Trillion dollar deficits as far as the eye can see?
"After meeting with his economic team earlier today, President-elect Barack Obama predicted this afternoon that the United States would have trillion-dollar budget deficits "for years to come."
"Obama said that Peter Orszag, Obama's choice to head the Office of Management and Budget, forecasted that the United States would have a budget deficit of $1 trillion "even before we start the next budget."
"We have already, that we are already looking, at a trillion dollar budget deficit or close to a trillion dollar budget deficit," Obama said. "And that potentially we've got trillion dollar deficits for years to come even with the economic recovery that we are working on at this point."
"Nonetheless, Obama said, "We are going to have to spend money to jump-start the economy."
The president-elect has proposed a jobs-heavy economic stimulus plan that could range in cost from $850 billion to $1 trillion."
I just hope our children -- and our children's children -- will forgive us for this massive burden that Washington politicians are putting on their shoulders. More importantly for the here and now, we better all hope our foreign creditors will continue to gleefully finance our profligacy. The past few days haven't been so kind to long-term Treasuries, as I noted recently.