Obama Says Expects to Inherit U.S. Deficit Approaching $1 Trillion

Source: NYT/Reuters

President-elect Barack Obama said on Tuesday that he expects to inherit a U.S. budget deficit approaching $1 trillion and that his administration would have to make some tough budget choices.

Just after meeting with his economic team, Obama said it was possible that trillion-dollar deficits could stretch into coming years and that he and his team want to instill a "sense of responsibility" about future budget choices.

Obama, who takes over from President George W. Bush on January 20, is seeking quick action from Congress on a package of spending and tax-cut measures that would total nearly $800 billion over the next two years.

While many in the Democratic-led Congress are also eager to move swiftly on an economic stimulus, Republicans are insisting that the package receive careful scrutiny to avoid wasteful spending.

Any package would add to already spiraling budget deficits....

Read more: http://www.nytimes.com/reuters/2009/01/06/washington/politics-us-usa-obama-budget.html

Over 2 trillion - best case: http://www.marketskeptics.com/2009/01/ten-major-threats-facing-dollar.html

Any sane leader would immediately cut of 95% of military spending, end War On Drugs, all the "bailouts" to the black hole of financial sector, etc. unnecessary spending. Any responsible leader would renounce the doomer model of consumerism and get back to basics.

To balance the budget, raise taxes heavily progressively, invent new taxes - enviromentally sane taxes. What income available, use for most basic necessities, food, clothes and shelter for the poor, health-care etc. Only invest - massively - in renewable energy and the infrastructure that it needs.

A really wise leader would commense land redistribution favouring small local autonomous ecocommunities building sustainable ways of life.

Too bad Obama is not wise, nor sane and responsible. He's the hyperinflation guy on whose watch US goes the same way and worse than Soviet Union did.

social programs in times like this in her book The Shock Doctrine. How much of government will be privatized (remember Al Gore bragged about shedding the government of jobs, actually those jobs really didn't disappear they were privatized), how many social programs will be eliminated or reduced at the time they are needed most?

It should be clear that Obama will do the bidding of big money and corporate America. I think he's shed his community organizer self at the DC city limits.

They totally neglected to mention that the $7T number includes over $6 Trillion of Bush debt and less that $1 trillion that Obama has called for, but is not yet reality. Bush, in less than 5 months of this fiscal year has already surpassed last years debt.

It annoys me to no end that they are already blaming Bush fuckups on Obama and he hasn't even taken office yet.