The projected total US debt will be $30 trillion within 10 years, using the CBO’s own numbers. But the CBO also makes the rosy assumptions that there will be no recessions and that GDP will grow at a 4% nominal rate.
Now, that’s possible; I'm inclined to haircut it a bit.
If you asked me to bet the “over/under” on the debt in 2027, I would bet the over at $35 trillion.
After the next recession the deficit will be $30 trillion within 4–5 years and then grow from there at a rate of anywhere from $1.5 to $2 trillion per year (I covered my team’s calculations in this letter).
Is it any wonder why I’m so concerned about pensions?
Social Security Is Impossible Under This Deficit
Note: That is not the CBO’s projected debt. It does not take into account the off-budget deficit that still ends up having to be borrowed.Last year the deficit was well over $1 trillion—but we were told it was in the neighborhood of $600 billion.
If any normal company tried to use accounting like the US Congress does, the SEC would rightly declare it fraudulent and shut it down immediately.
Here’s a chart from the Treasury’s annual financial report, projecting government receipts and spending:
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We need to take the hit now and pay off our debt before it is too late. This is the single most important issue our Nation faces. All the other BS is just that, BS! It is common sense to most but congress does not seem to understand the basics of business and interest. The more debt we incur the higher the interest. If you are bored research the average 30 year mortgage rate and calculate the annual interest of the national debt, $20 trillion...
ReplyDeleteIt is astonishing that congress still approves foreign aid and development. Although the economy is currently accelerating, we will quickly realize the severity of a financially stable government as the debt continues to rise. With increasing legislation supporting bailouts and subsidies, the government has become greatly intertwined within the economy. The current state of the government is simply too large. A quick google search will reveal 430 + agencies in the federal govt. If the government continues to sink, so will our economy.
Small town America needs to set the example for the stuffed hogs in DC. The city govt has become an excellent example of excessive growth. With consistent steroid shots the city has been pumping out absurd legislation, increasing taxes, and now they want to stuff their pockets. Small towns need to set an example for the pigs in DC. Force them to recognize we are real people with real issues. We don't have the luxury of living inside a bubble.
If we venture outside the midst of all the nonsense, within our current state of affairs, we will have the ability to see the actual problems of our Country.
Anyone who can add 10 + 10 can see that Social Security for anyone under 40 is a dream.
ReplyDeleteWe pay immigrants who have never contributed. We pay for kids who are classified as "disabled' because they can't stop fighting in school. $800 a month and many families have 2-4 kids classified as disabled.
However if they came out and said the forced contributions from your paycheck were never going to given back, well, revolution is around the corner. And they know it.
So, no matter what, they'll never tell the truth.
They'd hang for it.
Keep cheering.
If the federal government would pay back the money it stole from
ReplyDeleteSocial Security since the 1940's, the system might be self supporting
instead of a perceived "entitlement" label. Many people put in dollars
for many years for little piece of mind in their declining years.
11:08...YOU can pay it off if you want, but not me or many people like me. We have already given more than we should. It's actually a moot point anyways...
ReplyDeleteImclain...under 50 is more realistic, and the revolution is already here staring us in the face.
ReplyDeleteI'll bet welfare is not impossible. Plenty of money for that.
ReplyDeleteIf the Mafia was strong arming you EVERY MONTH FOR 30 YEARS for $300-500 each month, you'd be screaming to the States Attorney.
ReplyDeleteWhen your "leaders" do it to you, you cheer.
It's robbery. OFFICIAL robbery, but robbery nonetheless.
ESPECIALLY since those same leaders take the billions of dollars in cash that flow into the fund each month (each month!) and replace it with paper BONDS (!??). Then they SPEND the cash. And we continue to go trillions in debt. HOW does one manage do do THAT???
Two Sets of Laws.
If YOU managed your own money like they manage ours, you'd be IN prison right now. Under the laws they passed. For YOU, not them.
They take their staff and family to Israel for a "fact finding" trip. YOU pay for it. Maybe the prison paper will carry the story.
It's the stuff of revolution.
Keep cheering.