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CBO Officer’s Dire Projection: ‘Debt Is On An Unsustainable Course”

Mac Slavo
January 30th, 2019
SHTFplan.com
Comments (45) Read by 2,666 people

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The latest economic outlook from the Congressional Budget Office is dire.  It’s basically saying that if the federal government continues borrowing and spending at the current rate, an apocalyptic economic crisis is coming.

According to the CBO’s own report,  if spending continues at the projected pace the national debt and the federal deficit would reach alarming levels, causing a fiscal crisis in the United States.  The federal deficit is expected to reach $897 billion in the fiscal year 2019, alarming many economists.

Fiscally irresponsible spending bills coupled with the great recession boosted the debt dramatically over the past decade. And at the end of the 2018 fiscal year, the amount of public debt reached 78 percent of gross domestic product (GDP). The CBO estimates that debt held by the public will rise steadily over the next decade, reaching 92.7 percent of GDP by 2029 and 150 percent of GDP in 30 years. –The Epoch Times

This is rather dangerous news for the economy. “Even at its highest point ever, just after World War II, the debt was far less than that—106 percent of GDP,” Keith Hall, the director of the CBO said in his testimony at a congressional hearing on January 29. But the government won’t do anything about it.  In fact, they want to spend and tax even more.

The CBO is warning that the high and ever-rising national debt will have significant negative consequences for the economy. “We anticipate a very strong, tough budget coming out to hold down spending,” Larry Kudlow, White House chief economic adviser, told reporters on January 28. “The President has talked about this—at least 5 percent reduction in the nondefense accounts across the board.” Kudlow believes the White House’s future proposal will lower spending and cut the deficit. “Economic growth is absolutely essential to reducing the deficit share of GDP, which is the burden on the economy,” he added.

As private debt and public debt both rise to alarmingly high levels, the economy hangs in the balance.  It certainly won’t take much for this gigantic everything bubble we’ve found ourselves in to burst.

Read the CBO’s entire “Economic Outlook” report by clicking here. 

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Author: Mac Slavo
Views: Read by 2,666 people
Date: January 30th, 2019
Website: www.SHTFplan.com

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45 Comments...

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  1. BIG T says:

    have contacted senators and house of representatives in PA where I live, all refuse to face up to this number one catastrophe facing our country. very little interest is displayed by any of these people to correct the situation. I do not believe that they were educated well enough in the finer points of any of their economic classes,if they have even taken any at all. O WELL!

  2. Trillion dollar deficits coming…hahaha…now WHO’S the biggest socialist country? More money for everyone! Drop it from helicopters. Deliver it on pallets.

    Certainly the CBO knows that debt creation can never stop. It’s the way the monetary system operates since the fracturing of the precious/money relationship. The system is now solely credit/debt created at the point of the loan with compound usury added. Compound usury is an exponential function (rule of 72). The debt must continually grow to pay back the interest plus the principal. The limits will be determined when the EROEI of energy becomes too low to support industrial civilization…then Mad Max pocky lips.

    What comes after quadrillion?

  3. I know some people that don’t pay taxes. I try to explain to them that they are paying taxes if they have US currency. The feds can’t pay for everything threw taxes, so they print money to cover the shortfall. That causes the dollar in your pocket to buy less stuff. That’s a tax.

  4. TharSheBlows says:

    Look for Debtors Prisons Popping up all over when the economic collapse deepens.

    HEY EVERYONE, ARE YOU ON THIS LIST???:

    MAIN CORE: GOVT. “THREAT LIST” NAMES AT LEAST 8 MILLION AMERICANS WHO WILL BE DETAINED WHEN MARTIAL LAW IS IMPOSED

    By Medeea Greere –
    January 28, 2019

    Edward Snowden has just made that abundantly clear to the entire world.

    Are you on the list?

    Are you one of the millions of Americans that have been designated a threat to national security by the U.S. government?

    Will you be subject to detention when martial law is imposed during a major national emergency?

    Main Core is the code name of an American governmental database that is believed to have been in existence since the 1980s. It is believed that Main Core is a federal database containing personal and financial data of millions of United States citizens[clarification needed] believed to be threats to national security.

    The data, which is believed to come from the NSA, FBI, CIA, and other sources, is collected and stored without warrants or court orders. The database’s name derives from the fact that it contains “copies of the ‘main core’ or essence of each item of intelligence information on Americans produced by the FBI and the other agencies of the U.S. intelligence community”.

    The Main Core database is alleged to have originated with the Federal Emergency Management Agency (FEMA) in 1982, following Ronald Reagan’s Continuity of Operations plan outlined in the National Security Directive (NSD) 69 / National Security Decision Directive (NSDD) 55, entitled “Enduring National Leadership”, implemented on September 14, 1982.

    THE REST OF THE ARTICLE AND VIDEO – ht tps://amg-news.com/main-core-govt-threat-list-names-at-least-8-million-americans-who-will-be-detained-when-martial-law-is-imposed/

    According to the Journal, the government can now electronically monitor, “huge volumes of records of domestic e-mails and Internet searches, as well as bank transfers, credit card transactions, travel, and telephone records.”

    Authorities employ “sophisticated software programs” to sift through the data, searching for “suspicious patterns.” In effect, the program is a mass catalog of the private lives of Americans.

    The following information seems to be fair game for collection without a warrant:

    •the e-mail addresses you send to and receive from, and the subject lines of those messages

    •the phone numbers you dial, the numbers that dial in to your line, and the durations of the calls

    •the Internet sites you visit and the keywords in your Web searches

    •the destinations of the airline tickets you buy

    •the amounts and locations of your ATM withdrawals

    •the goods and services you purchase on credit cards

    All of this information is archived on government supercomputers and, according to sources, also fed into the Main Core database.

    This stuff is absolutely chilling. And there have been hints that such a list still exists today. What in the world is happening to America? What in the world are we turning into?

  5. “The President has talked about this—at least 5 percent reduction in the nondefense accounts across the board”.
    It doesn’t matter what POTUS is saying now. He likely wont be in office in 2020,; and even if he were, Congress will never allow the govt non-military expenditures to be cut by 5%. Let alone the 20% that’s really needed. What’s needed is to cut the over-bloated defense budget by 20%, and dramatically cut the entitlements. But its not going to happen. The economy is going to tank before Trumps current term. And he will get the blame…but even more so, the blame will be put on capitalism, white privilege, the super-rich, etc…you can already see the democratic machine shifting to all out socialism (Cortez, Warren, Sanders, etc…). And all the dependent losers, layed-off workers, illegals, and the worthless college degree millennials are going to vote for a candidate that will take it from YOU.!!!!!!

  6. Anonymous says:

    The debt problem could be solved as simply as having the Treasury, at the direction of Congress, issue debt free money to replace the interest bearing Federal Reserve Notes we use now.

    Congress is Constitutionally authorized to do this.

  7. 2 DOGS says:

    WOW NEWS FLASH!!! you are telling me it was not apparent already that the US govt spends more than it takes in !! unbeleiveable.
    And with the partial shutdown we noticed that most eveything ran pretty smooth. Smaller govt is good !!

    tongue in cheek

  8. lost karma says:

    If Trump loses in 2020 it will trigger an instant recession or even a depression.

    The dems will go to higher taxes and endless new regulations which will send capital investments right back overseas and to Mexico. Many on Wall Street are already preparing for this.

    Trump must hammer that message home over and over if he is to get re-elected.

    .

    • Anonymous says:

      Trump is already borderline for reelection, it he doesn’t get that wall built soon ,instead of backing down from opposition, he isn’t likely to make it to a second term.

      FWIW, don’t count on a “national emergency” being declared to build it surviving the courts, at least not before the elections.

      • lost karma says:

        I agree. The dems will totally fight the declaration in the courts starting with the 9th circuit court, the most liberal in the country.

        This country is becoming more and more polarized daily. A real SHTF situation is coming. I’m ready.

        • Genius says:

          Debt free, prepped, savings in silver, you can survive most any financial disaster. I would avoid 100 oz. bars though, if the price went 10 fold you would be in the reporting range. 10 oz. bars are cheap and you can get them with security features to stop counterfieting and make the buyer trust it (sunshine mint).

          On another note: I needed a small chainsaw to process a pile of wood and my homelite saw took a dump. I got a Stihl MS-180 (I also have an MS-310) and what a great little saw! Light and powerful and runs as smooth as my wheesky lol. If you buy a 6 pack of platinum oil mix with it you get a 2 year warranty too. I love Stihl saws, they are waaaay worth the money and extremely dependable…

          • Redwinger says:

            Best saws on the market. Mine has an easy pull. A four year old could start it. Never had a problem and it was great for the money. And if parts are needed there are Stihl dealers everywhere.

          • rellik says:

            Gen,
            I have 4 chain saws(don’t ask why!).
            One is a 38 year old Poulan 3400, it works great, but needs parts I can no longer get to stop a leaky fuel cap.
            I have two Stihls, the MS 290 is pretty bullet proof. My MS 250 is a POS that is always messing up. both have had problems due to fuel with Ethanol. Stihl dealers rape you for parts costs. I get parts elsewhere.
            The forth is packed away and I think it is a Craftsman. It hasn’t been used in 20 years.
            My favorite is the Poulan, it always runs and is pre-EPA BS design.
            Newer Poulans are really Huskys and I don’t know how well they
            hold up.
            My SIL was a professional logger and faller. He swore by Stihl.
            but his saw cost $900 25 years ago. I used it and it would go through a 36 inch log like a hot knife through butter.
            Most us preparers would not go with a high end Stihl, but that is
            probably the best bet.

  9. We are all on somebody’s list. They can’t handle our southern border how are they going to deal with the rest of us?

  10. Beaumont 2.0 says:

    The money supply is an executive decision, not a math problem, based in concrete reality.

    Entitled people are calling you on your BS.

  11. tophand62 says:

    My question, and one that I never hear asked, “What happens when China,Japan,Russia,and the rest of the World stops buying US treasuries?…This is how the debt is funded and with money printing, treasuries/debt being sold, and the USD threatened with no longer being the World Reserve Currency, hyperinflation will totally destroy us..Buying power will be based on bullion and barter locally, it is TEOTWAWKI

    • Anonymous says:

      When that happens, and it could at some point, the Fed itself buys them itself instead.

      That’s the way it is set up, they buy anything that can’t be sold on the market.

    • rellik says:

      Top,
      Nothing will happen.
      Most Treasury debt is held by Americans.
      The problem is, if we default, you’d better
      expect your parents to move in with you.
      as their Pensions/Social security will be
      cut.
      As we are stand alone independent, you won’t
      see hyperinflation, as we can provide for
      all our needs, if you throttle the obnoxious
      regulatory alphabet administrations.
      I live where there are two economies already,
      Cashless and cash/barter.
      Now as for you city people, I don’t know
      what to tell you.

      • Tophand62 says:

        I know nothing about city people and don’t want to…I live on a ranch, self sufficient, with my own off grid power, grow my own food and transportation, and have no bills… But, I do forecast inflation, if not hyper inflation when the economy stalls… No person, business, not government can be in debt as much as we are without the bill eventually coming due…

  12. Bill says:

    The CBO is part of officialdom, and therefore any data it presents is automatically and completely suspect. If they are willing to admit that the federal deficits and debt are unsustainable, then it is in reality far worse than that. Using the word unsustainable implies that a policy or legal fix can make things right. Well, its way past that, and has been for several years. In fact, there were several years since 2000 in which there was no fed. budget even made, they just kept spending money with basically no accounting.
    Even if there is a ‘budget’ it means little as far as fiscal policy is concerned, it typically includes more rosy projections of deficit reduction, more borrowing, more spending, and more debt.
    The US is worse than bankrupt, we are totally insolvent. Not only are we out of money, but don’t even possess the means to repay debt. The whole sham is propped up by printing money (which in reality is just another way of saying someone at a computer is receiving an order to create more ‘dollars’ with keystrokes). Of course the debt won’t be repaid, who believes that? Regardless of the propaganda, even officialdom and the Fed. Res. know that. Does anyone really believe the debt will be paid down so that it will not pass on to future generations? News flash, that won’t happen.
    Every single ‘dollar’ is fabricated from absolutely nothing, and nothing backs it up except what little faith the people still have that it has some kind of value, and of course gov’t force. In the present paradigm, debt is impossible to liquidate; every dollar is loaned into existence, borrowed to gov’t, to be repaid with interest. To pay off all debt would soak up every dollar in existence and then some because of interests and costs, requiring an ever greater increase in debt to keep servicing it. It is hopeless, it is self-perpetuating and has metastasized. The only way to stop it would be to kill the patient.
    Economic laws are just as sure as physical laws, they can be manipulated only so much for so long, then at a certain point, the laws reassert themselves, sometime violently. In the self correction of the process no one has control. Just as the amount of energy required to manipulate physical laws eventually becomes unsustainable, the same applies to economic laws, they can only be manipulated so much. We are at that point now. The greater the distortion is, the greater the reckoning will be. It is not if, but when. Now that this is understood, some questions to ask are: Who are the powers creating this disaster? What are all their motives? What will be the consequences (at the personal, local and national level)? Where did all the unaccounted trillions of dollars go? Who benefits from the present paradigm?
    As things play out and get eventually worse TPTB will be forced to initiate restriction of rights, gov’t will exercise extraordinary powers in an effort to retain control, it won’t work. You can be sure they have already drawn up extensive measures and contingency plans for TSHTF.
    My opinion is this site is monitored by someone, I believe there also are likely provocateurs who post comments, to provoke particular comments and responses. My response is to SECEDE NOW !!!

  13. ronna says:

    Ever since we went off the gold standard we have been on a ponzi scheme. It has to keep growing to keep going. So far there are more buyers of treasuries than that available. So much for the system collapsing for now!

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