probability standards. This must be the result of active participation in directing the desired result.
Commonsense!
Slick Willie
Posted on August 22, 2012 at 1:58pm“Apparently, I’m supposed to be more angry about what Mitt Romney does with his money than what Obama does with mine.”
Report Post »jackact
Posted on August 22, 2012 at 1:37pmObama is wobbling on the edge of the same cliff that his party keeps throwing granny and her wheel chair off.
Report Post »Humpty Dumpty has less than 3 months to topple.
:)
Sirfoldallot
Posted on August 22, 2012 at 1:20pmDuh —– look who is in charge of this country NOW !
Report Post »McNamara
Posted on August 22, 2012 at 1:19pmDefinition of Insanity: Doing the same thing over and over and over expecting a different result.
Report Post »Polarized America
Posted on August 22, 2012 at 1:56pmyes i agree about the insanity, so i thought i’d look up some history. But i can’t post the link so i tried ..
……………… national debt timeline chart ………………
and found the first link to be very interesting
Report Post »ZAP
Posted on August 22, 2012 at 1:18pmIf the government built businesses,as obamy said .Why don’t they just build more businesses
Report Post »BlackCrow
Posted on August 22, 2012 at 1:14pmSurprise, surprise, surprise!
Report Post »Gonzo
Posted on August 22, 2012 at 1:11pmDamn Barry, I thought you said we could spend our way out of this. :-O I‘m shocked it didn’t work.
Report Post »Ben__Franklin
Posted on August 22, 2012 at 3:21pmQuit being so pessimistic Gonzo. O’ said we can spend our way out of this and by-golly we sure can. O’ said he just needs more time…..four more years….to really see his policies work. He just has not spent enough of our money yet. He has kept our unemployment numbers from going above a godzillan percent. It could have been worse. O’s economy is still evolving…just you wait.
Report Post »Gonzo
Posted on August 22, 2012 at 3:46pmSorry Ben, don’t know what I was thinking.
Report Post »Snowleopard {gallery of cat folks}
Posted on August 22, 2012 at 1:11pmHere we go again; I am not going to fault the CBO for one reason, they go by the information provided by the Congress, and no thanks to Obama and Reid we have no budget.
Report Post »Detroit paperboy
Posted on August 22, 2012 at 1:05pmHe knows what to do….his ideology won’t let him…………nor will his leftist advisors
Report Post »Rothbardian_in_the_Cleve
Posted on August 22, 2012 at 1:01pmGo look at CBO forecasts. See how often they miss on conservative views. They ALWAYS say things are better than they are. They miss on deficits EVERY TIME!!!! So if CBO says unemployment will be high and deficits high what they mean is unemployment is going to suck and deficits will be huge.
Report Post »502_eagle
Posted on August 22, 2012 at 12:59pmWell hell- we just need to print more money- that fix it!
Report Post »Detroit paperboy
Posted on August 22, 2012 at 12:58pmOne term…….PERIOD.
Report Post »Tri-ox
Posted on August 22, 2012 at 12:54pm“We tried our plan, and it worked!” – B. Hussein’O
Report Post »502_eagle
Posted on August 22, 2012 at 1:07pmWell the private sector is doing fine.
Report Post »