U.S. debt is soaring, set to reach 107% of GDP by 2029, with $11 billion weekly debt service. Harvard professor Jeffrey Frankel outlines possible solutions, ruling out faster growth due to a shrinking labor force. Default, inflation, and financial repression are deemed risky. Severe fiscal austerity may be inevitable, cutting defense and discretionary spending.

Democrats are unlikely to cut major programs, while Republicans favor tax cuts. Austerity may only come after a severe crisis, warns Frankel. Oxford Economics predicts Social Security and Medicare trust funds will be insolvent by 2034, prompting a push for fiscal reform to prevent a drop in demand for Treasury bonds and soaring rates.

Read more at Yahoo Finance: The most likely solution to the U.S. debt crisis is severe austerity triggered by a fiscal calamity, former White House economic adviser says