Congressional Budget Office

Pivotfarm's picture

Wonderful President of USA and Munchkins





The Chief Economist at Citi Willem Butler has said today on CBC in an interview that the fiasco over the US budget and the lack of money is nothing more than irresponsible on all political wings and that the country is being run by Munchkins in the Land of Oz.

 


Tyler Durden's picture

The Debt-Ceiling Fight "Could Get Ugly" - Key Dates And Implications





Even though there is no technical link between the two main fiscal issues – the continuing resolution (CR) and the debt ceiling bill - there is a link in the minds of market participants because prompt resolution of the CR could spell a favorable outcome for the debt limit. On the other hand, a government shutdown tonight could lead the market to be more pessimistic on the chances of a debt default. As BofAML notes, the link between the two issues is fairly complex but the shutdown battle is just the beginning - and, as the suspect "the fight could get ugly."

 


Tyler Durden's picture

Guest Post: Did You Miss Your IRS Agent Today?





The major headline of the day is the pending government shutdown in the Land of the Free. This is nothing more than an obvious symptom that they have passed the point of no return. As we have routinely discussed, the US government now fails to collect enough tax revenue to pay interest on the debt and cover mandatory entitlement spending. They’re already in the hole before they write a single check for anything we consider ‘government’, from national parks to the Internal Revenue Service. Basically all the stuff that will be shut down now. Unless you missed your IRS agent today, it should be clear that all this stuff they waste money on is completely... unnecessary. Or can/should be privatized.

 


Tyler Durden's picture

Guest Post: The Boxed-In Fed





There may be temporary 'benefits in terms of employment gains' if the Fed creates an even more gigantic echo bubble than it has already done. We are willing to grant that much. The Fed apparently believes these days that there should be no limits whatsoever to the Fed's monetary pumping. 'Inflation' targets? Forget about it! Asset bubbles? Who cares! It is as if the past 20 years had not happened – as if they had simply erased the whole period from his memory. Do they really believe that pumping up another giant bubble will have more benefits than drawbacks? Where does it all end? However, there is no such thing as a free lunch, and there cannot be an 'eternal boom' by simply continuing to print, as once envisaged by Keynes. All that will happen is that the ultimate disaster will be even greater. In fact, is seems ever more likely that the next disaster will be the last one of the current monetary system.

 


Tyler Durden's picture

The Government Shutdown Looms: A Q&A On What Happens Next (And Who Stays At Home)





With a government's October 1 shut down - temporary of course - now seemingly inevitable, and more importantly with the peak debt ceiling negotiations due in just about a week after which point the Treasury will run out of money, many wonder what comes next. That this is happening just two short years after the dramatic August 2011 debt ceiling impasse, when the market tumbled 20% and likely slowed economic growth is still fresh in everyone's mind, is hardly helping matters. Add a potential political crisis in Greece and Italy, and suddenly a whole lot of unexpected variables have to be "priced in."

 


Tyler Durden's picture

As A Result Of Obamacare, Employer-Based Health Insurance Is Becoming Extinct





Barack Obama promised to fundamentally transform America, and when it comes to health care he has definitely kept his promise. As a result of Obamacare, health care spending is up, health insurance premiums are up, the number of hours Americans are working is down and employer-based health insurance is becoming an endangered species. Of course employer-based health insurance will not disappear completely any time soon, but it has been steadily shrinking for over a decade, and Obamacare will greatly accelerate that decline. So Americans are going to pay more, get worse care, have more paperwork and a more complicated system, and they are likely to die younger too? Wow, that sounds like a great deal.

 


Bruce Krasting's picture

Obamacare - An Unintended Consequence?





It's possible that the liberal's ultimate objective of achieving a single payer system, might well prove to be their undoing.

 


Tyler Durden's picture

Rick Santelli Exposes The "Wimpy" Economy





Earlier this week, we followed up the CBO’s publication of its 2013 Long-Term Budget Outlook with a chart that we believe should have been included. But what would Rick Santelli say? Only Rick would think to mix our debt projections with cheeseburgers and a magnifying glass. Here’s his entertaining "I will gladly pay you Tuesday for a cheeseburger today" take on our chart...

 


Tyler Durden's picture

House Votes To Taper Foodstamps





In a tight 217-210 vote, The House voted this evening to 'taper' food stamps by $39 billion over the next decade. This bill - setting up a showdown with Senate Democrats - cuts nearly twice as much as a bill that was rejected in June, and, as USA Today reports, dramatically larger than the $4.5 billion 'trim' that was passed by the Senate earlier in the year. The bill would cause 3 million people to lose benefits while another 850,000 would see their benefits cut, according to the non-partisan Congressional Budget Office. Republicans argued that the bill would restore the program's original eligibility limits and preserve the safety net for the truly needy. The White House threatened Wednesday to veto the bill, calling food stamps one of the "nation's strongest defenses against hunger and poverty." Of course, as long as the Dow is trading at all-time highs, it doesn't really matter... since the number of people on Food stamps in the US is already greater than the population of Spain!

 


Tyler Durden's picture

63 High Government Debt Episodes And What They Tell Us About Our Options Today





Do you wonder what to make of America’s soaring government debt and what it means for the future? Or, if you already have it figured out, are you interested in research that might challenge your position? Either way, you might like to see the results of this exercise:

1... Take each historic instance of government borrowing rising above America’s current debt of 105% of GDP.
2... Eliminate those instances in which creditors received a lower return than originally promised, due to defaults, bond conversions, service moratoriums and/or debt cancellations.
3... Of the remaining instances, consider whether and how the debt-to-GDP ratio was reduced.

In other words, let’s see what history tells us about today’s debt levels and what comes next. You may find the answer surprising.

 


Tyler Durden's picture

The Surest Way To Spot Trouble: When Even The CBO Says There's A Problem





In light of this morning's Obama-Boehner volleys, we thought a reflection on the facts was useful. The Congressional Budget Office (CBO) released its 2013 Long-Term Budget Outlook yesterday morning, and its government debt projections are dismal... But the CBO’s featured chart only tells a small part of the story. The baseline scenario happens to be bogus. Even as it shows our addiction to debt worsening, it doesn’t do justice to the severity of that addiction. (You may want to show the chart to your children. After all, they’ll be the ones who’ll have to deal with the debt we’re piling on today.)

 


Tyler Durden's picture

Frontrunning: September 18





  • Fed likely to reduce bond buying, pass policy milestone (Reuters)
  • Fall in Home Loans Pushing Fed Away From Taper in Mortgage Bonds (BBG)
  • Russia says U.N. report on Syria attack preconceived, political (Reuters)
  • China House Price Surge Raises Prospect of Steps to Cool Market (FT)
  • Cyprus Plans to Complete End of All Capital Controls... some time in 2014 (FT)
  • GOP Reworks Budget Terms (WSJ)
  • U.S. Navy was warned that Washington shooter 'heard voices' (Reuters)
  • Berlusconi Impeachment Vote Looms (WSJ)
  • Ageing could weaken central banks, spur rate volatility (Reuters)
 


Tyler Durden's picture

Laurence Kotlikoff: "The US Fiscal Gap Is $200 Trillion... Our Country Is broke"





"I estimate the US fiscal gap at US$200 tn, 17 times the reported US$12 tn in official debt in the hands of the public.... Our country is broke. It’s not broke in 50 years or 30 years or 10 years. It’s broke today. Six decades of take as you go has led us to a precipice. That’s why almost the entire economics profession is talking as one at www.theinformact.org. Economists from all political persuasions are collectively sending our government a warning about what is, effectively, a nuclear economic bomb. I’ve been around economics for a long time. I’ve never seen such a strong response to a proposed Congressional bill. This is the profession sending a statement to the President and Congress that’s not unlike the warning physicists sent via Einstein to Roosevelt about the bomb." Larry Kotlikoff

 


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