....The updated CBO projections landed amid budget battles in Washington, underscoring not only the distance between the White House and Congressional Republicans on spending but also the gravity of the nation's fiscal woes.
CBO projects that if Congress leaves current laws unchanged, the debt will be 77% by 2023, and it will be higher if across-the-board spending cuts are diluted or various expiring tax breaks extended. (The deficit is the difference between spending and revenues in a given year; the debt is the government's total borrowing, or the sum of past deficits.)
Douglas Elmendorf, director of the nonpartisan agency that advises Congress on budget and economic matters, emphasized the risks of failing to stabilize the debt.
"At this level of debt relative to GDP, our country would be incurring costs and bearing risks of a sort that we have not [had] in our history except for a few years around the end of the second World War," he said. "At the same time, bringing debt down relative to GDP requires reductions in services that we are getting from the government, or higher taxes paid to the government."...Read the whole story HERE.