America was running a war deficit after 2002.
Notice how the big drop came after 9-11 and after the Iraq war stated.
now it is running a war deficit and a spending deficit.
Much larger tax increases will be required to offset the spending then the ones Obama is asking for.
I don't think worrying about how Bush blew the budget is as big a deal as how Obama is not going to fix the problem.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032001820.html?hpid=topnewsThe CBO is the official scorekeeper for budgeting on Capitol Hill, and the new report could complicate efforts to win congressional approval for Obama's $3.6 trillion request for the fiscal year that begins Oct. 1. While Obama had predicted a deficit of nearly $1.2 trillion for 2010, the CBO puts next year's budget gap at nearly $1.4 trillion. And this year's deficit is now projected to soar past $1.8 trillion, or 13 percent of the economy -- the deepest well of red ink since the end of World War II.
A treasury official, speaking on condition of anonymity, said the White House had been consulted as the report was being finalized.
"We certainly have consulted with the White House," the official said.
Asked what the Democratic administration considers an acceptable margin of fluctuation between the yuan and the dollar, he said: "I don't have any range."
The Chinese Yuan will also have to be delt with.
http://ca.news.yahoo.com/s/afp/090416/usa/us_government_trade_forex_china_2But the National Association of Manufacturers slammed the decision not to brand China a currency manipulator.
"While we recognize the delicacy of the global financial situation, today?s decision was a missed opportunity to provide the basis for moving ahead to address China?s currency within international institutions," said NAM president John Engler.