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Some of U BOyz think I am being overly PESSMISTIC...Well just figure this..

All figures are approximate now..

BY 2018 the Debt is projected to be $20,000,000,000,000.00 which will be greater than 100% of GDP

The USA currently is roughly a $14,000,000,000,000 GDP economy

Federal Tax Revenues are roughly 2,500,000,000,000.

Current interest on the debt is $375,000,000,000.00 calculated at 5%

Current Federal spending is $4,000,000,000,000 with a $1,400,000,000,000 deficit
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Figure a 3% Growth rate on the economy per year...by 2018 you have roughly an $18,000,000,000,000.00 GDP

Let us say Taxes go up to 20% of GDP from the 17.8% ..that means.. $3.600,000,000,000 in tax revenues collected

Minus the $1,000,000,000,000.00 in interest payments on the $20,000,000,000,000 debt at 5% interest that leaves the Fed to run on $2,600,000,000,000.00

The US governement minus the $375B in interest it is currently paying is spending right around $3,625,000,000,000 a year currently...this figure would be good in 2018 if there were NO FURTHER INCREASES IN THE BUDGET????...Also calculate that the Deficit WOULD BE GREATER if the positive cash flow from SS taxes were not included in the accounting.

$3,625,000,000,000 - $2,600,000,000,000 = $1,025,000,000,000 DEFICIT...for 2018

Now factor that in 2018 SS is taking in less money than it is paying out, which is the REVERSE OF TODAY..today it is taking in more money than paying out...THAT LITTLE ACCOUNTING GIMMICK HAS BY 2018 GONE AWAY..as the BOOMERS HAVE RETIRED..

I should look up the numbers of the projected SS payout for 2018...that ought to be enlightening...because it will be adding to the deficit spending projected above.


LOOKS LIKE THE DEFICITS JUST NEVER SEEM TO GO AWAY DO I HAVE TO SAY IT ONE CAN NOT RUN DEFICTIS FOREVER...SOONER OR LATER YOUR BROKE AND HAVE EXHAUSTED ALL OTHER MEANS OF RAISING MONEY..

So the ALTERNATIVE IS GOING TO BE RAISING TAXES...The government in 2018 is going to need $3.6T to operate and $1T to pay the interest on the debt....$4,600,000,000,000 in taxes on a $18,000,000,000,000 means 25.5% of GDP is going to be CONSUMED in paying Taxes...THESE FIGURES ARE GOOD ONLY IF THE FEDERAL BUDGET DOES NOT GROW BETWEEN NOW AND 2018

U draw your own conclusions..