Skip to comments.The CBO Looks Ahead to a U.S. Fiscal Disaster
Posted on 07/23/2016 5:59:34 AM PDT by reaganaut1
The American debt problem was almost entirely ignored at the Republican National Convention last week, and we can expect nothing more when the Democrats gather this week.
Both parties support the entitlement spending system and the decrepit tax system that fails to support it. They compete on the fiscal side of politics with impossible promises to spend more and tax less.
Imagine the U.S. Treasury as an airplane beginning to roll down the runway to take off. For a mile or so, the plane gains no altitude, then the wings start to generate lift. The wheels leave the ground and are retracted so the plane can fly smoothly through the air. Then the plane begins a rapid ascent, taking only a few minutes to arrive at an altitude of 30,000 feet.
For the time being, the Treasury is rumbling down the runway, already moving too fast to abort a takeoff. After takeoff, Americans will discover that Treasury debt is heading for the stratosphere, with consequences that are easy to imagine, hard to believe, and apparently impossible to act uponexcept to make it worse.
More likely, Americans will remain blissfully unaware of the size of the problem until its too late.
The Congressional Budget Office issues a Long-Term Budget Outlook every year. To sum up this years report in one sentence, it says, The federal budget outlook is projected to worsen considerably over the next three decades under current law, with debt growing larger in relation to the economy than ever recorded in U.S. history.
By 2035, federal debt held by the public as a percentage of gross domestic product will surpass the peak of 106% set in 1946, and it will keep growing from there.
(Excerpt) Read more at barrons.com ...
I have enough faith in the nihilism and moral failure of this country to recognize this.
You can blast our tax system all you want, but no tax system will support the runaway debt that we have. Take 80% of everyone's income and the debt, and deficit, will continue to rise.
We don't have a tax problem, we have a spend problem.
Like entitlements to illegal border crossers and their tagalongs...that would be a start...and of course a GOP President is going to have to be the one to inflict the pain.
Oh and how about reducing EBT to the truly needy....and rewarding work, not sloth.
“It will be a simple matter. Social Security and Medicare will be saved from insolvency through a well-orchestrated national policy of euthanizing the elderly. “
A nice start would be to get the millions of illegal and welfare children off of SSI.
A 20% across the board import tariff balances the budget tomorrow. Combined with Trumps income tax cuts and you have a recipe for an American economic renaissance.
False. Trump mentioned it and perhaps others did as well.
Actually, Donald Trump dealt with the problem
Of all those running, he has the most knowledge and ability for of dealing with debt
Way too complex, Alberta.
The new Hispanic, Black, and Asian majority will just stop paying their taxes.
Killing us would require real jobs and real work.
Every man for himself.
If you are white and elderly, you will need a large extended family, and a lot of ammunition, to survive the 2030’s.
Entitlements are bleeding out of every pore. You can’t take in all the world’s trash and problems without going flat ass broke. There is just not enough to go around.
I see people working for non-living wages. They can’t even support themselves let alone a pack of others. It is not 50% supporting the other 50%. It is much much worse. There maybe 10 to 15% supportig the other 85 to 90%! This is simply unsustainable in every way imaginable.
The facts are ignored because nothing can be done. It has gone too far and the negatives have only been added to. It is a dismal situation.
So dismal in fact that about all there is to do is whistle through the graveyard because what is coming is too dreadful to think about on top of all the other problems we have just day-to-day.
Trump thinks he can make america great again by growing the economy. It is just too late for that but it is nice to think about.
The where we are reminds me of a movie with Gregory Peck, Ava Gardner and Fred Astaire. “On the Beach” It is about a different disaster but about as hopeless a situation as we face now.
I agree and he is backed up with his Vice President pick who brought Indiana out of the red ink into the black. Mike Pence was an excellent choice. Florida’s governor, Rick Scott, dug Florida out of the chaos as well. Florida is getting out of debt each and every year,and people are working here with one of the lowest unemployment rates in the country. Again it is a case of a businessman who took the reins of state government and applied business thinking to the problems. The BIG problem in this country is that far too many lifetime politicos get elected who have never had a REAL job in their lives. Theycan spend it but have no idea how to make it.
Why don’t you put a little sugar or something in your coffee. Your gloom and doom attitude is called defeatism. The AMERICAN way is optimism. EVERY problem has a solution and electing Trump is the best place to start.
Watch B0 Stevedunhambarrysoetorofrankmarshalldavisjrbathhousebarryhusseinsoebarkah take credit for a “super” economy, reducing the deficit, ending unemployment, getting “everyone ‘health care’” and averting a “Great Depression” all while taking zero responsibility for leaving an economic train wreck for the next generation.
Just like BJ Clinton.
” Floridas governor, Rick Scott, dug Florida out of the chaos as well. Florida is getting out of debt each and every year,and people are working here with one of the lowest unemployment rates in the country. “
Add North Carolina and GOP governor Pat McCrory who succeeded the two corrupt and inept governors, Mike Easley and Bev Perdue. The budget is balanced, taxes were reduced, teacher’s salaries raised, road improvements are underway. McCrory has been targeted for extinction by the Democrats and they are clubbing him with the HB2 “bathroom” law passed by the Republican legislature. Conventional wisdom has McCrory losing in the fall but a large turnout for Trump could allow him to squeak into a second term.
Dont worry the elites have the nuclear holocaust planned to weed out the needed amount of the population,just think Hillary and all her friends will be saved in the bunkers to rebuild civilisation as we all fry
The amount of US unfunded liabilities is currently at the breath taking level of $103 TRILLION. As a taxpayer, your share of that burden is an incredible $859,000! This is ruinous in itself, but doesn’t even include your portion of the federal debt which is another $203,000 per taxpayer! Combined, each taxpayer owes more than $1,000,000.00. To say that this is unsustainable is a gross understatement.
They don't want to deal with massive debt problem. Its become pernicious and intractable. They won't cut entitlement because it will cost them votes. And if interest rates rise even slightly, the debt service costs get even worse. They are riding a tiger.
Its kind of like the game of musical chairs except that the object is not to be the administration that's left sitting in the last chair.
The nanny state’s foundation is our unbacked currency, and the Federal Reserve
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