We’re doomed!

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“Headlines And Global News” is a blog out of New York City.

HNGN: Congressional Budget Office Director Keith Hall said that over the next 10 years, “federal spending is projected to rise relative to the size of the economy because of the growth in health care and retirement programs and escalating interest costs.”

COMMENT: So what? The U.S. government can afford anything.

HNGN: If current federal tax and spending policies remain unchanged, U.S. debt held by the public will reach 77 percent of gross domestic product by 2025, “up from 74 percent at the end of 2015 and roughly twice the 38 percent average of the past five decades,” according to a presentation given by Congressional Budget Office Director Keith Hall.

COMMENT: So what? The U.S. government can afford anything. By the way, in mentioning “U.S. debt held by the public,” Keith Hall reveals that half of the so-called “national debt” is owed by the U.S. government to itself. Since the U.S. government can create infinite dollars, or can simply cancel this debt to itself, where is the “crisis”? Also, suppose that “U.S. debt held by the public” reach 77 percent of GDP. With a $15 trillion GDP, that would be $11.55 trillion. So what? This will have zero effect on the U.S. government’s financial “sustainability.”

HNGN: The federal budget deficit for fiscal 2015 is at its smallest since 2007, but Hall says that over the next 10 years, “federal spending is projected to rise relative to the size of the economy because of the growth in health care and retirement programs and escalating interest costs.”

COMMENT: So what? The U.S. government can afford anything. The more these bastards doom us with austerity, the louder they scream that we will be doomed unless we have a lot more austerity.

HNGN: “To put the federal budget on a sustainable path for the long term, lawmakers would have to make major changes to tax policies, spending policies, or both – by reducing spending for large benefit programs below the projected amounts, letting revenues rise more than they would under current law, or adopting some combination of those approaches,” Hall said.

COMMENT: That sounds ominous. Let’s run it through the Star Trek universal translator in case it’s important…

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Keith Hall’s job as head of the CBO is to promote U.S. government austerity. The sole function of austerity is to widen the Gap between the rich and the rest, and between Wall Street and Main Street.

HNGN: The current two-year bipartisan budget deal proposal, which passed the House and is now under consideration in the Senate, would reduce deficits by about $80 billion over the next 10 years, the CBO said Wednesday, according to Reuters.

COMMENT: In other words the recession will become much worse for average Americans (but the Gap between the rich and the rest will become wider than ever).  The U.S. government’s budget deficit is the economy’s surplus.

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HNGN: While the legislation would ease mandatory spending caps and increase discretionary spending by $80 billion over the next two years, the CBO says it would produce larger savings over the long haul.

COMMENT: When people talk about the U.S. government “saving money,” they are trying to make you think that the U.S. government has a limited amount of money. Therefore you must have more poverty and austerity, in order to keep America “sustainable.”

HNGN: Sen. Rand Paul, the Republican presidential candidate from Kentucky, said during Wednesday night’s GOP debate that he plans to filibuster the budget deal. “This is exactly the opposite of what every conservative Republican in America wants, and I’m going to do everything I can to stop it,” Paul said. “I will filibuster it, I’ll delay it, I’ll shout about it. I’m going to talk about it until I’m tired of talking about it and until people wake up and say this is wrong for the country.”

http://www.hngn.com/articles/145249/20151029/federal-debt-will-reach-77-of-gdp-by-2025-without-major-policy-changes-cbo-says.htm

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5 thoughts on “We’re doomed!

  1. “Anonymous donor gives $2.2 million to pay down national debt, Treasury says”

    http://www.usatoday.com/story/news/politics/2015/11/22/anonymous-donor-gives-22-million-pay-down-national-debt-treasury-says/75995978/

    The Treasury Dept. runs a scam as these “donations” are credited to operating expenses of the federal govt.and not towards paying down the debt. (The ONLY time the federal debt can possibly be “paid down” is when the federal govt. runs a surplus.)

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    1. (Yet the Fed credits reserve accounts and debits securities accounts on average of $750 billion per day, so I guess the “debt” is paid off continually and added to continually. Oh well.)

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      1. EH: I royally messed up the reply directly above. Please delete!

        It is better stated:

        (Yet the Fed both credited and debited reserve and securities accounts at an average of $5 trillion each per month in fiscal 2015. Therefore, a sizable chunk of the “federal debt” is simultaneously paid off and added to each month.)

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    2. If the so-called “national debt” is $18.6 trillion, and someone (supposedly) donated $2.2 million, this would be like contributing one single penny to “pay down” a debt of $84,545.00 dollars. Either the Treasury Department is lying, or else there are people with a lot more dollars than sense. Or maybe someone did it as a tax write-off.

      If the Treasury dept. is telling the truth, then why are they concealing the “donor”?

      “The ONLY time the federal debt can possibly be “paid down” is when the federal govt. runs a surplus.”

      I don’t think that even with a federal surplus the “debt” is paid down. The so-called “debt” is simply the aggregate nominal value of T-securities that investors have purchased. When someone buys a T-security, he essentially deposits money in a Fed savings account. He gets that money back (plus interest) when the T-security matures. The interest money is created out of thin air, whether the federal government has a deficit or a surplus.

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      1. Thank yo EH, you are absolutely correct. My bad. My confusion involved deficits, which are by definition “paid for” when the federal govt. runs a surplus. This has nothing to do with the amount of dollars in saving (securities) accounts at the Fed.

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