Posted on 04/11/2023 7:37:09 AM PDT by Twotone
The Congressional Budget Office on Monday revealed that the cost of payments on the federal debt soared 41 percent in the first six months of the fiscal year thanks to higher interest rates — driving the deficit up to $1.1 trillion over the period. Top Financial Stories Argentina Shouldn’t Expect a ‘Dead Cow’ Bounce Marcos Falcone NRPLUS Garett Jones Rethinks Immigration Policy Dominic Pino NRPLUS Lessons from Nigel Lawson Andrew Stuttaford NRPLUS
Under President Biden, massive spending has fueled not only high deficits but also inflation. The Federal Reserve Board has pursued an aggressive rate-increasing campaign to try and tame inflation, but one of the risks was always that this would further exacerbate the nation’s fiscal problems by adding to the cost of interest payments on the debt. And there is now evidence this is exactly what’s happening.
In its latest monthly budget review, which catalogues the first six months of the fiscal year that began last October 1, the CBO flags interest payments as one of the largest single contributors to the overall increase in spending:
Net outlays for interest on the public debt increased by $90 billion (or 41 percent), mainly because interest rates are significantly higher than they were in the first six months of fiscal year 2022.
In February, CBO projected that by the end of the decade, the federal government would spend more on interest payments than on defense.
I’ve been talking about this for years. As rates rise the interest on the debt will consume the budget.
Will the politicians squirm then? Probably not.
An economy based on Monopoly money. Nice.
Don’t worry, we won’t run out of money, they will print more as we need it... I think Lowes is having a sale on Wheel Barrows...
Think my buddy has mine, I had best go get it back.
A blind man could have seen this coming.
Sure, the interest rates went up, but the money itself is devalued so the debt is worth less. That’s why the smart move is to pay down the debt in inflationary periods.
But we don’t have smart politicians running the country.
. I think Lowes is having a sale on Wheel Barrows...
Nobody, but nobody could have foreseen this. Fortunately, we have experts to tell us what to do and how things should work.
I cannot be broke: I still have CHECKS LEFT.a
“Net outlays for interest on the public debt increased by $90 billion (or 41 percent), mainly because interest rates are significantly higher than they were in the first six months of fiscal year 2022.”
That doesn’t make any sense as written, but the 2022 national debt interest only payments were $476 billion. The $90 billion was only for the first 6 months, is what the statement was trying to say. The interest paid is rising sharply, very sharply.
What difference does that make? Nation is broke and in debt beyond belief. . End result, super inflation. Or in reality, bankruptcy.
ATM cards man...
You won’t even notice the zeroes.
Note the evolution —
One good for another good
Precious metal for a good
Precious metal to paper currency
paper currency to electronic transactions
The next hyper inflation won’t have Billion Dollar bills like Zimbabwe — we’re modern here in los estatdos unidos.
You Win the Internet!
.
Unsustainable. The collapse is coming.
Yes the collapse is coming. A banking/financial crisis.
“Never let a crisis go to waste...”
DUH
Many of us said that this would happen
What could possibly go wrong?
I’ve seen photographs of post WWI Germany where packing cases were padded out using Deutschmarks as they were worth more as packing paper than their face value.
It’s incredible
We sure do live in interesting times
✝️🙏🛐
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