GENERAL ACCOUNTING OFFICE (GAO) CALLS U. S. DEBT LEVEL "UNSUSTAINABLE"

The Government Accountability Office (GAO) has released updated information on the nation’s fiscal outlook, based on the projections from the non-partisan Congressional Budget Office (CBO). On October 7, CBO announced that the nation's budget deficit for 2009 was $1.4 trillion, triple 2008's, which was the worst in history at the time.

The summary on the report from the GAO warns that even though the nation's deficits are bleak now, they're likely to get much worse if left unchecked:

Weaknesses in the economy and financial markets—and the government’s response to them—have contributed to near-term increases in federal deficits, which reached a record level in fiscal year 2009. While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth. GAO’s simulations continue to show escalating levels of debt that illustrate that the long-term fiscal outlook remains unsustainable. In little over 10 years, debt held by the public as a percent of GDP under our Alternative simulation is projected to exceed the historical high reached in the aftermath of World War II and grow at a steady rate thereafter.

Senator Judd Gregg (R-NH) warned over the weekend that if Obama's deficit spending isn't checked, the nation runs the risk of turning into a "Banana Republic".

FURTHER READING: ZIMBABWE'S $100 TRILLION LESSON FOR AMERICA

GENERAL ACCOUNTING OFFICE (GAO) CALLS U. S. DEBT LEVEL "UNSUSTAINABLE"