Total U.S. debt will be $35T at the end of this year. Current debt service costs on obligations coming due is roughly 5%. We have a large amount of debt coming due in the next 12 months. Do the math
$35T x .5% = $1.75T in debt service. This is assuming we can keep debt service at 5% which is hardly a guarantee due to the extremely large amount of treasuries which have to be sold. The Federal Reserves is about the only buyer of U.S. Treasuries at this point. Just printed money. It’s a shell game.
At what point will our political leaders address this issue.? What point will the media cover this issue?. What point will the American people pay attention? Assume the answer to all the above is “when everything crashes and we can’t pay entitlements or we continue to print money and inflation hits 20-30% (maybe higher).
$35T x .5% = $1.75T in debt service. This is assuming we can keep debt service at 5% which is hardly a guarantee due to the extremely large amount of treasuries which have to be sold. The Federal Reserves is about the only buyer of U.S. Treasuries at this point. Just printed money. It’s a shell game.
At what point will our political leaders address this issue.? What point will the media cover this issue?. What point will the American people pay attention? Assume the answer to all the above is “when everything crashes and we can’t pay entitlements or we continue to print money and inflation hits 20-30% (maybe higher).
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