Posted on 09/13/2024 3:08:08 PM PDT by CFW
The U.S. government for the first time has spent more than $1 trillion this year on interest payments for its $35.3 trillion national debt, the Treasury Department reported Thursday.
With the Federal Reserve holding benchmark rates at their highest in 23 years, the government has laid out $1.049 trillion on debt service, up 30% from the same period a year ago and part of a projected $1.158 trillion in payments for the full year.
Subtracting the interest the government earns on its investments, net interest payments have totaled $843 billion, higher than any other category except Social Security and Medicare.
The jump in debt service costs came as the U.S. budget deficit surged in August, edging closer to $2 trillion for the full year.
With one month left in the federal government’s fiscal year, the August shortfall popped by $380 billion, a dramatic reversal from the $89 billion surplus for the same month a year prior that was due largely to accounting maneuvers involving student debt forgiveness.
(Excerpt) Read more at cnbc.com ...
I'm not going to predict the date of the final collapse, but we are surely on that road.
/sarc
If we are passed the point of no return, you can thank Democrats and spineless RINOs.
You can really thank the Fed for 50 plus years of disaster in trying to micromanage the economy. When Nixon took us off the Gold Standard that made us a Fiat Money Country and lead us to where we are now.
Our biggest problem is health care costs, this fiscal year they are $2.78 Trillion and we only take in $450 Billion on Medicare Taxes, we are at 20% of GDP instead of 5%.
Now if Harris were to get in and want Medicare for all then we end up with roughly a $12 to 14 Trillion annual budget. We could add another $20 Trillion to the National Debt easily in 4 years. Interest payment would be at $2 Trillion.
Now to pay for Medicare for everyone, all of us would have to pay about $12,000 a year in Medicare taxes and that does not include income taxes. Government Collapses and/or we Default on the Debt. Take your pick and we all starve to death.
This is one reason of many why the Fed has to keep those rates down.
Yes, it'll happen if Harris is the next President.
We'll get a reset. We'll have to stop paying for our military. It'll be like what happened to the Soviet Union after the Cold War.
People will still get Social Security but it'll be 50% of what it was before.
What we have to have unfortunately is a Full Blown old fashioned Recession to flush all the excess liquidity out of the system and reset. Rates need to continue to go up not down and we have to grapple with the budget and Fiscal Health which have been ignored. When is the last time this country had real budget that originated in the House?
What we will get is a rate cut for now. But I predict next year Inflation is back, it never really has gone away, and The Fed will have no choice but to start raising rates again. There will be no choice.
Bills, taxes,insurance and medical bills are already eating me alive. I was doing okay under Trump but the Biden-Harris clown show has ate away at everything I have saved up for. it makes a person want to run away and join the circus give up and move in with the homeless crowd and score some good drugs.
“The Fed will have no choice but to start raising rates again.”
Yeah I’ve been concerned about this very thing for decades. It will be an ugly sight as these socialists and RINOs squawk and then just borrow even more money and raise taxes.
The scary thing about the state of our country, they do want people concerned about things to be black pilled and just nope out.
“Interest Payments” should have been in all caps and stated as: “INTEREST PAYMENTS Alone”!!!!!
Every administration from now on will be hampered in all its fiscal policies by having to deal with just the interest due on the debt.
The only thing that can help will be big sales of federal land assets.
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