The U.S. budget deficit in 2009 is projected to spike to a record $1.2 trillion, or 8.3% of gross domestic product, the Congressional Budget Office said Wednesday.

“As a share of the economy, the deficit for this year is anticipated to be the largest recorded since World War II,” the CBO said in its annual budget and economic outlook report.

The current recession “will probably be the longest and the deepest since World War II,” the CBO said.

On Tuesday, Obama suggested the country could see trillion-dollar deficits potentially for years.

“Our problem is not just a deficit of dollars, it’s a deficit of accountability and a deficit of trust,” Obama said. “So change and reform can’t just be election-year slogans. They must become fundamental principles of government.”

Source: CNN Money

The budget office predicted that the unemployment rate, which was 6.7 percent in November, would climb above 9 percent by the end of 2009.

Part of his approach, the president-elect pledged, would be to eliminate wasteful spending. As expected, he announced the appointment of Nancy Killefer to the post of chief performance officer to head a “line by line” scrutiny of federal spending.

It estimated that tax revenue will sink by $166 billion, or 6.6 percent.

The agency said the deficit would equal 8.3 percent of gross domestic product, obliterating previous postwar record of 6 percent, reached in 1983 under President Ronald Reagan.

Source: NYTimes

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3 thoughts on “Over One Trillion

  1. I love how everyone’s dumping their hopes and dreams on Obama… and the fallout when he fails to address some of them since he’s human. Well, inauguration’s coming up and I know one of the MPs called up for duty. He’s not a happy camper, lol

  2. One of the best movies of all time.

    Personally, after sticking your head out the window long enough to see that 9 out of 10 other people don’t care – I decided to do the only reasonable thing.

    I skipped the country.

  3. FFVIIKnight,

    The hope is certainly there, but people should understand that Obama has a limited power to influence the economy. This year will be very tough, but it will improve. However, if we do nothing now, the situation can get worse.

    Well, he’s got to fulfill his duty 🙂

    Choice of Rick Warren for inauguration was smart. I don’t share Warren’s views, but it was a good political move.

    – – –

    大神先生,

    Indeed, it is a good movie 🙂

    I hope you’ll have better luck in Japan 🙂

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