The Congressional Budget Office has looked into its crystal ball and sees the deficit getting much worse in a few years, rising to 106% of GDP by 2039. The Obama administration has been celebrating a reduction in the budget deficit to $583 billion dollars for this fiscal year. I suppose that's better than trillion dollar deficits but I see no cause for triumphalism, especially when you consider the government is taking in a record amount of revenue. But CBO says that deficit reduction won't last and that we can expect rising deficits to begin again in a few years. Politico: In its annual analysis of the government’s long-term fiscal outlook, the nonpartisan agency said Tuesday that it expects the deficit to begin growing again in coming years, and continue growing to levels unseen since the wake of World War II. “Deficits are projected to rise steadily and, by 2039, to push federal debt held by the public up to a percentage of GDP seen only once...(Read Full Post)