The White House 10 year projection on the deficits will be 9 Trillion Dollars not the 7.1 Trillion Dollar amount announced earlier this year. The report which was announced on Friday by a senior Obama Administration official and released on Next Week bring government estimates in line with outside estimates.
The report will be critized by the Republicans of too much over spending. “The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year,” said Obama official who requested anonymity told about the mid year review.
“Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out.”
The reports timing comes as the Obama Administration is in the battle of it young presidency with the Republican and other Critics on the Health Care Reform “Public Option” program to insure the uninsured; and other spending campaigns.
The announcement would also raise concern that the US could lose its AAA credit rating making difficult for other countries to buy our debt.
“It’s one of those underlying pieces of news that is liable to haunt the bond market at some point in the future,” said Kim Rupert, Managing Director of Global Fixed Income Analysis at Action Economics,LLC in San Francisco.