CBO: Government facing dire financial crisis. Dem solution: Spend more
#1
Folks we are in dire straights. Obama's policies have failed us and we are headed down the same path as Greece. The spending is unsustainable. But not to worry. The dems have a solution. Don't touch Medicare or entitlements and spend more.

66% of Americans say that we are headed down the wrong track. Higher gas prices, higher food prices, higher transportation prices, higher inflation, plunging home prices, rising unemployment numbers. Good luck to Obama running on this record.

Quote:CBO: Government faces fiscal crisis over borrowing

From msnbc.com's Tom Curry
In its mid-year long-term budget forecast, the Congressional Budget Office on Wednesday renewed its previous warnings that the government faces an increasing risk of a fiscal crisis due its ever-greater borrowing.

The report comes as Vice President Joe Biden and congressional budget negotiators try to reach an accord that would cut spending enough for Republicans to agree to an increase in the government’s borrowing limit.

August 2 is the date on which the Treasury Department says it will exhaust its means of managing cash to avoid hitting the current debt limit.

As it did in a report last January, the CBO said publicly held debt as a percentage of gross domestic product (GDP) would reach nearly 70 percent during the current fiscal year which ends on Sept. 30.

The CBO – in its “alternative fiscal scenario” -- predicted that if Congress does not raise taxes to their 2000 level and fails to impose Medicare spending cuts mandated by a 1997 law, by 2035 federal spending would account for more than a third of GDP, up from 24 percent of GDP this year.

Under that same scenario, by 2020 publicly held debt would reach nearly 90 percent of GDP.
http://firstread.msnbc.msn.com/_news/201...-borrowing[/quote]

Quote:WRAPUP 5-Democrats push for jobs package in debt deal
7:28pm EDT
Wed Jun 22, 2011 7:28pm EDT


* Democrats call for new stimulus

By Richard Cowan and Andy Sullivan

WASHINGTON, June 22 (Reuters) - Democratic leaders called on Wednesday for new spending and tax cuts to boost the sluggish U.S. economy, setting up a fresh hurdle for bipartisan efforts to head off a government debt default this summer.

At the same time, a new report warned that the country could face a European-style debt crisis unless Washington cuts spending or raises taxes.

The report by the nonpartisan Congressional Budget Office adds urgency to the work of negotiators, led by Vice President Joe Biden, who are trying to find trillions of dollars in savings as part of a deal that would allow Congress to sign off on new government borrowing before the U.S. runs out of money to pay its bills...
http://www.reuters.com/article/2011/06/2...GC20110622






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#2
I see unemployment numbers went up again this week in the non-farm jobs. The democrats can continue believing in leprechauns and unicorns, or they can finally acknowledge that the presidents economic policies have failed and are going to continue to fail and they need to change course. Sometimes it appears they that want the US to fail, If that is their plan, it working.
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#3
Ezra Klein via C&L,

Ezra Klein:

The Congressional Budget Office just released the latest edition of its long-term budget outlook (pdf), and it shows the same thing as always: If Congress lets the Bush tax cuts expire or offsets their extension, implements the Affordable Care Act as scheduled and makes or offset the Medicare cuts prescribed by the 1997 Balanced Budget Act — which CBO calls the “extended baseline scenario” — the national debt will be totally manageable. If Congress passes laws extending the Bush tax cuts without offsetting the cost, repealing the Affordable Care Act and its cost controls and protecting doctors from Medicare cuts without making up the savings elsewhere — the “alternative fiscal scenario” — the national debt will be totally out of control:

Or, if Politicians want a deficit they will get one. We can now say to the Villagers that if you guys want to have a serious and adult conversation about our deficit then tax increases for the rich are off the table and all the talk deficit fearmongering for months has been total garbage.
http://crooksandliars.com/john-amato/cbo...fict-hawks
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#4
Followed up by Digby same link,

Hullabaloo

In other words there is no long term debt crisis unless the politicians decide to create one. Everything's already in place to keep it perfectly under control. So why are we talking about it?

I don't think there's any better evidence that this deficit fever is nothing more than a disaster capitalist boondoggle. The wealthy elites and their nihilist ideologue allies in both parties are flogging this debt crisis in order to enact favorable legislation and fill out their long term wish list. That they are doing it under a Democratic administration just makes it sweeter.
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#5
(06-23-2011, 08:46 AM)Willie Krash Wrote: Ezra Klein via C&L,

Ezra Klein:

The Congressional Budget Office just released the latest edition of its long-term budget outlook (pdf), and it shows the same thing as always: If Congress lets the Bush tax cuts expire or offsets their extension, implements the Affordable Care Act as scheduled and makes or offset the Medicare cuts prescribed by the 1997 Balanced Budget Act — which CBO calls the “extended baseline scenario” — the national debt will be totally manageable. If Congress passes laws extending the Bush tax cuts without offsetting the cost, repealing the Affordable Care Act and its cost controls and protecting doctors from Medicare cuts without making up the savings elsewhere — the “alternative fiscal scenario” — the national debt will be totally out of control:

Or, if Politicians want a deficit they will get one. We can now say to the Villagers that if you guys want to have a serious and adult conversation about our deficit then tax increases for the rich are off the table and all the talk deficit fearmongering for months has been total garbage.
http://crooksandliars.com/john-amato/cbo...fict-hawks

So what do you propose for the 47% of Americans that do not pay federal income tax? If you want to tax the rich more, shouldn't the other 47% also be paying their fair share? And zero is not their fair share.
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#6
And what are the dems doing about Medicare? Answer: Nothing, just kicking the can down the road and playing ads that republicans want to kill old people. Meanwhile its head toward insolvency.

Quote:Still No Plans From Senate Dems On Medicare

FYI –

This afternoon, Senators Reid, Schumer and Murray again failed to put forward a plan to prevent Medicare from going bankrupt. Instead, Senator Schumer, while live tweeting from the press conference, said Medicare must stay in its “current form.” The Congressional Budget Office (CBO) and the Medicare Trustees have stated that Medicare will go bankrupt in its current form. As the program is currently structured, Medicare taxes and premiums cover only a little over more than half the actual cost of Medicare. By maintaining the status quo on Medicare, Senator Schumer must either raise taxes, cut benefits or the program will go bankrupt.

@ChuckSchumer: On debt talks- Dems will insist Medicare stays in current form w/ no cuts to seniors' benefits #livetweet


Background:

The Medicare Trustees Report Stated Medicare Will Go Bankrupt In 2024. The Medicare hospital insurance fund for seniors is now projected to run out of money in 2024, five years earlier than last year's estimate. (The Associated Press, 5/13/11)

The Trustees Also Emphasized The Need For Congress To Act and Save Medicare. “The trustees for the funds said in their annual report that the worsening financial picture emphasized the need for Congress to make changes to avoid disruptive consequences in the future for millions of people who depend on health and pension benefits.” (The Associated Press, 5/13/11)

In March, CBO Stated Medicare Will Go Bankrupt Even Sooner Than The Trustees Have Indicated. “The Hospital Insurance Trust Fund is projected to become exhausted in 2020.” (“March 2011 Medicare Baseline,” Congressional Budget Office, March 2011, p. 4)
http://majorityleader.gov/blog/2011/06/s...icare.html
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#7
Grandma is shovel ready?
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#8
(06-23-2011, 10:47 AM)Willie Krash Wrote: Grandma is shovel ready?

Ya. That about sums up what the dems have to say about the debt crisis. Let's ignore the fact that social security and medicare are on the verge of insolvency. Let's ignore the fact that by 2035 our debt/GDP will be at 190% Did I mention Greece has a debt/GDP ratio of 150%, but that just Greece. Won't happen to us. Greece got into their mess by government jobs and entitlements. So what are the dems proposing? More spending and more government jobs. Brilliant!!!

These just about sums up the dems position. Pick one:

[Image: head-up-butt.png]

[Image: 1256619411_image_lg_rodney_forbes_2009_w...ph_web.jpg]

[Image: head-in-the-sand1.jpg]

[Image: hear-no-evil-speak-no-evil-photo.jpg]

[Image: 1303321594-kick_the_can_.jpg]

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#9
(06-23-2011, 09:54 AM)Red White and Blue Wrote: So what do you propose for the 47% of Americans that do not pay federal income tax? If you want to tax the rich more, shouldn't the other 47% also be paying their fair share? And zero is not their fair share.

So you don't believe the CBO and don't seek solutions. Don't worry about the rich. They own the wealth. Oh I see all wage earners, working poor, unemployed (hey don't they pay taxes?), underemployed, we don't care damn it. Everyone needs to pay to justify the rich paying more. I wonder what the impacts would be on those vs the rich. Reverse Robin Hoods unite, get the working man. The sheriff of Nottingham needs more gold. I'm not taxing the rich anymore unless the serfs pay, even if we wreck the economy! Smiling
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