Oh Karl, time for a small correction to their 'math'!

http://www.marketwatch.com/story/cbo-pai....

WASHINGTON (MarketWatch) — The U.S. debt will exceed the size of the nation’s economy in 25 years if the federal government doesn’t chart a “sustainable fiscal course,” the Congressional Budget Office warned in a new estimate on Tuesday.

In its 2012 long-term budget outlook, the nonpartisan CBO said that extending current tax rates and rising health-care costs would push the debt to almost 200% of gross domestic product in 2037. That is under the CBO’s scenario that maintains current policies.

“The explosive path of federal debt under the alternative fiscal scenario — which maintains what might be deemed current policies — underscores the need for large and timely policy changes to put the federal government on a sustainable fiscal course,” the CBO report said.

By the end of this year, the CBO projected that the debt will reach about 70% of GDP, the highest percentage since shortly after World War II.

The new estimates arrive as President Barack Obama is seeking a second four-year term, and is defending his record against attacks from Republican challenger Mitt Romney. Romney and congressional Republicans charge that Obama’s policies have swelled the debt and threaten the country’s future.

Obama defends his record, saying the $15.7 trillion U.S. debt stems from George W. Bush-era tax cuts as well as spending related to programs to rescue the economy from the worst recession since World War II. See U.S. debt information from the U.S. Treasury.

And as Obama and Romney gird for the November elections, the U.S. economy is facing the so-called “fiscal cliff” looming in January. That refers to the substantial spending cuts and tax increases scheduled to go into effect at the beginning of 2013 unless Congress acts. The spending cuts and tax hikes will automatically kick in because last year, Congress failed to reach a deal to shrink the deficit by at least $1.2 trillion.

Meanwhile, under another scenario that includes allowing the Bush-era tax cuts to expire in January, the debt picture is much less bleak.

The CBO’s so-called extended baseline scenario sees debt falling to 53% of GDP in 2037, as revenues increase to historically high levels and spending on programs other than healthcare and Social Security falls.

I thought we were over 100% right now? Why the huge difference?

"Obama defends his record, saying the $15.7 trillion U.S. debt stems from George W. Bush-era tax cuts as well as spending related to programs to rescue the economy from the worst recession since World War II. See U.S. debt information from the U.S. Treasury"

Whoa! I could have sworn the mac daddy extended the Bush tax cuts??? Did I miss something? And what exactly did the Obama stimulus program(s) get us other than 3.5 years older and deeper in debt?

Noodle, stop being logical and using your memory ffs. THAT won't get Obongo re-elected.


Remember, Oceania has ALWAYS been at war with Eastasia!!!

What Mayorquimby said.

WTF, the debt is already bigger than GDP. And that's just using the phoney accounting the gov gives us. The real ratio is probably way over 100% given that the actual debt is bigger and the real GDP is probably smaller.

Did they mean to say 25 days instead of 25 years?

Probably 25 seconds. The total debt has exceeded the capacity for the planet to produce, so how the CBO in its infinite wisdom thinks we find 'secret' production, I have no idea.

All I could think of is that there are 2 buckets of debt, Public and some other, and when not combined, they are like 10 T and 5 T. Maybe they are only talking about 1 of them?

That would be similar to Clinton having a balanced budget, they only took 1 of the debt piles into consideration.

They dont count ss and mexicare.

Genesis wrote..

. . . mexicare . . .

Even if it was just a typo, it was damn close to the mark in terms of describing where we're headed.

In other news the sun will rise tomorrow, even out here in medifornia.

That title was the first good economic news I'd heard in awhile and youall had to bust it all up.

grrrr...

I think they forgot to put the word "Still" in the headline.

CBO says US Debt will Exceed Double US Economy in 25 Years

There, that's better.