1/24/2013

Even Obama's own GAO warns that current spending is "unsustainable."

Posted by Tom

Obama and his administration is full of hypocrisy.  Anyone with the most basic understanding of economics knows that our Country moves closer to insolvency each and every day.  He's already increased taxes on everyone across the board, in spite of campaign pledges to the contrary, but has yet to take any steps to cut spending!

Here's what he said about this very same problem back in 2006.....


(It seems he's fond of using children to sell his bill of goods... )

Now, even the Presidents own Government Account Office, a fact that seems to have gone almost unreported in the mainstream media, warns that we're on an unsustainable fiscal path.  I'm not surprised given the fact that on average, everyday we're adding $3,699,744,466.56 dollars to the National Debt.  This translated to an annual increase of $1,354,106,474,762.13 in new debt last year.  Current estimates for 2013 are at best the same, if not worse.  This means that every TAXPAYER in America is currently $145,877 dollars in debt!


GAO report number GAO-13-271R entitled 'Financial Audit: U.S. Government's Fiscal
Years 2012 and 2011 Consolidated Financial Statements' which was released on
January 17, 2013.
"Increased attention to risks that could affect the federal government’
s financial condition is made more important because of the nation’s 
longer-term fiscal challenges. The comprehensive long-term fiscal 
projections presented in the unaudited Required Supplementary 
Information section of the 2012 Financial Report show that—absent 
policy changes—the federal government continues to face an 
unsustainable fiscal path. The oldest members of the baby-boom 
generation are already eligible for Social Security retirement 
benefits and for Medicare benefits. Under these projections, spending 
for the major health and retirement programs will increase in coming 
decades as more members of the baby-boom generation become eligible 
for benefits and the health care cost for each enrollee increases. 
Over the long term, the structural imbalance between spending and 
revenue will lead to continued growth of debt held by the public as a 
share of gross domestic product (GDP); this means the current 
structure of the federal budget is unsustainable. 

These projections, with regard to Social Security and Medicare, are 
based on the same assumptions underlying the information presented in 
the Statement of Social Insurance and assume that the provisions in 
law designed to slow the growth of Medicare costs are sustained and 
remain effective throughout the projection period. If, however, the 
cost containment measures are not sustained over the long term—a 
concern expressed by the Trustees of the Medicare trust funds, the 
Centers for Medicare & Medicaid Services’ (CMS) Chief Actuary, the 
Congressional Budget Office, and others—spending on federal health 
care programs will grow much more rapidly. GAO also prepares long-term 
federal fiscal simulations which continue to show debt rising as a 
share of GDP.

The Full report: Click here to view FULL REPORT

 
If Obama's inauguration speech is any indication of his future 
intentions, it doesn't look like he's willing to do what's right for 
America.  Our National Debt is the single largest threat to our National Security.
I solemnly Swear to make lame attempts,cutting down this tree with a utility Knife...
 
 


 
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