BUDGET DEFICIT FORECASTS FOR NEXT 10 YEARS SHOW UNSUSTAINABLE FINANCIAL COLLAPSE OF THE ECONOMY-NO WORRY IN WASHINGTON AS IT KEEPS SPENDING!

The federal government faces exploding deficits and mounting debt over the next decade, White House officials predicted Tuesday in a fiscal assessment far bleaker than what the Obama administration had estimated just a few months ago.

Figures released by the White House budget office foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May. Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.

THAT SEEMS RATHER IMPLAUSIBLE SINCE EVERY PROGRAM IS UNDERSTATED AND AFTER ALL THESE ARE ONLY PROJECTIONS....AND AS USUAL GOVERNMENT PROJECTIONS TEND TO BE UNDERESTIMATED.

Obama economic adviser Christina Romer predicted unemployment could reach 10 percent this year and begin a slow decline next year. Still, she said, the average unemployment will be 9.3 in 2009 and 9.8 percent in 2010.

"This recession was simply worse than the information that we and other forecasters had back in last fall and early this winter," Romer said.

NO KIDDING...THE GOVERNMENT HAD DONE EVERYTHING TO SCARE AWAY ANY ENTREPRENEURSHIP IN THE BASIC INDUSTRIES IN AMERICA AND THREATENED TO CLOSE DOWN OR TAX TO DEATH OTHERS LIKE ELECTRIC POWER GENERATION, ETC.

Those are NOT policies that will help the economy.

The grim administration projections came on a day of competing economic news. The Congressional Budget Office, which has predicted less economic growth than the White House in the past, was also scheduled to announce revised budget projections on Tuesday.

The deeper red ink and the gloomy unemployment forecast present President Barack Obama with an enormous challenge. The new numbers come as he prods Congress to enact a major overhaul of the health care system — one that could cost $1 trillion or more over 10 years. Obama has said he doesn't want the measure to add to the deficit (oh this must be a magical measure, created by Merlin the magician), but lawmakers have been unable to agree on revenues (called TAXES or MEDICARE CUTS) that cover the cost.

What's more, the high unemployment could ( what do you mean could last?)last well into the congressional election campaign next year, turning the contests into a referendum on Obama's economic policies.

"The alarm bells on our nation's fiscal condition have now become a siren," Senate Minority Leader Mitch McConnell, R-Ky., said. "If anyone had any doubts that this burden on future generations is unsustainable, they're gone — spending, borrowing and debt are out of control." Yes Mitch where were you when the defits were adding to the debt burden when YOU were in charge?

The revised estimates project that the economy will contract by 2.8 percent this year, more than twice what the White House predicted earlier this year. Romer projected that the economy would expand in 2010 ( and how ill it do that when taxes and added health care costs and fees on every industry will rise?), but by 2 percent instead of the 3.2 percent growth the White House predicted in May. By 2011, Romer estimated, the economy would be humming at 3.6 percent growth.

You got to be kidding. Where can I place a bet on this NOT happening?

Both Romer and budget director Peter Orszag said this year's contraction would have been far worse without money from the $787 billion economic stimulus package that Obama pushed through Congress as one of his first major acts as president.

At the same time, the continuing stresses on the economy have, in effect, increased the size of the stimulus package because the government will have to spend more in unemployment insurance and food stamps, Orszag said. He said the cost of the stimulus package — which spends most of its money in fiscal year 2010 — will grow by tens of billions of dollars above the original $787 billion.

For now, while the country tries to come out of a recession, neither spending cuts nor broad tax increases would be prudent deficit-fighting measures. But Obama is likely to face those choices once the economy shows signs of a steady recovery, and it could test his vow to only raise taxes on individuals making more than $200,000.

That's right, raise the taxes on the people who employ other people...smart move to stimulate them hiring other people.

Still, 10-year budget projections can be "wildly inaccurate," (really, I though government figures were always accurate?) said Stan Collender, a partner at Qorvis Communications and a former congressional budget official. Collender notes that there will be five congressional elections over the next 10 years and any number of foreign and domestic challenges that will make actual deficit figures very different from the estimates.

The Obama administration did tout one number in its budget review: The 2009 deficit was expected to be $1.58 trillion, $263 billion less than projected in May. That's largely because the White House removed a $250 billion item that it had inserted as a "place holder" in case banks needed another bailout. WOW, THANK YOU.

Orszag, anticipating backlash over the deficit numbers, conceded that the long-term deficits are "higher than desirable." The annual negative balances amount to about 4 percent of the gross domestic product, a number that many economists say is unsustainable (DOES ANYBODY IN WASHINGTON KNOW THAT WORD?)

These policies tend to destroy the value of the dollar in global markets and domestically; one will be able to buy less goods and services due to the weakened dollar. The government however profits substantially, as it can pay back its debt with weaker dollars while we all suffer the consequences of the government excesses.

Worse things will also happen.

The government has to borrow the needed funds to fund these deficits, foreign countries who now buy our US TREASURY and other government securities will see no reason to buy them as their value will be dubious. RESULT: COLLAPSE OF THE DOLLAR.

There will simply not be enough willing buyers for the debt that will be sold, or in the alternative, in order to sell the debt, the government will have to pay inflated interest rates to make up for the inflation value loss.

If government is sucking up all the available dollars to borrow, how will business borrow money? You guessed it, only at higher and higher rates way above the government borrowing costs.

Now explain to me again how all this will stimulate the economy and create (or save!) jobs?