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from The Great Debate:

To help end budget gimmicks, pass this bill

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When it comes to addressing our growing national debt, there is no shortage of disagreement between the political parties in Washington. But there is one thing they should both agree on: to tell the truth about our nation’s growing fiscal imbalance.

That’s hardly the case today. Fiscal reporting by the federal government -- whether through the Congressional Budget Office or the Office of Management and Budget -- vastly underestimates the size of the problem we face and the inter-generational consequences of remaining on our current path.

For example, trillions of dollars in unfunded promises to current and future retirees through programs like Social Security and Medicare are not captured in either the reporting of this year’s deficit or our total national debt. In addition, cost projections on pending legislation only look 10 years into the future -- hardly far enough to gauge their long-term budgetary impact.

As a result, the real financial burdens being placed on young people and future generations are not adequately disclosed and action to fix this problem is being delayed.

from The Great Debate:

Why Obama must prevail for a ‘grand bargain’

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President Barack Obama and House Speaker John Boehner (R-Ohio) (R) in Washington, Mar. 19, 2013. REUTERS/Gary Cameron

It's been a while since we've had good news about our economy, so the recent upbeat reports are welcome. The deficit picture for 2013 has brightened a bit, along with an upturn in the housing market. Yet those developments don't tell the full story. Our economic horizon remains cloudy due to serious structural challenges.

from MuniLand:

The big cliff that Nate Silver didn’t see

Nate Silver of the New York Times weighed in with his substantial analytical skills on the growth of government spending. For a data source, he used usgovernmentspending.com, and most of the federal spending he analyzed appeared to be in line with the general consensus. But there was one area that has been very contentious, the federal debt, which is where his data source did not serve him well. Here is how he describes America’s debt:

Another surprise is how little we are paying in interest on the federal debt, even though the debt is growing larger and larger. Right now, interest payments make up only about 6 percent of the federal budget. In addition, they have been decreasing as a share of the gross domestic product: the federal government spent about 1.5 percent of gross domestic product in paying interest on its debt on 2011, down from a peak of 3.3 percent in 1991.

from The Great Debate:

Drowning in debt: the long-term cost of the crisis

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John Kemp Great DebateThe cost of bank rescues and fiscal stimulus is the largest financial disaster to befall the federal government in peacetime history of the United States.

Only World Wars One and Two, and the American Civil War, caused larger deteriorations in the budget. Bank rescues, stimulus and tax cuts will bequeath a massive legacy of government debt, on course to reach a level not seen since 1947.

from The Great Debate:

Playing chicken with the Fed

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John Kemp Great Debate– John Kemp is a Reuters columnist. The opinions expressed are his own –

Yields on long-term U.S. Treasury debt continued to surge higher yesterday as the market braced for a future upturn in inflation and a tidal wave of long-dated issues that will be needed to fund the bank rescues and the emerging stimulus package.

Yields on three-year notes are up by around 47 basis points from their mid-December low. But yields on ten-year paper have soared 82 points and rates on the 30-year long bond have surged 114 points. Long-bond rates have retraced more than half their decline since the autumn (https://customers.reuters.com/d/graphics/USTREAS.pdf).

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