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 that’s the true tax ... If you’re not paying for it in the form of explicit taxes, you’re 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
http://www.realclearpolicy.com/articles/2012/12/18/remember_milton_friedman_spending_is_taxing_382.html
“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.”
Yeah, right...
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 ;)
How “unexpected.”
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.
http://www.savingsbonds.gov/govt/reports/pd/pd_debtposactrpt_0913.pdf
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."
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.