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CBO projects massive deficits in coming years
American Thinker ^ | 07/16/2014 | Rick Moran

Posted on 07/16/2014 7:22:52 AM PDT by SeekAndFind

The Congressional Budget Office has looked into its crystal ball and sees the deficit getting much worse in a few years, rising to 106% of GDP by 2039.

The Obama administration has been celebrating a reduction in the budget deficit to $583 billion dollars for this fiscal year. I suppose that's better than trillion dollar deficits but I see no cause for triumphalism, especially when you consider the government is taking in a record amount of revenue.

But CBO says that deficit reduction won't last and that we can expect rising deficits to begin again in a few years.

Politico:

In its annual analysis of the government’s long-term fiscal outlook, the nonpartisan agency said Tuesday that it expects the deficit to begin growing again in coming years, and continue growing to levels unseen since the wake of World War II.

“Deficits are projected to rise steadily and, by 2039, to push federal debt held by the public up to a percentage of GDP seen only once before in U.S. history [just after World War II],” the agency said.

Publicly held debt will reach 106 percent of GDP by 2039, according to the report, compared to the current 74 percent.

CBO attributed the growth to an aging population claiming Social Security and Medicare benefits, rising health care costs, the expansion of subsidies offered through Obamacare and interest payments on the debt projected to grow sharply as currently low interest rates return to normal levels.

The White House budget office reported last week that it expects this year’s deficit to fall to $583 billion and continue to shrink for several more years before beginning to grow again.


(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: cbo; deficit

1 posted on 07/16/2014 7:22:53 AM PDT by SeekAndFind
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To: SeekAndFind

Deficits bad. Employment bad. Nice going, 0!


2 posted on 07/16/2014 7:25:09 AM PDT by I want the USA back (Media: completely irresponsible. Complicit in the destruction of this country.)
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To: SeekAndFind

Socialism Consumes EVERYTHING!


3 posted on 07/16/2014 7:26:39 AM PDT by Paine in the Neck (Socialism consumes EVERYTHING)
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To: SeekAndFind

In 2036 the budget will be, every single dollar everyone makes plus six cents. At that point we will have created an 106% communist country.


4 posted on 07/16/2014 7:27:57 AM PDT by DManA
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To: SeekAndFind

They are attributing the increase to healthcare costs, Medicare and Obamacare subsidies?????

Wait a minute. Obamacare was supposed to reduce Medicare and healthcare costs and not increase the deficit with its subsidies. That’s at least what the CBO projected when this monstrosity was being debated. What a bunch of tools.


5 posted on 07/16/2014 7:28:36 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: SeekAndFind
Compare:

The Congressional Budget Office has looked into its crystal ball and sees the deficit getting much worse in a few years, rising to 106% of GDP by 2039.

with

Publicly held debt will reach 106 percent of GDP by 2039, according to the report, compared to the current 74 percent.

The report says the debt will hit 106% of the GDP while the article says that the annual deficit will hit that level. In general I scoff at any idiot who confuses the two, but I expect better from The American Thinker.

6 posted on 07/16/2014 7:29:55 AM PDT by KarlInOhio (The IRS: either criminally irresponsible in backup procedures or criminally responsible of coverup.)
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To: SeekAndFind

The Fed has been printing electronic scrip for nigh on 5 years. For 4+ years it was at a rate of $85 Billion/Month to buy T-Bills (effectively using one credit card to pay off another and ‘legitimize’ the debt load, AND to spend about half that on Mortgage Backed Securities in the NYSE to bribe them to ignore every other economic indicator in this country).

Now, that rate is just a paltry $75 billion/month - hooray!!!!!! Bread and Circuses! Show me an outside independent audit of the Fed and I’ll believe some of this lying revisionist obfuscating crap this government foists off on us as “good economic news.”

The real balance sheets are ominous and dreadful. There is no money, yet this Administration spends it like they’re out on a Jihad Mission tomorrow.


7 posted on 07/16/2014 7:31:06 AM PDT by Gaffer
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To: DManA

I guess that makes it 206% communist since they spend everything everyone makes then BORROW (from where?) an equal amount.


8 posted on 07/16/2014 7:34:01 AM PDT by DManA
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To: SeekAndFind

At some point the dollar will be devalued and reissued as
Nuevo dólars! Presidente Obama will strip three zeros from the dollar, creating a parity of $1 Nuevo dólars for $1000 of the old ones.


9 posted on 07/16/2014 7:58:04 AM PDT by jonose
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To: SeekAndFind

Better grant amnesty. All those illegals are computer experts, job creators, tax payers, and will all star companies that will employ everyone. I heard it from Joe Biden.


10 posted on 07/16/2014 8:06:15 AM PDT by Organic Panic
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To: Gaffer

Idiots think using one credit card to pay off another is “paying off the loan”. And idiot I know posted sarcastically on FB about Obama being slammed as the worse president ever but GM paid off it’s loan. When it was plain as the nose on your face they took out a new loan to pay for the original. I tried to explain to this particular idiot that it’s the same as refinancing a mortgage. Since he’s never had a mortgage he didn’t understand. But if you ask him, he is one smart s.o.b.


11 posted on 07/16/2014 8:08:22 AM PDT by VerySadAmerican (Liberals were raised by women or wimps. And they're all stupid.)
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To: I want the USA back

Horse shit. Why do people read “gubmint” statistics?

The answer is that people are stupid. If people were not stupid we would not have a muslim marxist homosexual in the White Hut.


12 posted on 07/16/2014 8:17:00 AM PDT by the anti-mahdi
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To: VerySadAmerican

Yes. It’s all true. There isn’t any ‘there’ there. People (entitleers) think they can binge and binge and binge and the government will bail it all out.

There are even commercials I see about some effing scum sucking dirt bag lawyer telling them “Will a bankruptcy hurt my credit?” He says “No, because a bankruptcy ‘removes’ that deficiency from your record leaving it ‘clean’ - Call me and I’ll show you how!”

Dirt bags, bottom dwellers and reprobates the Devil won’t even claim on paper. That’s what this country (what’s LEFT) has come to.


13 posted on 07/16/2014 8:28:36 AM PDT by Gaffer
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To: SeekAndFind
The Congressional Budget Office has looked into its crystal ball and sees the deficit getting much worse in a few years, rising to 106% of GDP by 2039.

Really! s//

A better question is when does this house of card come tumbling down? I have read that if interest rates were set to keep paper currency from losing its value (4% to 5%), at the current rate of BIG government spending, the US couldn't pay for anything but interest on the debt by 2022.

14 posted on 07/16/2014 9:18:48 AM PDT by 2001convSVT (Going Galt as fast as I can.)
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