CBO Says Financial Crisis Likely

The Congressional Budget Office released its 2013 long-term budget outlook on Tuesday, stating that “a large and continually growing federal debt …would increase the probability of a fiscal crisis for the United States.”

The report says under current laws and policies, the federal debt could reach 100 percent of Gross Domestic Product in 2038.

It also projects that the federal government’s health care spending “will grow considerably in 2014 because of changes made by the Affordable Care Act.”

CBO says federal debt held by the public is now about 73 percent of the economy’s annual output, or gross domestic product. “That percentage is higher than at any point in U.S. history except a brief period around World War II, and it is twice the percentage at the end of 2007,” the report said.

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