Posted on 08/25/2016 3:41:17 PM PDT by HomerBohn
President Barack Obama’s White House is taking a lame-duck approach to dealing with the nation’s spiraling budget deficit, telling reporters this week that it’s the next administration’s problem.
The Congressional Budget Office on Tuesday increased its projection for the national budget deficit in 2016 to $590 billion— that’s $56 billion more than it predicted in March.
The nation’s money-watchers blamed the lagging economy’s impact on corporate tax revenues coupled with increases in mandatory government spending for the projected deficit increase.
From the CBO:
The deficit is growing in 2016 because revenues are up only slightly, by less than 1 percent ($26 billion), whereas outlays are projected to rise by 5 percent ($178 billion). As a share of GDP, total revenues are expected to fall from 18.2 percent to 17.8 percent. In contrast, outlays are projected to rise to 21.1 percent of GDP, up from 20.7 percent last year. That increase is the result of the following: a 6 percent rise, in nominal terms, in mandatory spending for programs such as Social Security and Medicare (which is generally governed by statutory criteria); a 1 percent increase in discretionary outlays (which stem from annual appropriations); and an 11 percent jump in net interest outlays. Debt held by the public will amount to nearly 77 percent of GDP by the end of 2016, CBO estimates—3 percentage points higher than last year and its highest ratio since 1950.
The trend is expected to continue and intensify over the next decade.
And, yes, you read that right. As a result of the uncontrolled spending, the amount of federal debt held by the public will creep toward highs not seen since the period following the nation’s massive wartime spending in the 1940s.
The CBO warns of the following serious consequences if federal officials don’t quickly get the deficit under control: •Federal spending on interest payments would increase substantially as a result of increases in interest rates, such as those projected to occur over the next few years. •Because federal borrowing reduces total saving in the economy, the nation’s capital stock would ultimately be smaller, and productivity and total wages would be lower. •Lawmakers would have less flexibility to use tax and spending policies to respond to unexpected challenges. •The likelihood of a fiscal crisis in the United States would increase. There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates; if that happened, interest rates on federal debt would rise suddenly and sharply.
The national debt has nearly doubled throughout Obama’s presidency, rising from $10.6 trillion to $20 trillion.
But the Obama White House is fond of pointing to deficit decreases under the current administration to draw attention away from the harsh reality of the debt hike and lack of any clear plan for government spending cuts.
As for the debt, the Obama administration blames Republican tax cuts and elderly people.
“That’s [an] indication that we had things moving in the right direction, but it’s clear that as the population of the United States ages that there are additional steps that we’re going to need to take,” White house press secretary Josh Earnest told reporters.
And by “we,” he means the sucker who inherits the rising deficit and runaway debt.
“There’s certainly a lot money that can be saved, and this will be a challenge that the next president and the next Congress will have to do,” Earnest said.
Of course, the White House’s nonchalant attitude concerning the fiscal cliff we’re about to tumble over shouldn’t come as a surprise if you’ve been following along for the past few years.
As bad as the CBO numbers look, they’re sugarcoated.
CBO officials have to use government accounting to come up with their projections. But in the real world– like in the accounting departments of all major corporations– the bean counters use Generally Accepted Accounting Principles (GAAP).
Using GAAP, which is based on the “accrual” method of accounting, all unfunded government obligations must be treated as expenses.
Adding that into the equation brings the real national debt and deficit numbers to more than double the government’s official figures.
Obama’s kicking the can, just like every modern president before him. Why? Because the spenders in Congress and the White House created a monster they can’t control.
Wondering how this story ends? Let’s just say it isn’t pretty.
Hillary is the very one to lift America out of the economic miasma and mire! It was, after all, she who with a modest investment morphed it into over $100 thousand! She is truly an economic genius!
Not only that, but la Hillary has very extensive experience as the secretary of state in dealing with foreign affairs and, of course, intrigue.
She will hit a magical 'reset' button and everything will come up roses.
Or, then again, it might not.
If there was ever a time in our history where a non-politician was desperately needed it is now.
America is closely following the example of Detroit, Michigan. Keep electing leftist loony Democrats or liberal Republicrats and see how far that gets you.
He has a point, Congress sent him the spending bills. The president doesn’t have the power to raise spending, Congress does.
Sun rises, stars twinkle, Obama lies.
It’s another day on planet Earth.
Lyin’ Ryan’s fault. With plenty of support from McConnell and Rince and their pupoet masters.
“That’s [an] indication that we had things moving in the right direction, but it’s clear that as the population of the United States ages that there are additional steps that we’re going to need to take,” White house press secretary Josh Earnest told reporters.”
We snuck up on them. They only had a 50-55 year warning about the boomers retiring...goddam, I hate these bastards.
this no good piece of shit says its an elderly problem.
stop giving money to illegals, hood ratz and iran and... and...
So when does the system blow up?
Back in the late 70s I was worried about deficits and the national debt. How stupid was that? The spending party is still in high gear 40 years later.
But God help us when the day of reckoning does arrive, as it inevitably will.
Obama is out to lunch...or on vacation...or golfing..not present.
As I ease into retirement (no more wage slavery for me), my tax bill is likely to tripple. Before it gets worse...
“As for the debt, the Obama administration blames Republican tax cuts and elderly people.”
Karl Marx did not like elderly people either...like all good Marxists...Obama = POS.
Obama: I built everything but that.
We could save some money if we terminate the DHS, EPA, IRS, donations to foreign countries that hate us, participation in the UN... the possibilities are endless!
He blames elderly people who at this point spent their whole lives working and paying taxes? Coming from a guy who never worked a day in his life?
No words...
#14. Re “No words...”. NOPE. There are plenty of words to describe Obama and his Marxist policies, but most cannot be used here at FR.
“IF WE CUSS OUT OBAMA IN OUTER SPACE, DOES ANYONE HEAR?”
The responsibility lies jointly with both the President and the Congress.
Personally, I favor a balanced budget amendment (initiated by the States) that would in essence forbid any spending above available revenues, excepting national emergencies and in those situations a 75% affirmative vote from both bodies of Congress would be required.
Of course, this would not keep Congress from attempting to raise taxes/revenue in order to justify additional spending, but that discussion would have to take place in full view of the electorate, as opposed to the current tactic of Continuing Resolutions and letting the national continue to rise unchecked.
What a wonderful country could be recreated if only all the alphabet tentacles of a central socialist government could be snipped!
Lowering corporate tax rate to zero would cause fields of green to sprout up overnight. Eliminating a graduated income tax and taxing EVERYONE a uniform 5-10 % would be simply wizard!
Rounding up all subversives like Hillary, Kaine (the anti-Constitutionalist), Hairy Reed, Nutsy Pelosi and the entire gaggle of ugly, deformed leftists and locking them up would restore America. And it would improve the scenery.
Obama, the fraud, couldn’t sharpen a pencil and here a nation of imbeciles have turned the country over to him as a playground just because he’s half negro.
See, we’ve frittered away a perfectly good nation just to prove to the world that we’re without prejudice.
Obama is a fictitious, made-up zombie-like monster that was foisted upon stupid Americans as a torment by Satan.
As I’ve said before,
As the world turns and the stomach churns, the fraudulent creature that someone dubbed Obama, is unconcerned.
If he’s not golfing or gobbling up or drinking something expensive, he’s reclining on the couch in the oval orifice with his shirt off.
He’s engaged in his favorite pastime: gazing at and contemplating his navel.
He’s thinking, “Gee. I could fill this up with sour cream and chives and dip potato chips in there.”
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