CBO: U.S. national debt to hit $30T, exceed size of U.S. economy this year

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FILE - In this Jan. 7, 2021, file photo, an empty storefront is seen among other businesses along East Carson Street in the Southside neighborhood of Pittsburgh. The Congressional Budget Office expects that the U.S. economy will grow at a 4.6% annual rate this year, with employment returning to pre-pandemic levels in 2024. (AP Photo/Keith Srakocic, File)

FILE - In this Jan. 7, 2021, file photo, an empty storefront is seen among other businesses along East Carson Street in the Southside neighborhood of Pittsburgh. The Congressional Budget Office expects that the U.S. economy will grow at a 4.6% annual rate this year, with employment returning to pre-pandemic levels in 2024. (AP Photo/Keith Srakocic, File)

FILE – In this Jan. 7, 2021, file photo, an empty storefront is seen among other businesses along East Carson Street in the Southside neighborhood of Pittsburgh. (AP Photo/Keith Srakocic, File)

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UPDATED 9:02 AM PT – Thursday, February 25, 2021

The U.S. is nearing a fiscal meltdown amid a rising national debt and federal spending due to coronavirus lockdowns. The Congressional Budget Office said the national debt is on track to exceed the size of the U.S. economy this year.

This may result in an even higher interest to be paid on the existing U.S. debt, which could increase commercial interest rates and push inflation up as well.

Democrats are still pushing through their $1.9 trillion COVID-19 relief package, which will widen the budget deficit to almost $4 trillion. The national debt is set to exceed $30 trillion by December 31.

“There comes a point when printing money is counterproductive…I don’t think we are at that point, but nobody knew where that point was going to come and we don’t know now,” stated Charlie Munger, vice chairman of Berkshire Hathaway. “None of these people who are so pompously sure of things, because we all want assurances, so they provide it.”

U.S. fiscal performance is getting worse while Democrats are proposing even more costly federal spending projects as national debt spirals out of control.

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