Thanks Mom and Dad...

Greece’s hostile economic climate has drawn increasing looks back the U.S. economy and our long-term balance sheet. At issue are not our current debt levels. The overall deficit should narrow to 3.9% of GDP by 2015 because of the three year freeze on discretionary spending. The problem, a mountainous one, begins at the end of this decade and rolls onto around 2035. The Congressional Budget Office estimates that current spending plans will have annual deficits of 15% of BDP while the net public debt would be greater than 180% of GDP. Both of these are larger than the current levels seen in Greece. Again national politics will be the underlying story. The impossibility of Congress to act and reform or eliminate mandatory spending programs like social security will force action to come only as the reaction to a crisis. Reforming health care costs and finding a solution to the baby boomer’s upcoming retirements have been punted to the millennial generation. We can thank our parent’s for their inability to balance a budget and force us to act swiftly so we can have a chance to live in the same United States as they did.