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Title: CBO Report: Republicans Accelerate The US’s Path Toward Bankruptcy
Source:
SHTF Plan
URL Source: http://www.shtfplan.com/headline-ne ... ath-toward-bankruptcy_04172018
Published: Apr 17, 2018
Author: Mac Slavo
Post Date: 2018-04-18 09:38:14 by Deckard
Keywords: None
Views: 1059
Comments: 17
It doesn’t take a math whiz to know that the nation is headed toward a complete bankruptcy. But now, a new CBO (Congressional Budget Office) report released is ripping the mask off of the Republicans in Congress and showing us who they really are: Democrats. After the last horrifying budget deal which saw trillion dollar deficits, Republicans can no longer be called the party of being fiscally conservative. It appears that the Deep State will get their way regardless of who is in power, and there’s nothing the rest of us can do about it. Last year the Congressional Budget Office warned that Uncle Sam was racing toward fiscal insolvency. Although the CBO expected the deficit to fall to “only” $487 billion this year, it would start growing again next year. By 2022 the flood of red ink would near $1 trillion. By 2027 it would reach $1.4 trillion. The cumulative deficit over the following decade would be more than $9.4 trillion and 4 percent of GDP, as outlays grew ever higher. Expenditures currently are about 21 percent of GDP, above the 50-year average of 20.3 percent. By 2027, CBO projected spending would hit 23.4 percent of GDP. –National Review The corporate government is bankrupt, and it’s only getting worse in spite of Republican promises to “fix” it. The CBO’s report on the federal government’s finances over the next decade is the stuff of nightmares. And with Republicans holding all three branches of government, there’s little they can do to shake the truth: they are all the same. As the agency politely put it, “projected deficits over the 2018-2027 period have increased markedly since June 2017.” The rise was almost entirely the result of the spending and tax bills approved last year: Uncle Sam will be spending a lot more while taking in a good bit less in the future. That is, the Republican-controlled executive and legislative branches went wild and abandoned even the pretense of fiscal responsibility. It wasn’t the first time, of course: In the early 2000s, President George W. Bush and the Republican Congress spent money faster than even Lyndon Johnson and his Democratic congressional majority. The latest round of GOP budget-busting provides a dramatic reminder that the spending problem in America is bipartisan. -National Review The US continues to move rapidly down the path of insolvency. And the numbers continue to look worse when peering down that path. According to the new CBO analysis, the deficit this year will exceed $800 billion, well above last year’s prediction. The deficit will be just shy of $1 trillion next year, continue to shoot upward to $1.3 trillion in 2027, and reach an astounding $1.5 trillion in 2028, higher than even during the financial crisis, which generated four years of trillion-plus-dollar deficits. Total red ink over the next decade will be around $12.4 trillion. As a percentage of GDP, the deficit will run 4.9 percent. In 2027 the total national debt held by the public will be $27 trillion and 94.5 percent of GDP, the highest it’s been since 1946 when the U.S. was paying down its World War II debt. Future deficit gaps will be accelerated by “mandatory spending” on entitlements, such as social security. According to the CBO, the “increase reflects significant growth— mainly because the aging of the population and rising health care costs per beneficiary are projected to increase spending for Social Security and Medicare, among other programs. It also reflects significant growth in interest costs, which are projected to grow more quickly than any other major component of the budget.” The agency figures that interest payments will rise three times in total and two times as a percentage of GDP by 2028. Revenues also will increase significantly, but not as fast as outlays. There is no real silver lining. Spending will not decrease, not enough to keep the government from its eventual implosion and collapse under its own weight anyway. The only thing we can do is to pay off as much debt as possible and prepare for an economic collapse of the government’s doing. 
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#1. To: Deckard (#0)
Something spooked the precious metals market this morning... The price of Silver shot up more than 40¢... First time it's been over $17/oz in quite a while....
That's why I sold a few 100 OZ bars. Ag has been stagnant for way too long. I am putting the money into equity markets.
Bucky, I hate to break it to you, but you most likely sold too soon.
Hard assets, such as precious metals are stagnant. It might be "kinda cool" to brag about to friends, family and other associates but precious metals don't attract much profit.
Really ??? Metals, like everything else are dependent on timing. I sold a couple of American Eagle gold coins for $1280.00 each. I had bought them each for about $325.00 Yeah, I did not make anything on them. LOL !!!! You can believe what ever you want, LOL !!!
Gold may be stagnant, but the currency relentlessly inflates. And since gold is priced in dollars, the value of the gold in dollars likewise inflates. We've printed oceans of money, in the form of new dollars and new debt, and gold has kept pace with the boat. For reference, a "pound sterling" used to be a literal pound - 22 troy ounces - of silver. What is 22 troy oz. of silver worth in pounds now? Even more starkly, "lira" is the Italian word for "pound", and once upon a time, the Italian Lira, like the British pound, were both worth the same thing: 22 oz of silver. Then Italy, with unstable governments and losing wars, printed gargantuan sums of money...and then the lira wasn't worth a pound of silver anymore. A dollar used to be $1 of silver, and an Eagle was $10 of gold. And a eagle would buy a fine tailored suit for a man. Today, an eagle will still buy one finely tailored man's suit, but it ain't $10 anymore.
Yes, I understand the academic explanation of the inflation of the printed currency. So, in simple terms, I converted $650 in purchasing power of FRN, to $ 2560. A substantial increase rather than leaving those FRN in a drawer.
Yep. That's why holding bullion, or land, is generally a hedge against inflation. But land has property taxes, and bullion doesn't, so holding buillion is not a tax drain. It can end up being a security drain, if you have to spend money you wouldn't spend to keep it secure or to insure it. The race, really, is between three different types of assets: equities (growth) (stocks), interest-bearing (bonds, with reinvested interest), or real assets whose value grows with inflation (gold, land). The folks who sell stocks tell you stocks are best and point to charts - which they prepare using start and end dates that favor their vehicle. The folks who sell golds do the same thing. The folks who sell bonds don't say much, because bonds are only bought by the really rich or institutions that are risk-limited and can't invest in other things. Of course the REAL money is made by being the folks who sell the stocks, gold or bonds to other people - the transaction costs are greater in value than the profit on the rise of the assets.
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#2. To: Willie Green (#1)
First time it's been over $17/oz in quite a while....
#4. To: buckeroo (#2)
" That's why I sold a few 100 OZ bars. Ag has been stagnant for way too long. I am putting the money into equity markets. "
#13. To: Stoner (#4)
I hate to break it to you, but you most likely sold too soon.
#14. To: buckeroo (#13)
" precious metals don't attract much profit. "
#15. To: Stoner (#14)
#16. To: Vicomte13 (#15)
#17. To: Stoner (#16)
Replies to Comment # 17.
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