Sunday, April 10, 2016

The next recession in 2018 will cause trillion dollar deficits as far as the eye can see

... implicit in the CBO projections is the assumption that we will not have a recession in the next 10 years. Plus, the CBO assumes growth above what we’ve seen in the last year or so. We randomly decided that we would hypothesize our next recession to occur in 2018. Whether it happens in 2017 or 2019, the relative numbers are the same. Entitlement spending and interest would greatly exceed revenue.  The deficit would balloon to $1.3 trillion. And if the recovery occurs along the lines of our last (ongoing) recovery, we will not see deficits below $1 trillion over the following 10 years—unless we reduce spending or raise revenues.
--http://www.zerohedge.com/news/2016-04-09/these-2-charts-show-next-recession-will-blow-out-us-budget

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