Projected deficits "unsustainable"

[unixronin]

So saith the latest report from the Congressional Budget Office.

Comments

[ithildae.livejournal.com]

If you look closely at President Obama's projections, it includes a 25% growth in GDP over the next four years. I wonder how much of that increase is due to inflation.

[unixronin.livejournal.com]

There are rumors various places — here, for example (http://townhall.com/columnists/BenShapiro/2009/03/18/is_obama_designing_the_end_of_capitalism?page=full) — that Obama's game plan involves inflating the hell out of the currency. He apparently either doesn't realize or doesn't care that if he inflates the dollar too far, it's going to crash. There are already some pretty well-qualified economists saying that if we can't fix our economic problems pretty soon, there's a serious risk that we're going to lose the dollar. (I'm giving Obama credit, for now, for that not being actually part of his plan. But somewhere in the back of my mind I can't help but wonder. I don't trust him as far as I could throw him before being tackled by his security detail.)

[ithildae.livejournal.com]

With the recent Fed move to buy government securities, inflation seems inevitable.

[skellington.livejournal.com]

I recently heard a great quote:

The US Dollar is the worst currency in the world. Except for all of the others.

[writerspleasure.livejournal.com]

yet obama will forge on, charged with Hope!

[ilcylic.livejournal.com]

EFF YOU CEE! KAY EE DEE! AY GEE AY EYE ENN!

[lebo-superman.livejournal.com]

I've believed it was "unsustainable" ever since I first learned (about 4-5 years ago) that the predictions were for Social Security and Medicare alone to equal roughly 18-20% of the total DGP by 2040. Since our current total government spending currently equals roughly 18% DGP, that means we can't afford the 2040 government expenses without at least doubling the taxes collected from all wage-earning Americans. This may be one of the reasons Bush was pushing so hard for amnesty for illegal aliens - financially we need those additional 12 million payroll tax contributors.

[unixronin.livejournal.com]

On the other hand, the additional tax revenue from 12 million mostly minimum-wage or close-to-minimum-wage workers (at least to start with) is going to be insignificant, even assuming the net revenue isn't negative.

[lebo-superman.livejournal.com]

I accept that - nobody can accuse Washington of being far-sighted.