US debt headed toward 200 percent of GDP even after 'fiscal cliff' deal

The nation's long-term fiscal outlook hasn't significantly improved following the recent agreement between Congress and the White House over tax and spending issues, according to a new analysis.

The "fiscal cliff" deal, combined with the debt-limit agreement of August 2011, only slightly delays the United States reaching debt-to-gross domestic product levels that would damage the economy and risk another fiscal crisis, according to a report from the Peter G. Peterson Foundation released on Tuesday.

The agreement "may have prevented the immediate threats that the fiscal cliff posed to our fragile economic recovery, but we haven’t remotely fixed the nation’s debt problem," said Michael A. Peterson, president and COO of the Peterson Foundation.

"The primary goal of any sustainable fiscal policy is to stabilize the debt as a share of the economy and put it on a downward path, and yet our nation is still heading toward debt levels of 200 percent of GDP and beyond," he said. Read more >>

Sales skyrocket for bulletproof backpacks and kids’ body armor

Demand for a Utah company’s bulletproof backpacks and even child-sized body armor has skyrocketed in the aftermath of the shootings at Sandy Hook Elementary in Newtown, Conn.

Amendment II has been in business for a couple of years now, selling its brand of lightweight armor called “Ryno-Hide” to police agencies and the military. They began putting sheets of the armor in children’s backpacks a year ago.

“The concept came up as things happened at schools,” Rich Brand, Amendment II’s Chief Operating Officer, told FOX 13 on Tuesday. “Children need protection as well.”

Brand said initially, they would only sell a handful of the backpacks and child-sized body armor at gun shows. The backpacks retail from $150-300. After the Newtown shooting that killed 20 children, the demand for the product skyrocketed. There has been so much demand, the company said, it has overloaded their website.

“Our armor was being bought to protect people, the ‘preppers,’ is the term,” Brand said of those who would typically buy it for personal use. “At this point, it’s transcended to everyone. Anyone who’s sending out a child into the world, seeing what can happen now, they want to protect their children.” Read more >>