Federal debt service cost is 20% of revenue, and rising. Double interest rates, and that goes to 40%. The greater three debt, the greater those payments. The greater that percentage, the greater the debt and the faster that percentage grows. That’s payments which MUST be made on time. When it hits 100% you’re completely bankrupt.
10% is ok.
25% is time to seriously start paying it down.
50% is serious austerity budget time (which you should have been OB anyway).
75% is oh $#!^.
100% is financial collapse. You can’t even meet interest payments; borrowing to pay interest doesn’t work.
Historically most nations go into a death spiral once they hit 40% of the budget being debt payments. Which is why I think the only way out is default.
The Fed, a private charter bank with a monopoly courtesy of the 1913 act, holds the debt. TBTF???