Wednesday, August 22, 2012

Beware CBO Debt Warnings

The United States is heading towards serious government debt problems at the federal, state and local levels. However, be very careful about warnings on the debt crises that are coming from government leaders.

The most recent example is the warning coming from the Congressional Budget Office. CNBC reports:
The Congressional Budget Office said failure to avoid the so-called "fiscal cliff" of expiring tax cuts and automatic spending reductions would cause the gross domestic product to shrink 0.5 percent in 2013. Previously, the nonpartisan CBO forecast full-year GDP growth of 0.5 percent. 
The first half of 2013 will be particularly difficult, the CBO said in its mid-year forecast update. Tax hikes and spending cuts will cause GDP to shrink 2.9 percent in the first half, compared with a prediction in May for a 1.9 percent contraction.
This kind of report is prepping us for "share the pain" talk after the first of the year. Congress will kick the can down the road at the end of this year by delaying the automatic spending reductions from going into effect until March. The propaganda will then soar to a fever pitch where claims of economic collapse will intensify and (surprise) tax increases will be called for.

Of course, the best way to get the economy going is to expand the private sector, which means massive cuts in government spending, massive cuts in taxes and defaults on government debt.


  1. The proposed solution in this article is based on continued economic expansion by the private sector, which simply can't happen in a finite world and with the present economic structure. We need to get smaller, not bigger. There is no bigger.

    1. Who said the world is finite in a world of infinite randomness...

  2. Simply stated, it's call DEFLATION. Get used to it.

  3. They've got the silver bullet of chemical plane spraying destruction taking down the environment, eco-systems, food chains, air, water and earth as well as humans. Even the trees are coming down, which is a major gross national product and survival issue. And how many still cannot get their minds around how critical this is over all the games they are playing? It's all 'ruff'.

  4. It's a giant ponzi / pyramid scheme and the ones at the bottom are going to be destroyed.

  5. I think small is a good word for governments, taxes, spending,& red name a few.
    But on the other hand I think big is a good word when you talk about: Innovation, ideas, job growth, technology, freedom, liberty, personal responsibility, & truth again name just a few.
    So there you have it the big and the small. Both can exist together but, they have to work with each other to make it work. An example: if we give Innovation a free hand they have to police themselves so that government won't have to step in to protect the citizens. Corporation have to have a mindset of their responsibility to society as a whole and not just to the bottomline or stockholders. It is when someone or something only thinks of how their actions or lack of action effects only them that we start having issues. In the olden days it was call doing the right thing. For an individual it was being a good citizen. For a company or organization is was called being responsible and accountable. Again, it boils down to doing the right thing. No short cuts, no finding loopholes, following the path that is the righteous one. Don't look for ways to hide in gray areas for you're own benefit. If some law is unfair or unjust, fine, make you're case as to why it should be changed or eliminated (in the realm of all of us not just so you can benefit).