A blue-ribbon panel that includes three former heads of the Congressional Budget Office is telling President Obama and the Democrat-controlled Congress that the federal deficit must be cut now or the national debt within about two generations will be 600 percent of the Gross Domestic Product.“The debt level of the United States is unsustainable, something has to give,” said Rudolph Penner, former head of the CBO and co-chair of a report issued last week by the National Research Council and the National Academy of Public Administration.
The report concludes federal deficit spending is so out of control that unless Obama and Democrat leaders on the Hill make changes now, debt in 2080 will be six times what the nation produces.
The alarm is being sounded just as the Obama administration is preparing to push his nationalized health care plan through Congress. It comes from a bipartisan group of top economic policy experts including three former heads of the CBO, who warned existing entitlement programs including Medicare, Medicaid and Social Security already are creating a fiscal crisis for the nation without the addition of government-funding universal health care.
Continue reading Forecast: Debt to dwarf GDP