In the February time-frame the Obama White House predicted budget deficit was to be about $7.1 trillion forecast in May 2009, and now it’s likely to be $9.05 trillion, the White House budget office said August 19, 2009. A mere error of 28% for a few months. I wonder what it will really be in ten years?
They also said the unemployment rate, if porkulus was passed ‘right now’ without reading the bill, the unemployment rate would peak at 8% and then begin to fall. Unemployment now stands at a cooked books 9.4% and a real rate of over 16%.
Similarly, the GDP grow has also shrunk from original predictions, now stands at about half the original numbers. And that’s after the porkulus has passed.
And now we know the reason why the government takeover of healthcare had to pass before the numbers were disclosed.
The Wallstreet Journal has the details:
The Obama administration shaved $262 billion from its estimated 2009 federal budget deficit but said the U.S. will run a $9 trillion deficit over the next 10 years — $2 trillion more than it forecast earlier this year.
The administration, in its mid-year budget review, painted a picture of a nation that is at once stabilizing as the economy begins to recover but that is also in for a prolonged period of economic weakness, joblessness and unsustainable government spending.
Unemployment is expected to fare far worse than initial White House projections in February, when the administration predicted a jobless rate of 8.1% for 2009, a number that has already been surpassed by reality. The administration now foresees unemployment hitting 10% at some point over the next year and a half, with the jobless rate averaging 9.3% in 2009 and 9.8% in 2010.
“We do predict unemployment will reach 10% for some months and some quarters,” Christina Romer, who heads President Barack Obama’s Council of Economic Advisers, said in a call with reporters to discuss the revised budget assumptions.
The White House is also projecting a slower climb out of the recession than earlier this year, estimating negative 2.8% economic growth for 2009, as opposed to its earlier estimate of negative 1.2% growth. For 2010, the administration sees 2% growth, down from the rosier 3.2% it projected in February. The revised estimate “reflects new information all forecasters received earlier this year about the severity of the forecast,” said Ms. Romer.
But look, they also say the unemployment rate will remain at about 10% over the next two years. What recovery?
Slavery by debt so large it can never be repaid, it’s still slavery.