Obama Deficit Tops $1.29 Trillion For 2010

October 15, 2010

The CBO reported that the Obama deficit for 2010 was $1.29 trillion.  The CBO is also projecting that the Obama administration and congressional Democrats will deliver a $1.4 trillion deficit for 2011.  Taking into account the Obama deficit for 2009, 2010, and the 2011 projection, the Democrat controlled Congress and White House will add over $4 trillion to the national debt in the first 3 years of the Obama administration.

The news of the Obama deficit comes at a bad time for Democrats who hope to keep hold of Congress.  Polls predict that Republicans will take the house in the November elections and will come close to taking the Senate.

According to US Debt Clock, the current national debt stands at over $13.5 trillion and climbing.  With the CBO forecast for the Obama deficit for 2011, the national debt could top $15 trillion going into 2012.

Regardless of who controls Congress in 2011, reducing the deficit will be difficult.  Republicans favor cutting government spending to reduce the budget deficit while Democrats favor additional taxes.

The President is claiming that without all of the deficit spending, the economy would be in worse shape.  However, this argument discounts the damage to future years as we continue to borrow money to fund additional spending and print money to pay off the debt.

When the economy picks up again, there will be pressure to raise interest rates.  The higher interest rates on the national debt will mean that the American people will be on the hook for higher interest payments to avoid defaulting on debt payments.

Americans need to remember the issues that excessive consumer debt caused in the recent past.  The same issues will be faced by the entire nation as the debt and the interest on that debt continues to climb.

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