Your Chance For A Live Q&A With CBO Founding Director Alice Rivlin On "The Nation's Debt And Fiscal Health"

Tyler Durden's picture

Beginning at 12:30 pm, the Brookings Institute is hosting a live Q&A via CoverItLive with Congressional Budget Office director Alice Rivlin, who will field questions relating to the nation's debt and fiscal "health." Click on the screen below to be taken to the live Q&A.

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Franken_Stein's picture

 

Does anybody still remember the 1907 J.P.Morgan (the one made of flesh) engineered collapse of the Knickerbocker Trust fund ?

It was horrible, to say the least.

 

Cleanclog's picture

Woohoo!  Tyler just had his Q answered - except she didn't answer what he asked.

anony's picture

In 1907 my great grandfather hadn't been conceived yet, so no, don't remember.

If you do, then you have had too much more social security paid to you than you put in and you should vacate the premises, immejutley.

oddjob's picture

That same day in 1907 Alice celebrated her 20th year on Wall Street.

Long-John-Silver's picture

From just reading the first few questions and answers I can tell this is "canned". Standard answers for standard questions are too obvious. This is SOS (Same Old Shit) from TPTB.

Dolar in a vortex's picture

One of her early (kneejerk) responses:

Alice Rivlin: 

In the Bush years the Republicans were in control of Congress as well as the White House and weren't concerned about the debt

SheepDog-One's picture

Wow even kicking the can backwards now.

gabeh73's picture

While this thing is canned, I would have to agree with Alice that Bush and the republicans had not a care in the world about the deficit. They ramped up spending as quickly as possible and they even said they intended to in the PNAC documents. Their goal was to spend 4-5% of gdp every year on wars around the world and they stated that explicitly. They also said it wouldn't be likely to happen unless we had a Pearl Harbor type event.

Of course that doesn't mean the democrats are not EVERY bit as bad, because they are, but please don't fall into the left-right jedi mind trap that they have been using to control much of the population.

my first movie published today: zero hedge is mentioned.

http://www.youtube.com/watch?v=Zo5JEl8GHU4

IBelieveInMagic's picture

Deficits don't matter -- Dick Cheney

SheepDog-One's picture

Bush and the republicans, or obama and the democrats, dont run anything. I dont know what it will take to beat that simple fact into peoples skulls.

SheepDog-One's picture

Dancing on the head of a pin while Rome burns to the ground. 'Is the fire bad'? 'Meh...Ive seen worse, not as bad as expected and we think its transitory'....

Whatever.

Monedas's picture

Monedas (Libertarian Word Guerilla) asked her to rate the Nations fiscal health on a scale of 1 to 10 ! 10 being in the pink ! Monedas 2011 http://trololololololololololo.com/

eureka's picture

Spot on! This was a lot of nothing. Like the Fed, congress, Obama/administration.

A lot of nothing.

ursus.peracto's picture

What a waste of my time. Framing a question that won't fit the script.

redpill's picture

Hey, Tyler just got a question through...

 

 

Comment From Tyler Durden 

What will happen to "disinvested" G-And CSRD Fund retirement capital (which will be about $235 billion by August 2) if there is no debt ceiling resolution. Is this accrued retirement funding that will be written off?

redpill's picture

Aaaand she punts

 

Alice Rivlin: We will have a debt ceiling increase--I don't belive we will default--and then these cash management gimmicks will all be reversed.

SheepDog-One's picture

Question to Rivlin- 'How will the debt ceiling be raised? Who will the money be borrowed from?'

Rivlin- 'Uhhhhhhhhhh'

Franken_Stein's picture

 

So she already knows the outcome as of now.

So all the ballyhoo and clamor in Congress is just circus for the masses ?!

 

Cdad's picture

Of course she punted. 

While it was a refreshingly unique idea, it was utterly useless...as is the case with all things govt.

ursus.peracto's picture

"We aren't broke".

She meant her and her cronies.

earnulf's picture

Okay, according to one of the founders of the CBO, we aren't "broke".    I guess if it ain't "broke" don't fix it?

What a load of hooey!    And she assured us that the debt limit will be raised!   Wow, what a great webchat

 

hambone's picture

If this were a book it feels like now would be the moment when it's all bout to start hitting the fan, all the story lines about to intersect...I wish I could jump ahead and find out how it all starts.

If this were a movie, the scary music would now be at full volume and hitting those pitchy notes.

Peak oilers, peak debtors, peak population, peak kick the can down the roaders.  Ohhh, seems it's all coming together in a crescendo!!!  How will humanity handle this one?  Stay tuned.

Dreadker's picture

lol - it'll be like that cheezy moment in 2012 when John Kusack figures it all out... And instead of Schwarzeneggar saying 'dont panic' it'll be bernank or Obama ;-)

hambone's picture

Now, if this is going to prove a really good story, now is the time for the twist in the plot!

The equivelant of the husband we all thought was dead suddenly reappearing (ala Tom Hanks in Castaway). 

Now is the moment the aliens show up and reclaim us as their long lost children or we find out that Jesus really is(n't) coming back or some real game changer.  I'm long a curveball game changer bout now...otherwise it's just more of the typical inflation, hyperinflation, deflation and subsequent war.  BORING!!!  Seen that one.

Monedas's picture

30 minute "Chat" ? Brookings Bitchez ! Monedas 2011 Libertarian "Word Bomb Thrower" !

JeffB's picture

My question was never shown nor answered.

"Given that the total federal debt went up more than $1.7 trillion in 2010 using the numbers from the Treasury's "Debt to the Penny" page: http://www.treasurydirect.gov/NP/BPDLogin?application=np (Jan 1 to Dec 31, 2010) and given that was 53% of total federal revenues, and given that the off the books federal liabilities of Medicare, Social Security & the Prescription Drug program are more than $1 million per taxpayer and the 1st of the baby boomers turn age 65 this year, how could we realistically cut spending or increase revenues to bring our budget under control?"

hambone's picture

Jeff, that's a dumb question.  Has numbers and %'s...too hard.  Plus the answer is there is no answer. 

JeffB's picture

You're probably right on the 1st part but I think there is an answer, just not one anyone wants to admit to.

hambone's picture

Yeah, of course you are right there is an answer to all of our problems...but not an "answer" anyone in power can give.  Cause every such answer at this point in the game is a lose-lose.  Medicare, Medicaid, SS are all very simply fixed in principle but the implications are people would not get the cupboard of medical science thrown at them, people would not get medication until they show a willingness to change their diets, their exercise habits, etc. (personal austerity rather than take med's that only enable more bad dietary habits, smoking, etc.).  We will not make any of the hard decisions...they will all be forced upon us at a time not of our choosing and likely the worst possible time.  Other than that, no worries.

earnulf's picture

Okay, gonna be picky here and throw some more numbers and percentages into the mix.    That 1.7 Trillion debt was closer to 1.5 (horseshoes and handgrenades) and was in excess, not a percentage of Federal Revenues (Revenues of 2.2 and spending of 3.7)

As to the question, we can't.

Mandatory spending in the budget is 2.1 T vs 2.2 in revenue.   The "discretionary items", which BTW include defense spending, amount to 1.6T (defense is about 650B of that 1.6)

In other words, you can't cut enough to balance the budget.

With Republicans saying "no tax hikes", you can't raise enough revenue to balance the budget, although the CBO says revenues should rise from 2.2 to 3.1 T in 2013 (two years from now) and then to 3.4 in 2014.    All of those increases projected by the CBO are accompanied by NO TOTAL INCREASES in spending projections.  

Also, despite Republican cries of no tax hikes, the largest share of the projected revenue increases through 2013 are in individual income taxes (moving from 998B in 2011 to 1.5T in 2013)

We are "broke" whether Alice wants to admit it or not.   Perhaps in the rabbit hole we might be solvent, but in the real world, we are so far up the creek it's not funny

JeffB's picture

"That 1.7 Trillion debt was closer to 1.5 (horseshoes and handgrenades) and was in excess, not a percentage of Federal Revenues (Revenues of 2.2 and spending of 3.7)"

Well, they play some games with their accounting methods, not counting "off-the-budget" or "unfunded liabilities" or whatever, so I just went with the Treasury's own numbers from their "Debt to the Penny" web page: http://www.treasurydirect.gov/NP/BPDLogin?application=np

They list total federal debt as of 1-4-2010 at $12,290,238,158,257.13. Jan. 1, New Years Day, was on a Friday so the first entry was for Monday, Jan. 4.

"Total Public Debt" for December 31, 2010 was $14,025,215,218,708.52

Per my spreadsheet that comes to a $1,734,977,060,451.39 increase for 2010.

I don't remember where I got the numbers for federal revenues for 2010, but they were official government numbers and I used the ones that had been revised upwards several months after the books were closed.

I made up my own ratio, dividing the total increase in debt (rather than the government's official deficit numbers) by the government's official total federal revenues for 2010.

I calculated that ratio to be that the increase in the total federal debt was 53% of total federal revenues for 2010.

In other words it was my own ratio but was based on the official government numbers.

Edit: I found a gov't website listing total federal revenues for 2010 @ $3,243,570,414,345.79 http://www.gpoaccess.gov/usbudget/fy10/hist.html

jkruffin's picture

My question is :  Where has all the honesty gone on Wall St?  It has been non-existent for decades now and no one seems to care, and they just keep letting these crooks swindle people again and again with no recourse.

 

Look at markets today, the entire world markets are in the gutter, and they keep trying to push this ponzi scheme green suckering in new idiots they can dump their overprices shares to.  Unreal!!!

dracos_ghost's picture
Shit doesn't change.

Andrew Jackson quotes: 

The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.

I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.

JeffB's picture

True dat. The Federal Reserve has been an unmitigated disaster for our country since it's inception, starting with the 1st Great Depression, through the various boom & bust cycles to the current "Great Recession" with the blackest days likely ahead.

Gimp's picture

It's all they have.. the big PONZI. If it collapses look out below. They will do whatever it takes to keep it going even as Gerald Celente suggests they take us to WWIII...

MonkeySmoke's picture

Thanks, Tyler, for asking a real question. To bad there was no real answer, but what should we expect from the clown section of the Bread and Circus.

michigan independant's picture

Based on what revenue stream .gov is just warming up to finish the market off.

Monedas's picture

The QE "Beneficiary Bitchez" should have their Gold confiscated for a Compensation Fund for victims of JPM silver manipulation ? Monedas 2011 A "Class Warfare Action" lawsuit ?

aerial view's picture

Besides liars, cheaters and fraudsters, isn't the core issue the availability of CREDIT?

Doesn't credit allow uncontrolled speculation and far too rapid growth for any economy to remain healthy?

Doesn't credit allow the larger companies more and more power and give them an unfair advantage?

Wouldn't the world be better off if people and businesses had far less credit and paid mostly in cash?

TopOnePercent's picture

The objective of course is to make the economy bigger and better for all citizens.

 

The solution is simple math.

 

Which economy would be the largest in ten years,

1..No income tax for individuals or corporations

 

2..35% tax corporations..30 to 70% cumulative tax on individuals.

 

Answer..1

 

 Economy 1 would be 10X the size of economy 2.

 

The revenue source replacement would be a broad based consumption tax ..not to exceed 15%.

 

The most misunderstood point..

The tax take in 1 would be many times the tax take in 2.

 

 

 

 

Monedas's picture

Spoken like a Libertarian ! Then with all the new found revenue from a lower tax rate....we double down to lower the tax rate even more ! The lower you "tax the heart" the healthier it pumps ! I remain the Monedas 2011 Live better with it !

oldmanagain's picture

Your state that without income taxes on people and corps a consumption tax would produce more tax revenue would suggest that we raise income taxes on people and corps to avoid the consumption tax  threat.  

TopOnePercent's picture

You obviously have a typical poly mind.

 

But just for fun, I will clue you in,

 

What is 70% of $1000..  $700

 

What is 15% of $10,000.. $1500

 

It does not get any simpler than that.

 

Not to mention..one would never see a tax form again in their lifetime.

 

Just a few Americans might like that.

JeffB's picture

"

Not to mention..one would never see a tax form again in their lifetime.

 

Just a few Americans might like that."

But what about all of the tax lawyers and the myriad other professionals in the tax compliance/avoidance industry? They would swell the jobless rolls or else be forced into productive sectors of the economy. What about that?

 

TopOnePercent's picture

You obviously have a typical poly mind.

 

But just for fun, I will clue you in,

 

What is 70% of $1000..  $700

 

What is 15% of $10,000.. $1500

 

It does not get any simpler than that.

 

Not to mention..one would never see a tax form again in their lifetime.

 

Just a few Americans might like that.

 

And most Americans would appreciate having a job.

 

 

TopOnePercent's picture

You obviously have a typical poly mind.

 

But just for fun, I will clue you in,

 

What is 70% of $1000..  $700

 

What is 15% of $10,000.. $1500

 

It does not get any simpler than that.

 

Not to mention..one would never see a tax form again in their lifetime.

 

Just a few Americans might like that.

 

And most Americans would appreciate having a job.

 

 

TopOnePercent's picture

You obviously have a typical poly mind.

 

But just for fun, I will clue you in,

 

What is 70% of $1000..  $700

 

What is 15% of $10,000.. $1500

 

It does not get any simpler than that.

 

Not to mention..one would never see a tax form again in their lifetime.

 

Just a few Americans might like that.

 

And most Americans would appreciate having a job.