Bernanke headlines a day of grim warnings about the nationโ€™s fiscal standing

Fed chairman Bernanke issued a grim warning yesterday about the federal government’s overwhelming debt. Key quote:

The national debt is currently about 60 percent of the economy, or Gross Domestic Product, [Bernanke] said, adding that it is projected to reach 90 percent of GDP by 2020 and 150 percent of GDP by 2030. But Bernankeโ€™s citation of $9.5 trillion in national debt didnโ€™t include the $4.6 trillion owed by the government to trust funds for things such as Social Security and Medicare, which have paid out cash to the Treasury in exchange for promisory notes. The full national debt โ€“ when both forms of debt are included โ€“ is already just under 100 percent of GDP, which is currently around $14.6 trillion.

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