The US Congressional Budget Office is warning that the federal deficit has hit a point of no return. It is far too late to cut wasteful government spending. Politicians have kicked the can down the road for far too long and left us with a financial system held up through perpetual borrowing that cannot be reversed.
The CBO’s long-term forecast shows the federal deficit rising to 7.3% of GDP by 2055, but the figure is currently at 6.2% as of 2025 and this is an optimistic report. In contrast, the 30-year average from 1995 to 2024 was 3.9% of GDP. Public debt is projected to hit 156% of GDP by 2055, up from the 100% of GDP we face today.
Now the CBO mentioned that Trump’s tariffs could negatively impact the economy but we reached the point of no return years ago. Trump cannot be blamed for the current situation in the least. “Mounting debt would slow economic growth, push up interest payments to foreign holders of U.S. debt and pose significant risks to the fiscal and economic outlook,” the Long-Term Budget Outlook: 2025 to 2055 stated.
The Baby Boomer generation is at or nearing retirement and Social Security benefits are currently at 5.2% of GDP. The CBO believes this will reach 6.1% of GDP in 2055 but fail to recognize the fund is drying up. The Ponzi Scheme will come crashing down.
Interest expenditures alone have hit 3.2% of GDP as America. In 2024, the US spent $881 billion simple to finance its massive debt, and that figure is projected to reach $1.8 trillion by 2035. We spend more on servicing debt than we do on defense spending at this point.
Raising taxes cannot solve this massive issue, but that will not prevent the government from attempting to extort the people to cover their fiscal mismanagement. The government knows it is trapped and will continue to hold off on paying down their debt as long as possible. Worse still, other nations are decreasing their investments in Treasuries as we have seen with China and Russia. Japan is our main buyer now but they have their own colossal problems.
The debt crisis is global. America is far from the only nation facing an outright default, and as I have warned, we will see the pieces crumble one by one with America being the last frontier. This is precisely why Europe wants war because they are attempting to delay the inevitable collapse. Some believe they can confiscate Russian natural resources and save the day, but that is simply neocon fanfiction.
The ECM has pinpointed key turning points in the global economy, and the next phase of this crisis is unfolding right before our eyes. The sovereign debt crisis is inevitable, and as we approach 2028–2032, we will see capital flow away from the West once confidence in government collapses.
