The U.S. Government will run a 2012 budget deficit $1.2 trillion (source 1 below).The CBO estimates that the Government will rack up an additional $6.4 trillion in deficits 2013 – 2022 (source 2 below).
Note 1: The CBO generally bases its estimates on overly optimistic, ‘rosy scenarios’ – so the real deficit numbers through 2022 are likely to be greater than the officially anticipated ~$8 trillion.
Note 2: The numbers quoted are what is known as the “cash deficit” numbers. The GAAP numbers, which account for the “net present value of unfunded liabilities” (also known as ‘real accounting’) are far worse. The official GAAP deficit has been running, on average over the past 3 years, more than $5 trillion per year. The 2011 GAAP deficit is likely to approach $6 trillion.
Note 3: With a GAAP Deficit of $5 trillion on any given year, you could take all of the money earned by all Americans and all of the corporate profits (John Williams, Economist-Statistician, ShadowStats), and you’d still have a deficit. The real deficit is “beyond containment.”
Note 4: The mounting U.S. government indebtedness will most certainly be accompanied by additional (direct or indirect) monetization of the debt – via Federal Reserve balance sheet expansion. This, in turn, will put additional stress on the value of the U.S. Dollar.
These actions will have very little, if any, direct liquidity benefits for American families.
The Leviticus 25 Plan, on the other hand, would involve an initial credit extension to American families of $12 trillion. The government would receive back 8-10% of that per year in the “recapture provisions,” along with additional general tax revenues from the certain economic recovery.
After 5 years the Government would have “recaptured” approximately $6 trillion of the $12 trillion original credit extension – again, with substantial additional general tax revenues from the economic rebound.
The ‘net cost’ of the Leviticus 25 Plan would be less than the projected cost ($8 trillion) of new debt America will take on over the next 10 years.
The Leviticus 25 Plan will deliver meaningful liquidity benefits and debt relief for American families. It will reduce to scope of government and in the process restore basic freedoms for Americans.
1. Estimate for 2012 deficit up $100B – $1.2 trillion shortfall is seen for the year that ends not long before Election Day.
March 14, 2012|By Andrew Taylor, Associated Press
WASHINGTON – A new estimate from congressional economists says the government will run a $1.2 trillion deficit for the budget year that ends a few weeks before Election Day. It would be the fourth straight year of trillion-dollar-plus deficits.
2. March 2012: CBO’s Analysis of the President’s 2013 Budget
Each year, CBO analyzes the President’s budget proposals using CBO’s own economic assumptions and estimating techniques rather than the Administration’s. CBO estimates that enactment of the President’s proposals would:
- Increase the 2013 deficit to $977 billion, or $365 billion more than the shortfall projected in CBO’s baseline estimates.
- Increase total deficits between 2013 and 2022 by $6.4 trillion, or $3.5 trillion more than the cumulative deficit in CBO’s baseline.