12/28/00 Flashback: "U.S. on course to eliminate its public debt within the next decade."

[garybeck]

Geesh. What have we done?

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December 28, 2000

Today, President Clinton will announce that The United States is on course to eliminate its public debt within the next decade. The Administration also announced that we are projected to pay down $237 billion in debt in 2001. Due in part to a strong economy and the President’s commitment to fiscal discipline, the federal fiscal condition has improved for an unprecedented nine consecutive years. Based upon today’s new economic and budget projections for the coming 10 years from the Office of Management and Budget (OMB):


The United States can be debt-free this decade. By dedicating the entire budget surplus to debt reduction, The United States can eliminate its publicly held debt by FY 2009. The next Administration and Congress will need to decide what priorities to address: eliminate the public debt by FY 2010 and still use part of the surplus for responsible tax cuts, prescription drug benefits for Medicare recipients, and investments in key priorities like education and health care.


the rest of the story...
http://clinton4.nara.gov/WH/new/html/Fri_Dec_29_151111_2000.html

[lapfog_1]

1. That was always too rosy a prediction.

However, it was quite "doable" to have eliminated the debt by 2030.

[kenny blankenship]

2. You're free not to believe this but a large part of that was the smoke and mirrors of asset bubbles

Remember when everyone was going to become a millionaire off the DOW and NASDAQ and retire at 40? Well, the OMB got a little giddy too, and thought the good times of endlessly appreciating paper assets would never end. Add in a couple of insanely costly wars and tax breaks for the rich, stir in a graying population, and pop the 20 year old paper asset bubble (1987-2007 RIP), and WAL-LAH! endless budget deficits.

[sandnsea]

3. That was from using FICA surplus

That the baby boomers agreed to pay back in the 80s, to bring down the debt so that when we started retiring there would be general funds surplus to pay us back.

Instead, they gave it to rich people.

[BeyondGeography]

4. And the big white tea babies who supported Bush's teardown of our finances still blame Democrats

Asshats.

[Double T]

5. Free Market Capitalism and insatiable greed sure can change........

things quickly. Now the US is facing the equivalent of bankruptcy and a worthless currency.