Date: June 2012: Deloitte | Deloitte Research | America’s Debt Crisis | New research reveals five unexamined risks

America’s national debt remains a hot topic for discussion in the media, in boardrooms and around kitchen tables. But most of the conversation is taking place on the surface and in sound bites, which lack the depth and nuance that such a complex topic deserves.  A new Deloitte Research report – The untold story of America’s debt – raises the possibility that the debt crisis is even more severe and immediate than most of us think.

New Deloitte research reveals five unexamined and potentially game-changing risks that could make the crisis worse than current baseline Congressional Budget Office (CBO) estimates indicate.  We believe that it is critical for government and business leaders to understand the potential cascading impacts of these risks.

This report raises a core question for the next decade: Will political courage and policy innovation prevail over entrenched thinking and our unwillingness to admit the real costs of the U.S. debt? How America responds will determine whether the next decade represents a long-term decline in competitiveness or a new path to growth. 

Five risks to watch

America's discussion on the National debt needs to acknowledge the full complexity of the issue the shape informed, responsible outcomes. These risks fall into five major categories with potential implications for public and private sector organizations.

The debt crisis is likely bigger than you think. The magnitude of the debt is highly sensitive to economic fluctuations. Debt could adversely impact American competitiveness. Rising debt could impact the independence of monetary policy. Demand for and composition of America's debt isn't just America's decision. The silent cost of interest

The silent cost of interest payments divert funding away from investments that could boost America's competitiveness. Click to enlarge our infographic.

Download The untold story of America’s debt  report for further insights.

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