Posted on 01/27/2011 10:24:19 AM PST by Innovative
The top numbers cruncher for Congress warned Thursday that the federal government increasingly risks sending the country into a "fiscal crisis," projecting that unless cuts are made, within a decade the national debt could reach nearly 100 percent of all annual economic activity.
That's like having $50,000 in debt on a $50,000-a-year salary.
He said cumulative deficits over the next 10 years could run anywhere from $7 trillion to $12 trillion.
He warned that making budget cuts too deep, too fast could be "disruptive" to the economic recovery at a fragile time.
(Excerpt) Read more at foxnews.com ...
Wow. Nothing gets by the finely honed intellects over there at the CBO.
Regarding the CBO, to quote a line from a current movie: They aren’t “the sharpest knife in, ah, the place, ah, where, ah you put the knives.”
I have not taken the CBO seriously for quite a while.
So...
We are F*&^ed if we do and F*&^ed if we don’t?
Thats just F*&^ing great. Everyone have their torches and pitchforks handy? And tar and feathers?
The CBO is only as serious as the numbers they are given.
Obama gives them fictional numbers, and then proclaims their results as reality.
“That’s like having $50,000 in debt on a $50,000-a-year salary”.
That’s a wrong statement, and leaves the impression that it’s not that bad.
This is the federal government’s debt we’re talking about, and the author is comparing it to the economic activity of the entire nation. The Government’s “income” is currently about 2.3-2.4 trillion, and if its debt becomes equal to 100% of GDP, that debt is 14 to 15 trillion.
So it’s more like having a $350,000 debt on a $50,000 income.
“He warned that making budget cuts too deep, too fast could be “disruptive” to the economic recovery at a fragile time.”
So let me get this straight, if I am constantly running up more debt and borrowing money. Then all of a sudden I stop doing that, start paying it down, and make budget cuts. It will be disruptive?
How is this disruptive!?!?
What’s the problem here?
Things are going exactly the way Obama’s marching orders say they should, destroying the United States economically is job # 1.
Soros is probably going to give the traitor a hefty bonus for what he said Tuesday night.
Soros and Obama both know Americans as a whole are way beyond Forest Gump STUPID.
That’s NOTHING like having $50k in debt on a $50k salary.
Here’s a more apt analogy.
It’s like working for a company that makes $1,000,000 a year, earning $282,000 a year, and having *$1,000,000* in debt.
See?
The government’s income is NOT GDP. The government’s income is the percent of GDP it taxes.
(According to the Heritage Foundation, U.S. taxes are 28.2% of GDP.)
>>The CBO is only as serious as the numbers they are given.
Obama gives them fictional numbers, and then proclaims their results as reality.<<
I agree. I think that was demonstrated when BS numbers allowed the CBO, with a straight face, to tell the congress that ObamaCare would save something around $150 billion, allowing Rino’s, etc., to vote for it.
“He warned that making budget cuts too deep, too fast could be “disruptive” to the economic recovery at a fragile time.”
OK...I’ll buy that. Let’s spread ‘em out, then. Say, over the next two weeks?
Darn. You beat me to #10.
If you type slower than me you should hire a secretary.
If you think slower than me... well I can’t help you there.
Naw - I got distracted by people coming in my office mid-post. Does that count?
;-)
That’s a notch above “my dog ate my homework”
Our highways and bridges are falling apart and we are out of money.
What to do?
High Speed Trains!
And having to pay $50,000 a year in interest payments alone.
It’s much worse than the analogy of a person with an income of $50,000 spending $100,000. While it’s good to look at GDP when assessing the accumulated National Debt, the annual deficit should not be compared to the GDP. The GDP measures total economic output, but much of that output is not taxed. The critical comparator for me is the size of the deficit compared with the overall budget. In Obama’s case, he’s borrowing 40 cents for every $1 which is spent. He’s putting it on the national credit card and demanding Congress increase the limit every year. The Congress doesn’t have the guts to cut him off, but eventually foreign lenders will. That is when the crisis will occur.
It would be disruptive to the democrat voters who get their checks from the government.
I think what Washington is most scared of is actual cuts in welfare. When the checks stop, the fun begins. No one in power has cut bennies to anyone. They only heap more and more on the backs of the productive Americans to give more and more to the ones who refuse to work.
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