Notes, May 3, 2008

Treasury Committee: Record Deficit Forecast

Report to The Secretary of the Treasury from The Treasury Borrowing Advisory Committee of the Securities Industry And Financial Markets Association

The Federal government’s budget balance is deteriorating in fiscal year 2008. Weaker economic activity has dampened the pace of revenue collection and lifted growth in economically sensitive spending. A recent survey of primary dealers estimates that the deficit for the 2008 fiscal year ending in September will exceed $400 billion with some economists expecting a deficit of more than $500 billion–a significant deterioration from fiscal 2007’s deficit of $163 billion. Economic stimulus measures will complement the forces widening the budget deficit. This year’s shortfall may surpass fiscal year 2004 as the largest on record in nominal dollars.

Today’s NYT has an article on the fifth anniversary of “Mission accomplished”, by having half a dozen ‘experts” talk about what next. the overall message, is back off smarter but leave five brigades. What the NYT does not say is that all the commentators are from the neocon right who supported, encouraged, or even planned the war.

After the NYT did the article on Obama Hillary above, today’s leads off with two major articles making race the centerpiece. to Obama’s cost.

There is a sense throughout that politics is not quite engaging at the level of major issues, but it is faint.