Skip to comments.CBO ISSUES DIRE DEBT WARNING OF 'FISCAL CRISIS'
Posted on 04/14/2014 12:56:30 PM PDT by Jim Robinson
New figures by the Congressional Budget Office released on Monday reveal that over the next 10 years the U.S. debt-to-GDP ratio will double to 78%.
Over the last four decades America's average debt-to-GDP ratio was 39%. At the end of 2007, federal debt was just 35% of GDP.
The CBO report says gross federal debt will soar from $17.7 trillion to $27 trillion over the next ten years. CBO warned of the dire consequences the nation's debt will have if gone unchecked.
"Such high and rising debt would have serious negative consequences," says the report. "Federal spending on interest payments would increase considerably when interest rates rose to more typical levels. Moreover, because federal borrowing would eventually raise...
(Excerpt) Read more at breitbart.com ...
Too much partying going on in DC from spending to hear the town crier.
Article V. is the only solution.
this is obviously a manufactured crisis to put America in an economic death spiral.
There are other solutions, but Article V would be far less... unpleasant.
He has a pen and a phone. He can simply cancel all vet benefits, Social security ect and use that money to fund penis washing clinics in Africa and mosque building in the mid east.
What’s the problem? Besides, he can just print more. No biggie. These CBO people hate him cuz he’s black is all...
CBO’s a little late to the party, pals. Why now? These folks don’t do things without a reason.
Bingo. Also, don't let 'em fool you. Total spending, not the debt, is the real problem. If government convinces you that debt is the crisis, the next step is to pressure a rise in taxes.
The real issue is the $4 trillion government which need to be cut by at least 80% (=$800 billion, still too large, but it's a start) and replacing it with THE FREE MARKET. HHS bureaucracy alone is $1 Trillion. NUKE IT.
Keep your eye on one thing and one thing only: how much government is spending, because thats the true tax ... If youre not paying for it in the form of explicit taxes, youre paying for it indirectly in the form of inflation or in the form of borrowing. The thing you should keep your eye on is what government spends, and the real problem is to hold down government spending as a fraction of our income, and if you do that, you can stop worrying about the debt. -- Milton Friedman
“The projected cumulative deficit from 2015 through 2024 is $286 billion less than it was in February: Though projected revenues are slightly below the amounts that were previously reported, projected outlays have dropped by more, largely because of lower subsidies for health insurance under the Affordable Care Act. CBO also projects slightly lower outlays for Medicare, the Supplemental Nutrition Assistance Program (formerly known as Food Stamps), defense, and net interest.”
Excellent observation and question. I am wondering the same thing.
Yep, the US had “high and rising debt” before Speaker Boehner agreed to raise the debt ceiling the first time.
The challenge isn’t knowing the final outcome, it’s knowing the timeline. That’s the really difficult part.
GMTA and all ;)
Yeah, let's give them even more Constitution to ignore and violate.
“The CBO report says gross federal debt will soar from $17.7 trillion to $27 trillion over the next ten years.”
Plus the $100T in unfunded liabilities and now we are talking real money!
Just to scope the current $17.7T for my FRiends, it is so large that you could confiscate every piece of currency in existence in the entire world and you still would not have enough to pay off that amount of debt!
The Feds need to get their story straight. The Treasury department tells us that Federal Government debt passed 100% debt-to-GDP nearly 3 years ago.
This CBO's statement above refers to "debt held by the public," and ignores debt owed within the government, such as money taken from the Social Security "lock-box" or from Medicare payments. It probably does not also count explicit government guarantees either.
Changing the constitution means nothing to those who ignore it
Paul Ryan was quoted as saying, "My 10 year plan balances the budget by 2040."
Warnings, evidently that are falling on deaf ears. The towering and cancerously growing debt problem has been building for years, and while there is still a number of strategies to reduce or avert the effects of this outsized and completely imprudent course, none are being seriously considered at the moment.
Austerity, REAL austerity, is the means by which every nation that survived has managed to bring debt under control. The other major option is dissolution of the very structure of the nation altogether, defaulting on all debts.
By AD 400, nobody was seriously concerned with Rome’s total debt picture. By then, there were effectively two separate empires, the Eastern Empire and the Western Empire, though there was a fiction that it was still “one Empire”.
The Western portion, with Rome as its capital, was effectively incapacitated by AD 285, after the various Gothic tribes had sacked the city several times, and effectively foreclosed the mortgage they held on the former Empire. There were several attempts to recreate the Empire, but they were without wide popular support, and each soon failed.
0bama is President.
This is why the Federal Reserve interest rates are so low. If interest rates rise the service on the debt will bury us.
The limited Article V Convention of States proposed by Citizens for Self-Governance is a necessary step toward recovering our constitutional free republic.
If that doesn't work, then move to a state that will nullify, cut off federal funds and behave at least economically independently.
And take it from there.
Freedom is hardly won, easily lost, difficult to recover.
Again, it’s not servicing the debt that’s the real issue. It’s total spending (see post #8).
It’s W’s fault.
The Federal Reserve will just continue to print more money to buy our bonds.
All is well..... (until it isn’t...)
The government sector doesn't really understand that they don't produce wealth. They look around see the nice houses and cars, and say “We CAN'T stop spending, look at all the WEALTH we have created!”
When you bring up it was all from other people's money, you get a blank stare.
That is why I no longer believe that spending can be controlled. It will take a crash or invasion (see the late Roman Empire) to change it. The powers that be literally can't see the problem.
People keep declaring the death of the tea party, not understanding what fuels it.
Apparently you are into suicide.
So that when it crashes soon after Republicans take over the House and Senate guess who gets the blame?
Yep. They are planting the seed for King Barry staying in office past 2016.
Taxes to the new muslim overlords were much, much, less than the taxes to the Emperor.
It took me a while to realize that. Till then I couldn't see how the muslims who were small in number could hold all that territory if the population resisted. Quite simply, the people didn't resist till it was to late.
How did Hillary’s State Department LOSE $6 BILLION????? Where’s the committee who is looking into this?
Ha! Good luck with that, Marxists!
The US is doomed.
Worse than that. How many ways can I spell KRAP? What’s missing mainly is what CBO claims GDP to be. Every body agrees that feral debt is over 17B$. GDP is running about 15B$. Lessee now, doing math, punc punch punch-—17 divided by 15 is 113%. Regardless of the details the debt is far bigger than total production and is well into that EURO FAIL range. When this number broke 200% that’s when Greece blew up. And Spain is blowing without even that much imbalance. WE DO NOT HAVE 10 YEARS of continueing financial clusterflock.
Listen to Obama and the D’s talk about the debt. They will tell you there isn’t really any debt. They’ll tell you that even if there is, debt makes things grow. They’ll tell you that there are no consequences to debt that are worse than than those resulting from drastic action NOW to avoid catastrophe in the FUTURE.
In sum, they talk much like us when we are addressing the subject of ‘climate change’. (The difference is that the increase in debt is undeniable whereas global warming is speculative.).
I think we should counter them the same way. Shut them up, shout them down, call them ‘debt deniers’. Run them out of our institutions. Propose slapping them in jail. Endlessly shout the names of the billionaire donors to their party who stand to benefit from their destructive policies.
Sauce for the gander I say.
Debt is $17+ Trillion.
We have ALREADY passed 100%.
What is your solution?
Wait a mintue; I thought climate change was the biggest threat?
A crisis with the petro-dollar and the only way to salvage this this welfare state will be major war. It’s the only way they can sell the austerity and protect the dollars status to oil. It may well be unavoidable, if nothing else, enjoy it while it lasts.
You don’t change it—you restore it.
Agreed. Those that like to yack and finagle political solutions to things had better get in gear.
These articles always call it a debt problem. It’s not. Debt is a symptom of something. In this case it’s SPENDING. we have a spending problem.
Returning to a constitutional government is the answer. Why change something that we don’t follow?
Even if they are just referring to “Debt held by the public”, that’s on the order of $12.5 trillion.
Last year’s GDP was roughly $16.7 trillion.
We’re already undeniably at 75%, even with the numbers most favorable to “them”.
They’re not even trying to hide the lies anymore.