QUOTE: And please read this.....
PITTSBURGH (MarketWatch) — The federal debt crossed
the $16 trillion mark this week. What’s more remarkable
than the number of zeros in that figure is that
Washington somehow didn’t see this coming. The
Congressional Budget Office is responsible for
predicting the budgetary effects of policy changes.
Politicians cite CBO figures when telling us what to
expect in the future. But it turns out that CBO
forecasts, taken out of a very limited context, aren’t
very accurate.
Every January, CBO forecasts the U.S. economy for
each of the subsequent 10 years. Since 1997,
the agency has underestimated the yearly debt in 85
out of 110 tries.. Almost 80% of the time, the CBO
produces (and politicians parrot) a ridiculously
optimistic picture of the future.
James R. Harrigan
Ten years ago, the CBO predicted that we’d
be $7.6 trillion in debt by now. At $16 trillion,
the reality is more than twice as bad.
Unfortunately, that’s par for the course. Since 1997,
the agency’s forecasts of the debt five or more years
into the future have been 40% too low on average — even
ignoring the 2008-2009 recession.
Currently, the CBO estimates that the federal debt
will hit $25 trillion by 2021. But if that forecast is
also off by 40%, we’ll actually be facing a federal debt
of $35 trillion by then.
What will our country look like with a $35
trillion debt? The CBO has a good track record of
predicting gross domestic product, and it predicts
2021’s economy will exceed $24 trillion. That will
put our debt at almost 150% of GDP, or about where
Greece is today.
Today the federal government pays a paltry 2.6%
interest on its debt. Even if the Federal Reserve can
hold rates that low for the next nine years, the U.S.
will pay almost $1 trillion in interest in 2021. That’s
more than the government currently spends on the
national defense budget, more than it spends on Social
Security, and more than the cost of the entire Iraq War.
If interest rates return to earlier levels (say,
2003’s 4.7%), 2021’s interest expense will top $1.6
trillion. The CBO predicts that tax revenue in 2021 will
be $4.7 trillion. Ignore for the moment that the agency
routinely overestimates tax revenue (nine years ago,
they projected that 2012’s revenue would be $3.5
trillion; it was actually $2.3 trillion). A
$1.6 trillion interest expense will devour over a
third of federal tax revenues.
Antony Davies
This financial house of cards was decades
in the making, and it will take years to correct
DOES
ANYBODY......BELIEVE.....ANY....ANY ....ANY OF THE
NUMBERS BEING FORECAST!!!!???????
DOES ANYBODY BELIEVE THIS IS ABLE TO
BE CORRECTED?????? If so....please
tell me what YOU ARE DRINKING........ and then
pass it around!!!!
Tick....Tock....... POOF!!
YFIC
Randy
BRING IT ON LORD....I JUST WANT TO GO
HOME.....
THIS IS MADNESS.....MADNESS I
SAY......... (calm down
randy.....) :)
PS: I've been WATCHING financial numbers (I'm
in the business) for well over 25 years....
Let's go back to October 1987. What
were the NUMBERS THEN????
Is the US Deficit lower?
Is the US Annual budget in balance?
Has the US Trade Deficit gotten better?
Has ANY FINANICIAL NUMBER GOTTEN BETTER?????
Answer to all is:
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO !! Tick
Tock.....POOF!!
AMAZING!!
And in 1987....the stock market was DOWN.....IN ONE
DAY....... 522 points....or 22%.
If that happened NOW, the drop would be about: 2,922 points down in one day !!
POOF!! Hey, factor in the Rapture.....and
do you think that is possible? I sure do!
(Calm down there puppy!!)
BTW......breathe...... the ONLY thing SAVING
the US from a TOTAL MELTDOWN NOW IS WHAT? (Think
about this......)
It's the fact that INTEREST RATES are at 150 year
LOWS.....just think IF interest rates were double, or
triple what they are now.
WE WOULD BE GREECE RIGHT NOW.....and game would be
over.
I thank God that HE has a better plan.....a plan that
pretty much NO ONE besides US (the watchers) is
anticipating.
Let's hope it's SOON....it makes SO MUCH SENSE for
the Rapture to be SOON......to be THIS Rosh Hashanah
2012.....
Especially 4 years TO THE DAY (Rosh Hashanah) of the
WARNING given to us, through THE NUMBERS....of the DOW
DROP ON Rosh Hashanah 2012!!!)