U.S. Treasury Secretary Timothy Geithner said Tuesday it is imperative for the government to reduce over time the debt that is piling up as a result of the government's response to recession and financial market turmoil...The plan envisions reducing the annual federal deficit to $533 billion by 2013. Mr. Geithner said that would cut in half the $1.3 trillion portion of the deficit for 2009 that he said the administration has "inherited," or budgetary factors that were in place as a result of decisions made during the previous administration.
The Obama administration estimates that the total deficit for 2009 is $1.75 trillion, taking into account the cost of economic stimulus legislation signed by the president last month...
"Failure to reduce deficits to this level would result in higher interest rates as government borrowing crowds out private investment, leading to slower growth and lower living standards for Americans," he said.
My thoughts: Honesty from the White House? Did not expect that. I think it is reasonable to lay $1.3 trillion of the FY2009 budget deficit on Bush. When the finally surpasses the $2 trillion mark will they sing the same tune? The FY 2010 budget is about $3.9 trillion amost a full trillion more than the current budget. This does not sound like a budget made by people concerned about the deficit.
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