Experts: Fiscal crisis threatens U.S. future

[rodeodance]

Source: McClatchy Washington Bureau




Posted on Wed, Oct. 31, 2007
Experts: Fiscal crisis threatens U.S. future
Kevin G. Hall | McClatchy Newspapers

last updated: October 31, 2007 08:16:31 PM

WASHINGTON — As presidential candidates largely ignore the issue, looming fiscal challenges threaten to swamp the U.S. economy and erode America's superpower status, several of the nation's foremost experts on the federal budget warned Wednesday.

"We have been diagnosed with fiscal cancer," said David Walker, the nation's comptroller general, or chief auditor, testifying before the Senate Budget Committee.

The committee called the hearing to spotlight legislation that would create a bipartisan panel charged with recommending how to tackle promised spending on federal retirement programs that threaten to bankrupt the U.S. government.

"In the very least, it ought to be the framework that a new Congress and new president put in place," said Leon Panetta, co-chairman of the Committee for a Responsible Federal Budget and Clinton-era budget director.

Starting in 2017, Social Security will pay out more than it takes in from tax revenues. Over the next 75 years, that could add $4.7 trillion in present-day value to the federal debt.



Read more: http://www.mcclatchydc.com/227/v-print/story/20983.html

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Nice graph also (that I am not able to post)

[cliss]

1. The U.S. has cancer.....fiscal cancer.

If you believe some of the articles being written, that cancer is terminal.

I think that while the entitlement programs are high, there is NOTHING which comes close to the subprime mortgage crisis which is currently threatening to crater our entire economy. Also, the budget deficits (the "twin" deficits) could destroy our economy.

It's just a matter of time. Which one will hit first? Probably the mortgage crisis. People are going to start losing their homes, in larger and larger numbers.

[Earth_First]

2. Hopefully not...

I remember reading last week that CountryWide was going to allow several hundred thousand mortgagees the ability to renegotiate the terms of their contracts. I would hate to see large numbers of folks begin losing their homes. It behooves the entire system as well for the banking industry to do whatever they may in order to keep this from happening. Only time will tell.

[Javaman]

4. country wide has to do that, if they don't they will vanish from the earth. nt

[Javaman]

3. someone on NPR yesterday whining on and on about how

the 1/4 percent cut will prevent the US from going into a depression.whoops!

however, none of these tools never once mentioned how the cut will effect inflation.

:banghead:

[lovuian]

5. US needs to get out of this freakin Iraq War

American people have had it and yet our government doesn't get it but it will soon

[sicksicksick_N_tired]

6. They always blame SS rather than the absurd defense budget or the insane national debt or,...

,...the outsourcing leading to foreclosures or the aweful deflation of the dollar or the extreme corporate welfare or the destruction of inheritance taxes or,...

:puke:

[librechik]

8. yeah! I read that the slowdown in SS funds could be fixed

if we all started paying $10 a year more in taxes! And what if we raised the cutoff ceiling from 97, 000 to $197,000? We'd be ok through the next couple centuries. Or roll back those stupid plutocrat tax breaks!

I am so sick of these distracting "issues" that make us turn away from working on the REAL problems.

[The2ndWheel]

7. Yeah, physical reality can hurt when you hit it

The problem with economics is that it doesn't exist outside of nature. Whether it's Social Security, corporate welfare, the pentagon budget, agricultural subsidies, education, tax loopholes, outsourcing, isolationism, etc, etc, etc...none of them exist independent of the planet. The more you do for A, the less you have for B. However, the more you do for B will impact what you get for A and C. B and C might be the good stuff that we want, but you can't do them without A.

[eppur_se_muova]

9. Experts! *pfffft* -- Whadda they know? nt