It was a chart created by CBO in 2011. Projections can be off as we have learned many times. The Trustees Report is the best place to look.
kabar, here is a related question. You are around DC and familiar with most government operatrions, so could you provide some clarification on this.
The government has been issuing debt instruments for years to finance government operations. In the past few years, the Fed has engaged in “quantitative easing” and is said to be buying up mortgages and other financial instruments held by financial institutions. And the Fed also buys normal government issued debt at times, as I understand it.
1. Is quantitative easing a Fed action where they purchase financial holdings only from financial institutions? Does QE have anything to do with financing the government’s operating deficits?
2. When the Fed buys government issued debt, I assume that reduces the amount that must be sold to individuals and foreign governments to finance our government’s operations?
It’s just not always clear what the Fed is doing and how it realtes to financing the budget deficits.
Thanks,