Ben Johnson, Floyd Reports
As Barack Obama held his first press conference in months to promote his new $50 billion economic payback to unions, it bears reading a little-known reports from the Congressional Budget Office admitting out-of-control spending is leading us perilously close to a Greek-style meltdown. CNSNews.com has uncovered an obscure CBO report from July that states, “Combined with an unfavorable long-term budget outlook,” a double dip recession “would increase the probability of a fiscal crisis for the United States.” (Read the whole report here.)
That sounds somewhat antiseptic. Bill Clinton never saw a problem he did not label a “crisis.” But by “fiscal crisis,” the CBO means a replication of the collapse of Greece or Ireland.
What does the CBO view as the driver of this Greek tragedy? Unsustainable debt levels driven by massive government spending.
Obama has added more to the national deficit in 19 months than in the first 200 years of U.S. history. That’s more than every president from George Washington until Ronald Reagan, more than the New Deal and the Great Society, and more than every war from 1812 to the fall of the Berlin Wall. And what do we have to show for it? This: (Article continues after image.)
The report states a PIGS collapse — where lenders would no longer be willing to finance U.S. debt — could come upon us without much advance warning. The report states: “there is no identifiable tipping point of debt relative to GDP indicating that a crisis is likely or imminent. But all else being equal, the higher the debt, the greater the risk of such a crisis.”
And more debt is precisely where we are heading, by design.