The CBO Issues Most Dire Warning On US Budget Yet, Warns US Debt Will "Swiftly Be Pushed To Unsustainable Levels"

Tyler Durden's picture

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mtomato2's picture

I don't exactly know what you're saying, here, but I don't think I like it.  Junk.

perchprism's picture

I had the pleasure of junking him out of existence with junk #20.

Votewithabullet's picture

...great, and anyone who shows up at 19:08 has no idea what you pussies are crying aboot.(canadian)

TuesdayBen's picture

Actually, it was 21:57 for me!~

Clayton Bigsby's picture

Timmay?  Bernokio?  Is That You?

Paladin en passant's picture

Looks like a psychotic break to me...

Put some haloperidol on that and it'll be better in the morning.

Sudden Debt's picture

Every empire lasts about a hundred years. For America that sums it all up.

First Europe, then America and now the fire of glory will go to Asia.

But it's not like it's over. Even in Europe, there are more millionaires on average then there are in America. So it's doesn't mean it will all be bad.

If you're rich, you'll probably be rich still.

And if you're poor... you'll still be fucked

:)

zevulon's picture

amen. except by asian you mean china. not india.

Sudden Debt's picture

The world need poor people, and it needs rich people. Communists tried to fix that one but we all know how that turned out :)

Why the insults? There's no need for it.

The poor, the less fortunate: They all should take the bull by the horns and do something about their situation.

Oké, some lack the brains, but even the biggest retard can become president!

99% of the poor people are poor because they are more concerned about being poor then to do something about it.

 

Ragnarok's picture

Amen, i know some dumb as shit back water east Louisiana trash that work on the rigs and can clear over a 100K a year.  Why? Because they got off their asses worked 12h days and learned a useful skill.

New_Meat's picture

Not to worry, they have been found out and the drilling ban will take care of that mistake in the world's most perfect system.

- Ned

ColonelCooper's picture

"99% of the poor people are poor because they are more concerned about being poor then to do something about it"

Maybe in America, or another "free" country, but to say all poor people have the choice to be otherwise is asinine.

TuesdayBen's picture

ANY fricking idiot not afraid to bang on doors can become a Realtor at 18 and drive a Mercedes.

mtomato2's picture

What in the hell is wrong with this troll?  Where did he come from?

Takingbets's picture

I think he's one of those buy and hold investors. They come out swinging when they see red.

You know, just like a Bull. :-)

Mercury's picture

America isn't an empire by any stretch of the imagination even if everyone says so. Look at what past empires actually did - governors, taxes, tribute  - what do you suppose our return on investment in Iraq is so far?  And every empire does not last "about 100 years" either.

in Europe, there are more millionaires on average then there are in America.

Where do you get this crap?

Suisse's picture

Take a look at how many military bases the U.S. has overseas. Of course it's an empire, it's just not so direct. Who needs to levy taxes when you require access to their markets?

New_Meat's picture

Military bases?  As Empire??  How about as welfare (indirect) payments.  Germany was about $2B/year of free money injected into the economy.  The PI?  Was almost a fight until Clarke Field got buried, then US got kicked out/left and the citizens went crazy to get G.I. to come back.  Same as RoK, Rummie agreed to remove U.S. forces, crying and weeping among the people and eventually the pols.

Powell shut down this argument with "all we asked for is a 3x6 plot to bury our dead."

- Ned

P.S. Interesting story about Jim Jones assignment when Rummy was breaking down the "Old Europe" mess.  Worth a look.

Quintus's picture

Taxes? Tribute?  What do you think the 'Exorbitant Privilege' that allows the US to ship endless quantities of paper dollars overseas in return for real goods is?  Fortunately this legacy of Bretton Woods is in its last days now.  Soon, the US is going to have to work (i.e. export real products) for its living.

Sudden Debt's picture

Fact.

I'm from Belgium. Here about 10% is dollar millionair.

And the average capital in the bank is 330.000 euro.

http://netto.tijd.be/budget_en_vrije_tijd/luxe/Belgie-_land_van_miljonairs.8286398-2215.art

(translation should be Dutch to English)

Almost everybody I know is rich, and when we end college or university most of us get about 100.000 euro to start with from our parents. That's the average.

But starting when we are young, we learn the value of money and how to make it and save it.

We do have poor regions, every country has that. Bummer for them.

Mercury's picture

Belgium isn't a very big country and is not representative of Europe as a whole. Liechtenstein probably has a lot of per-capita millionaires too. No one in Scandanavia says "everybody I know is rich."

TuesdayBen's picture

Uh, y'all better get some gold.

awells's picture

With GP per capita $36K (CIA Factbook), that is some achievement. perhaps they all inherited their millions, but come to think of it, history does not support that either.

barkingbill's picture

so we have all the disadvantages of an empire, but with out it's benefits....does that sound good to you?

 

fact is. defense spending is out of control. it too must be cut. 

Mercury's picture

Yes and

Maybe, or at least the pieces could certainly stand to be rearranged on the board. But Obama won't cut back on the military without guaranteeing those soldiers government jobs [and then what have you saved?] since it will just add fuel to the unemployment fire.

baserunr's picture

Yes, defense spending is higher than it needs to be. We need to reduce the number of bases and personnel overseas without a doubt.  But at least spending on defense is something clearly laid out in the Constitution.  Most of the rest of the stuff that money is spent on has no constitutional basis at all.

 

Of course, the Constitution also provides that Congress can borrow and regulate the value of money.  And look where that has taken us.....

Ragnar D's picture

I'm all for cutting off the free ride to Europe (while keeping an appropriately strong domestic defense), but that's mainly what it would be:  cutting off welfare to Europe.

Don't pretend for a minute it would put a dent in how bankrupt we are.  Completely scrapping the military in its entirety would still leave us bankrupted by the pyramid scheme dependency programs.

Military spending increases linearly, and those increases can be halted at any time.  The Entitlements increase logarithmically, and by definition those increases are automatic.

 

The anti-military types avoid this by talking about the "discretionary" budget, but the non-discretionary stuff is already 2/3 of the budget, making it the far larger problem.  In a few years when Entitlements make up 90% of the budget, you could eliminate EVERY function of government, legitimate or not, and still be broke.

Mercury's picture

Right.  Look at it this way, you can only blow money on a war once but government programs are forever...

Paladin en passant's picture

You might want to increase your sample size.  Try including Rome, the Holy Roman Empire, a few of the Chinese dynasties, some Mesoamerican empires and so forth.  Hell, America's just getting started.  We've got at least another 900 years to go. In ten years this'll all seem like some bad dream. Nanotech, genetics and the Singularity are going to make your grandchildren think you lived in the stone age.

DocLogo's picture

For some reason I think the future will look upon us as the giants of history...the industrial revovolutionaries who built the world before things slowed down and became more agrarian again.

Paladin en passant's picture

Could be.  The thrust of ten-thousand years of history is toward increasing incomes,increasing knowlege and increasing freedom.

The ultimate disintermediation might be losing governments and living agrarian, urban or suburban, whatever you choose, because everything you need is available at such infinitesimal cost to everyone that "work" becomes something only the best and brightest strive to achieve.  If nanotech could give me total physical protection from anything but a nuclear weapon, what do I need government for?

Of course, we'll need to survive the oncoming worldwide depression first, but once we're on the other side of the next five to ten years, things are going to look much different.  And, personally, I expect that "different" to be something positive, not some Morlock-Eloy dystopia.

TuesdayBen's picture

I'm thinking nanotech, genetics, Singularity and gubmint will have the grandkids living in the Stone Age.

downwiththebanks's picture

That's all spiffy, but high orders of bloodshed will accompany this reality.

WeeWilly's picture

Sudden, I like getting fucked! Maybe I'm missing something?

-sarcasm-

DosZap's picture

 "Social Security to grow from roughly 10 percent of GDP today to about 16 percent of GDP 25 years from now if current laws are not changed."

25yrs?.............What the hell are they smoking in the Beltway. THis country won't LAST another 5yrs, at the rate O is taking it.

Unless the programs he's instituted with the rest of the MINIONS from hell, are stopped.

Wait till he's a Lame Duck,(after Nov) Battle Royale...........

StychoKiller's picture

http://reason.com/blog/2008/10/24/saving-social-security-episode

My Daughter (24 this year) already KNOWS that Social Security is not gonna be there when she retires.  I believe a lot of younger folks know it too!

hutrader's picture

I'm 28 and I've known it for YEARS now...I look at my taxes as a service to my country...period. I love my grandparents and all of those from that generation so I don't mind paying the taxes for them to live. Hell they deserve a shit load more than just 1,000 bucks a month (and that's if they're lucky)....they kept the USA together when the whole world could have fallen apart AND they made us a truly great nation, which was latter destroyed by those that followed b/c they didn't know how to save, how to think, how to wait, and how to work for what they want. This all comes down to trying to keep up with the Jones' even on an international scale...the USA is just a spoiled little piece of shit and their rich daddy is dying as we speak and can't front the bill anymore. You mean we have to DO SOMETHING to get what we want?!?!?! Wake up America!!! (I am referring to the politicians and government NOT the people...that's what makes this whole mess even worse). Give me some whiskey now

adissidentishere's picture

You are an old soul.  I mean that, no sarcasm at all.  I'm glad to know there are people under 30 who think like you do.  Keep educating and for god sake watch the alcohol!  Starting out life with eyes wide open in this day and age is enough to drive anyone to despair.  Then again, you can't quit before the fight has even begun.  Because it hasn't begun yet. All we're doing right now is the smack-talk as prelude to the real event. 

HungrySeagull's picture

You Sir, are a credit to your Parents. I salute you.

Careful with that Bottle. You are perhaps in need of a slight nip after considering such a future in this Nation... but it is not worth destroying your life.

As young as you are, you are going to be a Giant among men someday.

 

That is why the other Poster referred you as an Old Soul. It is a compliment given to young folks who see as clearly as we do and have the youth and strength to try to do something about it in that clarity.

nmewn's picture

I'll add mine to the growing chorus as well...old soul means, to me, prudence. Maybe there is hope.

Freedom is a beautiful thing, enjoy it lustily, with an eye toward moderation ;-)

Regards.

Village Idiot's picture

"My Daughter (24 this year) already KNOWS that Social Security is not gonna be there when she retires.  I believe a lot of younger folks know it too!"

 

A lot of older folks do too.  As far as "agrarian" fallback is concerned, I like it.

marc_hanes's picture

I'm 43 years old and the last thing I expect in life is social [sic] security when I "retire"...

Island_Dweller's picture

I'm 43 years old and the last thing I expect in life is social [sic] security when I "retire"...

 

ditto @ 45. 

 

I, however, don't feel so great about paying for the "greatest generation" like an earlier poster.  In my book, they are the luckiest generation as they got to be the top of the ponzi pyramid.  I'm sick of their stupid asses.  They've done pretty well considering how lame of a legacy they've left us.  And to top it off, I have to listen to them all the time complaining how there's something wrong with youth today.  Yeah, cause baby boomers and the greatest generation left them a shit world.....

 

 

 

 

 

 

 

sgt_doom's picture

Of course, that red herring Social Security (contrary to everyone's super hero/swine, Peter G. Peterson, and the Peterson Institute, and Blackstone Group, etc.) has essentially nothing to do with it (good 'til 2044 as it's a pay-ahead tax), it's about the public monetization of private debt (i.e., the American economy cannot possibly SUSTAIN all those debt-financed billionaires, trillionaires, and multi-millionaires), as well as perpetual wars which make up the bulk of deficit spending.

 

Ragnar D's picture

Social Security wasn't supposed to go broke til 2038.  Then 2025.  Then 2018.  A black swan here and there, and it turns out 2009 it went into the red.

We also have the smallest percentage of the population working ever (and this was the trend before unemployment notched up--I'm talking about the career nonworkers), and an ever-increasing population living on other people's confiscated earnings.

There's no math that makes this pyramid scheme work.  Bump up retirement a year at a time, steal even more of our earnings that we'll see a negative return on, etc; that's just fiddling with the details.

There's no system of rewarding those riding in the cart and punishing those pulling it that will not multiply the former and decimate the latter.  Look at all the ailments Britons have invented to get on the dole.

There's a reason real jobs don't have pensions:  they last as long as they can throw someone else's money away before consuming everything and blowing up.  You cannot promise people a check forever, completely divorced from what they input.  It does make a hell of a dependency program to keep the omnipotent-government types in office.

RaymondKHessel's picture

It better last another 5 years I have to wait till 1/1/2015 to withdraw my Roth IRA conversion $$$$ without penalty !

Shameful's picture

What a load!  No way will we hit those rosy predictions.  87% debt to GDP in 2020?!? 109% in 2025?!?   Only if a hoard of magic leprechauns sneak into the country with pots of gold, and pay their taxes.  When when the CBO tries to look tough they look unbelievably Pollyannish.  And spending will not decrease, it can't.  I've said before that if you put the American Ponzi into austerity it's game over.  Anything to spook the dollar (like public announcing "We're screwed!") will send dollars back to the US which will trigger further selling.  The train is at full speed and is locked on the tracks.  It's infinite stimulus or bust!

Also  the link to full report is the same as to the summary.

Ragnarok's picture

The CBO can only deal with what it is given, no? So, lies in = lies out.

Shameful's picture

Ok you got me there.  I would just be ashamed to put my name on that.  Well unless I was marketing it as a fiction work.  Maybe it's the accountant in me...I feel repulsed by the very idea of signing off on something I KNOW to be a fraud.

But if they are going to cook the numbers, why not just go nuts?  Assume 20% year to year growth.  Since it's a lie why not lie big?

"Bt 2025 the government will provide free luxury cars and McMansions to all citizens.  People will retire at 22 with 2000% of their income as pension.  The Cardinals will win the Super Bowl"