So when does one stop spending and cut back?
The U.S. national debt will soon reach 100% of GDP, the IMF predicts in a new report.
The following graph shows the sharp rise in U.S. debt starting in around 2006. By 2015, the IMF suggests, debt could reach well over 100% of GDP.
The IMF predicts that the U.S. would need to reduce its structural deficit by the equivalent of 12% of GDP, a much larger portion than any other country analyzed except Japan. Greece, in the midst of a financial crisis, needs to reduce its structural deficit by just 9% of GDP, according to the IMF’s analysis.
Read the full, very long report here.
Read the rest of the story IMF: U.S. debt approaching 100% of GDP – The Hill’s Blog Briefing Room.