Bloomberg, Oct 7, 2015 “The U.S. budget deficit for the fiscal year that ended in September was higher than previously expected, the Congressional Budget Office estimated.
The shortfall was $435 billion in fiscal year 2015, compared with $483 billion a year earlier, according to a CBO forecast released on its website Wednesday in Washington. The agency previously estimated the gap to be $426 billion….”
You can see the CBO’s $426 billion projection for 2015 in the chart below – which turned out to be $435 billion (the CBO always uses the ‘rosey scenario’ in their forecasting).
They also project annual deficits through 2025 that will add $16.581 trillion to the current $18.2 trillion national debt – which will blow the projected national debt up to a hefty $$34.781 trillion.
As sobering as the CBO projections are, the real fiscal situation is far more serious according to Boston University Economics Professor Laurence Kotlikoff.
Kotlikoff has estimated America’s current ‘fiscal gap’ at $210 trillion.
Brookings Institution, April 8, 2015: “…[The] CBO’s debt estimates do not take into account the full financial obligations the government is committed to honor, especially for future payments of Social Security, Medicare, and interest on the debt. [Kotlikoff] asserts that the federal government should help the public understand the nation’s true fiscal situation by using what economists call “the infinite-horizon fiscal gap,” defined as the value of all projected future expenditures minus the value of all projected future receipts using a reasonable discount rate.
….CBO tells us that the national debt was a little less than $13 trillion in 2014. But the fiscal gap in that year as calculated by Kotlikoff was $210 trillion, more than 16 times larger than the debt estimated by CBO and already judged, by CBO and many others, to be unsustainable. If a $13 billion gap is unsustainable, what term should we apply to a $210 trillion gap?”
America needs a new economic plan, one that starts with repowering financial health at ground level – for American families.
It is time to grant U.S. citizens the same direct access to liquidity that was provided to Wall Street’s financial sector – during the ‘big bailout.’
The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen The Leviticus 25 Plan 2015 (1163)