More Bad News: CBO report: Debt will rise to 90% of GDP

How do all of you Obama voters like Hope and Change now? This Socialist President that Democrats couldn't wait to vote for because he was the first 'black' President has just submitted a budget that is going to generate at least $10 trillion in budget deficits while he continues to give our tax dollars to our enemies around the world like Hamas and the 3rd World Members of the United Nations. If anyone doesn't think the United Nations is our enemy, then think again and do some research.

When the CBO puts out a gloomy forecast like this, we are in real trouble. You cannot spend your way into job creation or prosperity by using federal tax dollars and increasing the debt. Obama socialist policies and agenda being carried by the Congressional leadership is bankrupting our Country. They use the US Treasury like a piggy back and beginning to think they believe 'money does grow on trees' the way they are spending it.

What part of the economy won't be hurt by this massive Obamacare bill that has been passed? Business owners are saying they would rather pay a fine then pay the higher cost to provide health insurance. Is this what the Democrats wanted all along? They are in the process of costing more jobs as more business owners are forced out of business. The worst part is they don't seem to care as long as they have the power in their hands.

Now the news that we will soon reach the mark of debt will be 90% of our GDP is unfathomable to most of the people of America. Revenues will continue to fall as more people are laid off because of the Socialist policies of the Democrats that are causing business owners to close their business operations. Why should anyone today want to make more money when the Socialist Democrats have their eyes on your money for wealth distribution to those 'less fortunate' or in a lot of cases too lazy to work when there are plenty of jobs around.

What are those union members going to do then when more jobs are lost due to closing or business owners decide to move their operations to other countries? Maybe they should have thought twice about their support of Obama who will ultimately cost a lot of them their jobs with his economic voodoo he is using to bankrupt America.

Friday, March 26, 2010
CBO report: Debt will rise to 90% of GDP
By David M. Dickson

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 Congressional Budget Office reported Thursday.

In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president's budget would generate a combined $9.75 trillion in deficits over the next decade.

"An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference," said Brian Riedl, a budget analyst at the conservative Heritage Foundation. "That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying."

The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.

That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America's debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.

"That level of debt is extremely problematic, particularly given the upward debt path beyond the 10-year budget window," said Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget.

For countries with debt-to-GDP ratios "above 90 percent, median growth rates fall by 1 percent, and average growth falls considerably more," according to a recent research paper by economists Kenneth S. Rogoff of Harvard and Carmen M. Reinhart of the University of Maryland.

Excerpt: Read more at Washington Times

UPDATE: CHANGE: Personal Income Drops Across the Country. “Personal income in 42 states fell in 2009, the Commerce Department said Thursday.” But it was up in Washington, DC!