The National Debt Tipping Point

The odds of default escalate dramatically after a country's debt to GDP ratio hits 200%. And risk of default becomes all but certain at 275%. The US Department of the Treasury forecasts that at our current trajectory, the national debt is on target to pass 200% in a little over 20 years. So let's say we do nothing. Over the next two decades, we don't cut overall spending. We don't raise revenue. We just keep on keeping on kicking the whole can factory down the road. Wouldn't surprise me if we got to the 200% finish line a little earlier than predicted.