CBO Forecast

 

CBO Forecasts an Economic Nightmare for All Americans

Been trying to tell ya...

"Months behind schedule and as many Americans look forward to the holiday weekend, the Congressional Budget Office released its new federal budgetary and economic projections.

The new CBO numbers portend of a future of bloated government, crushing federal debts, and mounting burdens forced onto American families.

The dramatic differences between this update and the CBO’s last report 10 months ago highlight the economic issues that have visited every American household. For example, the CBO is expecting the economy this year to be $4,700 smaller per household."

(Discerning minds wanna know, why was it months behind schedule? "expecting the economy this year to be $4,700 smaller per household., thats just the start. )

"That gap widens to more than $13,300 in lost personal purchasing power per household through 2031."

(Thats assuming everything stays the same and no other crisis happen, so the reality is very much likely to be worse.)

"Worse, the CBO is now expecting price levels will be another 5.5% higher through 2031 than their estimate just 10 months ago."

(Why was the report delayed?)

"With spikes in interest rates now promised by the Federal Reserve, the CBO is expecting 10-year federal interest costs to increase 49% to $8.1 trillion—equivalent to more than $63,000 per household through 2032.

Perhaps more hauntingly, in 2029 the federal government will spend more on servicing debt than on national defense. By 2032, the federal government will annually spend about $200 billion more on interest than on national defense.

Federal net interest costs then will alone be larger than the economies of all but about 20 countries today."

(We can not raise interest rates like we need to be able to to help tame inflation (interest rates alone are not gonna cure scarcity issues) without defaulting on the interest payment on the debt.)

The author of the article is Richard Stern a senior policy analyst for budget policy at The Heritage Foundation. I have never been a big fan of this organization although I do like reading some of their material. I think the bias in the article is pretty unmistakable, yet there is truth that people need to know as well.

Everybody's acting like we got all the time in the world to fix everything.

Opps.