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US federal budget crosses grim milestone as interest payments overtake defense spending
MSN ^ | May 21, 2024 | Rick Newman

Posted on 05/21/2024 8:15:36 PM PDT by george76

The United States has long had the world’s biggest defense budget, with spending this year set to approach $900 billion.

Yet this spending is rapidly being eclipsed by the fastest-growing portion of federal outflows: interest payments on the national debt.

For the first seven months of fiscal year 2024, which began last October, net interest payments totaled $514 billion, outpacing defense by $20 billion. Budget analysts think that trend will continue, making 2024 the first year ever that the United States will spend more on interest payments than on national defense.

...

Just two years ago, interest payments were the seventh-largest federal spending category, behind Social Security, health programs other than Medicare, income assistance, national defense, Medicare, and education.

Interest is now the third-biggest expenditure after Social Security and health... interest expenses in 2024 are running 41% higher than in 2023.

...

The first is that annual deficits have exploded, leaving the nation with a gargantuan $34.6 trillion in total federal debt, 156% higher than the national debt at the end of 2010.

In the 1990s, the average federal deficit was $138 billion per year. In the 2000s, it was $318 billion. In the 2010s, it was $829 billion. Since 2020, the annual deficit has swelled to $2.24 trillion, largely due to pandemic-related stimulus measures in 2020 and 2021. The projection for 2024 is a $1.5 trillion shortfall.

...

As a percentage of GDP, the annual deficit has nearly doubled in just 10 years, from 2.8% in 2014 to a projected 5.3% in 2024. So there's just a lot more borrowing to pay interest on.

...

More taxpayer money going to interest expenses will eventually leave less money for everything else, and at some point, the Treasury won’t be able to borrow its way out of the problem anymore.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: budget; debt; deficit; inflation
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To: george76

In all fairness, cited figures should be cut from a third to a half because they represent the government owing itself money.

That is, at the start of the FY, budget appropriations are listed as *debt* to every part of the government that is supposed to get them. As they spend their appropriation, their debt gets smaller. It’s all on computer, there are no suitcases full of cash floating around.

It looks ridiculous if you don’t know its inner workings.

Interest on the debt follows more ordinary rules.


21 posted on 05/21/2024 9:51:06 PM PDT by yefragetuwrabrumuy ("All he had was a handgun. Why did <img src="you think that was a threat?" --Rittenhouse Prosecutor)
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To: Right_Wing_Madman
The US Treasury wishes it could issue T-bills without interest.

FWIW - Interest on bills held by the Fed is returned to the Treasury, isn't it?

22 posted on 05/21/2024 9:52:56 PM PDT by Chad C. Mulligan
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To: Chad C. Mulligan
FWIW - Interest on bills held by the Fed is returned to the Treasury, isn't it?

Nope. The Federal Reserve operates like a normal bank that's in the business of making money. Ideally, the Treasury interest the Fed receives is greater than the interest the Fed pays to other banks for their deposits.

23 posted on 05/21/2024 10:07:25 PM PDT by Right_Wing_Madman
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To: dfwgator
The Big Reset is coming, and there’s nothing that is going to stop it.

What exactly does it entail?

24 posted on 05/21/2024 11:38:54 PM PDT by Mark17 (Retired USAF air traffic controller. Father of Air Force pilot. Both bitten by the aviation bug)
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To: Right_Wing_Madman
The US Treasury wishes it could issue T-bills without interest.

They will. And it will seem a good deal when the banks start charging negative interest rates (as they do in some Western countries).

25 posted on 05/22/2024 12:57:05 AM PDT by Angelino97
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To: House Atreides

[ALL ACCORDING TO PLAN…the Globalists’ plan]

It’s definitely going to happen

There will be a major shift happening in the world - My personal opinion is that it sets the stage for the Antichrist - they will essentially coincide


Daniel 7:23
King James Version

23 Thus he said, The fourth beast shall be the fourth kingdom upon Earth,
which shall be diverse from all kingdoms,
and shall devour the whole Earth,
and shall tread it down,
and break it in pieces.

https://www.biblegateway.com/passage/?search=Daniel+7%3A23&version=KJV


26 posted on 05/22/2024 2:29:32 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: dfwgator

[The Big Reset is coming, and there’s nothing that is going to stop it.]

Yep. Along with World War III and Population Reduction.

Basically the 4 Horsemen of the Apocalypse.


27 posted on 05/22/2024 2:31:41 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: Nervous Tick
[We live in interesting times, and they are about to get interesting-er.]

Indeed they are my brother-in-Christ. Most of the world has no idea. All of these things are coming and it cannot be stopped. We're around the bend now. All of these crazy things are going to get even crazier.







(lurkers, please click on my screen name to see my FR homepage for further information.)
28 posted on 05/22/2024 2:41:42 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: Mark17

[What exactly does it entail?]

Moving to the Philippines? Does my Medicare Part B work over there? Since it looks like I’m forced to get it.

Not sure what my best options are since I’m not working at the moment.


29 posted on 05/22/2024 2:49:04 AM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: anthropocene_x
all the reckless spending fueled by debt from past politicians.

Biden is both a past and a present politician, with the worst characteristics of both.

30 posted on 05/22/2024 3:44:36 AM PDT by ding_dong_daddy_from_dumas (Re-imagine the media!)
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To: MinorityRepublican

Can’t we sell some gold? Eventually we will sell off national parks to private ownership.


31 posted on 05/22/2024 4:54:48 AM PDT by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: dfwgator
The Big Reset is coming, and there’s nothing that is going to stop it.

More than likely, yes. People need to get out of the mindset of "what do we do?" and start thinking in terms of "what do we do next?" And "next" is going to look a lot different than what we see now. Different lines will be drawn. Different sides will be drawn up.

32 posted on 05/22/2024 4:59:06 AM PDT by DSH
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To: Fungi

Wait!

There’s MORE!


33 posted on 05/22/2024 4:59:16 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: george76

Sorry, that grim milestone was passed long ago when collective entitlements surpassed the Defense Budget - everything else for that matter...


34 posted on 05/22/2024 5:05:53 AM PDT by Gaffer
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To: Fungi

“ Why are no US Notes being issued?”

Who would buy a note that doesn’t pay interest?

L


35 posted on 05/22/2024 5:28:01 AM PDT by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: george76

We had and still have a president & Congress that insist on pissing away resources that we needed & not utilizing some that we still have. I’m also sure that’s only part of the problem.


36 posted on 05/22/2024 6:03:10 AM PDT by oldtech
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To: Right_Wing_Madman
Nope. The Federal Reserve operates like a normal bank that's in the business of making money.

Not quite. I wasn't wrong. The Fed returns a large portion of it's PROFIT back to the Treasury. Until 2023, anyway.....thanks to the Bidenflation fiscal policies.

https://www.reuters.com/business/fed-may-need-four-years-recoup-income-loss-st-louis-fed-study-says-2023-11-27/

37 posted on 05/22/2024 9:13:00 AM PDT by Chad C. Mulligan
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To: Chad C. Mulligan
The Fed returns a large portion of it's PROFIT back to the Treasury.

According to the article you sent, the Fed sends all its profits to the Treasury:

"Whatever the Fed earns beyond its operating expenses is then returned to the Treasury Department."

But the Fed does not give the Treasury interest-free loans:

"The red ink further mounted as the funds rate, now at between 5.25% and 5.5%"

38 posted on 05/22/2024 3:46:21 PM PDT by Right_Wing_Madman
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To: Right_Wing_Madman

Right now there are no Fed Profits.


39 posted on 05/22/2024 3:50:33 PM PDT by Captain Peter Blood
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