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!!!)