Bush Administration Projected Trillion Dollar Deficit

The Republican Bush Administration today, July 28 2008, projected the year 2009 will reach trillion dollar deficit for the next presidency, no matter who is president according to Jeremy Pelofsky and David Lawder in the Washington (Reuters) news on line. The housing slow-down will hit government revenues in a soaring half a trillion dollars of U.S. budget deficit.

Yet the, "we--are--not--in--a--recession," Bush Administration is still optimistic saying that the new report should cut the deficit to 178 billion in 2010 and may begin to produce surpluses in 2012. But everything the Bush Republican Administration had stated that would happen or should help our economy since the end of 2001 has proved NOT to work. So I hope Bush and his Republicans wont mind if I do not hold my breath.

Still the Bush Administration did give a worse forecast at 3.8 percent inflation this year. Many in the Republican Party, along with Bush, are selling the idea that 2009 will look better with a 2.3 percent and calling it moderate.

I guess that would depend on where the line is placed. Remember the Bush administration has changed the line of where the acceptance of average is, making it seem to be better than what it really is according to the original line. When they move the imaginary line of acceptance, Republicans can make it appear as if we are doing better than we actually are.

As Bush's tax cuts went into effect, the budget has been sapped by the expense of the Iraq and Afghan war.

The article, White House Sees Record Budget Gap In 2009, also reported "Democrats have blasted the Republican administration for squandering budget surpluses and nearly doubling the national debt, from $5.6 trillion when Bush took office in 2001 to over $9.5 trillion now." The Chairman of the House Representatives Budget Committee, South Carolina Democrat John Spratt said, "Under its policies, the largest surpluses in history have been converted into the largest deficits in history."

In the report, "Merrill Lynch & Co Inc last week estimated that a 2009 deficit topping $500 billion, combined with the government's normal financing operations, would require the Treasury to sell about $1 trillion in debt next year, a task they called "daunting."