Kotlikoff: America's Day of Reckoning Is Upon Us

It looks like the fecal matter will hit the spinning air device a bit sooner than some suspect. By my estimation, we are now two years and one month behind schedule as I expected the entire thing to blow in March of 2009. I can't believe I've been waiting around for this shit a whole two years but hey, at least I've been entertained.

Lawrence Kotlikoff writes via Bloomberg:

The two parties are having a heated debate over the Republican plan to slice $61 billion off Uncle Sam’s projected $3.6 trillion budget. If the Republicans get their way, the deficit will fall from 9.5 percent of gross domestic product to 9.1 percent. If they don’t, they’ll probably shut the government for a couple of days. Then they’ll compromise on, say, a $40 billion budget cut, having proved they gave it their best shot.

Arguing over lowering our deficit by just 0.4 percent of GDP when we need to run massive surpluses to deal with the baby boomers’ impending retirement is, pick your metaphor -- rearranging the Titanic’s furniture, Nero’s fiddling, Custer’s Last Stand.

Is this malign fiscal neglect, or has Congress somehow missed what its own Congressional Budget Office is indicating? CBO’s baseline budget updates suggest the date for reaching what Carmen Reinhart, Kenneth Rogoff and other prominent economists believe is a critical insolvency threshold -- a 90 percent ratio of federal debt held by the public to gross domestic product -- has moved four years closer, in just nine months!

Nine months, huh?

Congratulations, Obama, it's a CLUSTERFUCK! Pass out the cigars, my friend!

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

"Arguing over lowering our deficit by just 0.4 percent of GDP ..."

To me, this says that they will not *willingly* make necessary change (as usual and true to form with human behavior). It's going to take something from the outside to force the change. Another earthquake? Another fruit vendor in the Middle East setting himself on fire in protest? An "Archduke Ferdinand" type of event? Japan dumping Treasuries so they can re-build and re-tool areas of their country they previously thought earthquake proof? Who knows what the catalyst(s?!?!) will be...Lord moves in mysterious ways.