America Going Broke?

When the country's top watchdog says America's heading toward financial Armageddon, it's time to take notice. Few have monitored the country's financial pulse as closely as David Walker — Comptroller General at the Government Accountability Office. And he sees dire things ahead for the U.S. economy.

U.S. debt obligations, he estimates, have reached $45 trillion — or $150,000 per person. To balance the budget in 2040, he says, the U.S. government will need to cut spending by as much as 60 percent or raise taxes by 250 percent.

The day of reckoning, Walker warns, is coming and nobody is doing anything about it. The biggest threat America's shores, he says, is fiscal irresponsibility. U.S. comptroller David Walker, his chilling picture of America's financial future and what it could mean for you.

Guests:

David Walker, Comptroller General at the Government Accountability Office, a 3,200-employee government body that monitors all federal programs. He was appointed by President Clinton for a 15-year term in 1998.

Phillip Swagel, Resident Scholar, American Enterprise Institute. He is former Chief of Staff at the Council of Economic Advisers under George W. Bush.