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Obama's Budget Increases Deficit By 41% Over CBO Baseline Over Next Decade

Tyler Durden's picture





 

In release timed perfectly so as not to interfere with the congressional vote last week, late on Friday the CBO put out its comparison of the Obama's budget, proposed back in February, with the CBO baseline assumption. The bottom line, and probably the main reason for the implicit S&P downgrade of the US, is that comparison the President's budget to the CBO baseline indicates that deficits are expected to rise by 41% over the next 10 years: the CBO project a deficit of $6.7 trillion while the President's number is $9.5 trillion, a 41% increase or $2.7 trillion. Got printing presses?

From the preface to the 53 page report which readers can peruse at their leisure or use as a paperweight:

At the request of the Senate Committee on Appropriations, the Congressional Budget Office (CBO) has prepared an analysis of the President’s budgetary proposals for fiscal year 2012, which were released on February 14, 2011. The analysis uses CBO’s economic assumptions and estimating techniques, rather than the Administration’s, to project how the proposals in the President’s budget would affect federal revenues and outlays and the U.S. economy. For tax provisions, the analysis incorporates estimates prepared by the staff of the Joint Committee on Taxation.

This analysis follows and supplements CBO’s “Preliminary Analysis of the President’s Budget for 2012,” which was released on March 18, 2011, as an attachment to a letter to the Chairman of the Senate Appropriations Committee. CBO has not changed its estimates from the ones presented there. Chapter 1 of this report reiterates that document, with additional figures and details about the differences between CBO’s and the Administration’s budget estimates. Chapter 2 presents CBO’s analysis of how the President’s proposals would affect the overall economy (relative to what would occur under current law) and, in turn, indirectly affect the budget.

And the only chart that matters, courtesy of John Poehling:

 


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Mon, 04/18/2011 - 12:38 | Link to Comment Raymond K Hassel
Raymond K Hassel's picture

and they are both too low

Mon, 04/18/2011 - 12:44 | Link to Comment bigdumbnugly
bigdumbnugly's picture

if money truly did grow on trees it would probably slow the fed down some.  at least they'd have to impatiently wait for it to ripen first.

Mon, 04/18/2011 - 13:41 | Link to Comment NumberNone
NumberNone's picture

CBO clearly just making a political judgement on the debt.

Mon, 04/18/2011 - 12:36 | Link to Comment I am Jobe
I am Jobe's picture

bend over bitchezzzzzzzzzzzzzz. Free Vaseline for all US Citizens.

http://www.bloomberg.com/video/68795678/

Mon, 04/18/2011 - 12:42 | Link to Comment Urban Redneck
Urban Redneck's picture

Isn't Vaseline petroleum based?

Mon, 04/18/2011 - 12:43 | Link to Comment SheepDog-One
SheepDog-One's picture

I think its gonna be 'bend over americans, take it dry' one morning soon.

Mon, 04/18/2011 - 13:08 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Look everyone!

The Hank Paulson/Ben Bernanke 'all your assets are destined for $0' play is back! They haven't even bothered to tinker with it or disguise it at all! It's TEOTW again, immediately, unless they get a blank check!


04-18 12:53: White House says not raising debt ceiling would immediately arrest US recovery, potentially cause global economic problem
Mon, 04/18/2011 - 14:13 | Link to Comment doggings
doggings's picture
by Urban Redneck 

Isn't Vaseline petroleum based?

 

by SheepDog-One

I think its gonna be 'bend over americans, take it dry' one morning soon.

lol, 2nd time Ive seen this imagery in print (and pics) in one day

Ordinary Americans are being bent over their office desks and roughly buggered by your war-mongering, profiteering “leaders”.

 

If you are not in the elite you are taking it up the ass, all day every day, until you die a broken buggered thing. There is no inbetween..

 

from Attention America - wake the fuck up

Mon, 04/18/2011 - 13:32 | Link to Comment pops
pops's picture

Did that dufus say "social security is borrowing from the other side of the government?"

Excuse me!?  Wasn't that the other way 'round? 

Mon, 04/18/2011 - 12:38 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Throw another log on the fire and play that fiddle, play!

Mon, 04/18/2011 - 12:41 | Link to Comment I am Jobe
I am Jobe's picture

LOL. Burning ban in effect. They will tax you for that.

Mon, 04/18/2011 - 12:47 | Link to Comment Hubbs
Hubbs's picture

Nahh. Throw the fiddle in the fire. With no pretro, we will need something to heat with.

Mon, 04/18/2011 - 12:38 | Link to Comment SheepDog-One
SheepDog-One's picture

Recently I just watch all this thoroughly insulted that Im part of this human race. Nothing but utter stupidity.

Mon, 04/18/2011 - 12:39 | Link to Comment slaughterer
slaughterer's picture

Somebody get Obama a better deficit cut planner.  Anybody know somebody willing to take a salary cut and jump into O's team from JPM or GS?

Mon, 04/18/2011 - 12:56 | Link to Comment topcallingtroll
topcallingtroll's picture

Shit I am just a nobody, a nonbanker, and i damn well wont take the paycut either.

Durden might. Although sadly government bureaucrat probably pays better than Financial Crusader. But you dont get to wear such a cool cape and mask.

Mon, 04/18/2011 - 12:39 | Link to Comment traderjoe
traderjoe's picture

Repudiate the debt. End the Fed. Bring back the Lincoln Greenback and Kennedy Silver Certificate. 

Mon, 04/18/2011 - 12:41 | Link to Comment drink or die
drink or die's picture

What about the real news?  I need some updates on the royal wedding!!!!!

Mon, 04/18/2011 - 12:48 | Link to Comment I am Jobe
I am Jobe's picture

Watch CNBC maybe they might be able to tell you. Since Jeff Omelette is busy with giving handjobs to the admin, he might be able to stream it live.

Mon, 04/18/2011 - 12:54 | Link to Comment Hubbs
Hubbs's picture

I'd rather drink. Maker's Mark for me. That's the only damn good thing that came out of KY. (PS: My ex is from KY.) You don't have to be, or rather, it won't help to be sober in this market. "Just pour me a drink and I'll tell you some lies,"when your love's (country's) on the rocks -" Neil Diamond. On the other hand, dealing with real living, and the hardship it may soon entail after TSHTF...well maybe I'd rather die. Cheers.

Mon, 04/18/2011 - 13:22 | Link to Comment sdmjake
sdmjake's picture

Pass the Maker's...

"The pain of war cannot exceed the woe of aftermath"

-Led Zeppelin, The Battle of Evermore

Mon, 04/18/2011 - 12:42 | Link to Comment carbonmutant
carbonmutant's picture

That downgrade by the S&P has taken a serious chunk of value out of all those Treasuries the banks and the Chinese have in inventory...

Mon, 04/18/2011 - 12:42 | Link to Comment SheepDog-One
SheepDog-One's picture

I guess we should expect to see another 'airplane contrail' off the coast of California, this time not headed out to sea but towards the east coast?

Mon, 04/18/2011 - 13:23 | Link to Comment carbonmutant
carbonmutant's picture

Well I'm sure Hu is requesting an audience,

But all he's getting is the voice bot...

Mon, 04/18/2011 - 14:41 | Link to Comment American Sucker
American Sucker's picture

"Welcome to the White House Switchboard.  To continue in English, press 1.  To continue in Spanish, press 2.  To continue in Chinese, please wait on the line.  Our estimated wait for the next Chinese-speaking representative is...one...eon."

Mon, 04/18/2011 - 12:40 | Link to Comment redpill
redpill's picture

How "credible."

 

Mon, 04/18/2011 - 12:42 | Link to Comment lolmao500
lolmao500's picture

And since CBO is always wrong by at least 20-50%, you can bet the deficits will top 12-15 trillion $ in the next decade... But the US won't make it alive to 2020...

Tue, 04/19/2011 - 00:38 | Link to Comment StychoKiller
StychoKiller's picture

Whew!  Glad to see that things are only gonna be around twice as bad in the next ten years!  I was so worried...

Mon, 04/18/2011 - 12:45 | Link to Comment I am Jobe
I am Jobe's picture

Ok, we can expect more layoffs and more companies closing up shop in the USA. Get ready folks,gonna get ugly. Buy food and bullets.

Mon, 04/18/2011 - 12:46 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

How's that Hope and Change working out for you?

What is amazing is the wishful thinking idiots who supported this Shiite destroyer, want me to take their advice now.

Fuck you.

Mon, 04/18/2011 - 12:46 | Link to Comment SheepDog-One
SheepDog-One's picture

Theyll soon realize they were just part of the Freikorps.

Mon, 04/18/2011 - 13:02 | Link to Comment topcallingtroll
topcallingtroll's picture

Isnt that a government work project?

Mon, 04/18/2011 - 12:48 | Link to Comment IdioTsincracY
IdioTsincracY's picture

He's not the destroyer ... that was W

He's just the guy chasing the snowball down the hill

 

get your vaseline ready!

 

ps: if only we could get W back ... remember the good ole times!

Mon, 04/18/2011 - 12:52 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Bush just lowered the bar so much, people were willing to trust an America hating communist.

We have the government we deserve.

The truth WAS out there.

I did not vote for this dbag. So I am allowed to bitch.

Mon, 04/18/2011 - 13:10 | Link to Comment SheepDog-One
SheepDog-One's picture

The truth WAS out there, absolutely no one with a brain should be surprised by anything going on today, or in coming days. The truth was out there for anyone who cared to deal in reality. I didnt vote for this DBag or any of the others over the last 20 years.

Mon, 04/18/2011 - 13:25 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Sorry, but Obama & Bush work for the exact same people, and it sure as hell isn't a very big collection (and CERTAINTLY isn't anyone who casts a ballot in our 'Amerikan Demokratic Process').

It's all a mirage. There's no choice. There's absolutely no substantive difference. There's only marketing.

Mon, 04/18/2011 - 14:13 | Link to Comment NOTW777
NOTW777's picture

spoken like someone who voted for obama. make and mistake then blame everyone else

Mon, 04/18/2011 - 12:59 | Link to Comment Hubbs
Hubbs's picture

chasing the snowball into hell!

Mon, 04/18/2011 - 13:09 | Link to Comment thedrickster
thedrickster's picture

Fuck you sycophant and fuck both Emperor George and Emperor Barry.

Back to HuffPo, I have seriously had enough of you.

Mon, 04/18/2011 - 13:14 | Link to Comment IdioTsincracY
IdioTsincracY's picture

drickster ... you're hot!

marry me!!

Mon, 04/18/2011 - 14:19 | Link to Comment NOTW777
NOTW777's picture

its a good thing to admit your problems in public - but get professional help

Mon, 04/18/2011 - 12:53 | Link to Comment topcallingtroll
topcallingtroll's picture

Hey rodent after u finish cursing out the socialists i dont suppose you live anywhere near arkansas and we might do a project car together?

Mon, 04/18/2011 - 13:02 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Texas.

Although I have 10 acres in El Dorado.

Just in case.

I bought for deer hunting, but I haven't made it back there for a couple of years.

Mon, 04/18/2011 - 13:14 | Link to Comment topcallingtroll
topcallingtroll's picture

I figured you must have a connection or live close!. We need to get club zero hedge going so we can all fight it out up close and personal then pop a few cold ones.

Mon, 04/18/2011 - 14:07 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Zero Hedge Deer Club has a very cool ring to it.

They have not heard the distinctive thunder of the .375 H&H Magnum in too long.

(I know it is overkill, but it is something I inherited from my dad. Family tradition.)

The woods are so thick down there, the zombies will be long dead before they kill a tenth of the game.

Mon, 04/18/2011 - 12:48 | Link to Comment plocequ1
plocequ1's picture

So it cant be that bad. Rally on. In the end, You die. Live life and enjoy what you have.

Mon, 04/18/2011 - 12:47 | Link to Comment SheepDog-One
SheepDog-One's picture

Well I got this lamp....and this paddleball game....OH and this chair....thats all I need.

Mon, 04/18/2011 - 12:53 | Link to Comment plocequ1
plocequ1's picture

Stick to the basics and Dont forget your Bible and bottle of Jack

Mon, 04/18/2011 - 13:10 | Link to Comment A Lunatic
A Lunatic's picture

And a .45 to put to your head when the whisky's gone.

Mon, 04/18/2011 - 13:18 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Brew more. Corn mash is not difficult. Hell, if the frickin engine room on a destroyer can do it, so can you.

http://www.ehow.com/how_2330448_make-corn-whiskey.html

 

Mon, 04/18/2011 - 13:21 | Link to Comment A Lunatic
A Lunatic's picture

You just saved a lot of lives.

Mon, 04/18/2011 - 13:24 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

I'm a giver.

Mon, 04/18/2011 - 12:53 | Link to Comment topcallingtroll
topcallingtroll's picture

Must avoid shitting in pants too early.

Must hang onto.risk a tiny bit longer.

Mon, 04/18/2011 - 12:52 | Link to Comment AldoHux_IV
AldoHux_IV's picture

http://www.explosm.net/comics/2083/

How all budget proposals should be reviewed.

Mon, 04/18/2011 - 12:57 | Link to Comment I am Jobe
I am Jobe's picture

LOL. Was that a Harvard Term paper?

Mon, 04/18/2011 - 12:58 | Link to Comment ivars
ivars's picture

Hear the next president of the USA as current parties will continue to do nothing about the debt-which will lead to the USA default (crash correction) in 2013-2014:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2663#p31841

 

Treasury bubble is about to bust. That should mean no QE3.

Mon, 04/18/2011 - 13:01 | Link to Comment I am Jobe
I am Jobe's picture

I need a drink, heck need several.

 

All those college students were chanting Hopey Change, so how the fuck is that working out. Same shitz with the Pukes.

Mon, 04/18/2011 - 13:01 | Link to Comment earnulf
earnulf's picture

Interesting that the new CBO figures downgrade the expected revenues by hundreds of Billions of dollars from the presidents proposal while keeping spending virtually unchanged over the period, yeah, like that is going to happen.   Having said that, they still expect revenue increases of better than ten percent for 2013 and 2014, bend over indeed

Mon, 04/18/2011 - 13:16 | Link to Comment A Lunatic
A Lunatic's picture

Serious question: Why can't we just go to  a 15% flat tax. No deductions, everybody pays or goes to work at the poor farm. No more complicated tax code, no more hidden taxes, and no more bullshit excuses not to pay. I think that would be a good start.

Mon, 04/18/2011 - 13:23 | Link to Comment redpill
redpill's picture

They tried something similar in the 80s when they simplified the tax code.  Since then it has been modified nearly 20,000 times.  Yes, 20,000 times.

The problem is not just the code, but the structure.  As long as the income tax exists, politicians will not be able to resist attempting to use it to forward their own agenda, pick winners and losers, and eventually create a tangled nightmare.

The real way out is to eliminate the income tax, repeal the 16th amendment, and transition to a consumption tax (such as the FairTax) which is agnostic toward the tax payer.

Mon, 04/18/2011 - 13:32 | Link to Comment A Lunatic
A Lunatic's picture

The marriage of the corporate world, the banking world and the political world is the problem. The politicians are too busy looking out for the lobbyists, themselves, and the entitlement majority which keeps them in power; you know, the 50% or so of Americans who do not pay any taxes.

Mon, 04/18/2011 - 13:30 | Link to Comment TruthInSunshine
TruthInSunshine's picture

You can't go to a flat tax and postcard sized return in Amerika because the accountants, tax attorneys, tax 'preparers', etc. & too many in the government would lose their jobs.

They've all lobbied hard and long with much money against any simple (but immensely better) system for years now.

The tax code is over 64,000 pages long and filled with the worst butchery of the english language known this side of Harlem.

That's a growth industry, just like the prison business, bitchez!

Mon, 04/18/2011 - 13:35 | Link to Comment A Lunatic
A Lunatic's picture

You forgot the War on Drugs business, the War on Poverty business, the Border Patrol business, the Democratize the Middle East business, and the ever expanding War on Terror business. Other than that, good explanation.

Mon, 04/18/2011 - 13:47 | Link to Comment Urban Redneck
Urban Redneck's picture

Those jobs are currently being outsourced to India.  Yes, the US is so fucked that it is now offshoring both service and manufacturing sector jobs.  And of course the congress will crusade to protect the foreigner's jobs.

Mon, 04/18/2011 - 13:48 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

The average age for a democracy is 200 years.

Mon, 04/18/2011 - 13:53 | Link to Comment A Lunatic
A Lunatic's picture

Well, I guess it was a good run.

Mon, 04/18/2011 - 13:55 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Yep.

At least we can claim it took the US to defeat the US.

Liberals, and socialists are sure to burn in hell if hell exists.

Mon, 04/18/2011 - 13:50 | Link to Comment jmc8888
jmc8888's picture

Who knew servicing fraudulent debt had a cost?

Who knew a broken system strucutre...i.e. monetarism...further...monetarism without Glass-Steagall's limits would have such an effect?

Oh yeah, the people that put Glass-Steagall into effect in the first place....and those that wanted to get rid of it, because they knew what they could do.  THIS.

Mon, 04/18/2011 - 14:06 | Link to Comment A Lunatic
A Lunatic's picture

P.S. enjoy the new 67% tax rate.

Mon, 04/18/2011 - 14:09 | Link to Comment Audacity17
Audacity17's picture

This is all just a prelude to calls for a Value Added Tax,  so we can be no growth losers like western Europe.

Mon, 04/18/2011 - 14:21 | Link to Comment gkm
gkm's picture

After you net out the cash for caulkers program the deficit turns into a surplus.  Or something like that.

Mon, 04/18/2011 - 14:53 | Link to Comment American Sucker
American Sucker's picture

Good news, everyone!  Federal tax receipts will double in the next 8 years.  *chuckle*

Mon, 04/18/2011 - 21:07 | Link to Comment PulauHantu29
PulauHantu29's picture

ut remember what Dick "Chainsaw" Cheney said,"Deficits don't matter."

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