In all, the president’s budget would add $8.5 trillion to the federal debt through 2020, pushing the debt as a percentage of GDP to 77% from 53%.
Kenneth Rogoff, a Harvard University economist who has studied other countries’ experiences, said that level could push the U.S. toward a tipping point where interest rates could soar, the value of the dollar could plunge and the economy could face another crisis.
We will hit a point where it comes on us very quickly, and you don’t want to edge up to that point,” Mr. Rogoff said.
It’s called ‘the cliff’.
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