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mlyonsd
06-22-2011, 09:15 AM
Obama, Congress warned: National debt growing faster

The Congressional Budget Office reported Wednesday that the nation likely will owe outside creditors more than the size of the entire economy in 10 years.

The forecast -- a public debt equal to 101% of the economy in 2021, and rising to 187% by 2035 unless dramatic changes are made -- should be a warning to President Obama, Congress, and Vice President Biden's band of bipartisan negotiators meeting daily to devise just a short-term fix.

By comparison, last year's long-term budget outlook from CBO forecast a public debt equal to 87% of the economy by 2020. The difference -- 14% -- would be about $2 trillion based on today's economy, even more as it grows.

"The explosive path of federal debt ... underscores the need for large and rapid policy changes to put the nation on a sustainable fiscal course," the report says.

It goes on: "Large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment, which in turn would lower income growth in the United States."



The problem outlined in the report: Spending that far outpaces revenue as the years pass. Here's a simplified version:

Spending is projected to grow from 24% of the economy today to 26% in 2021 and 34% in 2035.
Revenue is proje3cted to grow from 15% today to 19% in 2021, where it would remain in 2035.
Annual deficits would be 7.5% of the economy in 2021, less than today's 9.3%. But each year's deficit adds to the national debt. By 2035, the deficit would be 15.5% of the economy, and the accumulated debt would be 187%.
Sen. Kent Conrad, chairman of the Senate Budget Committee, said the report should prompt negotiators seeking ways to raise the nation's debt limit to think big.

"CBO's new long-term budget outlook again highlights the urgency of reaching agreement on a bipartisan and comprehensive long-term deficit and debt reduction plan," he said. "We must address the projected explosion in federal debt. If we fail to act, it will have devastating consequences for our economy and for the future well-being of the American people."
http://content.usatoday.com/communities/theoval/post/2011/06/obama-congress-warned-national-debt-growing-faster/1

mlyonsd
06-22-2011, 09:16 AM
Runaway train.

orange
06-22-2011, 09:35 AM
Don't worry, Ron Paul has your solution in hand:

If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight, and the need for more taxes and even the income tax, itself.

ROYC75
06-22-2011, 09:59 AM
No worry, It's time for "Hope & Change ".

blaise
06-22-2011, 10:22 AM
Yes we can.

petegz28
06-22-2011, 10:23 AM
Yes we can.

but no, we won't!

Bwana
06-22-2011, 10:27 AM
but no, we won't!

It's not looking like it. :shake: These assholes on the hill, just don't get it.

Ace Gunner
06-22-2011, 10:35 AM
actually, I think it's the majority of americans that don't get it

Bwana
06-22-2011, 10:43 AM
actually, I think it's the majority of americans that don't get it

Yeah, that too. I think a lot of people think there is some kind of magic money tree with unlimited cash on it. When reality hits, it's going to hit like a train.

http://www.johnlund.com/uploaded_images/money_tree_full_sky-716987.jpg

Hydrae
06-22-2011, 11:05 AM
I know he goes on to say we need to curtail spending but I almost choked on my lunch when I read this line:

Sen. Kent Conrad, chairman of the Senate Budget Committee, said the report should prompt negotiators seeking ways to raise the nation's debt limit to think big.

Umm, raising the debt limit does not affect the percentage of the economy we are indebted for, it just makes it easier for Congress to spend more money.

Ace Gunner
06-22-2011, 11:06 AM
Yeah, that too. I think a lot of people think there is some kind of magic money tree with unlimited cash on it. When reality hits, it's going to hit like a train.

http://www.johnlund.com/uploaded_images/money_tree_full_sky-716987.jpg

wouldn't that be a condition only socialist country can fall prey to?

Ace Gunner
06-22-2011, 11:12 AM
I know he goes on to say we need to curtail spending but I almost choked on my lunch when I read this line:



Umm, raising the debt limit does not affect the percentage of the economy we are indebted for, it just makes it easier for Congress to spend more money.

putting two and two together, we get a country falling intentionally to it's demise while it's leaders escape with the goods. history proven this time and time again.

chris
06-22-2011, 11:15 AM
52% don't pay income taxes.

We are truly screwed until there is a flat tax for everyone.

If you are not happy with the money you make, change your life to make it happen. Quit demanding that the government and others to support your lifestyle.

Hydrae
06-22-2011, 11:36 AM
52% don't pay income taxes.

We are truly screwed until there is a flat tax for everyone.

If you are not happy with the money you make, change your life to make it happen. Quit demanding that the government and others to support your lifestyle.

52% do not all realize they do not pay income taxes. They see money come out every paycheck then they get a tax return. Very few of them pay attention to the fact that the return outweighs the amount they paid in. So, while this is a concern when the majority are earners and not payers in the tax department, the biggest concern (that they will want to keep their benefits with no reductions and pay no "more" in taxes) is not as bad as many want to say.

petegz28
06-22-2011, 01:25 PM
Crazy thought, but if there was more job creation there would be more tax revenue. Just sayin'....

mlyonsd
06-22-2011, 01:36 PM
Crazy thought, but if there was more job creation there would be more tax revenue. Just sayin'....

Yeah right.....
Fed dims outlook for jobs and growth for 2011

WASHINGTON — Federal Reserve officials are more pessimistic about prospects for economic growth and employment than they were two months ago.

In an updated forecast, the Fed estimated Wednesday that the economy will grow 2.7% to 2.9% this year. That's down from its April estimate of 3.1% to 3.3%. The downgraded revision is an acknowledgement that the economy has slowed, in part because consumers have been squeezed by higher gasoline prices.


http://www.usatoday.com/money/economy/2011-06-22-fed-meeting_n.htm

Mr. Kotter
06-22-2011, 07:35 PM
On a related side-note, Mark....what's your stance on ethanol and other farm "subsidies" and "incentives"--and corporate tax breaks, incentives, and out-right welfare....just wonderin'?

:hmmm:

Saul Good
06-22-2011, 07:42 PM
Crazy thought, but if there was more job creation there would be more tax revenue. Just sayin'....

More jobs mean that the evil rich owners are getting richer and eviler. What we need is a way to convince these evil rich owners to hire people even though it causes them to earn less.

Ugly Duck
06-22-2011, 07:43 PM
CBO - public debt to reach 101% of economy in 10 years

Unless we quit Iraq & Afhganistan & let the Bush tax cuts expire... better vote Dem, folks!

Brock
06-22-2011, 07:44 PM
Unless we quit Iraq & Afhganistan & let the Bush tax cuts expire... better vote Dem, folks!

Sorry, you guys shit the bed as usual.

Saul Good
06-22-2011, 07:47 PM
Unless we quit Iraq & Afhganistan & let the Bush tax cuts expire... better vote Dem, folks!

The same Dems that extended those tax cuts and started another war? Those Dems?

Under Obama, U.S. Casualty Rate in Afghanistan Increased 5-Fold
http://cnsnews.com/news/article/us-casualties-afghanistan-have-increased

Ugly Duck
06-22-2011, 07:48 PM
Sorry, you guys shit the bed as usual.

I think you missed it - I'm not a Republi. Ragged on the Bush admin throughout their stewardship of the economic catastrophe.

Brock
06-22-2011, 07:53 PM
I think you missed it - I'm not a Republi. Ragged on the Bush admin throughout their stewardship of the economic catastrophe.

There's no confusion about what you are. You, on the other hand, are very confused about the opportunities your party pissed away.

HonestChieffan
06-22-2011, 07:57 PM
Is this an issue of party?

Saul Good
06-22-2011, 07:59 PM
Is this an issue of party?

Only in terms of the order of magnitude. I'd rather my babysitter break my son's arm than break his neck, but neither case would be worth praising.

HonestChieffan
06-22-2011, 08:12 PM
Seems we are all in the same boat and the numbers say were are not long afloat. Minor changes and little snips here and there wont plug the hole. If we believe the answer is to fix the ethanol issue we are screwed with no hope. The blame game wont fit when we are looking out ten years. The fix starts now and will cause pain for all, every level, every group, and it will take time. Bush is not the issue, we are the issue.

Saul Good
06-22-2011, 08:14 PM
Seems we are all in the same boat and the numbers say were are not long afloat. Minor changes and little snips here and there wont plug the hole. If we believe the answer is to fix the ethanol issue we are screwed with no hope. The blame game wont fit when we are looking out ten years. The fix starts now and will cause pain for all, every level, every group, and it will take time. Bush is not the issue, we are the issue.

Ethanol won't fix everything, but it's a start. Everything is a start. Slash everything by 10% immediately and 5% a year for 2 years after that. Eliminate the bullshit like ethanol subsidies.

Ugly Duck
06-22-2011, 08:17 PM
You, on the other hand, are very confused

That I must admit. It almost sounds like you are saying that it wasn't the Republis who shit the bed.... but that don't make no sense. The Republis brought the country to the brink of a Great Depression before Obama took over. He kept us from falling off the cliff, but the recovery is slower than anyone would like. That was a whole lotta shit the Republis served up - small wonder its still stanky. Even so... folks would have to be awfully gullible to buy the proposition that this is Obama's doing. Maybe google the news reports before Obama got in to refresh your memory about whos' poo it is....

The Mad Crapper
06-22-2011, 08:17 PM
Oh! You guys!

B.O. can redefine reality, HE'S THAT GOOD!

HonestChieffan
06-22-2011, 08:21 PM
Ethanol won't fix everything, but it's a start. Everything is a start. Slash everything by 10% immediately and 5% a year for 2 years after that. Eliminate the bullshit like ethanol subsidies.

I agree. But the fallout will be amazing. Beef up police. SHTF time in the cities led by flamethrowers. Maybe that is where we are headed regardless. If you are not prepared, good luck to ya.

HonestChieffan
06-22-2011, 08:25 PM
That I must admit. It almost sounds like you are saying that it wasn't the Republis who shit the bed.... but that don't make no sense. The Republis brought the country to the brink of a Great Depression before Obama took over. He kept us from falling off the cliff, but the recovery is slower than anyone would like. That was a whole lotta shit the Republis served up - small wonder its still stanky. Even so... folks would have to be awfully gullible to buy the proposition that this is Obama's doing. Maybe google the news reports before Obama got in to refresh your memory about whos' poo it is....

A new report from the Congressional Budget Office (CBO) finds that President Obama’s economic stimulus program helped nearly double U.S. debt.

The 2011 Long-Term Budget Outlook, released Wednesday morning, reports that the “the combination of automatic budgetary responses” and Obama’s stimulus “had a profound impact on the federal budget.” According to CBO projections, before Obama’s stimulus became law, federal debt equaled 36 percent of GDP and was projected to decline slightly over the next few years. Instead, thanks in large part to the stimulus, debt reached 62 percent of GDP by 2010.

http://washingtonexaminer.com/blogs/beltway-confidential/2011/06/cbo-stimulus-almost-doubled-us-debt?utm_source=feedburner+BeltwayConfidential&utm_medium=feed+Beltway+Confidential&utm_campaign=Feed%3A+BeltwayConfidential+%28Beltway+Confidential%29feed&utm_content=feed&utm_term=feed


(CNS News) — The federal government ran a deficit of $929 billion in just the first 8 months of fiscal 2011, which began on Oct. 1, 2010, according to the Congressional Budget Office’s monthly budget review for June.

“CBO estimates that the government recorded a deficit of $929 billion for the first eight months of the fiscaly year,” said CBO.

Last year, the government ran a deficit of $935 billion in the first 8 months of the year, according to CBO.

The $929 billion deficit the government ran up in the first 8 months of fiscal year 2011 puts the government on track to hit an annual budget deficit of approximately $1.4 trillion for the fiscal year, which is what the CBO projected this year’s deficit would be in its most recent analysis of President Obama’s budget proposal published April 15

http://www.cnsnews.com/news/article/cbo-gov-t-ran-929-deficit-first-8-months

The Mad Crapper
06-22-2011, 08:28 PM
We're not going to be around in ten years.

FD
06-22-2011, 08:43 PM
Seems like a good thread for this graph:

http://abporter.files.wordpress.com/2011/05/tax-cuts-debt.jpg

Bewbies
06-22-2011, 08:47 PM
The obvious solution to this problem is higher taxes. Spending levels are actually lower than they need to be.

chris
06-22-2011, 09:47 PM
Reading the "head in the sand" and "its the other party's fault" comments makes me want to move to Australia.

Pathetic

Simplex3
06-22-2011, 10:09 PM
Seems like a good thread for this graph:

http://abporter.files.wordpress.com/2011/05/tax-cuts-debt.jpg

Thanks. Keep blaming the last guy. How about the current guy, oh, I don't know, change some of that shit.

ClevelandBronco
06-22-2011, 10:59 PM
Seems like a good thread for this graph:

http://abporter.files.wordpress.com/2011/05/tax-cuts-debt.jpg

You actually believe the numbers in that chart, don't you? Go ahead. You can admit it.

Backwards Masking
06-22-2011, 11:35 PM
We're all so f*cked.

I remember five, six years ago back when I still thought presidential elections were real and the democrats could save us or at least sort of help us and I had faith humanity would do the right thing for itself. Boy was I stupid.

The only way we, as a race (not a party or a nation, cause now practically every country in the world works for the Fed and the Banks global pyramid sceme) get out of this is to end the monetary system, end money, end possessions, land owning and declare the world's natural resouces as public domain. I know it's not going to happen, and I know I sound like a dirty communist hippie. But in ten years working 50 hours ain't gonna pay the bills. For some it doesn't now. We'll have to compete with each other by upping it to 55, than 60, than 70... Sure, the people who want to make money will and the people who work harder than everyone else will walk away better than most (personally those people may be self righteous but they're miserable and have nothing to offer but the cash they're proud of not sharing), but is this what what people WANT to do with their lives? Work 70 hours a week? Is that living? Is that what God or the Universe or nature or whatever meant for us to do? Work our asses off to pay off interest on a national "debt" that ony exists as numbers in computer bank accounts? Is that something to be proud of? I guess I have to spend my lifetime doing something. Never thought as a small child, full of hopes and dreams and creativity it would be this though...

And no, I don't have any ideas, any solutions to help save myself or my fellow man. And I can't just drop out either.

FD
06-22-2011, 11:36 PM
You actually believe the numbers in that chart, don't you? Go ahead. You can admit it.

Which ones are incorrect, and why?

Bewbies
06-22-2011, 11:43 PM
Which ones are incorrect, and why?

How in the fuck are "economic downturn" or "Bush tax cuts" included in the debt?

mlyonsd
06-23-2011, 07:01 AM
That I must admit. It almost sounds like you are saying that it wasn't the Republis who shit the bed.... but that don't make no sense. The Republis brought the country to the brink of a Great Depression before Obama took over. He kept us from falling off the cliff, but the recovery is slower than anyone would like. That was a whole lotta shit the Republis served up - small wonder its still stanky. Even so... folks would have to be awfully gullible to buy the proposition that this is Obama's doing. Maybe google the news reports before Obama got in to refresh your memory about whos' poo it is....

The best thing that can be said about this post is you are now in the minority. This idiotic thinking will not be what drives voters to the polls in 2012.

Saul Good
06-23-2011, 07:32 AM
The economy was going great prior to the Democrat takeover of Congress.

The Dems can blame Bush all they want for the tax cuts and the wars, but they started another war, continued the existing wars, and extended the tax cuts.

If my wife is spanking my son when I get home from work, I can't push her away, beat him to death, and then blame my wife because she started it.

Saul Good
06-23-2011, 07:32 AM
The economy was going great prior to the Democrat takeover of Congress.

The Dems can blame Bush all they want for the tax cuts and the wars, but they started another war, continued the existing wars, and extended the tax cuts.

If my wife is spanking my son when I get home from work, I can't push her away, beat him to death, and then blame my wife because she started it.

Saul Good
06-23-2011, 07:35 AM
Which ones are incorrect, and why?

Tax cuts aren't spending. If I take a $30,000 pay cut and then buy a new $30,000 car, my car note is my debt, not my pay cut.

ChiTown
06-23-2011, 07:51 AM
nevermind

The Mad Crapper
06-23-2011, 07:53 AM
Isn't the national debt already at about 14.5 trillion?

And isn't the current GDP about 14.7 trillion?

So the debt is already over 98% of GDP.

Right?

It's not gonna take another ten years to grow 3%. LMAO

Sheeeit, B.O. will have that knocked out by lunchtime.

Saul Good
06-23-2011, 07:58 AM
Isn't the national debt already at about 14.5 trillion?

And isn't the current GDP about 14.7 trillion?

So the debt is already over 98% of GDP.

Right?

It's not gonna take another ten years to grow 3%. LMAO

Sheeeit, B.O. will have that knocked out by lunchtime.

Your avatar is fantastic.

The Mad Crapper
06-23-2011, 08:01 AM
Your avatar is fantastic.

LMAO