Friday, December 22, 2023
Underestimating Washington D.C.'s Debt Trap
In May this year, the Congressional Budget Office estimated outstanding US government debt next October to be $27,388 billion. By the end of the first quarter of the fiscal year, it will exceed $34,000 billion. It is soaring out of control, and perhaps it is not surprising that the CBO has not updated its forecasts with this debt uncertainty. The CBO also assumed that debt interest costs last year would be $663 billion, when it ended up being $980 billion 48% higher than forecast. For the current fiscal year, the CBO assumed that the average interest cost on debt held by the public would be only 2.9%. Short-term T-bill financing upon which the Treasury has become overly dependent is almost double that.
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A look at policies coming from exec and legis branches will tell you that.
ReplyDeleteIf I managed my household finances like the goobermint manages theirs, I'd be living in a cardboard box under the overpass begging for change long after my wife took the kids and left me.
ReplyDeleteIf you managed your finances like the government, you'd be in jail.
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