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Obama's Budget Is 'Fiscal Insanity': Sen. Gregg

President Obama's economic policies are promoting 'fiscal insanity' that is leading the nation down the path of insolvency, Sen. Judd Gregg (R)-NH told CNBC Monday.

"We're going to get ourselves into deep, deep trouble here if we continue to pursue this course of fiscal insanity, in my opinion," said Gregg, a ranking member of the Senate Budget Committee, said in a live interview.

"It's not just this year, which is the issue of stimulus," Gregg added. "It's the year after, it's the year after that and the year after, eight years out the president is projecting a trillion dollar defecit, a trillion dollars every year for the next eight years, that's not acceptable. You just can't do that to this country because you're basically taking us down the road of insolvency."

Obama's projected budget defecit of $1.6 trillion for the 2010 fiscal year is higher than the $1.35 trillion the Congressional Budget Office cited last week, but both estimates keep the defecit hovering near 10 percent of gross domestic product.

The government is being grown at a rate that the US economy cannot sustain and the current administration is discouraging economic growth because of policies that create uncertainty in the market, Gregg said.

Investors and entrepreneurs are not going to take risks, invest and create jobs if they think they will lose most of their investment through tax or regulatory policies, he said.

"If you have a government in place with an inherent antipathy towards the market and capitalism, and I believe this government does, I wish it weren't true, but this is the government of community organizers. They believe in social justice," said Gregg.