Federal Reserve Chairman Janet Yellen, referencing the Congressional Budget Office's long-term budget projections, told the Joint Economic Committee of Congress that under current policies the federal government’s deficits “will rise to unsustainable levels.” In the 10-year budget projections it released in April, the CBO estimated that the federal government will run $7.618 trillion in deficits from 2015 through 2024.
This projection appears to be very conservative since our deficit increased that amount in the last five years. We must also remember that during this time the interest rates have been at historical lows. The rates would need to double to be considered more normal. If we were to go back to the low expectation and high interest rate error of Jimmy Carter when rates would have been quadrupled plus from what they are now, the deficit would be even more unsustainable if that is possible.
Yellen’s comments were based on the government running on the current policies. This projection does not consider the full effect of Obamacare with its additional deficits and negative economic impacts. It does not take into account a permanent unemployment benefit as called for by the Marxist/Progressives. (I know the one proposed has an end date, but so did the previous two or three.) It does not take into consideration the additional debt we would accumulate once an amnesty program was passed.
When Yellen said unsustainable she must have meant that we as a country could not continue to function financially. When this has happened to other countries, the country has defaulted on its payments or a state of hyperinflation came about. Both scenarios have proven to be devastating to a population. What these events have always brought about is causing the upwards of 99% of the population to become financially equal; they all are poverty stricken. This is the goal of Marx, Obama, Jarrett, Axelrod and Podesta to have an economic balance of all. They are succeeding according to the CBO and Fed Chairman Yellen.