Taking a look at the debt-to-GDP ratio

One of Janet Yellen’s comments this morning was on the impending unsustainable level of the US debt in the coming years. As the CBO chart below shows, we are likely to approach the 100% debt-to-GDP level in the next 10 years. This has been a concern for quite some time as this level of debt is simply not sustainable over the long term. More generally, the overleveraged US and global economy poses significant problems if not dealt with. The problem is, how do we deal with this at this point?

debt to gdp

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