United States National Debt Will Explode

Fiscal consolidation is not only needed to bring down current debt levels and the high fiscal deficit of 9 percent in the United States. Without radical reforms in Medicare, Medicaid and Social Security which will mainly cause the rise in debt, the Government Debt will actually explode to 350% in 2050.

In fact entitlement spending will consume all tax revenues by 2049.

Heritage

Who Holds the United States National Debt

The Washington Post made this graph with the holders of the United States 14 trillion national debt.

• 5.7 Trillion: The biggest part of the cake is hold by United States government institutions, like the Medical Trust Fund, the Social Security Fund and the Federal Reserve.
• 4.4 Trillion is hold by foreign investors.
• 3.9 Trillion is hold by other investors.

Washington Post

United States National Debt + Liabilities: 351% of GDP as of 2010

Besides the current outstanding national debt, the United States has a lot of liabilities. 

This table by Economy Watch with figures from the United States 2010 financial report (page 21) gives the total United States debt and liabilities. 

Economy Watch

With the table I constructed this chart with the (total) debt and liabilities as a percentage of 2010 GDP.

Projection of United States government spending

Via Lukas Daalder Projection of different types of government spending. Notice that Medicare, Madicaid, CHIP and Exchange subsidies will rise sbustantialle from 2020 as a percentage of GDP.

Source: The Incidental Economist