Congressional Budget Office Reveals U.S. Debt Worse Than Thought

The United States national debt is nearing critical mass. On March 20, the Congressional Budget Office released a 30-year outlook revealing that the debt picture is darker than many analysts thought.

• This outlook predicts that by the year 2054, the cost of interest payments on the debt will more than double from 3.1 percent of gross domestic product to 6.3 percent.
• It also predicts that social safety net programs will account for over half of the nation’s outlays.

Financial danger: The U.S. recently passed the point where it spends more on interest payments on its debt than on defense. Now, the Congressional Budget Office predicts it will hit a point where one third of all tax revenue goes to interest on the national debt, and two thirds of all tax revenue goes toward social security and health care. This means the entire government will be funded by borrowed money.

In personal finance, lenders stop loaning people money when their monthly debt payments exceed 36 percent of their monthly income. The U.S. government is set to hit this point sometime in the 2050s, so citizens need to start preparing for high taxes and runaway inflation.

Sudden collapse: Our standard of living will soon cause major economic problems. The Bible explains basic economic laws, which we are ignoring. It also contains specific forecasts of economic collapse. Read our Trends article “Why the Trumpet Watches America’s Economic Collapse.”