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CBO: Trillion dollar deficits for the next decade
American Thinker ^ | 03/06/10 | Rick Moran

Posted on 03/06/2010 12:25:07 PM PST by American Dream 246

The wolf is at the door and we've got Little Red Riding Hood as president:

President Obama's proposed budget would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday. Proposed tax cuts for the middle class account for nearly a third of that shortfall. The 10-year outlook released by the nonpartisan Congressional Budget Office is somewhat gloomier than White House projections, which found that Obama's budget request would produce deficits that would add about $8.5 trillion to the national debt by 2020.

What's $1.2 trillion between friends, right Barry?

The CBO and the White House are in relative agreement about the short-term budget picture, with both predicting a deficit of about $1.5 trillion this year -- a post-World War II record at 10.3 percent of the overall economy -- and $1.3 trillion in 2011. But the CBO is considerably less optimistic about future years, predicting that deficits would never fall below 4 percent of the economy under Obama's policies and would begin to grow rapidly after 2015. Deficits of that magnitude would force the Treasury to continue borrowing at prodigious rates, sending the national debt soaring to 90 percent of the economy by 2020, the CBO said. Interest payments on the debt would also skyrocket by $800 billion over the same period.

It's raining red ink and there are no umbrellas to be found, and no place to duck into and avoid getting soaked.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Editorial; Foreign Affairs; Front Page News; Government; Miscellaneous; News/Current Events; Politics/Elections
KEYWORDS: communist; constitution; corruption; czars; dollar; economy; education; elections; government; healthcare; military; obama; palin; politics; teaparties
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To: Psycho_Bunny

Why worry, Obama’s Zimbabwee economics will bring prosperity to the USA just like it did for Zimbabwee.


41 posted on 03/06/2010 1:52:44 PM PST by OldArmy52 (Christmas 2009: Democrats give us Obama Cr*pCare, the t*rd that keeps on stinking.)
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To: American Dream 246

The increases in our national debt related to growing deficits surely are of concern. But what MSM doesn’t appear ready or willing to explain is that leaving aside the DEFICIT, our unfunded social insurance obligations grow by about $3 trillion every year. These are not booked as annual budget deficits since they represent future rather than past obligations, but they nevertheless are very real. After all, would taxpayers willingly pony up 15.3% of their wages for SS and Medicare if they knew that when it came time for THEM to receive such benefits, Uncle Sam would elect to cut them back drastically (i.e., 30-40% or more)?

Thus, the Ponzi schemes called SS and Medicare work ONLY so long as there are enough suckers to keep dumping money into the pot. Once they wise up, the whole game goes bust. And when that happens, the Congress critters who have sat on their hats doing nothing to head off this tsunami better head for the hills.


42 posted on 03/06/2010 1:56:00 PM PST by DrC
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To: Psycho_Bunny

A recent editorial in the Air Force Times says it best, Disarmament by Entitlement.


43 posted on 03/06/2010 1:59:07 PM PST by rcofdayton
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To: American Dream 246

Who’s gonna write the little book?


44 posted on 03/06/2010 2:01:23 PM PST by KansasGirl
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To: KansasGirl
Who’s gonna write the little book?

LOL...good question...er..the gov? I warned that it was utopia. But what a fun and good question, indeed..we can't even trust the schools for history so...yes, who will write the book? Lol
45 posted on 03/06/2010 2:17:36 PM PST by American Dream 246 (Open your eyes. Freedom is not a one day fight. Enemies of Freedom are legion.)
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To: American Dream 246

There is one way to beat them. Spread the truth. It get’s peoples’ attention... When you are out with family or friends say out loud and with emotional anger, ‘they are bankrupting our country’.


46 posted on 03/06/2010 2:19:22 PM PST by Enough is ENOUGH (Select conservatives for the coming primaries, now. Vote out the incumbents.)
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To: American Dream 246

Mere trillion dollar deficits will not be so bad in a few years when the dollar has fallen to $.00001 as compared with the dollar today.


47 posted on 03/06/2010 2:21:30 PM PST by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: Enough is ENOUGH

Well, I’ve been doing that before the elections but seems that it did not work too well


48 posted on 03/06/2010 2:33:30 PM PST by American Dream 246 (Open your eyes. Freedom is not a one day fight. Enemies of Freedom are legion.)
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To: arthurus

OoooKkkk...so should we change our very small savings in yen?


49 posted on 03/06/2010 2:34:22 PM PST by American Dream 246 (Open your eyes. Freedom is not a one day fight. Enemies of Freedom are legion.)
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To: DontTreadOnMe2009

Actually the number is over $100 trillion when you include the unfunded liabilities that have been Enronized over the years.


50 posted on 03/06/2010 2:34:59 PM PST by Jack Hydrazine
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To: Parley Baer
The Republicans need to start explaining this in more relatable terms. Talking about trillion-dollar deficits isn't enough; the American people are already numb to the T-word.

At the current rate, it's hard to see how a $20 trillion national debt in 2020 wouldn't be an optimistic estimate, and wildly so. Servicing that debt at anything approaching historical interest rates (they're abnormally low now) will cost almost a trillion dollars a year - that's somewhere around 85% of 2009's income tax receipts, and well over a third of all federal revenues.

Someone needs to make it clear to the American people just what that means. Even if we completely dismantled the U.S. military and eliminated defense spending from the budget, that wouldn't be enough to offset the increase in interest payments. In fact, there is probably no way we will be able to borrow or tax enough to service the debt without drastically reducing discretionary spending. We aren't even talking about Social Security and Medicare yet, let alone ObamaCare.

In other words, we'll be Greece - insolvent. It's time for some Republicans to grow the cojones to tell the American people exactly how bad it is.
51 posted on 03/06/2010 2:36:18 PM PST by The Pack Knight (Duty, Honor, Country)
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To: DrC

Yup. The sad truth is that it may already be too late. We may not be able to fix it anymore without massive social upheaval, just to try and avoid complete economic collapse later.


52 posted on 03/06/2010 2:43:36 PM PST by The Pack Knight (Duty, Honor, Country)
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To: skeeter

“When Americans discover that they can vote themselves money from the public till, the experiment will be over.” - Alexis de Tocqueville


53 posted on 03/06/2010 2:44:30 PM PST by Bryan24 (When in doubt, move to the right..........)
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To: American Dream 246
What does a Trillion Dollars look like?... Check it out here
54 posted on 03/06/2010 2:48:50 PM PST by Gritty (Governmentalization of health care cements in a permanent left-of-center political culture -Mk Steyn)
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To: skeeter
What comes after a socialist society, when it collapses under the weight of trying to be all things to everyone with someone else's money, and reality (their broke) hits them in the face?

Does a charasmatic leader emerge to unite the underclass in a revolt to 'take' what should be theirs from the 'haves'? This could be interesting in a country where so many are armed.

55 posted on 03/06/2010 3:04:48 PM PST by budwiesest (It's that girl from Alaska, again.)
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To: budwiesest

The only thing we know for certain is it will go in one of two directions. There will be no moderate outcome.


56 posted on 03/06/2010 3:07:26 PM PST by skeeter
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To: Jack Hydrazine
unfunded liabilities that have been Enronized over the years.

Enronized, that's a keeper. Al Gore's lockbox is named 'Enron'.

57 posted on 03/06/2010 3:14:49 PM PST by budwiesest (It's that girl from Alaska, again.)
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To: budwiesest

Every once in a while I’ll invent a word like that. We can get it into the lexicon if we spread the use of it so pass it on!


58 posted on 03/06/2010 3:32:52 PM PST by Jack Hydrazine
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To: skeeter
There will be no moderate outcome.

Kinda like the housing bubble pop, 'cause it's been 'real', real real. Pumping that kind of money to support government at all levels while expecting the private sector to 'fund' it is nuts and being done intentionally, imho.

HealthCareReform is nothing more than a way to pump Bozo Bucks into the system at such a rate that it collapses(or pops). When that happens, power will accrue to those 'in power' who've been readying themselves all along.

59 posted on 03/06/2010 3:55:23 PM PST by budwiesest (It's that girl from Alaska, again.)
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To: American Dream 246
"OoooKkkk...so should we change our very small savings in yen?"

I don't know if it should be yen, but everybody needs to be trying to determine safe haven currencies.

60 posted on 03/06/2010 4:10:16 PM PST by Truth29
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