The Obama administration threw in the towel on its optimistic deficit projections today. The White House is now forecasting cumulative deficits of $9 trillion over the next 10 years, compared with a previous estimate of $7.1 trillion. At the same time, the projection for this year’s deficit dropped to $1.6 trillion; the improvement stems from the fact the banking sector didn’t need as much bailout money as previously anticipated.
Something else that’s scary to consider: Total U.S. government debt is now forecast to TRIPLE to $23 trillion by 2019. That’s an increase of $2 trillion from the administration’s May estimate. As a percentage of GDP, that’d be 76.5% (compared with 56% now). The debt load hasn’t been this high in relative terms since World War II. More details can be found here.
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