List of Flash News about fiscal risk
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2025-05-21 19:42 |
US Debt-to-GDP Ratio Projected to Hit 220% by 2055: Major Fiscal Risks Highlighted by CBO Data
According to The Kobeissi Letter, the US Congressional Budget Office (CBO) projects that the US Debt-to-GDP ratio could soar to 220% by 2055 if the 2017 tax reductions are extended indefinitely, which is 64 percentage points above the baseline projection (source: The Kobeissi Letter, May 21, 2025). This trajectory signals significant fiscal instability and could undermine confidence in US government bonds, increasing demand for alternative assets like Bitcoin and other cryptocurrencies among global investors. Traders should monitor macroeconomic policy changes closely, as elevated debt levels historically drive shifts in capital flows toward non-sovereign stores of value, potentially increasing crypto market volatility and trading opportunities. |