U.S. GOV’S MASSIVE DEBT & DOING NOTHING TO ADDRESS THIS
Both Parties Have a Plan for the Debt: Do Nothing -Samuelson/Real Clear Markets
“The Congressional Budget Office last week released its annual budget and economic outlook report, and although the news was gruesome, the report was greeted in Washington with a giant yawn. The assumption among Republicans and Democrats is that the political rewards for curbing runaway budget deficits are too meager to justify the risks. There’s a consensus to do nothing – and to hope that nothing goes disastrously wrong. Just how large are impending deficits? Here are the CBO projections. From 2019 to 2028, the federal government will run cumulative annual deficits of $12.4 trillion….No one knows the consequences of these unprecedented peacetime deficits, but the CBO has listed some possibilities: They may further raise interest rates, which would increase deficits, squeeze other federal programs and crowd out borrowing by businesses….Government might find it difficult to respond to national emergencies, whether war, natural disaster or a financial crisis….We could face a full-blown debt crisis….Social Security and other ‘safety net’ programs would have to be reduced, possibly through higher eligibility ages and more means-testing….The longer this continues, the riskier it becomes.
MY COMMENT: ADD TO THIS 100+ COUNTRIES ALIGNED WITH RUSSIA AND CHINA DROPPING THE US DOLLAR AS RESERVE CURRENCY.