The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on April 14, 2014, 07:57:02 pm
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http://www.breitbart.com/Big-Government/2014/04/14/CBO-Issues-Dire-Debt-Warning-of-Fiscal-Crisis (http://www.breitbart.com/Big-Government/2014/04/14/CBO-Issues-Dire-Debt-Warning-of-Fiscal-Crisis)
by Wynton Hall 14 Apr 2014, 11:39 AM PDT
New figures by the Congressional Budget Office released on Monday reveal that over the next 10 years the U.S. debt-to-GDP ratio will double to 78%.
Over the last four decades America's average debt-to-GDP ratio was 39%. At the end of 2007, federal debt was just 35% of GDP.
The CBO report says gross federal debt will soar from $17.7 trillion to $27 trillion over the next ten years.
CBO warned of the dire consequences the nation's debt will have if gone unchecked.
"Such high and rising debt would have serious negative consequences," says the report. "Federal spending on interest payments would increase considerably when interest rates rose to more typical levels. Moreover, because federal borrowing would eventually raise the cost of investment by businesses and other entities, the capital stock would be smaller, and productivity and wages lower, than if federal borrowing was more limited."
The report added: "Finally, high debt increases the risk of a fiscal crisis in which investors would lose so much confidence in the government's ability to manage its budge that the government would be unable to borrow at affordable rates."
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Just for fun, let's skip ahead to January 20th 2017 when a new President is sworn in. If it is a Republican, how long will it take the Dhimmies to all blame the Republicans in Congress for all of this?? What are the chances a new President will ever be allowed to lament about what he inherited from Obama?? What happens to all of those many Dhimmie special interest groups that make up the base suddenly realize that the party is over and the train will never make it to the station??
I see a time of wide civil unrest coming as a direct result of the enormous debt we continue to accumulate. It is the single biggest threat to the Republic in my view...
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"Such high and rising debt would have serious negative consequences," says the report.
No sh*t, Sherlock.
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The kneejerk position of democrats is that the debt is Republicans' fault since they won't increase taxes.