| Another grim milestone in the Bambi administration ... |
Obama's budget proposal, which will be released at 10 a.m. EST on Monday, will predict a narrowing of the deficits to $700 billion by fiscal 2013 before they gradually rise back to $1 trillion by the end of the decade, the Capitol Hill source said.
| That's before the health care 'reform' bill comes due. |
Criticized by Republicans as a big spender, Obama used his State of the Union address last week to tell Americans he would dig the country out of a "massive fiscal hole."
That hole is even deeper than previously believed, according to the estimate by the White House's Office of Management and Budget.
| Notice how 'unexpected' everything is in the Bambi economy? |
Despite the difference, both estimates indicate that the deficit will continue to hover near 10 percent of gross domestic product, a level not seen since World War Two, when measured as a percentage of the economy. Last year, the government posted a $1.4 trillion deficit, equivalent to 9.9 percent of GDP.
In his budget, Obama will propose a three-year freeze on some domestic programs to save $20 billion next year and $250 billion over the coming decade. But that will not be enough to get deficits down permanently to the 3 percent of GDP that most economists consider sustainable.
Deficits are projected to fall as the economy recovers, but they will still average roughly 4.5 percent of GDP over the coming decade, according to the estimate.
| That's before we pay for the health care 'reform', cap and trade, and Son of Stimulus ... |
Obama has warned that the burgeoning U.S. debt could unnerve U.S. financial markets, driving up borrowing costs and putting future economic growth at risk.
| Should have thought of that last year ... |
The bleak numbers could help build support for a bipartisan commission proposed by the White House that would recommend ways to address the budget problems.
| We already have a 'bipartisan commission' to cut the budget: it's called, Congress ... |