Posted on 04/14/2014 12:56:30 PM PDT by Jim Robinson
New figures by the Congressional Budget Office released on Monday reveal that over the next 10 years the U.S. debt-to-GDP ratio will double to 78%.
Over the last four decades America's average debt-to-GDP ratio was 39%. At the end of 2007, federal debt was just 35% of GDP.
The CBO report says gross federal debt will soar from $17.7 trillion to $27 trillion over the next ten years. CBO warned of the dire consequences the nation's debt will have if gone unchecked.
"Such high and rising debt would have serious negative consequences," says the report. "Federal spending on interest payments would increase considerably when interest rates rose to more typical levels. Moreover, because federal borrowing would eventually raise...
(Excerpt) Read more at breitbart.com ...
“”Finally, high debt increases the risk of a fiscal crisis in which investors would lose so much confidence in the government’s ability to manage its budge that the government would be unable to borrow at affordable rates.”
Too bad this is not true, since the Fed will buy Treasury bonds at whatever puny interest rate Obama orders them to buy at.
On the other hand, CBO fails to mention that the real problem will be hyperinflation, destroying all savings (one of obama’s real intents in collapsing our monetary system) as well as impoverishing all of we peasants since basics like food and gasoline prices will necessarily skyrocket. Fortunately, though, none of Obama’s elite, super-rich backers will suffer.
Exactly. This is the danger that a Constitutional Convention poses to the republic.
They don’t count the treasuries being held by social security to pay future retirees. Those future retirees are legally owed nothing anyway.
It is not as if amendments to the Constitution are not needed. They are. Here's a list of the most critical needs off the top of my head.
The Constitution has already been re-written by liberal judges for the last 100 years. If done correctly, we can restore the “written” constitution.
Here’s the way:
http://conventionofstates.com/the-strategy/
“Paul Ryan was quoted as saying, “My 10 year plan balances the budget by 2040.”
You are trying to make Ryan look stupid which he is not.
If you implement his 10 year plan of graduated changes and make no more changes after 10 years, then by 2040, the budget balances.
If you put 1000 dollar a year into an IRA invest at 8 percent return, then after 10 years you have about 15000 in your IRA after ten years (ten year plan) and then you let it grow with interest only for 20 more years (2044) you will have 60,000 dollars.
The Ryan plan is that after 10 years of gradual reform, growth in the economy will balance the budget by 2040.
I'm supposed to applaud a plan that doesn't balance the budget until my grandson is 30 years old?
"10 years of gradual reform"? Ryan may not be stupid, but we are if we think that "gradual reform" is going to save this country.
Using your math and optimistic projections, what does the federal debt equal at 2040: $75 Trillion? At 5% interest, the service on that debt is nearly $4 Trillion.
I can just imagine what my grandson would say, and it sure as heck won't be, "Thanks Opa!"
Profoundly true. The Fed simply can’t allow rates to rise; with debt approaching $20 trillion the increase in debt service costs (even a small rise) would be disastrous. It appears that we will be in an artifically managed and permantently low interest rate environment for a very long time.
Let's fly around some more and eat moor Waygu.
“When this number broke 200% that’s when Greece blew up. And Spain is blowing without even that much imbalance”
The REALITY is they WANT us to blow up because OBAMA has made it his goal to bring down AMERICA in EVERY POSSIBLE RESPECT.
If its bad for America, Obama is for it.
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