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Orszag Rips Rosy Scenarios, Blasts Clueless DC

Once they get out of Washington, they start telling the truth. Peter Orszag, the head of the Office of Management and Budget under President Obama through 2010, now warns in his Bloomberg column that the Federal deficit over the next 10 years will be about $2.5 trillion more than the Congressional Budget Office predicts.  The reason: after a financial crisis, economies likely struggle for years with high unemployment and slow growth.

In summary: unemployment will stay high for years, driving the deficit higher than projected.  The deficit talks in Washington are a sideshow; $2 trillion in cuts won’t even cover the difference between the optimistic forecast and the actual tide of red ink.

If Orszag is right, the blue social model is even sicker than thought, and both parties will be facing a storm of pain, frustration and fear in 2012.

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