CBO Grows a Pair

If you haven't read the latest CBO Budget Outlook you can see it at http://www.cbo.gov/publication/43288

Here are their main conclusions:

What Is the Impact of Growing Deficits and Debt?
In particular, large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment—which in turn would lower the growth of incomes in the United States.

Rising debt also would have other negative consequences beyond those estimated effects on output.
It would:

1. Result in higher interest payments on that debt, which would eventually require higher taxes, a reduction in government benefits and services, or some combination of the two.

2. Restrict policymakers’ ability to use tax and spending policies to respond to unexpected challenges, such as  economic downturns or financial crises.
 
3. Increase the probability of a sudden fiscal crisis, during which the government would lose its ability to borrow at affordable rates.

This pretty much says it all.  Either the US gets it house in order or major problems will occur in the coming years.