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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Raymond K Hassel's picture

and they are both too low

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.

NumberNone's picture

CBO clearly just making a political judgement on the debt.

I am Jobe's picture

bend over bitchezzzzzzzzzzzzzz. Free Vaseline for all US Citizens.


Urban Redneck's picture

Isn't Vaseline petroleum based?

SheepDog-One's picture

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

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
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

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? 

TruthInSunshine's picture

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

I am Jobe's picture

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

Hubbs's picture

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

SheepDog-One's picture

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

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?

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.

traderjoe's picture

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

drink or die's picture

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

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.

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.

sdmjake's picture

Pass the Maker's...

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

-Led Zeppelin, The Battle of Evermore

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...

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?

carbonmutant's picture

Well I'm sure Hu is requesting an audience,

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

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."

redpill's picture

How "credible."


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...

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...

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.

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.

SheepDog-One's picture

Theyll soon realize they were just part of the Freikorps.

topcallingtroll's picture

Isnt that a government work project?

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!

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.

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.

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.

NOTW777's picture

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

Hubbs's picture

chasing the snowball into hell!

thedrickster's picture

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

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

IdioTsincracY's picture

drickster ... you're hot!

marry me!!

NOTW777's picture

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

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?

Rodent Freikorps's picture


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.

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.

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.

plocequ1's picture

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

SheepDog-One's picture

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

plocequ1's picture

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

A Lunatic's picture

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

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.