The federal government is staring at a disastrous fiscal picture with debt approaching 200 percent of GDP within two decades if Congress doesn’t change course on spending and taxes, according to the latest analysis by the Congressional Budget Office released Tuesday.
CBO analysts said the downturn and Congress’s response have been devastating for the government. Federal debt as a percentage of GDP — a standard measure of a government’s debt burden — stood at 40 percent at the end of 2008. But it will top 70 percent by the end of this year, and is only headed higher unless Congress changes course. The ratio could double by the middle of the next decade and will have topped 200 percent of GDP — twice the size of the projected U.S. economy — by 2037.
…………….There is, of course, still the question of whether more borrowing will increase anxiety about a government’s creditworthiness. It should not, as long as the proceeds of borrowing are used either to future spending or raise future incomes.
Standard & Poor’s has warned it could cut Australia’s coveted AAA rating if the federal government abandons plans to return the budget to surplus in response to a global recession triggered by the European debt crisis, a local newspaper reported.
Mitt Romney maintains that “President Barack Obama is holding on to the government’s stake in General Motors to avoid an embarrassing financial loss before the election, and says he’d sell the stock quickly if he wins the White House,” according to the Detroit News, which recently interviewed the Republican presidential candidate.
New auto sales came in weaker than expected in May, driven by disappointing results from General Motors, Toyota and Chrysler that showed industrydemand slowed from the first four months.
The sales results, when combined with Friday’s anemic jobs report, suggested the industry could face hurdles in its recovery from a recession four years ago that dragged GM and Chrysler into bankruptcy.
JILL AND MICHELLE ‘WOULD NOT HAVE ANY CHANCE’ WITHOUT GOVT. – Thanks to the government and affirmative action, we now have the most incompetent president and vice ever…they themselves admit it…
“I know, literally, Barack and I talk about it. Neither one of us would have had any shot,” Biden said. “The same with our wives. Both wives are smarter than both of us. Literally, these very accomplished women would not have any chance without some help.”
Larry O’Bryan, one of the firm’s partners, said he’s received about 32 applications for the $10K per year job, since posting it one week ago. He said that while the pay is low, the lawyer who is eventually hired will gain valuable experience.
California voters are experiencing buyers’ remorse over a $68.4 billion (£44.4 billion) high speed rail project which critics say risks becoming a “bullet train to nowhere.”
The U.S Air Force’s highly secret unmanned space plane will land in June – ending a year-long mission in orbit.
The experimental Boeing X37-B has been circling Earth at 17,000 miles per hour and was due to land in California in December. It is now expected to land in mid to late June.
At launch, the space plane was accompanied by staff in biohazard suits, leading to speculation that there were radioactive components on board.
His video game company now a bust, the former Boston Red Sox pitcher leaves the state on the hook for more than $100 million