Danger Signals Flash: Unprecedented Deficits Loom

But the reaction from the political-media establishment is to call for even more spending.

Government’s continuous threats of tax increases, health care mandates, an artificial energy shortage under cap and trade, and coerced unionization discourage investment and hiring, driving down taxable profits and incomes and depressing the tax revenue needed to fund Obama’s breathtaking surge in spending.  The private sector is unable and/or unwilling to generate enough taxable income and profit to satisfy government’s mushrooming appetite.

The drop in tax revenue since 2008 is the steepest since the Great Depression of the 1930s.

Because revenues are running less than projected the 2010 deficit will be more than $1.8 Trillion, much higher than official projections from the Administration.  If spending also exceeds projections, as it certainly could, the 2010 deficit could exceed $2 Trillion.

President Obama Campaigned against deficit spending.  He warned that electing John McCain would bring on four more years of “soaring Bush deficits.”

Obama Deficits Chart

• This year the federal government has borrowed 49¢ of every dollar spent.

• After adjustment for inflation, the 2010 deficit will be greater than all World War II deficits combined, from 1942 through 1945.

• This year the federal government will borrow $1 Trillion more than it will collect in personal income tax revenue.