US Debt Interest Bill Rockets Past a Cool $1 Trillion a Year

Discussion in 'Economics' started by ipatent, Nov 7, 2023.

  1. ipatent

    ipatent

    US Debt Interest Bill Rockets Past a Cool $1 Trillion a Year

    Estimated annualized interest payments on the US government debt pile climbed past $1 trillion at the end of last month, Bloomberg analysis shows. That amount has doubled in the past 19 months, and is equivalent to 15.9% of the entire Federal budget for fiscal year 2022.

    The figures are calculated using US Treasury data which state the government’s monthly outstanding debt balances and the average interest it pays.

    The worsening metrics may reignite debate about the US fiscal path amid heavy borrowing from Washington. That dynamic has already helped drive up bond yields, threatened the return of the so-called bond vigilantes and led Fitch Ratings to downgrade US government debt in August.

    “There will be further increases to Treasury coupon auctions and T-bills outstanding going forward,” Bloomberg Intelligence strategists Ira Jersey and Will Hoffman wrote in a research note. “Besides deficits of over $2 trillion in the foreseeable future, climbing maturities following the increase of issuance from March 2020 will also need to be refinanced.”
     
  2. piezoe

    piezoe

    You're barking up the wrong tree. You'll always get this wrong until you study sovereign fiat money, where it comes from, how it gets into and comes out of the private sector, what its role in the economy is, what it's relationship is to "bank money", the essential nature of deficits and the role they play, and the nature of so-called "national debt" for nations that never "borrow" in another nations currency.

    There are plenty of things we should all be concerned about when it comes to U.S. finances. But they are not the things you are concerned about. You're in very good company however. The people at Fitch also don't understand U.S. money.
     
    Last edited: Nov 7, 2023
    steve42 likes this.
  3. steve42

    steve42

    What are you doing on this forum? You know what you're talking about
     
    Windlesham1 likes this.
  4. destriero

    destriero

    fuckboi, i guess that $9T that Trump added to the Debt wasn't such a good idea.
     
    Windlesham1 likes this.
  5. steve42

    steve42

    I think whenever you start grumping about these sort of things it means you're officially old
     
    piezoe likes this.
  6. ipatent

    ipatent

    I'm retired. I'm not worried about paying higher taxes to pay the debt down. Inflation is a concern, though.
     
    steve42 likes this.
  7. Debt matters.

    People who think otherwise are delusional.
     
    ipatent likes this.
  8. steve42

    steve42

    Sure it does, like anybody can control what the government does though. so what good does it do to talk about it besides sharpen the axe ?
     
  9. piezoe

    piezoe

    Yes. Inflation is a valid concern.
     
  10. piezoe

    piezoe

    However what we call U.S. "debt" has nothing in common with private sector debt. Do not think of personal finances when you are thinking of government finances. They are two entirely different things.
     
    #10     Nov 7, 2023