From the Congressional Budget Office, "Budget and Economic Outlook: An Update"

The United States is facing profound budgetary and economic challenges. At 8.5 percent of gross domestic product (GDP), the $1.3 trillion budget deficit that the Congressional Budget Office (CBO) projects for 2011 will be the third-largest shortfall in the past 65 years (exceeded only by the deficits of the preceding two years). This year's deficit stems in part from the long shadow cast on the U.S. economy by the financial crisis and the recent recession. Although economic output began to expand again two years ago, the pace of the recovery has been slow, and the economy remains in a severe slump. Recent turmoil in financial markets in the United States and overseas threatens to prolong the slump.

Business Roundtable is hosting a forum on the U.S. spending crisis on Tuesday, Sept. 6, the day Congress returns from its August recess. "Meeting the Challenges of Economic Growth and Deficit Reduction” features an impressive array of legislative and budget experts, if we do say so, as the media advisory highlights.

The CBO report has stimulated more discussion about the Super Committee, Supercommittee, in the mainstream media and blogosphere. Ben Domenech's excellent and new news review, The Transom, has a good selection:

CBO’s new evaluation of the plot lines (PDF). http://goo.gl/qRWT9  Some already pronouncing it “unrealistic.” http://goo.gl/SUy8s  Pethokoukis says it’s just Obama’s best case scenario. http://goo.gl/T0zlR  Main political takeaway: unemployment won’t improve much by Election Day. http://goo.gl/z5b0E  Meanwhile, rumors persist that Bernanke will disappoint investors at Jackson Hole by forgoing more stimulus. http://goo.gl/iX69r