The United States national debt has hit a precarious milestone, hitting 100% of Gross Domestic Product (GDP) and placing the nation on a trajectory that could trigger six types of financial crises, according to an ominous new warning issued Thursday by the Committee for a Responsible Federal Budget (CRFB).
With the national debt now effectively equal to the size of the entire U.S. economy, the non-partisan watchdog’s latest report, “What Would a Financial Crisis Look Like?” outlined a dangerous future ahead.
“If the national debt continues to grow faster than the economy,” the report said, “the country could ultimately experience a financial crisis, an inflation crisis, an austerity crisis, a currency crisis, a default crisis, a gradual crisis, or some combination of crises.”
With the national debt now effectively equal to the size of the entire U.S. economy, the non-partisan watchdog’s latest report, “What Would a Financial Crisis Look Like?” outlined a dangerous future ahead.
“If the national debt continues to grow faster than the economy,” the report said, “the country could ultimately experience a financial crisis, an inflation crisis, an austerity crisis, a currency crisis, a default crisis, a gradual crisis, or some combination of crises.”
