Hate to say we told you so, but we did. Economy is in trouble says CBO
"WASHINGTON (AP) — A new report says that the national debt is on pace to equal the annual size of the economy within a decade, levels that could provoke a European-style debt crisis unless policymakers in Washington can slam the brakes on spiraling deficits."
CBO says the nation’s rapidly growing debt burden increases the probability of a fiscal crisis in which investors lose faith in U.S. bonds and force policymakers to make drastic spending cuts or tax hikes."
But the spending continues. According to most Progressives we are not only not broke but on the road to recovery. Really?
The scariest part about the CBO report warns of a sudden fiscal crisis where investors give up on the Us Governments ability to get our fiscal house in order. If this occurs a fiscal panic may well force investors to sell their US Bonds forcing interest rates to rise exponentially. CBO warns, "Washington policymakers would have to win back the confidence of the markets by imposing spending cuts and tax increases far more severe than if they were to take action now."
“Earlier action would permit smaller or more gradual changes and would give people more time to adjust to them, but it would require more sacrifices sooner from current older workers and retirees for the benefit of younger workers and future generations,” CBO Director Douglas Elmendorf said in a blog post.
Whenever one of us talks about soon to come austerity measures that have to be implemented the entitlement class screams about their program being cut. Look at the Medicare/Mediscare debate and Paul Ryan's plan to leave it alone for those receiving it or about to receive it. The Left has lost their freaking minds over this and yet our debt is going to force us to cut back on our standard of living soon any way.
What is the Administrations plan? Cut $1 Trillion dollars over 10 years. We are looking at a $1.5 Trillion dollar deficit each and every YEAR and Biden's plan would cut $1 Trillion form a $15 Trillion dollar projected deficit.
So are they serious? Not even close. Let me clue you in folks. Foreign investors i.e China already has lost faith in our ability to control our debt. They are not buying our debt. Ben Bernanke monetized our debt to the tune of $300+ Billion in Securities that China refused to purchase. They are facing their own inflation fears and their bond market bubble is about to burst.
We are facing an economic collapse that will change the way America looks today. Some think that is a good thing. I don't. I think there are Economic forces involved that want us to look Globally and move us into a One World Governance. We can keep turning a blind eye to the problems or we can face the music now. It's a matter of crashing. How hard and where is the real question.