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US Debt Nears WWII Levels Amid $38 Trillion Crisis
The Committee for a Responsible Federal Budget warns six fiscal crises could arise without pro-growth deficit reduction as interest costs hit $1 trillion, consuming 18% of federal revenue.
- Thursday's CRFB report concluded the US debt has reached 100% of GDP and warned of six potential fiscal crises.
- Interest costs surged last year, consuming a near-record share of federal revenue comparable to the Medicare budget, and the CRFB warned that shrinking fiscal space risks worsening outcomes without a thoughtful pro-growth deficit reduction package.
- The report details specific scenarios, noting a default crisis on $31 trillion public debt would be catastrophic, with Argentina's $20 billion loan and the 2023 Silicon Valley Bank collapse as examples.
- A loss of market confidence would force lawmakers into abrupt spending cuts or tax hikes, while a Currency Crisis could devalue the U.S. dollar and trigger an Austerity Crisis.
- CBO projections show a gradual crisis could lower real income per person 8% over the long term, while Ray Dalio, hedge-fund billionaire, warned at Davos that monetization poses a stark choice.
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Outlook for the Budget and the Economy
CBO's Budget and Economic Outlook, typically produced in January each year and updated in August, includes an economic forecast and projections of spending and revenues under current law—known as baseline projections—over the next 10 years. CBO also updates its budget projections each spring in conjunction with its analysis of the President's budgetary proposals. By showing outcomes if current laws generally remained in place, the baseline proje…
US Set to Exceed World War II Debt Levels by 2029, CBO Projects
The US government is on track to surpass record debt levels set after World War II in just four years, the Congressional Budget Office warned on Friday — even as it lowered somewhat its deficit projections for the next decade.
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Coverage Details
Total News Sources20
Leaning Left2Leaning Right2Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 22%
C 56%
R 22%
Factuality
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