OMB Mid-Session Review Paints Dire Picture

Of Obama’s Binge Spending Budget Crisis

OMB’S MID-SESSION REVIEW PROVES DEMS ARE ON A SPENDING SPREE

CBS News’ Mark Knoller: “If You Could Buy Stock In The National Debt, Do It. It's Headed For The Moon.” (Mark Knoller, “National Debt To Top 100 Percent of GDP,” CBS News’ “Political Hotsheet,” 7/23/10)

The Wall Street Journal: “The White House Raised Its Forecast Friday For The Fiscal-2011 Budget Deficit To $1.4 Trillion, Or 9.2% Of The Economy, Adding New Fuel To The Political Battle Over How To Tame The Flood Of Red Ink.” (Jonathan Weisman, “Forecast For 2011 Deficit Is Raised To $1.4 Trillion,” The Wall Street Journal, 7/24/10)

The Wall Street Journal’s Editorial Page: “The Message: Tax Revenues Are Smaller, Spending Is Greater, And The Deficits Are Thus Larger Than The White House Has Been Saying. No Wonder It Dumped The News On The Eve Of A Sweltering Mid-July Weekend.” (Editorial, “The Democratic Fisc,” The Wall Street Journal, 7/26/10)

• The Wall Street Journal Editorial Page: “To Put It Another Way, Democrats Have Been Undertaking A Vast Fiscal Policy Experiment, Blowing Out The Federal Balance Sheet In An Effort To Show That A Country Can Spend And Tax Its Way To Prosperity. Look No Further Than The Numbers In The White House's Own Budget Review For The Unhappy Lab Results.” (Editorial, “The Democratic Fisc,” The Wall Street Journal, 7/26/10)

Kansas City Star: “New Estimates From The White House On Friday Predict The Budget Deficit Will Reach A Record $1.47 Trillion This Year.” (“Federal Deficit Expected To Reach Record High,” Kansas City Star, 7/23/10)

• Kansas City Star: “The New Numbers Point To Significant Political And Economic Headaches For President Barack Obama.” (“Federal Deficit Expected To Reach Record High,” Kansas City Star, 7/23/10)

The New York Times: “The Deficit Level Can Not Be Sustained Over The Long Run Without Endangering The Economy.” “Measured as a percentage of total economic output — the gauge that economists say is most meaningful — the deficit would be 10 percent of gross domestic product. That would be about the same as last year, a level that could not be sustained over the long run without endangering the economy, but well below the records set during World War II.” (Helene Cooper, “Agency Says Deficit For This Year Will Be Lower Than Estimated,” The New York Times, 7/23/10)

The Hill’s ‘On The Money’ Blog: “Still, The Deficit Would Be Equivalent To 10 Percent Of The Gross Domestic Product, The Highest Level Since World War II.” (Walter Alarkon, “Obama Budget Office Forecasts $1.47T Deficit, High Unemployment,” The Hill On The Money Blog, 7/23/10)

• The Hill: “The White House Report Said The Unemployment Rate Will Remain Above Pre-Recession Levels Until 2015, Echoing The Administration’s Earlier Estimates. The Jobless Rate Will Average 9 Percent Next Year, More Than 8 Percent In 2012 And Won’t Fall Below 6 Percent Until 2015.” (Walter Alarkon, “Obama Budget Office Forecasts $1.47T Deficit, High Unemployment,” The Hill On The Money Blog, 7/23/10)

The Hill: “The Federal Budget Deficit Will Matter More To Voters This Year Than It Has In The Past Decade, According To Polls. While It Continues To Trail The Near-Double-Digit Unemployment Rates And Overall State Of The Economy As A Leading Concern For Voters, It Is Proving Central To The 2010 Election.” (Silla Brush & Sean Miller, “Voters Can’t Shake Deficit Worries,” The Hill, 7/28/10)

• The Hill: “In A Series Of Monthly Gallup Polls Between 2000 And The End Of 2008, Never More Than 5 Percent Said The Federal Deficit Was The Most Important Problem Facing The Nation. The Recession And Obama Presidency Changed That.” (Silla Brush and Sean Miller, “Voters Can’t Shake Deficit Worries,” The Hill, 7/28/10)

AND THAT ECONOMY IS STILL FALTERING

ABC News: “The Review Also Tweaked White House Assumptions About The Economy, Which Have Been Criticized As Overly Optimistic In The Past. The White House Forecast Growth At 3.2 Percent This Year, 3.6 Percent In 2011 And 4.2 Percent In 2012.” (Alister Bull, “U.S. Trims ’10 Deficit Forecast As Economy Faces Headwinds,” ABC News/Money, 7/23/10)

CBS News’ Mark Knoller: “But Most Troubling To Administration Officials Are The Unemployment Numbers. The New Estimates Forecast A Slow-As-Molasses Decline In The National Jobless Rate Over The Next Several Years.” (Mark Knoller, “National Debt To Top 100 Percent of GDP,” CBS News’ “Political Hotsheet,” 7/23/10)

The Associated Press: “The New Estimates Paint A Grim Unemployment Picture As The Economy Experiences A Relatively Jobless Recovery. The Unemployment Rate, Presently Averaging 9.5 Percent, Would Average 9 Percent Next Year Under The New Estimates.” (Andrew Taylor, “White House Predicts Record $1.47 Trillion Deficit,” The Associated Press, 7/22/10)

• AP: “The Office Of Management And Budget Report Has Ominous News For President Barack Obama Should He Seek Re-Election In 2012 - A Still-High Unemployment Rate Of 8.1 Percent. That Would Be Well Above Normal, Which Is Closer To A Rate Of 5.5 Percent To 6 Percent. Private Economists Don't Think The Unemployment Rate Will Drop To Those Levels Until Well Into This Decade.” (Andrew Taylor, “White House Predicts Record $1.47 Trillion Deficit,” The Associated Press, 7/22/10)

Kansas City Star: “And The Projections Paint A Grim Unemployment Picture As The Economy Experiences A Relatively Jobless Recovery.” (“Federal Deficit Expected To Reach Record High,” Kansas City Star, 7/23/10)