How do you spell "unsustainable"?
O-b-a-m-a:
President Obama’s fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation’s economic output by 2020, the Congressional Budget Office reported Thursday.
In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president’s budget would generate a combined $9.75 trillion in deficits over the next decade.
“An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference,” said Brian Riedl, a budget analyst at the conservative Heritage Foundation. “That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying.”
The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it’s headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO’s deficit estimates.
In other news, watch Claire McCaskill explain how this “Demon Bill” will only get “stronger and stronger” as time goes on. I have to assume she simply misspoke and that “stronger” actually means “shittier”. I guess we can let ‘ol Claire off the hook for this one.
(Note to RCP…open up the embeds assholes!)
Via Mises DailyWhy do I have a feeling that we’ll reach the 100% tipping point much sooner than the CBO expects?
Because the CBO is almost always wrong, or at least they are almost always “off” by a couple trillion here and there.
This obviously isn’t just an American thing either. Here’s how Reason Fellow Marius Gustavson describes it:
Strauss-Khan has been a leading advocate for massive fiscal stimulus, launching this idea at the World Economic Forum two years ago. However, recent developments have clearly demonstrated that, to quote Niall Ferguson, “there is no such thing as a Keynesian free lunch.” In his view, the effects of the stimulus have been much more moderate than expected, and “explosions of public debt incur bills that fall due much sooner than we expect.”
In other words, the day of reckoning is already upon us, at least for the PIGS, and it is moving closer by the day for the United States and the United Kingdom.
Read the whole thing for an explanation of how and why we are where we are.
Hint: It ain’t because we spend too little.
Grab yer gators folks!
Russ
Russ
HotAir, for whatever reason increasingly behind the news cycle, gets involved:
Don’t expect that debt to come cheap, either. We’re already seeing signs that our interest rates will have to go up in order to sell more paper, which will cause the deficit projections here to actually fall short of reality. We could be looking at a collapse scenario where we can’t borrow enough to keep up with our interest payments by the time this decade concludes.
“Collapse scenario”. That’s good.
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