A Grim Look At The Exploding US Budget Deficit

Social Security

CBO also projects that four major trust funds will be insolvent in the next 14 years. The Highway Trust Fund would become insolvent in 2022, the Medicare Hospital Insurance trust fund would run out in 2026, and the Social Security Old Age and Survivors Insurance and Disability Insurance trust funds would run out in 2032 and 2035, respectively. The hypothetical combined Social Security trust fund would run out in 2032, at which point benefits would have to be cut by one-quarter to bring spending in line with revenue.

Spending Projections

The projected long-term growth in spending is largely driven by rising health, interest, and retirement costs. CBO expects spending in these three areas to rise from 12.3 percent of GDP this year to 24.4 percent of GDP by 2051. Interest spending will be the largest federal program by 2045

Read that last sentence again and again until this sinks in: How the heck is the Fed ever going to hike rates again?  

"Existential Threat"

We are on auto-pilot for a global currency crisis because the current path is not remotely sustainable.

But hey, rumor has it that climate change is the "existential threat" of our time, so much so that politicians seek $90 trillion solutions to the problems. 

I assure you the world will still be here in 50 years even if the oceans do rise another 3 inches. But what about the value of the US dollar?

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