Riots, massive unemployment, hyperinflation, savings accounts wiped out, financial markets in chaos — these are potential scenarios for America’s future, but exactly when and how the nation’s debt crisis will unravel is still a matter of speculation. Most economists doubt that the United States will soon experience the kind of catastrophic meltdown that struck Greece in recent years, but the U.S. national debt is now more than $17 trillion and growing, with no plans to pay it back. The national debt, which was about $11 trillion when President Obama took office, is now larger than America’s annual gross domestic product (GDP), and is expected to increase by about $700 billion in the next year.
Even though budget sequestration has slowed the rate of deficit spending, the federal government continues hemorrhaging red ink, and the national debt will be nearly $20 trillion by the time Obama leaves office in January 2017. America already has the ninth worst debt-to-GDP ratio in the world, and the piling up of unpaid debt cannot continue forever, says Murray Holland.