This should concern all of us

[dan_s]

From Jim Puplava, an EPG member:

Last month, the Congressional Budget Office (CBO) updated their Budget and Economic Outlook for 2024-2034, revealing some startling projections. The 2024 deficit estimate has increased by $400 billion, a 27% rise from their estimate five months ago. The deficit for 2024 is expected to be $2.0 trillion, which is 7% of our Gross Domestic Product (GDP). This is projected to be 6.5% of GDP in 2025, and then fall to 5.5% by 2027, only to rise again to 6.9% by 2034.

These numbers are alarming, especially considering that the budget deficit averaged 2.8% of GDP from 1970 through 2019. For the next decade, the deficit is expected to be double that half-century average. Disturbingly, these numbers may still be overly optimistic. The CBO forecasts no recession for the next decade, yet the U.S. has never gone 14 years without entering a recession. Recessions typically cause budget deficits to widen as revenues fall and expenditures rise. Furthermore, the CBO estimates that inflation will moderate to 2.2% over the next decade, and they predict long-term interest rates will peak at 4.5%, staying at or below 4% for the next decade. Given the current amount of government spending, these estimates for inflation and interest rates seem overly optimistic, if not downright delusional.

[moke]

The CBO has also stated the unfunded benefits are 100 Trillion, this is only Federal. The States might also have some issues with this problem.

[aja57]

Seems like it’s only a matter of time that some states peel off the Union and join BRICS.(sarc)