Posted on 07/27/2010 6:33:22 PM PDT by Behind Liberal Lines
The Congressional Budget Office today released a new report on the risk of a fiscal crisis occuring in the United States due to our long-term debt...
The bottom line is that the longer we prolong dealing with our debt problem, the greater the risk of a fiscal crisis, and the more unattractive the options become for digging ourself out of the mess.
It outlines several consequences for growing debt, including crowding out of private investment and the need for higher taxes and/or spending cuts. Of higher taxes, however, it warns that, "To the extent that additional tax revenues were generated by increasing marginal tax rates, those rates would discourage work and saving, further reducing output and incomes."
The CBO also makes another point ... that a failure to address our fiscal situation will undercut military readiness.
(Excerpt) Read more at spectator.org ...
By morning the lying scumbags at sites like MarketWatch will spin this into good news and help crank out a 100-pt rally.
When do we get to sue Zer0 personally for our financial losses?
....And the leftists will continue to use the deficit as a reason to jack the tax rates to Mars, and institute a VAT.
No Worries.
Tomorrow Obama will hash it all out on the VIEW with Joy Behar and Babawa Walters.
Thanks CBO... for nothing!
Good thing we passed Obamacare!
Have these idiots ever considered CUTTING SPENDING!! That is the only way out of this mess. Tax hikes won’t do it!!
Exactly what Obama wants. The death of our country so he can be king and we slaves. Doesn’t anyone else see this? It’s like the writing on the wall. He has to go and go now.
They hint. No facts, No data.
analyzing it has made me ill in the past.
This can’t be, because Nancy said if we passed Healthcare the debt would go away.
lol
Completely unexpected!
It is not “if” but “when”.
And when the markets and the people finally have the gumption to say it out loud, the house of cards will come down.
That’s why they keep whistling past the graveyard. If anyone ever points out the emperors nekkid, the house of cards will crash.
Well, full speed ahead then... /sarc
and their rosey projections are for %4 real GDP growth fro 2011 through 2014 — if that GDP growth is only 3% it will add an extra $2 TRILLION to the natonal debt by 2020 on top of the $8.5 TRILLION the CBO and OMB are already projecting.
So the national debt will be approximatley $22 TRILLION + by 2020.
I thought this wonderful reform act was going to prevent financial crises forever and ever.
Let me guess, the response to this new potential “crisis” will be more govt control.
First the federal reserve lowered funds rate to 0.
Next it bought a ton of treasuries from the government.
Then it printed federal reserve notes (dollars) and bought 1.25 trillion “relatively worthless” mortgage backed securities.
Next what’s the end game. Economy remains sluggish or goes into true double dip mode and then federal reserve again “prints” with a few mouse clicks another 1T or 2T or 5T or 20T federal reserve notes to buy more worthless securities or treasuries or maybe simply dump the cash somewhere, anywhere, everywhere to get that cash circulating. Then the inflation adjusted debt decreases to manageable levels even though numerically, the debt is still 5T or 10T or whatever. Very diabolical but that is their thinking I believe.
This imo is eventually going to be the end result with ensuing hyperinflation. We literally cannot cut or raise taxes enough to cover this debt. Fixed income people lose their shirts b/c of this but oh well the debt is “fixed.”
The federal reserve is as much of an enemy here as the federal government.
Any other conclusions?
Which one of those wondeful reform acts
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