Warning from CBO

The risk of a debt crisis along the lines of the kind being experienced in Europe will increase as long as the debt increases, the Congressional Budget Office (CBO) said Tuesday. 

The CBO said in a new report that while it was impossible to predict whether the United States would encounter a debt crisis like those plaguing some European nations, the longer debts and deficits go unaddressed, the greater the risk of a crisis.

“Unfortunately, there is no way to predict with any confidence whether and when such a crisis might occur in the United States; in particular, there is no identifiable tipping point of debt relative to GDP indicating that a crisis is likely or imminent.” a new CBO report said. “But all else being equal, the higher the debt, the greater the risk of such a crisis.”

By Michael O'Brien

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