This should scare the pants off of you!
The Biblical-proportion deficit predictions we’ve been hearing about are based on spending targets, but more importantly, on receipt targets. If spending is more than budgeted, the deficits will be larger, but only if receipts come in as expected. If receipts are greater than expected, then the deficits will be smaller than predicted (that was the Reagan-era phenomenon). If receipts are lower than expected, then the deficit will be larger. If both are off, such as spending being more than budgeted, and receipts are less than predicted, the deficit death spiral will be enormous.
And that is exactly what is happening, at such an accelerated rate that the economy is contracting… for the first time in decades and decades.
See multiple charts and graphs.
Based on this alarming trend, one would expect the OMB and CDO to revise their deficit predictions and for the press to report on it with all the vigor of Chicken Little.
Don’t hold your breath waiting for that to happen.
Hemorrhaging – Especially Uncle Sam
Alias Barack Obama: a lie is born: The greatest identity fraud in history Paperback – July 10, 2012
