NEOAVATARA

Remember: Saturday 8/22/2009!

UPDATE:  Please remember that Saturday, August22, 2009 is the date for the national Recess Rally.  Click on the above logo to find your locale, but the default location is your Congressperson’s local office.  Come out, to prove to the national media that the movement is still going strong!

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Literally the moment that the Obamas were walking out of the White House on Friday evening on their way to a well-deserved vacation to Martha’s Vineyard, the White House did the classic Friday night news dump.  They declared that their budget estimates that were made at the time of the passage of the Stimulus, just 6 months ago, were absurdly wrong.  They now project the budget deficit for the next decade will reach $9.1 TRILLION…a 30% increase over the previous estimate of $7 Trillion.

Well, Obama should enjoy the vacation. It is tough to create the world’s largest deficit hole.

Couple of key comments.

First, who didn’t know this was coming.  Well, other than the White House, that is.  Republicans stated from the beginning that they were vastly underestimating the budget estimates, and no one listened to them.

Second, the CBO gains a lot of credibility here.  When they released similar (almost identical, and now verified correct) numbers in June, they were attacked by the White House for being vastly mistaken.  Even funnier is that the CBO actually underestimated the deficit.  The erosion of White House credibility is staggering.

I am not sure which of the Obama predictions will ever come through.  He predicted that the stimulus would keep unemployment under 8%…the budget deficit for the decade around $7 trillion…Obamacare to under $1 trillion.  Does anyone believe any number from the White House any more?

The issue of credibility is essential.  People have to have faith in Obama to believe that he magically will reduce health care costs, without telling us how.  He will magically narrow the budget deficit, without promising to cut anything.  And he will do this without raising taxes.

This will further erode the capital Obama has with Blue Dog Democrats.  The moderates want fiscal conservativism.  That is not what they are getting from Obama.  I have no idea how Obama’s White House is going to spin this…it would be fun to watch, if it weren’t such a disaster for us and our future generations.