This may be the maximum level of U.S. debt that’s sustainable before interest payments trigger a default crisis that even steep tax hikes can’t fix
via budgetmodel.wharton.upenn.edu
Short excerpt below. Read at the original source.
Soaring U.S. debt and projections that put it at astronomical levels in the coming years have set off increasing panic, though the precise level that sparks a crisis is unknown. But the Penn Wharton Budget Model may have an answer: more than 210% of GDP. Above that “outer bound” threshold, there’s no feasible tax on […]