CBO: Don't Believe A Word Of It

You have to remember, these are the folks who said we'd have no Federal Debt by 2010 - in 2000.

CBO expects that the recovery will continue but that real (inflation-adjusted) GDP will stay well below the economy's potential—a level that corresponds to a high rate of use of labor and capital—for several years. On the basis of economic data available through early July, when the agency initially completed its economic forecast, CBO projects that real GDP will increase by 2.3 percent this year and by 2.7 percent next year. Under current law, federal tax and spending policies will impose substantial restraint on the economy in 2013, so CBO projects that economic growth will slow that year before picking up again, averaging 3.6 percent per year from 2013 through 2016.

Ok, that might be realistic

we were to look only at the recent past. After all, GDP from 2000-2010 expanded at a compounded annual rate of approximately 4.1%. But here's the problem with this projection:

It assumes that the debt ponzi will fade. See, from 1990 to 2010 GDP expanded at 4.8% annualized, but debt was expanding faster, at 7.4%.

So the

real

rate of expansion was in fact...

Read the full analysis here.

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