CBO: Federal Debt on Unsustainable Path, Could Reach 123% of GDP by 2034 and Trigger Crisis

CBO projects US federal debt on track to reach 116% of GDP by 2034, but outlook likely worse based on market forecasts for interest rates and tax policy

Bloomberg analysis shows debt could hit 123% of GDP by 2034 based on market rate projections

88% of 1 million simulations by Bloomberg Economics indicate debt is on an unsustainable path over next decade

Bipartisan agreement debt outlook concerning, but bitter partisan divide in Congress makes substantive action to curb debt unlikely

Erosion of confidence in US debt could trigger crisis, with loss of reserve currency status and cheap financing