Houston, We Have A Sustainability Problem

"Just because the CBO puts its longer-term "Extended Baseline" budget forecast (stretching through 2088) on page 117 of 126 in its most recent Long-Term Budget Outlook, doesn't mean that nobody will get to see it. Then again, based on what the perpetually over-optimistic CBO if forecasting (meaning the real outcome will be orders of magnitude worse) perhaps it would be better to not look at all. Because when even the CBO says there may be a modest sustainability problem down the line, it may be time to be concerned. That said, it may also explain why the Fed, through its idiotic policies, no longer really cares all that much about the "long run"...



It's not all Apocalyptic news though.

Because if one simply makes an adjustment to "reflect recent revisions by the Bureau of Economic Analysis to estimates of gross domestic product (GDP) in past years and CBO’s extrapolation of those revisions to projected future GDP", or in other words, to completely make things up, the future is quite bright...



... Unless of course it isn't.

In summary: America will either have +250% debt/GDP (or in reality much more) in 2088... or negative debt. While we applaud the CBO's attempt to cover all bases (and sense of humor), something tells us the final outcome from the collapse of Schrodinger's wave-debt function for the American Cat will not be a happy one."

at http://www.zerohedge.com/news/2013-09-19/houston-we-have-long-term-sustainability-problem