Topiary Lady
07-29-2010, 10:03 AM
We have been watching as Barack Hussein Obama and his accomplices have made one bad move after another, which has further damaged our nation. A person of reason would have to conclude that Obama and his cohorts are either unfathomable idiots, or that they are 'in it to win it' as they press forward with the bankruptcy and total collapse of our economy.
Now - well now, we've got a new report out fresh from the CBO which backs up what so many of us knew would be the result of the policy decisions being made by the Marxist In Chief and his merry band of Alinsky-ites.
Here ya go:
Further increases in federal debt relative to the nation’s output (gross domestic product, or GDP) almost certainly lie ahead if current policies remain in place. The aging of the population and rising costs for health care will push federal spending, measured as a percentage of GDP, well above the levels experienced in recent decades. Unless policymakers restrain the growth of spending, increase revenues significantly as a share of GDP, or adopt some combination of those two approaches, growing budget deficits will cause debt to rise to unsupportable levels.
Although deficits during or shortly after a recession generally hasten economic recovery, persistent deficits and continually mounting debt would have several negative economic consequences for the United States. Some of those consequences would arise gradually: A growing portion of people’s savings would go to purchase government debt rather than toward investments in productive capital goods such as factories and computers; that “crowding out” of investment would lead to lower output and incomes than would otherwise occur. In addition, if the payment of interest on the extra debt was financed by imposing higher marginal tax rates, those rates would discourage work and saving and further reduce output. Rising interest costs might also force reductions in spending on important government programs. Moreover, rising debt would increasingly restrict the ability of policymakers to use fiscal policy to respond to unexpected challenges, such as economic downturns or international crises.
http://www.cbo.gov/doc.cfm?index=11659
If the United States encountered a fiscal crisis, the abrupt rise in interest rates would reflect investors’ fears that the government would renege on the terms of its existing debt or that it would increase the supply of money to finance its activities or pay creditors and thereby boost inflation. To restore investors’ confidence, policymakers would probably need to enact spending cuts or tax increases more drastic and painful than those that would have been necessary had the adjustments come sooner.
A day will come where a woeful looking B. Hussein steps in front of the cameras to tell the American people that the system has unfortunatly collapsed. He tried to save us, but because of George W. Bush, Fox News - Glenn Beck, gun owners, the religious right, and hell - probably Topiary Lady, everything just soured and we will now have to develop a whole new system.
For those of you out there who have mocked and scoffed at those of us who were clanging the warning bells - listen up next time.
Now - well now, we've got a new report out fresh from the CBO which backs up what so many of us knew would be the result of the policy decisions being made by the Marxist In Chief and his merry band of Alinsky-ites.
Here ya go:
Further increases in federal debt relative to the nation’s output (gross domestic product, or GDP) almost certainly lie ahead if current policies remain in place. The aging of the population and rising costs for health care will push federal spending, measured as a percentage of GDP, well above the levels experienced in recent decades. Unless policymakers restrain the growth of spending, increase revenues significantly as a share of GDP, or adopt some combination of those two approaches, growing budget deficits will cause debt to rise to unsupportable levels.
Although deficits during or shortly after a recession generally hasten economic recovery, persistent deficits and continually mounting debt would have several negative economic consequences for the United States. Some of those consequences would arise gradually: A growing portion of people’s savings would go to purchase government debt rather than toward investments in productive capital goods such as factories and computers; that “crowding out” of investment would lead to lower output and incomes than would otherwise occur. In addition, if the payment of interest on the extra debt was financed by imposing higher marginal tax rates, those rates would discourage work and saving and further reduce output. Rising interest costs might also force reductions in spending on important government programs. Moreover, rising debt would increasingly restrict the ability of policymakers to use fiscal policy to respond to unexpected challenges, such as economic downturns or international crises.
http://www.cbo.gov/doc.cfm?index=11659
If the United States encountered a fiscal crisis, the abrupt rise in interest rates would reflect investors’ fears that the government would renege on the terms of its existing debt or that it would increase the supply of money to finance its activities or pay creditors and thereby boost inflation. To restore investors’ confidence, policymakers would probably need to enact spending cuts or tax increases more drastic and painful than those that would have been necessary had the adjustments come sooner.
A day will come where a woeful looking B. Hussein steps in front of the cameras to tell the American people that the system has unfortunatly collapsed. He tried to save us, but because of George W. Bush, Fox News - Glenn Beck, gun owners, the religious right, and hell - probably Topiary Lady, everything just soured and we will now have to develop a whole new system.
For those of you out there who have mocked and scoffed at those of us who were clanging the warning bells - listen up next time.