So I’ve looked a bit at the budget that came out last week. First, let’s look at the summary:
(As always, click to open in larger window) The first scary thing I noticed was that deficits continue, right out to 2019. Wasn’t it yesterday that we had a surplus?
Oh right, that was before Bush took office. I remember the concern was that with no need to float more debt, that the government would have no place to ‘invest’ the social security trust fund, and that other instruments tied to T-Bills or bonds would have to find other indexes. Well those days are long gone.
So far, I have no conclusion, these numbers are large and frightening, but the impact of the budget needs to be felt quickly to be part of the solution and not send us into a more severe downturn.