This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 4, 2015:
When the Congressional Budget Office issued its Budget and Economic Outlook 2015 to 2025 in January, few could be bothered to do a serious review of it as it seemed to contradict the present meme of the Goldilocks economy: job growth accelerating, interest rates low, consumer confidence improving, deficits shrinking, and so forth. Even those taking the time to look at it, scoffed at its conclusions. Said the CBO:
The federal budget deficit, which has fallen sharply during the past few years, is projected to hold steady relative to the size of the economy through 2018.
Beyond that point, however, the gap between spending and revenues is expected to grow, further increasing federal debt … which is already historically high.
The CBO explained why: