Retail Sales: The Next Chapter of the Financial Crisis
It was a good effort…but “federal debt held by the public would double under the President’s budget,” says the Congressional Budget Office (CBO).
While we were exploring gold storage, junior miners and asset protection in Zurich, the CBO did some heavy lifting on the budget proposal advanced by Mr. Obama on Wednesday.
Even as the president promises to raise taxes, protect consumers and cut spending, the CBO shows the federal portion of the national debt held by the public growing from $10.4 trillion (69% of GDP) at the end of 2011 to $20.8 trillion (87% of GDP) at the end of 2021…adding $9.5 trillion to the nation’s debt in nine years.
“Even if the president could persuade Congress to enact all of his proposed tax increases,” Alan Reynolds from the Cato Institute adds, “in addition to surtaxes already included in [the health care reform bill], the CBO finds we would still face endless budget deficits averaging 4.8% of GDP…”
What kind of solution, we humbly ask, is that?