CBO: Current Spending / Deficits Cannot Be Sustained

[angelatc]

http://www.cbo.gov/publication/45471?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=812526&utm_campaign=0


Between 2009 and 2012, the federal government recorded the largest budget deficits relative to the size of the economy since 1946, causing its debt to soar. The total amount of federal debt held by the public is now equivalent to about 74 percent of the economy’s annual output, or gross domestic product (GDP)—a higher percentage than at any point in U.S. history except a brief period around World War II and almost twice the percentage at the end of 2008.

If current laws remained generally unchanged in the future, federal debt held by the public would decline slightly relative to GDP over the next few years, CBO projects. After that, however, growing budget deficits would push debt back to and above its current high level. Twenty-five years from now, in 2039, federal debt held by the public would exceed 100 percent of GDP, CBO projects. Moreover, debt would be on an upward path relative to the size of the economy, a trend that could not be sustained indefinitely.

The entire report is here: http://www.cbo.gov/sites/default/files/cbofiles/attachments/45471-Long-TermBudgetOutlook.pdf

[HOLLYWOOD]

There is one thing consistent with the CBO, they have been wrong on just about everything.

Their entire 2008-09 report for the 5-10 year recovery projections/revenues/blah blah are so far off, a frigin monkey could of scored it more accurately throwing darts at numbers on the wall.

Government is full of sycophant employees, who's only efficient effort is obedience to the state. It's all so they may advance their careers and get monetary increases, no matter how reckless to society, they have a complete disregard for honesty, and a just push inaccuracies per their bosses/leader's agenda.

[Ronin Truth]

Why not, has the Fed run out of thin air?

[angelatc]

There is one thing consistent with the CBO, they have been wrong on just about everything.

Their entire 2008-09 report for the 5-10 year recovery projections/revenues/blah blah are so far off, a frigin monkey could of scored it more accurately throwing darts at numbers on the wall.


Are you sure? Or did the federal government change the budget by adding a bunch of new spending (like Obamacare) which rendered their predictions moot? That's usually what happens, and the reports are usually quite clear about the possibility of that happening.

Like this one, which clearly says if we don't do something this is what's going to happen.

Here's their last report on it, from September: http://www.cbo.gov/publication/44521

It gives roughly the same forecast:


If current laws generally remained in place, federal debt held by the public would decline slightly relative to GDP over the next several years, CBO projects. After that, however, growing deficits would ultimately push debt back above its current high level. CBO projects that federal debt held by the public would reach 100 percent of GDP in 2038, 25 years from now, even without accounting for the harmful effects that growing debt would have on the economy (see the figure below). Moreover, debt would be on an upward path relative to the size of the economy, a trend that could not be sustained indefinitely.

[Zippyjuan]

The caveat is:

If current laws remained generally unchanged in the future,

and things tend not to remain unchanged.