Posted on 05/24/2024 1:16:24 PM PDT by SeekAndFind
Interest payments on the nation’s ballooning debt just eclipsed spending on defense and Medicare, worrying policy experts who have warned this threatens to undermine U.S. economic stability.
In the first seven months of fiscal year 2024, which began in October, spending on net interest surged to $514 billion, surpassing spending on both national defense ($498 billion) and Medicare ($465 billion). In fact, interest costs have topped spending on veterans, education and transportation combined.
Rising debt will continue to put upward pressure on interest rates," the Committee for a Responsible Federal Budget (CRFB), a nonpartisan group that advocates for lowering the national deficit, said in a statement.
"Without reforms to reduce the debt and interest, interest costs will keep rising, crowd out spending on other priorities and burden future generations."
For years, the U.S. was able to borrow cheaply, thanks to historically low interest rates. However, as the federal funds rate increased, so did short-term rates on Treasury securities, making federal borrowing far more expensive.
The Federal Reserve raised interest rates 11 times in 2022 and 2023, lifting rates to the highest level in 23 years in an attempt to crush high inflation and cool the economy. Policymakers have signaled they will hold rates at those elevated levels until they are certain inflation is conquered.
(Excerpt) Read more at msn.com ...
Not enough yet. We need bankruptcy. Then the politicians will quit, the gov’t workers will go home, the communists will run out of money.
Nirvana.
Biden just gave Kenya $4billion to build roads, so that’ll probably help.
Think of that when you can’t pay your rent or tell your kid no McD’s because its too expensive.
This means nothing to the retards in Congress. They don’t have any idea what money is.
It’s almost funny. One of the big points of disagreement at the start of our country was on “internal improvements”. Should the federal government help to build canals? Roads? Dredge rivers? Why should taxpayers in Georgia pay money to build a canal in New York??? In the end, it was decided that internal US improvements could be funded by the federal government.
And now we give $4B to Kenya for roads. Because [shrug] why not?
Pull an Iceland.
They seem to be doing fine once they did bankruptcy.
2 Billion dollars a day.
$2,000,000,000. That’s how much INTEREST the US pays on our National Debt each day.
SPENDING and Taxation without representation results in debt nation.
the Communist Chinese Deputy Director of their national bank has observed several times now that.... the Commies lose money lending it to USA (buying American federal government securities)
because the high USA inflation rate reduces the actual purchasing power of the money by the time China gets it repaid from USA (like on 10 year bonds)
say they get paid 4 percent a year but the inflation rate is REALLY over 10 percent, they lose 6 percent a year in their purchasing power, compounded over 10 years and that reduces their purchasing power by over 70 percent!
one of these days foreigners and yes American banks will stop losing money buying our long term debt
especially with Biden’s Turbo-Charged Inflation
Those were private banks in Iceland.
This U.S. issue concerns interest payments owed on Treasury paper, the national debt.
Cloward-Piven at work.
We can always rebuild. US would lose its reserve status, but I think it’s going to lose it anyway.
“Those were private banks in Iceland. This U.S. issue concerns interest payments owed on Treasury paper, the national debt.”
The Federal Reserve is a consortium of private banks.
Oh yes they do and they are laundering as much as they can get their filthy hands on!
“one of these days foreigners and yes American banks will stop losing money buying our long term debt”
China will continue to buy U.S. Treasury paper for as long as we run a trade deficit with them.
China intends to continue running a huge trade surplus in their favor. The strategic value for them far outweighs any economic loss from a declining dollar.
Democrats don’t care. Republicans don’t care. Biden doesn’t care. Trump doesn’t care.*
* Trump attempted many good things while he was president. But he did not veto a single major spending bill. So I must regretfully conclude that even he doesn’t care about the deficit.
Hyperinflation, paying back the debt with worthless paper. That’s the only way out. The only question is when.
That’s because the big guy has to get his vig.
and they barrow much of that to pay the bill.
Biden, you did that!
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