CBO's Latest Predictions on Obama Budgest- $9.8 trillion More in Debt Over Next Decade

According to the nonpartisan Congressional Budget Office (CBO), President Obama's latest budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That's $1.2 trillion more than predicted by the administration, and doesn't take into account that recent CBO estimates of Obama's budget plans have been underestimated the deficits.

Barack Obama, a Democrat, in his first year of office (2009) submitted a budget to the Democrats who run America's Congress that added another eye-popping $1.75 trillion to the federal debt. That is the highest ever in dollar terms, and amounts to a 12.3 percent share of the economy - the largest since 1945. He is now prepared to follow that with more eye-popping deficit budgets that will add another minimum of $9.8 trillion to the debt, especially if Obama is a two-term President (8 years).

Under the president's budget, debt held by the public would grow from US$7.5 trillion (53 percent of GDP) at the end of 2009 to US$20.3 trillion (90 percent of GDP) at the end of 2020,” CBO said. This level has not been seen since World War Two, and is not sustainable.

Interest on the debt would become one of the largest spending categories in the federal budget, and would more than quadruple in the next 10 years, rising from US$209 billion this year to US$916 billion in 2020. This debt would increasingly be held by foreign investors, such as China, who currently hold $7.5 trillion in debt but at the end of Obama's two-terms would hold $20.3 trillion in American debt.

Obama has repeatedly said that he inherited a financial mess from his Republican predecessor President George W. Bush and had to step up government spending immediately after taking office to fight the worst U.S. recession in decades. He has indeed done so, dramatically increasing federal spending (CBO estimates that showed a record US$3.8 trillion in spending in fiscal 2011). He also says that he will fight these deficits that he is increasing by increasing taxes and fees, arguing that taxing more of the wealth from Americans will revive the economy and lead to higher government revenues and thus lower deficits.

Obama is wrong- raising taxes will lead to falling revenues, more government programs will stagnate growth, the federal government debt will be a toxic drag on the economy, increased government spending will create more inefficiencies in the marketplace, and his trade policies will lead to falling exports and rising costs of imports. Obama and the Democrats in Congress are wrong for America.

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