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The Capitol building is seen through the American flags in Washington DC on October 20, 2022.
The Capitol building is seen through the American flags in Washington DC on October 20, 2022.

Jakub Porzycki/NurPhoto/Getty Images

  • US debt will become unsustainable in roughly 20 years if it doesn't change course, a Penn Wharton Budget Model determined.
  • After that, no amount of tax hikes or spending cuts could prevent default "whether explicitly or implicitly." 
  • An implicit default would include debt monetization that produces significant inflation.

The US has roughly 20 years to change course on the size of its debt, or else a default of some form will be unavoidable, a Penn Wharton Budget Model recently determined.

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Markets, mi-exclusive, us-debt, borrowing-costs, Treasurys, Bonds, Default, debt-crisis, federal-spending, taxation, penn-wharton-budget-model
Source
US debt will become unsustainable and trigger default in about 20 years, if it …