Former head of the Government Accountability Office and Comptroller General of the United States, David Walker has issued a stark warning following the compromise deal to raise the debt ceiling.
“We are less than three years away from where Greece had its debt crisis as to where they were from debt to GDP,” Walker highlighted in an interview with CNBC earlier today.
Greece’s ratio of debt to GDP has surpassed 100% and is heading towards 150%, a factor that has meant without bailouts from the EU and the IMF, the country would have defaulted.
The US is now nearing the same 100% margin with GDP growth floundering below 1%.
“We should recognize that this could be a leading indicator for us,” Walker said, adding that something must be done now to significantly restructure government spending if a major collapse is to be avoided in the future.