There’s Only One Word for the CBO’s Analysis of the President’s Budget
Ugly. That’s the best spin one can put on the just-released Congressional Budget Office analysis of President Obama’s budget. Deficits are above 4.1 percent of Gross Domestic Product (GDP) for the next ten years and rising at the end of the budget window. Debt in the hands of the public doubles and the debt-to-GDP ratio rises above 87 percent. Net interest is almost 20 percent of revenues – even with big tax increases – in 2020. The result: downgrade as a sovereign borrower in 2018. That’s ugly.