BIS central bankers’ speeches  3  25 years. 3 The ability to control health-care spending, while still providing high-quality care to those who need it, will be critical for bringing the federal budget onto a sustainable path. The CBO’s long-term budget projections, by design, do not account for the likely adverse economic effects of such high debt and deficits.
But if government debt and deficits were actually to grow at the pace envisioned, the economic and financial effects would be severe. Sustained high rates of government borrowing would both drain funds away from private investment and increase our debt to foreigners, with adverse long-run effects on U.S. output, incomes, and standards of living.