US federal debt is projected to soar in the next 30 years, reaching 144 percent of GDP by 2049, according to a report from the Congressional Budget Office (CBO) released on Tuesday.
The nonpartisan CBO expects federal debt to increase from a projected 78 percent of GDP by the end of 2019 (the highest since just after WWII), to 92 percent by 2029 and 144 percent by 2049.
“That level of debt would be the highest in the nation’s history by far, and it would be on track to increase more,” according to the CBO.
The US national debt has already climbed above $22 trillion. It is projected to continue rising by a trillion each year over the next decade, due to the cost of pensions and medical care for the retiring Baby Boomers.
On Tuesday, CBO Director Phillip Swagel said: “The prospect of such large deficits over many years, and the high and rising debt that would result, poses substantial risks for the nation and presents policymakers with significant challenges.”
To put the numbers in perspective, in the year before the 2008 financial crisis, US federal debt was at 35 percent of GDP, less than half of what it is now.
Peter G. Peterson Foundation CEO Michael Peterson said: “It’s bad enough that our annual deficit will soon reach $1 trillion, but CBO’s long-term projections show that the deficit will continue growing into the future, with no end in sight."
“These clear projections should motivate our lawmakers to begin managing the debt immediately, and budgeting responsibly to help America meet its most pressing challenges.”
Following stimulus measures by the Trump administration, such as a $1.5 trillion tax cut, deficits have been on the rise.
The Congressional Budget Office projections are based on certain assumptions, including that no changes will be made to existing laws and that programs such as social security will be fully paid for. The agency warned that even bigger increases in the national debt are possible, though the projected increases in debt and deficits are actually lower than last year’s projections.
Original: https://www.rt.com/business/462794-us-federal-debt-growing/
Keep working, stop paying.
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I can just say here ... this money printing have very BAD END . So I hope also lot are ready when it happens.
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John Maynard Keynes: “If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.”
Does anyone really believe that that debt will be paid?
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So, they want me to believe that US having trillions in debt is because of medical care programs? Are you kidding me? If that would be the case people from the US shall never get sick, already find cancer and many other diseases cure, living 200 years... you can tell how stupid they believe we are.
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