Debt Now 69% of the GDP, Heading for 100%

The Ship of State

From Forbes: The CBO reports that the national debt is already the highest in history except for World War II, reaching 69% of GDP this year.  On our current course, CBO projects the national debt held by the public will climb to 100% of GDP by 2021, equal to our entire economy.  By 2023, it will break the World War II historical record of 109% of GDP.  It will then continue to rocket upward to 190% of GDP by 2035, which is higher than the level suffered by Greece when it collapsed into national bankruptcy.

According to CBO’s projections, if all of the President’s budgetary proposals were enacted, they would add $26 billion to the baseline deficit for 2011. As a result, the 2011 deficit would total $1.43 trillion, or 9.5 percent of gross domestic product (GDP). Read here: Forbes-Obama’s ticking time bomb

Charts from the CBO Homepage: By 2021…debt held by the public would reach 97 percent of GDP, the highest level since 1946. Federal debt held by the public would double under the President’s budget, growing from $10.4 trillion (69 percent of GDP) at the end of 2011 to $20.8 trillion (87 percent of GDP) at the end of 2021.

The President’s policy proposals mostly affect the revenue side of the budget. Those proposals would reduce revenues, compared with CBO’s baseline projections, in every year of the coming decade—for a total reduction of about 6 percent over the 2012–2021 period.

Read here: CBO Homepage