Read: https://www.cbo.gov/system/files/2023-06/59014-LTBO.pdf
If federal debt continued to rise in relation to GDP at the pace that CBO projects it would under current law, it would have far-reaching implications for the fiscal and economic outlook. The consequences of that high and rising debt would include the following: There would be an elevated risk of a fiscal crisis— that is, a situation in which investors lose confidence in the U.S. government’s ability to service and repay its debt, causing interest rates to increase abruptly, inflation to spiral upward, or other disruptions to occur.
There it is. There WILL BE a fiscal crisis, causing inflation and interest to skyrocket. But we don't know when. But probably before 2053, when there will be 10% of GDP annual deficits, with annual interest being 6.7% of GDP. If the GDP in 2053 is $80 trillion per year (a wild guess), then annual interest paid will exceed $5 trillion per year.
No comments:
Post a Comment