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**LoP Guest** lop guest User ID: 108350 08-22-2012 08:05 PM

CBO: Feds flirting with double-dip recession

President Obama and Congress are flirting with both a recession and a bigger jump in unemployment next year unless they head off looming tax increases and spending cuts — but doing so could mean a fifth straight year of trillion-dollar deficits, the government’s chief scorekeeper said Wednesday.

The latest update by the Congressional Budget Office shows the time for hard choices that lawmakers have feared for years is now here: Leaders must choose between economic pain and budget-tightening now, or continuing to bolster the U.S. economy with the risk of a bigger fiscal collapse later.

Already baked into the numbers is the deficit for fiscal year 2012, which will top $1.1 trillion — the fourth-straight year of trillion-dollar deficits, dating back to the end of President George W. Bush’s term and covering all of President Obama’s three and a half years in office.

“The key issue facing policy makers is not whether to reduce budget deficits,” said Douglas W. Elmendorf, director of CBO. “The question is when. The question is how.”

He said even if the economy picked up, the government will still run major deficits over the decade, meaning the fiscal imbalance is caused by the spending promises the government has made outstripping the amount of money it’s likely to raise in taxes.

“At some point we will need to adopt policies that require people to pay significantly more in taxes, accept substantially less in government benefits and services, or both,” Mr. Elmendorf said.

Either way, there will be pain. Even if the government continues pumping cash into the economy, the unemployment rate will average 8 percent next year. But the pain is worse if the money stops: Joblessness would peak above 9 percent and remain above 8 percent at least through the end of 2014.

Story Continues → Read more: CBO: Feds flirting with double-dip recession - Washington Times
http://www.washingtontimes.com/news/2012...recession/

**LoP Guest** lop guest User ID: 98692 08-22-2012 08:20 PM

It looks like National Socialism is almost here.

It's all about the Homeland now, baby!

More trillions in fake money + higher taxes = ?

Watered gas + bigger mountain to climb for Joe.