U.S. deficit will start to increase by 2016

On Tuesday, the Congressional Budget Office gave the forecast for the 2013 United States deficit. It projected the deficit would be equal to 4 percent of the American economic output. Democrats were very happy about the news, and White House Press Secretary Jay Carney made the announcement with a big smile.

The news may sound promising, but the U.S. deficit is projected to also take a turn in the other direction in less than 3 years. The Congressional Budget Office also  projected the U.S. deficit will start to increase by 2016, and continue on an upward path. According to Reuters, http://www.reuters.com/article/2013/05/20/us-usa-fiscal-debt-analysis-idUSBRE94J03H20130520?feedType=RSS&feedName=topNews
Paul Ryan, the chairman of the House Budget Committee, still calls it “a fresh reminder of Washington’s out of control spending”

In 2010 the United States had as much debt as the rest of the world had combined. Other countries do not have money to lend the U.S., so last year the Federal Reserve purchased nearly all the debt issued by the U.S.  The fact that the treatury Department would be willing to print money in order to cover the American debt is alarming The Republican-controlled House Budget Committee  is not budging in their attempt to cut back on government spending in order to avoid devastating results in the future. 

In 2010 the U.S. 94.3% of the nation’s GDP, this percentage is not far from the 115.1% that Greece has had to deal with.  Bloomberg http://www.bloomberg.com/news/2013-05-19/greece-isn-t-turning-the-corner.html reported yesterday that Greek unemployment reached a record 27 percent in February, with 1.3 million Greeks out of work and some 400,000 families that have nobody earning an income, and close to 300,000 workers waiting to be paid by their employers.