Monday, May 11, 2009

Don't Worry, Starting Next Month the Deficit is Under Control

Like Seinfeld's Jackie Childs, I am shocked, appalled, and dismayed by such disfigurement... It seems Obama's initial FY09 budget deficit estimate of only $1Trill was a lowball estimate. The new estimate is that we will see a deficit of $1.84 Trillion in FY09.

Since that still assumes that growth will be a blazing hot 3.5% (or 3.2% depending on the article) starting in just a little over 4 months and going on through 2010, that rosy deficit estimate may even lowball the $1.84Trill. It is also expected that inflation "will remain subdued" as the Fed essentially prints shiny new dollar bills, basically exploding the dollars in circulation.

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