The Congressional Budget Office is sounding a grim warning about the country's financial future.

The CBO said if current tax and spending policies don't change, the national debt will equal the size of the economy in just 10 years and swell to twice the size of the economy in 25 years.

It suggests allowing Bush-era tax cuts to expire in January, along with introducing a wave of spending cuts.

The CBO concedes those measures would shock the economy in the short term, but it would help shrink the national debt when measured against the economy.