From GOPUSA.com:

WASHINGTON (AP) — In a chilling forecast, the White House is predicting a 10-year federal deficit of $9 trillion — more than the sum of all previous deficits since America’s founding. And it says by the next decade’s end the national debt will equal three-quarters of the entire U.S. economy.

But before President Barack Obama can do much about it, he’ll have to weather recession aftershocks including unemployment that his advisers said Tuesday is still heading for 10 percent.

Overall, White House and congressional budget analysts said in a brace of new estimates that the economy will shrink by 2.5 to 2.8 percent this year even as it begins to climb out of the recession. Those estimates reflect this year’s deeper-than-expected economic plunge.

The grim deficit news presents Obama with both immediate and longer-term challenges. The still fragile economy cannot afford deficit-fighting cures such as spending cuts or tax increases. But nervous holders of U.S. debt, particularly foreign bondholders, could demand interest rate increases that would quickly be felt in the pocketbooks of American consumers…

The White House Office of Management and Budget indicated that the president will have to struggle to meet his vow of cutting the deficit in half in 2013 — a promise that earlier budget projections suggested he could accomplish with ease…

The deficit numbers also could complicate Obama’s drive to persuade Congress to enact a major overhaul of the health care system — one that could cost $1 trillion or more over 10 years. Obama has said he doesn’t want the measure to add to the deficit, but lawmakers have been unable to agree on revenues that would cover the cost.

What’s more, the high unemployment is expected to last well into the congressional election campaign next year, turning the contests into a referendum on Obama’s economic policies.

Republicans were ready to pounce.

“The alarm bells on our nation’s fiscal condition have now become a siren,” said Senate Minority Leader Mitch McConnell of Kentucky. “If anyone had any doubts that this burden on future generations is unsustainable, they’re gone — spending, borrowing and debt are out of control.”

Even supporters of Obama’s economic policies said the long-term outlook places the federal government on an unsustainable path that will force the president and Congress to consider politically unpopular measures, including tax increases and cuts in government programs…

The summer analyses by the White House budget office and by the Congressional Budget Office reached similarly bleak conclusions. The CBO’s 10-year deficit figure was smaller — $7 trillion — but that is because it assumes that all tax cuts put into place in the administration of former President George W. Bush will expire on schedule by 2011. Obama’s budget baseline, however, hews to his proposal to keep the tax cuts in place for families earning less than $250,000 a year.

Both budget offices see the national debt — the accumulation of annual budget deficits — as more than doubling over the next decade. The public national debt, made up of amounts the government owes to the public, including foreign governments, stood Tuesday at a staggering $7.4 trillion. White House budget officials predicted it would reach $17.5 trillion in 2019, or 76.5 percent of the gross domestic product. That would be the highest proportion in six decades.

Congressional Budget Office director Douglas Elmendorf said if Congress doesn’t reduce deficits, interest rates are likely to rise, hurting the economy. But if Congress acts too soon, the economic recovery — once it arrives — could be thwarted…

More from GOPUSA.com:

No matter how Barack Obama and his media admirers spin the past eight months, unemployment continues to rise, and the debt burden America faces continues to go through the roof.

The new numbers released by the White House Office of Management and Budget (OMB) on Tuesday show a 10-year projected deficit of more than $9 trillion. That’s $2 trillion more than Obama’s team predicted earlier this year. The White House budget director is now saying that getting deficits under control is a “top priority.” Gulp! Whenever something becomes a top priority of the White House, that’s when we should all run for cover!

Here is what Obama’s own budget chief, Peter Orszag, had to say about the latest figures according to a Bloomberg.com report:

U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than previous Obama administration forecasts because of a recession that was deeper and longer than expected, White House budget chief Peter Orszag said.

The Office of Management and Budget forecasts a weaker economic recovery than it saw in May as the gross domestic product shrinks 2.8 percent this year before expanding 2 percent next year, according to the administration’s mid-year economic review issued today. The Congressional Budget Office, in a separate assessment, forecast the economy will grow 2.8 percent next year. Both see the GDP expanding 3.8 percent in 2011.

Bloomberg.com notes that the 2010 deficit “would mark the second straight year of trillion-dollar deficits.” The Congressional Budget Office also released an economic outlook report this week, and its numbers paint an equally dismal picture of the economy.

As a side note, just look how MSNBC’s Chris Matthews (the guy who gets a tingly feeling down his leg for Obama) describes the current state of economic affairs:

As FOXNews.com reports, “The White House report showed the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.” Of course, the White House is still singing the same tune as it did when Obama came to power. The gloomy forecast is caused by “the economic crisis and the practices of the previous administration.”

Blame, blame, blame… yet the only solutions offered are more government spending and more government control. Put more money back into the hands of people who earn it, and I guarantee the economy will turn around. Yet, the only thing Obama wants to do is take more money from tax payers so that he can do things the “government” way. Well… that is not the American way!

The FOXNews.com report sums up both the OMB and CBO reports in this way: “But both offices warned that with higher deficits leading to higher national debt, in turn increasing the federal government’s interest payments on that debt, the economy is in serious trouble.”

The spending has to stop, and it has to stop now. Reduce spending, cut taxes, and the economy will start to produce more jobs which will bring in more revenue.

It’s not that Obama and his advisers don’t understand how capitalism works. They do. The problem we face is that Obama and his team detest how capitalism works, and they are doing everything they can to transform America into something of their liking. We are now seeing the effects, and all of us will pay the price.

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