Today, Fed Chairman Bernanke explained that by the year 2020, the federal debt ratio to GDP could exceed 100%. The debt could be larger than the entire U.S. economy at that time, unless there existed the political will to do things necessary to avoid this result.
Don't worry, though. Treasury Secretary Geithner said that President Obama's budgetary measures will prevent that outcome. The Congressional Budget Office agrees with the secretary. They say that if things go as well as President Obama predicts, the debt to GDP ratio will only go to 90% by 2020.
WHEW! That was a close one.
