CBO Director: ‘Large and Growing Federal Debt’ Could Produce ‘Fiscal Crisis’

Cybercast News Service ^ | February 11, 2014 - 12:26 PM | Susan Jones

[Olog-hai]

On the same day House Speaker John Boehner said he would bring a “clean” debt ceiling bill to the House floor—and join Democrats in voting for a 13-month extension of the debt limit—the head of the Congressional Budget Office declared that the “large and growing federal debt” could eventually increase the risk of a “fiscal crisis.” […]

CBO estimates that federal debt held by the public will equal 74 percent of GDP at the end of this year and 79 percent in 2024 (the end of the current 10-year projection period). Such large and growing federal debt could have serious negative consequences, including restraining economic growth in the long term, giving policymakers less flexibility to respond to unexpected challenges, and eventually increasing the risk of a fiscal crisis (in which investors would demand high interest rates to buy the government’s debt). …

[tomkat]

CBO Director, hands-down winner of this week's  >  Astounding Grasp of the Obvious Award

[xzins]

IIRC, the interest on the debt will be greater than all tax receipts and other forms of government income combined by 2050.

[xzins]

Should have been more clear:

IIRC, the ANNUAL INTEREST PAYMENT on the debt will be greater than all ANNUAL tax receipts and other forms of government income combined by 2050.

It’s like my having more interest to pay each year than I have income.

[Cringing Negativism Network]

Wow already over 17.25 billion.

I just got used to typing 17 trillion.

Unbelievable.

[VRW Conspirator]

Who knew? We’re Greece, times 100. Party on.

And we are going to take Greece with us to the party, and Cypress, and Spain, and Ireland, and Italy, and...

[1010RD]

You’ll like this podcast:

http://www.econtalk.org/archives/2014/01/laurence_kotlik.html

The site is a treasure trove of knowledge.

[1010RD]

Your debt clock is not keeping good debt:

http://www.econtalk.org/archives/2014/01/laurence_kotlik.html

It’s short by about $200 trillion.

[andyk]

And they're not counting the private debt the government owes itself. So <whisper>the trust funds don't exist</whisper>.

[SunkenCiv]

The debt clock is right on the money. Lawrence Kotlik’s talk about 100s of trillions is full-on lunacy.

[1010RD]

Why do you say that? Those liabilities are real and they’ll be either refuted in some manner (perhaps by means testing SS) or inflated and paid. Unless... FedGov sells off its assets.

[teeman8r]

I owe my soul, to the company store.... And the souls of my children and grand children

Teeman

[Cringing Negativism Network]

Bring back AMERICAN JOBS.

Stop importing everything.

I’m series. Make things here, in America.