We are on a rapid and unsustainable fiscal path according to the GAO:
“GAO’s federal simulations show that absent policy changes, the federal government faces a rapid and unsustainable growth in debt.
Simulations of the state and local government sector show that not only the federal government faces fiscal challenges that will have a profound effect on government over the coming decades.
A growing imbalance between revenue and spending is driven on the spending side by rising health care costs and the aging population, which in turn will lead to a rapid increase in spending on retirement and health programs.”
In their summary, the GAO said:
“While CBO projects that continuation of such polices would prevent disruptions to the economy in the very near term, it would lead to higher debt over the long term.”
Read more here.
The report also stated that the Department of Defense has such serious financial management problems that its financial statements are not auditable. Read about that here.