Pres Obama, the Dems and the rest of us, will freak out in about 7 months, if not earlier.
Our federal budget runs from Oct 1st to September 30th!
Get ready for the mother of all federal budget deficits:
"Perhaps you recall the deficit wails from the Reagan years, but the peak deficit was only 6% of GDP in 1983.
In the Clinton years we were told taxes had to rise to reduce a deficit of merely 3.9% of GDP.
CBO estimates the 2009 deficit will reach 8.3% of the economy, not including the stimulus or bank bailout cash.
Toss in those, and analysts at the Strategas Group estimate the deficit could hit nearly $2 trillion, or 13.5% of the U.S. economy.
We aren't deficit scolds, but these levels are uncharted territory, especially if any economic recovery is weak because the spending doesn't stimulate.
The new spending means new federal debt in the trillions of dollars over the next few years, which will test the limits of America's credit-worthiness.
To the extent that taxes rise to pay for it all, the U.S. will become less desirable as a destination for the world's capital.
Perhaps the Federal Reserve will try to inflate away this growing debt, but the world's bond vigilantes will get a vote on that.
We recognize this bill is going to pass as early as today.
But Americans need to understand the vast expansion of government they are getting -- and who voted to pass it." (WSJ)
And we haven't even discussed about the banks, Medicare and Social Security.
The Dems have spent the last eight years talking about Bush's deficits and how Bush doubled the national debt.
Again, look at the chart.
Bush's deficits never crossed the 4% of GDP barrier!
How will this kind of deficit impact Pres Obama?
It will be a very "boring" presidency.
Pres Obama won't have any money to initiate programs or do much of anything.
Pres Obama will spend the next four years saying: No we can't!
