Not sure how much farther we can kick the can down the road. The current administration has continued the trend, if not even more vertical. Of course blaming the last administration.
The spike in 33 was not even from creation of tremendous debt as it was from a rapid decline in the denominator of GDP. Look at our parabolic run in recent times, and that is without a rapid decline in GDP. Right now we benefit by comparative advantage by being a little stronger than those across the pond. Pointing fingers "over there" only buy us a little more time but the correction will be even more austere. Look at the credit crunch crisis we had a year and a half ago. That was our Greek warning, that was our riot. Yet we have done nothing but extend and pretend. We didn't get any positive change, in fact, much much worse change w/ growing entitlements.
Couple that with the baby boomers who were in their prime earning years to drive the economy. That has ended and the shift is now boomers will be net sellers to draw down their equity in retirement. It'll be tough to grow GDP and grow our way out of the rapid debt accumulation.
We are brewing a perfect storm for some serious can kick back in the next few years if we don't impose our own fiscally responsible measures. Cracks are starting to appear overseas in Greece(soon to be others) and even here at home with a nearly 1000 pt plunge. Our problems aren't fat finger trades but rather fat finger bailouts and fat finger spending.
Government has already proved how it will respond by extend and pretend, ignoring the warning signs of not implementing financial discipline. It's reported dear leader has been lecturing European heads of state on these matters. What a joke. America is waking up and hopefully we can re-tool the Republican party with real conservatives who can implement the hard choices of smaller government.