US Debt Crisis Looms as Deficits Projected to Surpass $1,000,000,000,000

By Brian Riedl | October 19, 2018

Annual budget deficits are projected to soon surpass $1 trillion, on their way to $2 trillion or even $3 trillion in 10 to 15 years. Social Security and Medicare face a combined $100 trillion cash deficit over the next 30 years, which would push the national debt to nearly 200 percent of the gross domestic product (GDP). At that point, interest on that debt would consume 40 percent of all tax revenues—or more, if interest rates rise. Unless reforms are enacted, global markets will, at some point, stop lending to the U.S. at plausible interest rates. When that event occurs, or even approaches, interest rates will soar, and the federal government will not be able to pay its bills, with dire consequences for the U.S. economy.

A debt crisis, in short, looms on the horizon..........To Read More....