Thursday, May 3, 2012

New Projection: 2033

I ran the numbers again, using the latest official projections for SS, Medicare and Medicaid.  I am projecting higher revenue, but also higher interest rates, rising to 4.5% after 2024.  This crosses the 150% line in 2033.  As you can see, the deficit still never drops below $1 trillion, coming the closest in 2015, before rapidly exceeding $2 trillion in 2023.  The biggest problem is interest.  I think the Fed may be able to keep the rates low for an extended period of time, but I am following the OMB trends on what they think interest is likely to be.


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