So, they're just going to 'quietly' raise the federal deficit to more than $1-trillion.

[bigtree]

from WaPo: http://www.washingtonpost.com/wp-dyn/content/article/2008/09/22/AR2008092203179_pf.html

"Even before the bailout plan was announced, the Congressional Budget Office estimated this month that the deficit for fiscal 2009 would reach $438 billion, already a record in dollar terms. If Treasury needs half the money it has sought for the bailout plan in 2009, as well as money already promised to seize Fannie Mae, Freddie Mac, Bear Stearns and the insurance giant American International Group, the deficit could approach $900 billion. As a percentage of the economy, that number would rival the highest deficits in history, recorded in the Reagan administration, said Rudolph G. Penner, another former CBO director, now at the Urban Institute."


I remember when neo-economists were complaining about the dangers of the Clinton-era budget surplus. Should be fine now.


President Clinton announces another record budget surplus

September 27, 2000

WASHINGTON (CNN) -- President Clinton announced Wednesday that the federal budget surplus for fiscal year 2000 amounted to at least $230 billion, making it the largest in U.S. history and topping last year's record surplus of $122.7 billion.

"Eight years ago, our future was at risk," Clinton said Wednesday morning. "Economic growth was low, unemployment was high, interest rates were high, the federal debt had quadrupled in the previous 12 years. When Vice President Gore and I took office, the budget deficit was $290 billion, and it was projected this year the budget deficit would be $455 billion."

Instead, the president explained, the $5.7 trillion national debt has been reduced by $360 billion in the last three years -- $223 billion this year alone.

This represents, Clinton said, "the largest one-year debt reduction in the history of the United States."

http://archives.cnn.com/2000/ALLPOLITICS/stories/09/27/clinton.surplus/

[angstlessk]

1. not TO more than 1 trillion...BY 1 trillion it is already over 9 trillion

on edit..thought it was debt..but you are correct...oops!!!

[bigtree]

3. 11.3 Trillion

In order to finance the bailout of Fannie Mae and Freddie Mac, Congress authorized raising the national debt ceiling to $10.6 Trillion. In order to finance the new bailout of the Finance Industry, Congress is going to be asked to raise it again, to $11.3 Trillion.

http://www.koinlocal6.com/news/local/story.aspx?content_id=a0f525ec-40d0-49d4-8a2a-aef1c6ab2830

[BuyingThyme]

2. There's amunition all over the place. Look at this:

Bush Credits Polices for Falling Deficit
By Andrew Taylor, The Associated Press
Published: July 14, 2005 08:10

WASHINGTON—After three years of steadily climbing budget shortfalls, President Bush finally had some good fiscal news Wednesday: Surging revenues and a steady economy have led to a steep drop in the expected deficit for this year.

The annual White House midyear budget report projects that this year’s deficit will drop to $333 billion, $79 billion below last year’s record red ink and almost $100 billion less than earlier estimates.

...

Democrats on Capitol Hill countered that the deficit for the budget year ending Sept. 30 would still be the third largest ever and that the use of $173 billion in surplus Social Security taxes hides the true deficit.

...

Just five months ago, the White House predicted a $427 billion deficit for the year and red ink totaling $1.1 trillion over five years.

Last year’s deficit of $412 billion was a record in dollar terms, though many previous deficits in the mid-1980s and early 1990s were larger when measured against the size of the economy.

...

http://www.sacunion.com/pages/nation/print/5463/

[Beregond2]

4. I'd hardly call this process "quiet."

[bigtree]

5. The deficit hasn't been reported on or discussed on equal terms with the $700 billion

The total is still dependent on what priorities the new president and Congress choose, but most of the expenditures are locked in. Most economists are saying that it'll climb to at least $800 billion.