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As if a credit downgrade and an unemployment rate of 9% weren't enough, the dismal economic news just keeps building this month for American voters.
According to today's budget update from the non-partisan Congressional Budget Office, the federal government is on target to run another $1.3 trillion deficit in fiscal year 2011, easily erasing the $917 billion in savings secured in the recently signed Budget Control Act.
According to the Washington Times:
The deficit marks the third-largest shortfall in history, and the third straight $1 trillion deficit under President Obama, though next year’s deficit is projected to dip just under that mark, according to the Congressional Budget Office.
Still, over the next decade, the federal government will rack up nearly $6 trillion in new deficits, the CBO said — far outstripping the $1.5 trillion in future savings the new deficit super committee is charged with recommending to Congress.
And the nonpartisan agency now projects that unemployment will remain higher than average for years, including a rate of 8.5 percent in the final quarter of 2012, just as Mr. Obama and Congress go back to face voters.
With a $1 trillion deficit hat trick and with 14 million Americans currently out of work, it will be quite interesting to hear what President Obama has to say in September when he finally offers his 'highly touted' jobs plan to the American public.