Tuesday, July 11, 2017

While you were sleeping

Source: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52801-june2017outlook.pdf

The projected deficit just got a lot bigger.  I previously speculated that $800 billion was the danger point for the deficit, and it was going to exceed this in 2022.  Well that has been bumped up a year, as the deficit in 2021 is now projected to be $879 billion, up from $797 billion previously projected for 2021.   Again, this assumes no recession.

Also notice that the deficit is projected to "bottom out" at $565 billion in 2018.  Just a few months ago, the 2018 deficit was projected to be $487 billion.

Of course, these numbers will skyrocket when the recession hits in 2018.  I think the deficit will exceed $1 trillion in 2019 and then explode from there.

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