The Government Debt Iceberg

By Jagadeesh Gokhale Europe and the United States will soon begin to encounter fiscal constraints the like of which we have never seen before. Federal debt as a percentage of GDP more than doubled between 2000 and 2012. According to the US Congressional Budget Office, total national debt is expected to remain close to 100 per cent of GDP during the next decade and begin to increase thereafter as the baby-boomers fully enter retirement. · Debt levels in European Union countries...