Economist: The countdown to the US fiscal crisis has begun

Comparatively, according to Kim 10, Kent Smetters (Kent Smetters), head of the Wharton Budget Model Project at the University of Pennsylvania, believes that the “end” will come to the US between 2045 and 2050, which is a tipping point for the US economy. At that point, the federal government's treasury bond interest payment costs will be so huge that even a massive tax increase won't help. Smets said that at that point, the US government will fall into clear or hidden default, both of which will have disastrous consequences. A clear breach would make the US a global debtor. Implicit defaults, on the other hand, could theoretically be achieved by monetizing debt (leading to inflation) or cutting social security and health insurance spending. Smets said, “At this point, panic began to spread, and it was also a time to lose trust in the government. This is also the cause of the destruction of other societies. Going back to Rome, France, Spain, England, and Germany, almost every empire has been destroyed by debt.”