1. Broke

    Budget Office Warns of Debt Explosion

    Congressional Budget Office (CBO) Director Douglas Elmendorf testifies on on Capitol Hill in Washington, Thursday, Jan. 27, 2011, before the Senate Budget Committee hearing on the Budget and Economic Outlook: Fiscal Years 2011-2021.

    Charles Dharapak / AP Photo

    The national debt will exceed the size of the entire U.S. economy by 2021, according to an analysis by the Congressional Budget Office released Wednesday. The report also predicts that the debt will double the GDP within 25 years, and increased government spending is “attributable entirely” to the soaring costs for "Social Security, Medicare, Medicaid and (to a lesser extent) insurance subsidies" to help fund coverage for the uninsured under the new health-care law. As for solutions, the CBO said the government must raise taxes, cut health and retirement spending, or do a combination of the two.

    Read it at The Washington Post