Fiscal Update

I have been and am still bearish on the fiscal health of the USA, but I have long brought to your attention, dear readers, the much more optimistic take of Scott Grannis, whose viewpoint should probably be taken a lot more seriously than mine.  Here is his latest view.

Again, this is a deficit view, and it can be seen as optimistic.  My pessimism follows from a debt perspective.  The fiscal obligations of the federal government as they stand today cannot be paid, and thus won't.  So, while the deficit picture is brightening, the reality is that we are adding half a trillion dollars on top of what is effective insolvency - not good.  Obligations will be expunged trough default of one form or another, likely inflation.

BTW, a $500 billion structural deficit is atrocious.  Barack Obama has inured us to such outrageous fiscal profligacy - five years of $1 trillion+ deficits, that we actually look upon a mere $500 billion as OK.  Just another example of the accelerated pace of destruction that Lightworker has put us on.