UP Ibalon Bicol: forecast

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Conflicting economic outlook heightens anxiety of Americans

8/26/2009 | Posted by Anonymous | Edit Post

After Ben Bernanke optimistically declared that there are signs the recession is about to end, on the day of his reappointment as the chairman of the federal reserve, Pres. Obama said the economy is deteriorating. When Obama said that the cost of healthcare will be less, the news was flooded with gloomy forecasts saying otherwise.

The slight improvement of the joblessness reported weeks ago was followed with high umemployment numbers. In town meetings where irate oppositionists gathered to air their frustration. A cadre of optimistic Obama supporters also formed grups to get across their message of the advantages of the healthcare bill, raising the chance of confrontation with those whooppose it. Others who couldn't control their anger accused both sides as rabble-rousers, paid whiners, and representtives of interest groups.

These conflicting messages hadn't help Obama’s administration whose popularity early on was artificially shored by the die-hard elements of partisan media. Majority of Americans wanted him to succeed, but his job approval didn't keep up with the momentum of his leadership. There is confusion and frustration out there. The ex-vice president Dick Cheney complained, the White House has a lot of doubts now.

“…the White House pro jected the budget deficit would be $2,000 bn higher over the next 10 years than it had predicted. Taken with a separate forecast by the independent Congressional Budget Office, the news presented a bleak picture of America’s deteriorating debt position.”----Ft.com (Financial Times, 08/25/09, O’Connor, S; Luce, E.; and Guha, G.)

There is worsening of the economic outlook. There are fears that the budget deficit will put Obama’s reform in peril. The dollar is losing influence in the world market. If Obama doesn’t move fast and continues on his “Harvard” rhetoric without tangible results, the erosion of confidence will continue. As of August 25, 2009, Rasmussen poll indicates 71% of voters believe President Obama’s policies have pushed up the deficit. (Photo Credit: Sporadicity) =0=

RELATED BLOGS: A slow recovery from recession is still a threat according to Dr. Doom Posted by mesiamd at 8/24/2009; Obama’s projected budget deficit jumps from $7.108 trillion to $9 trillion Posted by mesiamd at 8/23/2009

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Labels: economy, forecast, national economic planners, recovery, Totie Mesia

Obama’s projected budget deficit jumps from $7.108 trillion to $9 trillion

8/23/2009 | Posted by Anonymous | Edit Post

When Americans were told that under Pres. Barack Obama's term, the 10-year US budget deficit will reach more than $7 trillion, they could only sigh in disappointment. This was not the promise they heard during the campaign. Under Obama’s talk when he sought the presidency, he assured: USA could ride the tide of economic crisis with less spending and less worry. It was not the case.

The deficit forecast was worse than what the White House optimistically insisted. Even with $1.3 trillion deficit Obama inherited from Pres. George Bush, a jump to $9 trillion had been staggering. Amidst promises to overhaul healthcare, improve education, and bring back the country to prosperity, mounting doubts continued to erode the trust Obama enjoyed since the election. Talks of economic recovery was not consistent with persistent high unemployment.

In keeping with original forecast of the Congressional Budget Office issued early in early 2009, the budget deficit in 2010 to 2019 is expected to reach a staggering $9.1 trillion. The disclosure brings more uncertainty and trepidation to the public that tries to make sense of the planned healthcare overhaul which will cost the government greater than $1 trillion in a nine years.

Republicans are quick to point out the excessive spending of Obama. Many question how America can pay and at the same time keep its credit rating in the world market with such huge deficit.

Economists wonder if the administration can stop heavy spending without raising taxes which can slacken eeconomic growth. Time is running out for Obama to convince the Americans that he is on the right track.(Photo Credit: nmfbihop) =0=

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Labels: budget, budget deficit, deficit, forecast, taxes, USA