CBO: Debt Headed to 103% of GDP; Level Seen Only in WWII; 'No Way to Predict Whether or When' Fiscal

cns news ^ | 7/10/15

[Nachum]

(CNSNews.com) - Testifying in the U.S Senate yesterday, Congressional Budget Office Director Keith Hall warned that the publicly held debt of the U.S. government, when measured as a percentage of Gross Domestic Product, is headed toward a level the United States has seen only once in its history—at the end of World War II.

To simply keep the debt at the high historical level where it currently sits—74 percent of GDP--would require either significant increases in federal tax revenue or decreases in non-interest federal spending (or a combination of the two).

Historically, U.S. government debt as a percentage of GDP hit its peak in 1945 and 1946, when it was 104 percent and 106 percent of GDP respectively.

[Nachum]

CBO: Debt Headed to 103% of GDP; Level Seen Only in WWII; 'No Way to Predict Whether or When' Fiscal Crisis Might Occur Here

[Nachum]

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[napscoordinator]

So we need to do what we did to fix it like we did during WW II.....I am actually glad we have had this situation before.

[Cold Heat]

Well.....

Dec 31, 1943 2.07 trillion GDP

Mar 31, 2015 16.30 trillion

Considering that we did not have much in the way of unfunded liabilities in 1943, I don’t think the real problem is debt as a percentage of GDP. I think it’s the total dollar amount of debt+general liabilities now hidden in our bloated budget.

Estimated to be in the neighborhood of 144 trillion+ the debt.

[Paladin2]

Time to string up Boner and Ditch until they do their freakin’ jobs.

[MV=PY]

"This Time Is Different: Eight Centuries of Financial Folly"

[MUDDOG]

By 2039, CBO projects, the debt will increase to 101 percent of GDP and by 2040 to 103 percent GDP.

No problem. The third-world majority in the US can then cancel Social Security and Medicare for the old white people, and turn them over to the death panels.

[onyx]

BTTT

[kabar]

The entitlement programs drive the debt. In 1950 there were 16 workers for every retiree. Today there are three and by 2030 there will be two. We didn't have Medicare and Medicaid after WWII. They came after 1965. We cannot do the same things we did after WWII, when we were the only major economic power that was still intact.

We are screwed.

[Cold Heat]

Why waste the rope...

[Cold Heat]

We are screwed.

Totally!

[kabar]

By 2039, CBO projects, the debt will increase to 101 percent of GDP and by 2040 to 103 percent GDP.

This is the publicly held debt. We are already over 100% if you count "Intragovernmental Holdings," which include the unfunded liabilities of SS and Medicare. We have to borrow money now to pay full benefits for these programs.

[MUDDOG]

So we can’t wait until 2039 to implement the final solution.

[Sequoyah101]

Yup. We are screwed. No “if this keeps up or nothin.

We are well and truly screwed.

[Cold Heat]

History says that the final solution is a global conflict that tends to erase debt and reboot the system as the strong survivors reset the global power structure and pecking order.

In short, a lot of people have to die.

No guarantee we would survive it as a intact country, but many will manage and many will not.

[napscoordinator]

That is depressing. How could there be so many workers in 1950 when most woman didn't work and our population was much smaller? I never understood that. I do know that people had more children, but they are saying the Millennial are even larger then the Baby Boomers. Is it really that dreary?

[MUDDOG]

That’s hard to predict.

What’s easy to predict is that the US will have a majority third-world population before too long.

[nascarnation]

Detroit >> Puerto Rico >> Greece >> USA

just a matter of time

(Chicago in there someplace)

[nascarnation]

If you want to REALLY get depressed, read Dave Stockman’s book: The Great Deformation. All 768 pages.

Lays it all out in exquisite detail.

IOWF

[napscoordinator]

.....I don’t know.....I am already nervous enough especially financially. These are the times I wish I was 1 percent. lol.