Jewish Press News Briefs
The Israeli government’s deficit shrank by 30 percent,
from $5.7 billion in the first nine months of 2013 to only $4 billion in the
same period this year, Globes reported on Monday. September’s deficit was only
$250 million. The deficit for the past 12 months represents 3.2 percent of the
Gross Domestic Product (GDP), slightly more than the desired ceiling of 3
percent.
The continuing decline in the government deficit will probably bring
down number to below 3 percent by the end of the year. Tax revenues grow by
nearly 10 percent in the nine-month period, not including September payments
that were not recorded until October because of the recent holidays. Spending
grew by 5.1 percent but less than the budgeted 8.8 percent increase.
Read more at: http://www.jewishpress.com/news/breaking-news/is-obama-listening-israels-debt-shrinks-by-30-percent/2013/10/08/
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Read more at: http://www.jewishpress.com/news/breaking-news/is-obama-listening-israels-debt-shrinks-by-30-percent/2013/10/08/
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President Obama and the Treasury Department are demanding that Congress raise the
$16.7 trillion debt ceiling so that the government can continue
borrowing in order to pay its current obligations before the October 17
deadline. However, and known to far too few citizens, $16.7 trillion is a fraction of the total national debt owed by our government. Missing from the discussion about raising the limit on the government’s credit card are trillions in unfunded liabilities that the United States of America simply will not ever be able to pay.
What
exactly are unfunded liabilities? They are payments the government
knows it owes in the future, including the future costs of Medicare,
Social Security, and the prescription drugs of Medicare Part D. You can
follow the unfunded liabilities tab on the U.S. Debt Clock website
— right now, this site estimates our unfunded liabilities to be $125.7
trillion. In 2017, if current trends continue, the site’s “Debt Clock
Time Machine” estimates unfunded liabilities will reach $153 trillion.
Amazing
as it seems (and no private firm would ever contemplate such deceitful
accounting), these trillions in unfunded liabilities are not itemized on
the current U.S. Treasury balance sheet.
However, due to a demographic bulge comprising 28% of
the total U.S. population now reaching retirement, these mounting
“unfunded” obligations can no longer be ignored. The first crop of
post-war children from 1946 began turning 65 in 2011 at the rate of10,000 a day. This pace will continue until 2029, when the last group of boomers born in 1964 turn 65.
Our
government will struggle to generate enough tax revenue to pay for what
is owed and promised, but 76 million rapidly aging baby boomers
overwhelm the number of younger workers paying into the system.
Eventually, between the interest on the debt and the benefit payments
themselves, there will be no money left in the federal budget for
anything else.
Here is what the Congressional Budget Office (CBO) wrote in its 2013 Long-Term Budget Outlook report released on September 17:
Choices For The Future
The
unsustainable nature of the federal government’s current tax and
spending policies presents lawmakers and the public with difficult
choices. Unless substantial changes are made to the major health care
programs and Social Security, those programs will absorb a much larger
share of the economy’s total output in the future than they have in the
past.
Yet
the phrase “unsustainable nature” isn’t heard often from our current
administration and media. This climate could lead to our national
“demise” because Medicare, Medicare Part D, and Social Security are not
going to change. Whenever there is talk of reforming these programs, a
national outcry follows.
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