No Runny Eggs

That’s the stuff that President Obama’s budget appears to have been made of.

The Congressional Budget Office took a “preliminary analysis” of Obama’s budget and found some, let’s just say, “challenges.”

Largely as a result of the enactment of recent legislation and the continuing turmoil in financial markets, CBO’s baseline projections of the deficit have risen by more than $400 billion in both 2009 and 2010 and by smaller amounts thereafter. Those projections assume that current laws and policies remain in place. Under that assumption, CBO now estimates that the deficit will total almost $1.7 trillion (12 percent of GDP) this year and $1.1 trillion (8 percent of GDP) next year—the largest deficits as a share of GDP since 1945. Deficits would shrink to about 2 percent of GDP by 2012 and remain in that vicinity through 2019.

But that’s just the tip of the iceberg:

As estimated by CBO and the Joint Committee on Taxation, the President’s proposals would add $4.8 trillion to the baseline deficits over the 2010–2019 period.

The cumulative deficit from 2010 to 2019 under the President’s proposals would total $9.3 trillion, compared with a cumulative deficit of $4.4 trillion projected under the current-law assumptions embodied in CBO’s baseline. Debt held by the public would rise, from 41 percent of GDP in 2008 to 57 percent in 2009 and then to 82 percent of GDP by 2019 (compared with 56 percent of GDP in that year under baseline assumptions).

Oh, if you’re buying the “we’ll raise the tax rate and it will bring in more revenue” canard:

Proposed changes in tax policy would reduce revenues by an estimated $2.1 trillion over the next 10 years.

Every time Obama asks for confirmation of another appointee we hear that his administration hires the “best and brightest.”  If that’s so, they must be coming from the public school systems because the CBO says they aren’t able to do some simple math:

Our estimates of deficits under the President’s budget exceed those anticipated by the Administration by $2.3 trillion over the 2010-2019 period.

Oops!

And that whole “inflation capping at 8.1%” because of the stimulus pixie dust; um, nope!

In this forecast, the unemployment rate peaks at 9.4 percent in late 2009 and early 2010 and remains above 7.0 percent through the end of 2011.

For those of you who learn visually, here is the graph that says it all.  According to the CBO, if we would leave the horrible, awful policies of George Bush in place, we would see the deficit run at about 1/4 to 1/3 the rate compared to enacting the policies of the oh so enlightened Barack Obama:

Yes, President Obama and staff appear to have as much understanding of what it takes to manage long term economics as Lesley Gore did about maintaining long term relationships.