A new congressional report released Friday says the United States’ long-term fiscal woes are even worse than predicted by President Barack Obama’s grim budget submission last month.
The nonpartisan Congressional Budget Office predicts that Obama’s budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That’s $1.2 trillion more than predicted by the administration.
The agency says its future-year predictions of tax revenues are more pessimistic than the administration’s. That’s because CBO projects slightly slower economic growth than the White House.
The deficit picture has turned alarmingly worse since the recession that started at the end of 2007, never dipping below 4 percent of the size of the economy over the next decade. Economists say that deficits of that size are unsustainable and could put upward pressure on interest rates, crowd out private investment in the economy and ultimately erode the nation’s standard of living.
So? HJe can always borrow more from the Chinese, and give them California as collateral.
The Chinese seem to have figured out that we have been running a giant ponzi scheme for the last 9 years. They are not buying anything other than fairly short term bonds these days. And California is already hocked from San Diego to San Francisco.
2, I don’t know about California. Maybe if we threw in egg rolls?
Two thoughts:
The power to tax is the power to destroy.
It’s only money, right?