Yep! But I hid some of ill-gotten gains away in my mother's house.
Posted on 03/31/2025 7:04:37 AM PDT by delta7
The US Congressional Budget Office is warning that the federal deficit has hit a point of no return. It is far too late to cut wasteful government spending. Politicians have kicked the can down the road for far too long and left us with a financial system held up through perpetual borrowing that cannot be reversed.
The CBO’s long-term forecast shows the federal deficit rising to 7.3% of GDP by 2055, but the figure is currently at 6.2% as of 2025 and this is an optimistic report. In contrast, the 30-year average from 1995 to 2024 was 3.9% of GDP. Public debt is projected to hit 156% of GDP by 2055, up from the 100% of GDP we face today.
Now the CBO mentioned that Trump’s tariffs could negatively impact the economy but we reached the point of no return years ago. Trump cannot be blamed for the current situation in the least. “Mounting debt would slow economic growth, push up interest payments to foreign holders of U.S. debt and pose significant risks to the fiscal and economic outlook,” the Long-Term Budget Outlook: 2025 to 2055 stated.
The Baby Boomer generation is at or nearing retirement and Social Security benefits are currently at 5.2% of GDP. The CBO believes this will reach 6.1% of GDP in 2055 but fail to recognize the fund is drying up. The Ponzi Scheme will come crashing down.
Interest expenditures alone have hit 3.2% of GDP as America. In 2024, the US spent $881 billion simple to finance its massive debt, and that figure is projected to reach $1.8 trillion by 2035. We spend more on servicing debt than we do on defense spending at this point.
Raising taxes cannot solve this massive issue, but that will not prevent the government from attempting to extort the people to cover their fiscal mismanagement. The government knows it is trapped and will continue to hold off on paying down their debt as long as possible. Worse still, other nations are decreasing their investments in Treasuries as we have seen with China and Russia. Japan is our main buyer now but they have their own colossal problems.
The debt crisis is global. America is far from the only nation facing an outright default, and as I have warned, we will see the pieces crumble one by one with America being the last frontier.…..
....but I’m surprised the whole system hasn’t collapsed already.
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Once going down a path of debt, a lot of propping up can go on for a long time to delay the inevitable...
‘The problem with socialism is that you eventually run out of other people’s money.’ - Margaret Thatcher
Yea right, and I am sure that had Kamala won, non of this would be happening too. EVERYTHING would hunky dory...
Ross Perot? Anyone with his eyes open and willing to look at the numbers has been warning about this long before Ross Perot. Addressing the debt and deficit death spiral used to be Republican orthodoxy. But now even that consensus has collapsed on the right.
Before anyone jumps in to say that the GOP was always a fraud on these issues, remember that the Gingrich-Armey-Contract With America pols balanced the budget and were starting to move on entitlement reform before Clinton got Lewinskied into his hard left turn.
GWB ran for election and reelection with entitlement reform clearly in the platform: shift to a market oriented system and consumer choice for health insurance including Medicare; move Social Security onto a fully funded basis, with individually owned, inheritable accounts. He also pushed for much expanded school choice pointing towards a dismantling of the government stranglehold on elementary and secondary education. There were never enough votes to break the automatic democrat filibusters, but the path forward was clear.
Trump went over the side on those issues. He is back to the amazing, miraculous, perpetual growth hokum that is the pseudo-conservative equivalent to democrat tax the rich fantasies.
What has to be done is clear, but the question has always been whether we could act before a systemic collapse forced our hands. The democrats have been committed to reckless spending without limit because they think hard left socialism or outright communism will be the endgame. They are getting awfully close to forcing that decision. That’s why they are hellbent on turning the U.S. into a one-party state.
The CBO is warning of what will happen on our current course. ANY response begins with reforming entitlements, which only gets more painful with each passing day. That is essential whether we get the right kind of tax reform or not.
This is generally all true, however I believe that they also do an annual nonpartisan report on their own where they will typically describe the ten-year outlook based on three different possibilities (the rosy best-case scenario, the middle scenario, and the dire worst-case scenario).
I think it’s normal what they do. But I don’t think that anyone would want to crash the system. That would be suicidal.
Does the CBO by chance properly turn its pointing figure on its sponsoring body?
>Then why write it?
Because they’re trying to destroy Trump’s efforts to correct it.
“The CBO’s long-term forecast shows the federal deficit rising to 7.3% of GDP by 2055, but the figure is currently at 6.2% as of 2025”
“Raising taxes cannot solve this massive issue”
An 8% Value-Added Tax can.
Yep! But I hid some of ill-gotten gains away in my mother's house.
“A warning, those that see what is coming and prepare make will make it through to the other side…..and may even prosper.”
You predicted that a US civil war would start January, 2025.
Bach then I asked how you were preparing for it. Silence.
Bump for later.
Talks too much to be TG..
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