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Time is running out for congress to come up with some kind of a deal on raising the debt ceiling and avoiding national.
Vice president Joseph Biden heads to the hill this afternoon to try to come up with some agreement -- legislate or is.
As we get a sobering new report from the nonpartisan Congressional Budget Office.
Jim Angle is live with some of those numbers from Washington Jim.
Hello John well the debt reduction talks -- vice president Joseph Biden have begun what insiders call a make or break week.
An effort to find two trillion dollars or more in spending cuts as part of the deal to increase the debt ceiling.
Treasury Secretary Tim Geithner says the negotiators are getting closer.
-- we need to make some progress this week to give everybody more confidence that.
There's a good -- -- as -- vote -- ultimately what matters is I don't get the votes to pass in the in the house and the senate.
As if anyone needed additional reasons just this morning as you said -- the Congressional Budget Office released new figures on debt projections and they are stunning.
The CBO says under -- all the debt will be 70%.
Of the total economy.
By the end of this year the highest since just after world -- suit.
Historical averages about 20% but the CBO also says it is actually much worse than that.
It offers an alternative scenario based on what congress is likely to do and one that -- most analysts believe there's much more realistic.
For instance current law has doctors treating seniors in Medicare.
Taking a 30% cut in fees this year that is not going to happen.
That's the so called doctor -- current law would also raise taxes on the middle class in two different ways the expiration of the bush tax cuts and the Alternative Minimum Tax.
No way is congress going to do that either and when CBO factored in what is likely the results are stunning look at this chart.
It shows the debt soaring.
Of the total economy by 20/20 one.
And -- to nearly 190%.
Of GDP by 2035.
Now to have any affect on that frightening trajectory congress needs to act now and that cold reality is what these debt talks are about.
For comparison John just keep in mind that Greece which is being ripped apart by its debt.
Cutting public spending cutting government pensions and unemployment soaring.
It was only about a 145%.
GDP to debt ratio last year that he is not the direction in the US wants to ago.
-- those are some pretty alarming numbers Jim Angle.
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