Endgame: US Federal Debt Interest Payments About To Hit $1 Trillion

... while tax receipts slumped 9.2% from $461 billion to $418 billion, resulting in a TTM government receipt drop of over 7.3%, the biggest since June 2020 when the US was reeling from the covid lockdown recession; in fact never have before tax receipts suffered such a big drop without the US entering a recession.

Es wird klappriger auf der Einnahmenseite ...

For context, the weighted average interest for total outstanding debt at the end of June was only 2.76%, a level that’s not been surpassed since January 2012, according to the Treasury. That’s up from 1.80% a year before, the department’s data show, and if the Fed indeed keeps rates "higher for longer", the blended rate on the debt will surpass 4% in one year.

That would be a complete disaster for the US, and it would mean that interest payments on total US debt of $32.3 trillion would hit $1.3 trillion within 12 months, potentially making interest on the debt the single biggest US government expenditure and surpassing social security!

Das sind düstere Aussichten und erklärt u.a. warum Yellen bei den Chinesen angetanzt ist.

Ich bin gespannt, welches Kaninchen die jetzt aus dem Hut zaubern ...

Grüße

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Afuera!