The US National Debt is going up $1 trillion every 100 days. It reached $32 trillion on 6/15/23, $33 trillion on 9/15/23, and $34 trillion on 1/4/24!
It appears that a big reason for the rapid growth is the increase in interest rates. The interest on the debt used to be only 1-2%, or only a few $100 billion a year. Now the interest is higher, and of course the balance is ever higher, so interest is running $1 trillion a year. We're borrowing to cover out of control spending, and borrowing to cover all the interest as well.
The interest cost will continue to climb sharply. Much of the debt is held in the form of long term treasury notes, which were originally issued at low interest rates. However, a portion of those notes come to maturity each month, and then new notes are issued to replace them, at current higher rates. In time, the average interest will grow to 4-5% and beyond. That will soon take us to $2 trillion/year in interest, which would be 5% of $40 trillion. That will come in 2025.
The debt has begun spiralling out of control. We are approaching the point where "that which cannot continue, won't".
This thread is for news and discussion as this situation plays out.
It appears that a big reason for the rapid growth is the increase in interest rates. The interest on the debt used to be only 1-2%, or only a few $100 billion a year. Now the interest is higher, and of course the balance is ever higher, so interest is running $1 trillion a year. We're borrowing to cover out of control spending, and borrowing to cover all the interest as well.
The interest cost will continue to climb sharply. Much of the debt is held in the form of long term treasury notes, which were originally issued at low interest rates. However, a portion of those notes come to maturity each month, and then new notes are issued to replace them, at current higher rates. In time, the average interest will grow to 4-5% and beyond. That will soon take us to $2 trillion/year in interest, which would be 5% of $40 trillion. That will come in 2025.
The debt has begun spiralling out of control. We are approaching the point where "that which cannot continue, won't".
This thread is for news and discussion as this situation plays out.