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US debt will become unsustainable in roughly 20 years if it doesn’t change course, a Penn Wharton Budget Model determined.
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After that, no amount of tax hikes or spending cuts could prevent default “whether explicitly or implicitly.”
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An implicit default would include debt monetization that produces significant inflation.
The US has roughly 20 years to change course on the size of its debt, or else a default of some form will be unavoidable, a Penn Wharton Budget Model determined in October.
Analysts looked at the $26.3 trillion of US debt held by the public, which excludes money the federal government owes itself in the overall outstanding debt total of $33 trillion.
“Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts…
