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!