'Unsustainable in the Long Run'

From a recent presentation to the International Monetary Fund Fiscal Forum, entitled "U.S. Fiscal Policy After the Financial Crisis and Recession," by Douglas Elmendorf, Director of the Congressional Budget Office:

The Medium-Term U.S. Fiscal Picture

Given current law and certain changes to that law that are broadly supported by the Administration and Congress, the budget deficit and debt are on a worrisome path—unsustainable in the long run and posing growing risks even during the next several years.

Click here to see the rest.

Comments

[roger]

The velocity of the dialectic,IE: the incredible speed of change.tells
me that the" long run" is over. The deficit is but one component of
the whole aggregate called the economy.Competition for Strategic
resources is intensifying,,more important by far is the deficit in oil.
Natures bank reserves is approaching the zero reserve.,intensifying
all these problems is the unstoppable population growth..The wonderful
feeling of unity and purpose experienced in the 50's is gone for ever.
To day we have anarchy,rebellion and corruption on a grand scale.
ingredients not conducive to positive changes. If the economy does
not improve, great social turmoil is bound to take place and it will
make the deficit look like the good old days. The long run is over,
the birth of the new baby is happening NOW.
l

[Sam]

The CBO knows the real story, but they must please their corporate masters, so they try to soft pedal the disaster--so funny if it wasn't so evil and wrong!

As bad as the projections look (not to mention the present) they are based on wildly optimistic asumptions, such as (from now to 2020):

1) average unemployment 5%

2) average annual real GDP growth 3.5%

3) no recessionary periods in that time frame

4) mild inflation, with no energy price shocks

When you add to that the fact that this little presentation does not even address the "off balance sheet" items such as the unfunded Ponzi-scheme Social Security and Medicade programs, then one realizes the magnitude of the deception. The total present value of all of these unfunded mandates is in the 50 trillion range, and much of that will come due in the time frame addressed by the report.

If anybody believes that the assumptions upon which this report are predicated, I can only wish you the best of luck in your special little world...

[Tiffiniy Cheng]

WE are propping up big banks through subsidies, handouts, discount window. The current bill does not sufficiently address too big to fail. Kaufman-Brown introduced the SAFE Banking Act to make sure big banks are not what we keep propping up in this country.

Banskter has a petition for you to sign to end too big to fail, make Dodd's bill better:

http://salsa.democracyinaction.org/o/632/p/dia/action/public/?action_KEY=3038%20BANKSTERUSA.ORG

[alex west]

typical piece of MISINFORMATION by person who cant find ##ick in ones pants.. ( Douglas Elmendorf of course)

WHAT 90% OF DEBT/ GDP in 2020.. ???? what is the point in omitting 'Intragovernmental Holdings' ?

go to http://www.treasurydirect.gov/NP/BPDLogin?application=np
debt is already 13 trln... its already 100%.. NOW...

#2
what is point of comparing GDP and debt.. it doesn't make does it?
one should have compared in terms revenues/expenditures.. its FREAKING scary...
in 2010 US gov will spend 3.5.- 3.7 trln.. and revenues, in best case, are going to be around 2 trln..

if one make 100,000 $ and spend 200,0000 it is 100 % deficit..

alex west

ps
and even dont get me started about Fanny/Fredd... its $ 5 trln debt on goverment books more..