Obama to raise 10-year deficit to $9 trillion, increase is $2 trillion

(Analyst's Note: This Reuters article announces an increase in the estimated national budget deficit of another $2 Trillion. You will recall that Obama complained he inherited a $1.3 trillion deficit from former President George W. Bush. This announcement of the increased threat to the American economic security comes on a Friday evening when the President joins the Congress in the August recess.

America has a major debt crisis. This problem should be the number one concern of government. National well-being demands we protect the economy and jobs; they are primary over government expansion and growth in entitlements. Priorities, gentlemen, priorities. )

The following is an article excerpt. Read the whole article here.

By Jeff Mason

WASHINGTON (Reuters) - The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama's opponents, who say his spending plans are too expensive in light of budget shortfalls.

The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

"The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year," said the administration official, who is familiar with the budget mid-session review that is slated to be released next week.

"Our budget projections are now in line with the spring and summer projections that the Congressional Budget Office put out."

The White House budget office will also lower its deficit forecast for this fiscal year, which ends September 30, to $1.58 trillion from $1.84 trillion next week after removing $250 billion set aside for bank bailouts.

Record-breaking deficits have raised concerns about America's ability to finance its debt and whether the United States can maintain its top-tier AAA credit rating.

Politically, the deficit has been an albatross for Obama, a Democrat who is pushing forward with plans to overhaul the U.S. healthcare industry -- an initiative that could cost up to $1 trillion over 10 years -- and other promises, including reforming education and how the country handles energy.