Our Nation's Bleak Long-Term Fiscal Outlook

February 23, 2007
Our Nation's Bleak Long-Term Fiscal Outlook

The long-term fiscal outlook results from a large and persistent gap
between expected revenues and expected spending.

For GAO's "Baseline extended" simulation, closing the fiscal gap would
require spending cuts or tax increases equal to 3.6 percent of the
entire economy each year over the next 75 years, or a total of $26
trillion in present value terms. For GAO's alternative simulation, the
gap is 7.5 percent of the economy, or about $55 trillion in present
value terms. To put this in perspective, if we were to invest enough
today to pay off these amounts over the next 75 years, the sums needed
would amount to about $87,000 to $182,000 per person, or about $208,000
to $435,000 for each full-time worker.

Dems lead on every major issue.

February 22, 2007
Dems lead on every major issue.

                                                     Both    Neither   No
                                 Bush    Dems   (vol.)   (vol.)    op.
a. The situation in Iraq              34      54       *        9       2
b. campaign against terrorism         39      52       2        5       2
c. The economy                        36      56       1        6       2
d. The federal budget                 32      59       1        6       2
e. Health care                        25      62       1        9       4

History of the Public Debt

February 5, 2007
Clicking the link below will load a pdf file from the Treasury Department.
US Government Debt (1982-January 21, 2007 (PDF)

Bush Budget Delivers the Bacon

February 7, 2007
Bush Budget Delivers the Bacon

At least in Iraq, we created enemies we can now fight. The bulk of the rest of the military
portion of the federal budget, $481.4 billion for the Defense Department and an additional $22.5
billion for other departments' defense programs, is intended to fight an enemy of advanced
military power that is nowhere to be found--not even among the dreaded "Axis of Evil" nations.

For example, this budget allocates billions to continue building stealth aircraft designed to
evade Soviet defenses the ex-superpower never managed to create.

The United States' military budget is greater than that of the next 14 biggest military
spenders combined. Even if not one additional dollar is allocated to the advanced weapons systems
now in the works, there is not a nation on Earth that would dare challenge U.S. dominance in the
air or on the seas for decades to come. The enormous imbalance in U.S. military spending is not
about defense but rather profit.

Bush submits $2.9 trillion budget

February 5, 2007
Bush submits $2.9 trillion budget

US President George W Bush has submitted a $2.9 trillion (£1.5 trillion) budget to Congress
including almost $700bn in new military spending.

Much of the money is earmarked for the war in Iraq and Afghanistan.

The 2008 budget also sets out plans to curb domestic spending, including $66bn savings over
five years from Medicare.

Economy tethers Bush budget

February 5, 2007
Economy tethers Bush budget

A business slowdown or recession, an increase in inflation and interest rates, a reversal in the
willingness of foreign investors to keep buying U.S. Treasury bonds could put the skids on what
has been a strong economy.

Meanwhile, spiraling payouts in guaranteed federal benefits for Social Security and Medicare as
baby boomers retire "is going to be the single largest economic problem that we face," said Mark
Zandi, chief economist for at Moody's Economy.com.

"Deficits look OK today," Zandi said. "But what happens at a time when the economy isn't
operating at full tilt?"

When Bush took office in 2001, the national debt was about $5.6 trillion. Now it stands
at about $8.6 trillion.

The Concord Coalition is Back

January 17, 2007
The Concord Coalition is Back

THE CONCORD Coalition is back, the group of bipartisan elders founded in 1992 to sound the clarain call for budget balance. Last Sunday, the Coalition bought a full-page ad in The New York Times, warning of the costs of Social Security and Medicare and the dangers of continuing federal
deficits.

The Coalition projected the future "un funded" expenses of Medicare and Social Security at $39
trillion. The ad included an ominous chart showing mandated programs such as these plus interest
on the national debt eating up the entire federal budget in just 13 years.

House Dems adopt limits on 'earmarks,' deficit spending

January 6, 2007
House Dems adopt limits on 'earmarks,' deficit spending

The so-called pay-as-you-go budget rules were passed with broad support as part of a package that
also requires lawmakers to disclose which "earmarks," or spending items, they have added to bills.
The explosion of earmarks in recent years -- including the infamous "bridge to nowhere" in Alaska
-- fueled voters' anger and contributed to Republicans' election losses last fall.

U.S. Comptroller: Surge Costs Don't Add Up

January 15, 2007
U.S. Comptroller: Surge Costs Don't Add Up

It is unclear what much of the $5.6 billion is to be spent on, Walker said. Walker and others have
complained that tens of billions of dollars are spent on the wars in Iraq and Afghanistan annually
with little explanation of what the money is spent on.

The wars have been funded largely through emergency supplemental appropriations, but the
requests provide Congress with scant detail on spending.

U.S. Comptroller sees long-term need for tax hikes

January 11, 2007
U.S. Comptroller sees long-term need for tax hikes

WASHINGTON, Jan 11 (Reuters) - Tax increases are essential to avoiding long-term fiscal ruin and overcoming a "demographic tsunami" that would eventually swamp the U.S. budget with senior citizen health care and retirement costs, Comptroller General David Walker told Congress on Thursday.

But Walker also warned the new Democrat-controlled committee that cutting spending will
not be enough.