Fiscal Tightening in 2013 & Its Economic Consequences
Lorimer Wilson / Munknee.com
Under current law, a sharp reduction in the federal budget deficit between 2012 and 2013 will cause the economy to contract but, the Congressional Budget Office projects, will also put federal debt on a path more likely to be sustainable over time. To illustrate the effects of fiscal tightening, CBO compared its projections under current law (the “baseline” projections) with projections under an alternative set of policies — two scenarios in a broad spectrum of choices – in the infographic below.
So says the introduction to the infographic* below from the Congressional Budget Office (www.cbo.gov) as presented to you by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in all re-posting to avoid copyright infringement.
*http://www.cbo.gov/publication/43544
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Whistler Blowers, Insiders
Notice how the ‘non-partisan’ CBO (and most other Republican and Democratic institutions, politicians, and think-tanks) always aspire to put the “federal debt on a path more likely to be sustainable over time”.
What this means is, they’d still like it to keep growing, just maybe a little less than it is now.
The first questions you should ask yourself is; Why do politicians, regardless of party, both in theory and in practice, want to keep the Federal Debt, Corporate Debt, and Private Debt constantly growing over time?
The answer, of course, is that it is absolutely required to keep the Monetary System, as designed, functioning. It will not be until we change the system that requires this ever-expanding debt by someone for ‘proper’ functioning, that we will truly take control over our sovereign destinies and our collective future, and away from the supranational banking institutions, central banks, and the private banking corporations they serve.