US debt and budget deficits

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The IMF has warned the US to start tackling its budget deficit which is set to be a whopping 10.8% of GDP this year. One of the biggest bond traders in the world has positioned itself to benefit from spiralling costs of US debt as they struggle to convince investors that it can repay the debt. Compared with other countries in Europe who have started efforts to reduce their budget deficits, the US has continued with tax cuts, increased spending and quantitive easing. Could the US cause another economic catastrophe by leaving tackling its debt situation too late? How long can the US continue to mount such huge debts?