The Out-of-Control Budget Deficit Threatens Recovery Signals
-- August 26, 2003
The Congressional Budget Office announced today that the federal government's spending spree is headed toward a record $480 billion deficit in 2004. It will also pile on an estimated $1.4 trillion in additional debt over the next 10 years. And these are only the official estimates, which we believe are way too optimistic!
The real deficit is most likely staggeringly higher. Douglas Holtz-Eakin, the CBO's director, said that the current deficit over the next 10 years could more than double if the current administration's tax cuts become permanent and Congress keeps spending like there's no tomorrow.
Two years ago, the Office of Management and Budget (OMB) projected a $2.9 trillion budget surplus for the six years between 2003 and 2008. What a turnaround! Sure, that budget estimate wasn't grounded in reality either -- but it shows how much things have changed.
The "official" 2003 fiscal year deficit is now expected to reach $401 billion. That blows the previous record of $290.4 billion out of the water -- by 38%. And there's probably more record-breaking spending on the way, since the White House is expected to ask for more cash -- another $22 billion -- to rebuild Iraq.
In fact, in the Safe Money Report Special Interest Rate Issue I sent you on August 15, I pointed out how the White House's own mid-session review on the budget admitted that the total federal debt would increase by $698 billion this year alone!
All these crazy, contradictory numbers show that Washington is losing its grip on budgetary reality. And Americans -- you, me, our families and friends -- are the ones who will foot the bill.
related articles:
Deficit Could Top $500 Billion In '04
-- August 26, 2003
The Congressional Budget Office announced today that the federal government's spending spree is headed toward a record $480 billion deficit in 2004. It will also pile on an estimated $1.4 trillion in additional debt over the next 10 years. And these are only the official estimates, which we believe are way too optimistic!
The real deficit is most likely staggeringly higher. Douglas Holtz-Eakin, the CBO's director, said that the current deficit over the next 10 years could more than double if the current administration's tax cuts become permanent and Congress keeps spending like there's no tomorrow.
Two years ago, the Office of Management and Budget (OMB) projected a $2.9 trillion budget surplus for the six years between 2003 and 2008. What a turnaround! Sure, that budget estimate wasn't grounded in reality either -- but it shows how much things have changed.
The "official" 2003 fiscal year deficit is now expected to reach $401 billion. That blows the previous record of $290.4 billion out of the water -- by 38%. And there's probably more record-breaking spending on the way, since the White House is expected to ask for more cash -- another $22 billion -- to rebuild Iraq.
In fact, in the Safe Money Report Special Interest Rate Issue I sent you on August 15, I pointed out how the White House's own mid-session review on the budget admitted that the total federal debt would increase by $698 billion this year alone!
All these crazy, contradictory numbers show that Washington is losing its grip on budgetary reality. And Americans -- you, me, our families and friends -- are the ones who will foot the bill.
related articles:
Deficit Could Top $500 Billion In '04
