The Congressional Budget Office (CBO) has released a new report projecting that the US national debt will skyrocket to an astonishing $141 trillion by 2054. According to the non-partisan federal agency, the country’s GDP is expected to reach $85.2 trillion in the next three decades, but the debt will be a staggering 166% of that figure. This excessive debt could potentially jeopardize the dollar’s status as the reserve currency, warns the CBO. In fact, the agency states that higher inflation expectations could erode confidence in the US dollar as the dominant international reserve currency.

Currently, the US national debt stands at $34.64 trillion. The CBO predicts that the rapidly growing debt will eventually drive up the cost of borrowing, leading to a reduction in private investment. This, in turn, will slow down economic growth and have a detrimental impact on American workers. As the investment in capital used for the production of goods and services, such as housing and commercial structures, decreases, workers will have fewer resources to perform their jobs. This will result in lower productivity, decreased compensation, and a decreased desire to work. These effects will worsen over time as federal borrowing continues to grow.

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