Surprise CBO report: United States on an “unsustainable” budget course

[Stephanie]

Doesn't this government have a magic money tree they just pluck money from...that's what some people seem to think..oh well, see ya all on the downward
links in article at site

SNIP:

posted at 3:21 pm on September 17, 2013 by Erika Johnsen
Here’s some oh-so-pleasant news to keep in mind as Democrats casually insist that we should simply raise the debt ceiling again and again and again, with no end in sight, and fiercely rip Republicans for even daring to suggest budget cuts to federal programs.

Congressional budget analysts on Tuesday issued a new warning about the long-term U.S. budget outlook, just as lawmakers and the White House are staring at a pair of fiscal confrontations.

The nonpartisan Congressional Budget Office said that the U.S. national debt is now 73% of gross domestic product, the highest in history except for a period around World War II. The figure is twice the percentage it was at the end of 2007. Read the CBO report.

Modestly lower spending, an improving economy and increased collection of income, payroll and corporate taxes have helped narrow the government’s deficit this fiscal year. If current laws remain in place, CBO said, the debt will decline “slightly” relative to GDP over the next several years.

But CBO cautioned that long-term challenges remain. It warned that growing future deficits will push the debt to 100% of GDP 25 years from now. And under another scenario that envisions changes being made to some laws — including removing the so-called automatic budget cuts known as the sequester — the debt would be even higher, at nearly 190%, by 2038.

While sequestration and Americans’ record-high tax revenue has had a mitigating impact in the near term — news on which the White House has been quick to seize — the entitlement implosion is still stubbornly looming in the future (particularly the incoming strain on Medicare and Social Security) while we accomplish approximately zero in addressing it.

What’s more, as James Pethokoukis points out at AEI, the debt itself is hardly the long and short of it. The CBO notes that the above forecast didn’t factor in “the harm that growing debt would cause to the economy,” and, well…


all of it here
Surprise CBO report: United States on an ?unsustainable? budget course « Hot Air

 

[eagle1462010]

They and the GAO have been warning us for years about this. No one listens and debt grows.

Interest on Debt is now at roughly 450 Billion a year. On this course it will eventually be higher than any other dept. in the coming future. aka On this course, just paying the interest will eventually be more than the Dept of Defense.

The longer we wait to deal with this situation, the worse it will get. We cannot afford to keep kicking the can down the road.

 

[TemplarKormac]

Well then, who else do we have to blame for this? Obama.

If he were truly different from Bush, he wouldn't have spent as recklessly as Bush. He would have acted completely different. But here he is, nothing but the same big spender Bush was.

 

[TheOldSchool]

Well then, who else do we have to blame for this? Obama.

If he were truly different from Bush, he wouldn't have spent as recklessly as Bush. He would have acted completely different. But here he is, nothing but the same big spender Bush was.

Who was the last president who didn't have an unsustainable budget?

I think it's one of the job requirements now.

 

[Mr. H.]

This sounds hauntingly familiar...

Obama has transplanted his native state of Illinois to our nation's capitol.

No hope, no future.

Thanks a lot, you 47%'ers.

 

[Procrustes Stretched]

Who'da thunk it? If only someone had pointed this out before we might have been able to do something like cut spending instead of trying to raise taxes.

9 Takeaways From the CBO?s New Budget Report - Hit & Run : Reason.com

A deceptive, disingenuous and downright distorted lie through omission?

Oh Windy?!


Takeaways instead of analysis of honestly factual arguments

to economists, deficits are simply the difference between revenues and outlays. A large deficit could be a good thing if it's going toward a productive investment. A small deficit can be a bad thing if the economy needs more support. So if you're worried about deficits, you need to say why.

intereting and honest...

Joe Scarborough, Paul Krugman and the economist-pundit divide on debt and deficits - The Washington Post

Simply pointing out that the deficit has exceeded $1 trillion a year lately, and that that is a really big number, isn't much of an economic argument

Dupe?

 

[eagle1462010]

The last post states Deficits don't matter.

LOL

When you destroy our currency, you destroy the economy of the United States and it's future. To ignore it doesn't make it go away. To say we can just keep printing money with no consequences is the OPINION OF AN IDIOT.

 

[Mr. H.]

Who'da thunk it? If only someone had pointed this out before we might have been able to do something like cut spending instead of trying to raise taxes.

9 Takeaways From the CBO?s New Budget Report - Hit & Run : Reason.com

A deceptive, disingenuous and downright distorted lie through omission?

Oh Windy?!


Takeaways instead of analysis of honestly factual arguments

to economists, deficits are simply the difference between revenues and outlays. A large deficit could be a good thing if it's going toward a productive investment. A small deficit can be a bad thing if the economy needs more support. So if you're worried about deficits, you need to say why.

intereting and honest...

Joe Scarborough, Paul Krugman and the economist-pundit divide on debt and deficits - The Washington Post

Simply pointing out that the deficit has exceeded $1 trillion a year lately, and that that is a really big number, isn't much of an economic argument

Dupe?

Yes, yes. There is good debt, and there is bad debt.

But when Obama throws debt in blind direction for the sake of forestalling crisis...

that is bad debt. Obama bad. Way instain bad.

 

[Claudette]

Doesn't this government have a magic money tree they just pluck money from...that's what some people seem to think..oh well, see ya all on the downward
links in article at site

SNIP:

posted at 3:21 pm on September 17, 2013 by Erika Johnsen
Here’s some oh-so-pleasant news to keep in mind as Democrats casually insist that we should simply raise the debt ceiling again and again and again, with no end in sight, and fiercely rip Republicans for even daring to suggest budget cuts to federal programs.

Congressional budget analysts on Tuesday issued a new warning about the long-term U.S. budget outlook, just as lawmakers and the White House are staring at a pair of fiscal confrontations.

The nonpartisan Congressional Budget Office said that the U.S. national debt is now 73% of gross domestic product, the highest in history except for a period around World War II. The figure is twice the percentage it was at the end of 2007. Read the CBO report.

Modestly lower spending, an improving economy and increased collection of income, payroll and corporate taxes have helped narrow the government’s deficit this fiscal year. If current laws remain in place, CBO said, the debt will decline “slightly” relative to GDP over the next several years.

But CBO cautioned that long-term challenges remain. It warned that growing future deficits will push the debt to 100% of GDP 25 years from now. And under another scenario that envisions changes being made to some laws — including removing the so-called automatic budget cuts known as the sequester — the debt would be even higher, at nearly 190%, by 2038.

While sequestration and Americans’ record-high tax revenue has had a mitigating impact in the near term — news on which the White House has been quick to seize — the entitlement implosion is still stubbornly looming in the future (particularly the incoming strain on Medicare and Social Security) while we accomplish approximately zero in addressing it.

What’s more, as James Pethokoukis points out at AEI, the debt itself is hardly the long and short of it. The CBO notes that the above forecast didn’t factor in “the harm that growing debt would cause to the economy,” and, well…


all of it here
Surprise CBO report: United States on an ?unsustainable? budget course « Hot Air

Jesus. Color me shocked. NOT.

 

[JakeStarkey]

Fix SS by not allowing Congress to take the taxes and increasing the tax ceiling to $250K per year per person.

No more major foreign interventions.

Streamline Defense with a forward shield of navy and air power.

Redo the tax code.

 

[TakeAStepBack]

I'm sure your beloved giant federal leviathan will get right on all that, Fake.

 

[Claudette]

I'm sure your beloved giant federal leviathan will get right on all that, Fake.

Yup and just imagine how the ACA is gonna be cheaper and better.

After all its Govt and we all know how much cheaper and better all that red tape and paperwork is gonna be.

 

[Procrustes Stretched]

Every major successful company was built on and carries ...gulp....debt