well they have the cuts to $900B now (wow) over the next decade when they are projected to spend over $47T over that same 10 yr period...
con-gress ( i do give some credit for at least seeing the unsustainable path we are on) just can't seem to believe/understand/comprehend what the cbo said:
The CBO’s conclusion is chilling:
"Under current law, the federal budget is on an unsustainable path—meaning that federal debt will continue to grow much faster than the economy over the long run…
CBO’s long-term budget projections raise fundamental questions about economic sustainability…"
It’s implication for tax rates is worse:
"If spending grew as projected and taxes were raised in tandem, tax rates would have to reach levels never seen in the United States."
they insist on believing/insisting they same ole sh*t can still be the norm
*America is Now a Banana Republic. Government Spending is Out of Control. The National Debt is Exploding
Today the CBO released The Long-Term Budget Outlook. The projections are truly mind-numbing.Rather than bore you with numbers, take a look at the chart below. America is now a banana republic.
Incredibly, THESE PROJECTIONS DO NOT INCLUDE THE COST OF NATIONAL HEALTH CARE .
These numbers were prepared by the Congressional Budget Office (CBO) which is referred to as nonpartisan but never is. It’s Director and its composition are controlled whichever party holds the majority in Congress, in this case the Democrats. Historically, the CBO tends to underpredict spending, underpredict change, and underpredict the impact of taxpayer response to changes in tax rates. In other words, these projections are probably too low.
As the chart shows, World War I, the Great Depression, and even World War II, when the national debt briefly exceeded GDP, were just blips on the chart. The programs already on the books (so-called entitlements, including social security, Medicare, Medicaid), the recent money squandered on the bailout, and the massive increase in spending in the first Obama budget will increase the federal debt to about 4x the levels we have lived with in recent years.
The CBO’s conclusion is chilling:
Under current law, the federal budget is on an unsustainable path—meaning that federal debt will continue to grow much faster than the economy over the long run…
CBO’s long-term budget projections raise fundamental questions about economic sustainability…
It’s implication for tax rates is worse:
If spending grew as projected and taxes were raised in tandem, tax rates would have to reach levels never seen in the United States.
Read the last line again (it’s in the last paragraph on page xii in the CBO report.) “Tax rates would have to reach levels never seen in the United States.”
I have been paying close attention to the interplay of tax rates, government spending, budget deficits, the national debt, economic growth, employment, the stock market, interest rates and the dollar since my stint in the Reagan White House in 1981. Everything I have learned since then convinces me of one thing. The world envisioned in the CBO projections won’t work. Growth and employment would be lower. Inflation and interest rates would be higher. And the stock market and the dollar would crash.
Unless people start paying attention, raise their pitchforks, and say this has got to stop. Sadly, as I look out my window I don’t see any pitchforks.
Welcome to the new Banana Republic of America.
rutledgecapital.com |
