Black Horse Rides?

WASHINGTON (AP) — The deficit for the current budget year will jump to about $250 billion, the Congressional Budget Office estimated Wednesday, citing the weakening economy. And that figure does not reflect at least $100 billion in additional red ink from an upcoming deficit-financed economic stimulus measure. "After three years of declining budget deficits, a slowing economy this year will contribute to an increase in the deficit," the CBO report said. Such a figure greatly exceeds the $163 billion in red ink registered last year. Including likely but still unapproved outlays for the wars in Iraq and Afghanistan, the deficit for 2008 would total about $250 billion, CBO said.

Senate Budget Committee Chairman Kent Conrad, D-N.D., said the 2008 deficit would reach more than $350 billion once the costs of an upcoming economic stimulus measure under negotiation between the Bush administration and Congress are factored in. Unlike an increasing number of economists, CBO does not forecast a recession this year. It instead forecasts a growth rate of 1.7%, down from 2.2% real growth in the gross domestic product (GDP) last year.

• JJ Commentary: Thus, if there is a recession, the deficit will climb even more and increase the cumulative deficit to unprecedented levels. With a falling dollar, the potential for a severe recession, even a depression, becomes more likely. Has the third seal, the black horse, been released? (Rev. 6:5)